Learn about establishing a company in Dubai for foreigners because in the growing and changing business world, Dubai is considered one of the most prominent global destinations for establishing companies, especially for foreigners who seek to benefit from the dynamic business environment and economic advantages that the emirate offers. Dubai represents a strategic and thriving business center, thanks to its distinguished geographical location, advanced infrastructure, and the encouraging investment environment it provides to international investors. Establishing a company in Dubai provides foreigners with a unique opportunity to benefit from a vast and thriving market and access a wide network of businesses and resources. However, the process of establishing a company in Dubai requires precise knowledge of local regulations and requirements, starting with choosing the appropriate type of company and determining the optimal location, all the way to understanding the commercial and tax laws that govern business in the emirate. In this article, we will review the basic steps and practical advice that foreigners need to successfully establish a company in Dubai for foreigners , with a focus on benefiting from the services of specialized companies such as “Itqan” that contribute to simplifying procedures and ensuring compliance with all legal requirements.
Steps to establish a company in Dubai for foreigners
- Determine the field you wish to practice within Dubai.
- Conduct a clear feasibility study for the project and determine the objectives, strengths, weaknesses, opportunities and threats.
- Consult economic experts regarding the project you wish to establish.
- Choosing the location on which the company will be established, which must meet the necessary conditions and licenses.
- Employing highly qualified and experienced employees, workers and administrators.
- Completing all legal papers, procedures and licenses necessary to conduct business.
- Obtaining a commercial license.
- Develop alternative plans and outside-the-box ideas in order to prepare for potential problems and pressures.
We help you with all procedures for establishing a company in Dubai for foreigners, as we have an expert legal team in the fields of investment in Dubai over years of experience and exposure to the Emirati market.
Conditions for establishing a company in Dubai for foreigners
Establishing a company in Dubai for foreigners requires compliance with a set of conditions and requirements that vary based on the type of company and location chosen. Here are the most important general conditions for establishing a company in Dubai for foreigners:
1. Choose the type of company
- Limited Liability Company (LLC): Requires a local partner (UAE national) to own 51% of the shares, while foreigners can own 49%.
- Free zone company: Foreigners can own 100% of the company without the need for a local partner.
2. Location selection: In this case, you may need a local partner depending on the type of company.
The company may be entirely owned by foreigners, but commercial activities may be limited to free zones.
3. Submit the required documents
- Passport: A copy of the passport for foreigners wishing to establish a company.
- Personal photos: A number of personal photos of investors.
- Licenses and Permits: If the business requires special licenses or permits.
4. Preparing the articles of incorporation: The company’s articles of incorporation must be prepared and signed by all partners, which specifies the terms and conditions of the company.
5. Determine the business activity: The business activity that the company will undertake must be precisely defined, as requirements vary based on the type of activity.
6. Obtaining approval from the relevant authorities: It may be necessary to obtain approval from the relevant government authorities, such as the Department of Economic Development (DED) if the company is outside the free zones. If you are establishing the company in a free zone, you must obtain approval from the administrative body of that zone.
7. Renting an office: An office or work space must be rented, as this requirement can be necessary to obtain a license and register the company.
8. Opening a bank account: A bank account must be opened in the company’s name in one of the approved banks in Dubai, and proof of the required capital must be provided.
9. Obtaining licenses: Obtaining the necessary commercial licenses from the relevant authorities, which may include a commercial license, a license to practice the activity, and others.
10. Registration in the Chamber of Commerce: Registration in the Dubai Chamber of Commerce or the appropriate chamber of commerce for free zones.
Establishing a company in Dubai for foreigners requires careful knowledge of legal and administrative procedures, and it may be useful to use specialized consulting companies to facilitate the process and ensure compliance with all requirements.
Frequently asked questions about establishing a company in Dubai for foreigners
Can foreigners fully own a company in Dubai?
Yes, foreigners can own 100% of the company’s shares in Dubai if the company is established in one of the free zones. If you want to establish a company in Dubai outside the free zones, the law requires the presence of a local partner (Emirati citizen) who owns 51% of the shares.
Are there tax advantages for foreigners when establishing a company in Dubai?
Yes, Dubai offers tax benefits such as exemption from corporate tax in most free zones, and exemption from value-added tax for some activities. Dubai is also considered one of the destinations that provides an encouraging tax environment for foreign investors.
Can I open a bank account in the name of the company in Dubai?
Yes, you can open a bank account in the name of the company in Dubai. This requires submitting company-related documents, proof of capital, and meeting local bank requirements.
How long does it take to establish a company in Dubai?
Establishing a company in Dubai can take from several weeks to several months, depending on the type of company and the procedures required. Establishing a company in free zones is often faster compared to companies outside free zones.
