Some would like to know how to start a company in Dubai for Saudis because Dubai is one of the most attractive business destinations in the world, as it combines a thriving business environment with unique investment advantages that make it an ideal choice for investors and businessmen. For Saudis looking to establish companies in this dynamic city, Dubai offers great opportunities and a supportive business environment. By adopting clear strategies and a deep understanding of local legislation, Saudis can benefit from Dubai’s advanced business environment and successfully expand their business. In this article, we will review the most important steps and procedures that Saudis must follow to establish a company in Dubai , in addition to important tips that can contribute to achieving sustainable success in this competitive market.
Requirements for establishing a company in Dubai for Saudis
Establishing a company in Dubai for Saudis requires following some basic steps to ensure that all legal and procedural requirements are met. Here are the most prominent of these requirements:
- Choosing the type of company : Determine the type of company you want to establish, such as a limited liability company (LLC), a free zone company, or a branch company. Each type has different requirements.
- Choosing a business activity : Determining the activity that the company will undertake and choosing the appropriate license for it. The activity can be commercial, industrial, or services.
- Verifying the trade name : Choose a trade name for the company and ensure that it is available and not used by other companies. The name must comply with Dubai laws.
- Document preparation :
- Passport : A copy of the passport of the company founders.
- Personal photo : Personal photos of the founders.
- Articles of Association : Preparing the Articles of Association and signing it by the founders.
- Lease contract : A lease contract for a commercial office in Dubai.
- Opening a bank account : Opening a bank account in the name of the company to store the required capital according to the type of company and activity.
- Registration in government departments :
- Department of Economic Development : to obtain a commercial license.
- Federal Authority for Identity and Citizenship : to obtain residence visas and register workers.
- Registration in Chambers of Commerce : Registration in the Dubai Chamber of Commerce and Industry to obtain membership.
- Insurance : Obtaining the necessary insurance for employees and facilities.
- Security approval : In some cases, security approval from local authorities may be required.
You can also use a consulting company such as “Itqan” to help you with all the steps and ensure that all procedures go smoothly.
Steps to establish a company in Dubai for Saudis
Establishing a company in Dubai for Saudis requires following structured steps to ensure that all legal and procedural requirements are met. Here are the main steps:
- Determine the type of company and its activity :
- Choose the appropriate company type such as Limited Liability Company (LLC), Branch Company, or Free Zone Company.
- Determine the business activity that the company will undertake, as the activity determines the type of license required.
- Choose a trade name : Choose a distinctive, unused trade name. Make sure it complies with Dubai laws and does not conflict with any other brand names.
- Preparing the necessary documents :
- Passport : A copy of the passport of all founders.
- Personal photos : Recent personal photos of the founders.
- Articles of Association : The company’s Articles of Association document, which includes details of the administrative structure and activities.
- Lease Contract : A lease contract for a commercial office in Dubai, which is required to prove the presence of a company headquarters.
- Opening a bank account : Open a commercial bank account in the name of the company. The bank usually requires the submission of basic documents such as articles of incorporation and passports.
- Registration and obtaining a license :
- Department of Economic Development : Submit an application for a commercial license from the Department of Economic Development in Dubai. Documents will be reviewed and a license will be issued based on the specific activity.
- Federal Authority for Identity and Citizenship : Apply for residence visas and worker registration.
- Registration with the Dubai Chamber of Commerce and Industry : Register with the Dubai Chamber of Commerce and Industry to obtain membership, which is necessary to conduct business activity in Dubai.
- Insurance : Make sure you have the necessary insurance for employees and facilities, as required by local laws.
- Security approval : In some cases, security approval from local authorities may be required.
- Completion of registration : After completing all the previous steps, complete the registration process and obtain all necessary documents and licenses. You can use a consulting company such as “Itqan” to facilitate these steps and ensure their smooth and effective completion.
Tips before establishing a company in Dubai for Saudis
Before setting up a company in Dubai for Saudis, it is important to take some tips into consideration to ensure the success of the process and avoid future problems. Here are the top tips:
- Understand the laws and regulations : Be sure to study the local laws and requirements for establishing companies in Dubai, including regulations related to foreign companies and commercial activities.
- Choose the company type carefully : Determine the company type that best suits your business, such as a limited liability company (LLC), a branch company, or a free zone company. Each type has its requirements and advantages.
- Conduct a feasibility study : Prepare a comprehensive feasibility study for your project that includes market analysis, competition, and capital needs. This will help you make informed decisions.
- Choose a suitable location : Select a strategic location for your office or facility. In Dubai, locations in free zones are suitable for many businesses, while an inner-city location may be better for some others.
- Verify local partners : If you intend to establish a non-freelance company, be sure to choose a reliable local partner if the law requires it. Make sure the local partner has good experience and reputation.
- Securing sufficient capital : Ensure that sufficient capital is available to establish the company and cover operational expenses in the first period. Check the minimum capital required based on the type of company and activity.
- Dealing with professional advisors : Use experts, legal advisors, and lawyers specialized in establishing companies in Dubai. They can help you complete the procedures and ensure that all legal requirements are adhered to.
- Preparing accurate documents : Make sure that all documents are prepared accurately, such as articles of incorporation, legal contracts, and other agreements. Errors in documentation may lead to delays or legal problems.
- Learn about taxes and fees : Understand the tax and fee system applicable to your business. In Dubai, there may be fees associated with obtaining and renewing licenses.
- Preparing for administrative procedures : Be familiar with administrative procedures such as registering the company, obtaining licenses, and renewing them periodically. You may need to follow some measures to expand your business in the future.
- Ensure licenses and insurance : Make sure to obtain the necessary licenses and insurances required to ensure compliance with local laws and protect the company.
Following these tips can contribute to the success of establishing your company in Dubai and avoid many potential challenges.
In conclusion, establishing a company in Dubai represents a golden opportunity for Saudis seeking to enter a vibrant global market and expand in a strategic region. Dubai provides an advanced and supportive business environment for investors, with legal and tax advantages that make it a preferred destination for businesses. By understanding the types of companies available, following the legal procedures, and enlisting the help of local experts such as Itqan to help establish, Saudis can achieve tangible success and expand their businesses effectively. Always remember that careful planning, sound management, and good market knowledge are the keys to success in this dynamic business environment.
Frequently asked questions about establishing a company in Dubai for Saudis
Is a local partner required to establish a company in Dubai?
If a limited liability company (LLC) is established outside the free zones, a local partner who owns 51% of the company’s shares is required. In free zones, the company can be entirely owned by foreigners.
What are the documents required to establish a company in Dubai?
Basic documents include passports of all founders, personal photographs, articles of incorporation, a lease contract for a commercial office, and a bank report proving the presence of capital.
Which free zones are suitable for establishing a company?
There are several free zones in Dubai, such as the Dubai International Financial Center (DIFC), Jebel Ali Free Zone (JAFZA), and Dubai Production City. Permitted benefits and activities vary in each region.
What are the costs associated with setting up a company in Dubai?
Costs vary based on company type and location. Major costs include licensing fees, office rental, registration fees, and the costs of consultants and legal services.
