Opening a company in Dubai for foreigners

Opening a company in Dubai for foreigners represents an attractive strategic step that opens the doors to business and investment opportunities in one of the most prominent economic and commercial destinations in the world. The emirate of Dubai has a strong reputation as an international business center that combines modern technology with cultural traditions, making it an ideal place for entrepreneurship. The UAE market in general, and Dubai in particular, is open to ambitious foreign investors seeking to benefit from growth and diversification opportunities in a wide range of sectors. The business system in Dubai is transparent and efficient, making it easy for investors to set up and manage their companies effectively. In this article, we will take a look at the main steps and requirements needed to open a company in Dubai for foreigners, in addition to exploring the features and benefits that international investors can gain from this wonderful experience. . We will also address potential challenges and how they can be overcome to ensure the success of this investment in the heart of the Middle East.

جدول المحتوى

Steps to open a company in Dubai for foreigners

There are many steps necessary to open a company in Dubai for foreigners, and the most important of these steps are the following:

1- Determine the type of investment or project

So, by determining the type of investment and project you want to work with, you can find out what type of license you need, whether it is a professional, commercial or industrial license. These are the things that set out some of the necessary basics, but there are some things to keep in mind when deciding the type of investment, as there are some activities that require additional approval from other government agencies, such as food trading, jewelry trading, some veterinary activities and legal advice. Otherwise, there is a list of 2,100 activities in the Dubai Department of Economic Development that will help you find the activity you want.

2- Ownership

If you are a foreign investor and want to own the company 100%, you must establish your company in one of the free zones, as it is the only one that allows foreigners to own companies completely without the need for a partner or sponsor from the Emirates. There are some specific activities that you can do in the free zone, and there are about 45 free zones in the Emirates, in addition to more zones that will be opened.

If you need to work locally and obtain local licenses, you can obtain a license from the Department of Economic Development

3-Legal structure

It depends on your location and the type of work you do. There are some rules related to the formation of your company. If you want to establish a legal consulting company, you can do so as a subsidiary or as a stand-alone company. A single owner is not allowed to practice this activity.

4-Trade name

It is one of the most important things when working to establish a company. It is an important part of the legal procedures, as the name must indicate the nature of the company’s work, and this is what distinguishes one company from another.

5- Capital share

Sometimes, with some activities, the minimum capital is determined, but in most cases, you do not need this step, and you do not need to pay the minimum capital.

6- Buildings

After all these steps, which are the most important steps, it is necessary to find a suitable place to establish the company, and this place must have water, internet, and means of transportation passing through it, as the geographical location of the places has an important role in influencing the success of the company.

7-The work team

Sometimes, according to some laws of the Ministry of Economic Development, you need to appoint a manager to supervise the work and he will start work as soon as your company is registered, but in some activities you are not allowed to employ anyone, and this is according to the laws of the region in which you work.

Conditions for opening a company in Dubai for foreigners

Conditions for opening a company in Dubai for foreigners may vary based on the type of company and location chosen. However, here are some general conditions that may be necessary:

Commercial activity: The company’s activity must be clearly defined and must be compatible with the activities permitted in the specified location.
Percentage of ownership: In some cases, foreigners can be 100% owners, in free zones or designated sectors.
Location: The place where the company will be established must be determined, whether it is in a free zone or in one of the special economic zones.
Licenses: The company needs to obtain the necessary licenses required to conduct its business activity.
Capital: Some types of companies may require specifying a certain capital, which must be paid when the company is established.
Legal documents: Providing the necessary legal documents, such as passports and necessary certificates for investors.
Investor Permit: In some cases, foreign investors may need to obtain a permit from the relevant government bodies.
Signing the lease contract: If the space is owned by the company, a lease contract or documents proving the rights to use the space must be presented.
Legal environment: Compliance with local laws and regulations, which vary depending on the type of company and economic sector.

The cost of opening a company in Dubai for foreigners

The cost of opening a company in Dubai for foreigners depends on several factors, including the type of company, where you establish the company, the business activities chosen, and the support services you may need. Here are some points you should take into consideration:

Capital: Some types of companies require specifying the capital that must be paid up when the company is established. There may be minimum capital limits.
Government fees: These government fees include the costs of opening a company and obtaining the necessary licenses. These fees can vary depending on the type of company and location.
Support Services Fees: If you use support services, such as front desk services or legal advice, there may be additional fees.
Rental costs: If you decide to rent space for your company to operate, you will incur rental costs.
Insurance costs: You may need insurance for the company and workers, and this will have an impact on the overall cost.
Account preparation costs: You must prepare annual accounts, and this may require using the services of a certified accountant.
Annual License Fees: There can be an annual fee to renew necessary licenses.
Service Desk Fees: If you use service bureau services in a free zone, there may be monthly or annual fees.
Registration fees: The cost of registering a company can change depending on the type of company and type of activity.

Documents required to open a company in Dubai for foreigners

The paperwork required to open a company in Dubai for foreigners varies based on the type of company and business activity chosen. However, here is a general list of documents that may be necessary:

Copy of Passport: A copy of the passport must be provided to foreign investors.
Personal photos: Some may require personal photos.
Certified Signatures: You may need certified signatures on some documents.
Legal authorization: In some cases, legal authorization may be required to allow legal representatives to submit documents on behalf of the investor.
Lease Contract: If you intend to rent space for the company, you must submit a lease agreement.
Activities Statement: A precise detail of the company’s planned activities must be provided.
Business Plan: Some government agencies may require the submission of a detailed business plan.
Commercial Registration (for companies): The commercial registration of the company must be submitted.
Professional licenses: You may need to obtain professional licenses specific to the company’s activity.
Certificate of experience and qualifications: It may be required to provide certificates of experience and qualifications, especially if you run a company in a field that requires specific experience.

Licenses required to open a company in Dubai for foreigners

To open a company in Dubai as a foreigner, you usually need the following licenses:

Company License: The company type is chosen based on the chosen business activity, such as a limited liability company (LLC), sole proprietorship, or freehold company.
Activity licensing: It requires specifying the type of activity that the company will undertake, and prior permission must be obtained from the relevant authorities.
Building Permit: If you are expected to need an office or work space, you may need a building permit from Dubai Municipality.
E-commerce license (optional): If the company intends to conduct e-commerce business or provide online services, it may need an additional license for this.
Professions license: If you plan to practice a specific profession, such as medicine or law, you may need a license from the relevant authorities.

Economy in Dubai

Dubai was a pioneer in tourism, trade and shopping. There are many reasons for this, including the discovery of oil in Dubai and the fact that it has become one of the most important sources, which has led to it becoming one of the richest countries and attracting many foreigners, as Dubai has an environment that promotes business creation due to its calm political environment. In addition to its geographical location, with some laws that promote startups, Dubai enacts two tax-free laws that encourage many to encourage new jobs in the country.

Types of companies that foreigners can establish in Dubai

In Dubai, foreigners can establish several types of companies, the main types include:

Limited Liability Company (LLC): This is the most common company among foreigners. An LLC requires financial input from shareholders and allows for flexible management and limited liability.
Sole Proprietorship: This company allows a single person to establish and manage a business with full personal responsibility.
Company in the free zones: Companies in the free zones in Dubai provide an opportunity for foreigners to enjoy facilities such as 100% foreign ownership and no taxes on profits.
Subsidiary company: Foreign companies can establish branches in Dubai to conduct their activities there, based on appropriate licenses.
Joint company: This structure allows local and foreign companies to cooperate on specific projects with a specific contribution percentage for each party.

The best company for establishing companies

Itqan Company is one of the leading companies in the field of company formation in Dubai, and provides a wide range of services that facilitate the process of establishing and managing a business. Among the advantages of Itqan Company:

Deep experience: Itqan Company has extensive experience in the field of establishing companies, which helps in providing specialized consultations and professional services.
Smooth procedures: Itqan Company seeks to speed up and simplify procedures to ensure the speedy establishment of companies and save time and effort for customers.
Comprehensive support: Itqan provides full support in all aspects of incorporation, including licensing, registration, business consulting, and legal services.
Accurate understanding of the market: Thanks to its deep knowledge of the Dubai market, Itqan provides strategies and solutions that suit the specific needs of each client.
Commitment to quality: Itqan Company is committed to providing high-quality services and ensuring customer satisfaction, which enhances its reputation as a reliable partner in establishing companies.

Benefits of establishing a company in Dubai for foreigners

Establishing a company in Dubai provides foreigners with a range of benefits and advantages that make it an ideal destination for international business and investments. Here are some key benefits:

Full Ownership: Foreigners are allowed to fully own their companies in free enterprise zones and limited liability companies (LLC) after applying certain conditions and legal arrangements.
Tax exemptions: Companies in free business zones enjoy a complete exemption from taxes on profits for a period of up to 50 years in some cases, making Dubai an attractive home for investment.
Advanced infrastructure: Dubai is characterized by advanced infrastructure, including ports, airports, and roads, which facilitates transportation and export operations.
Large Consumer Market: Dubai and the entire UAE market offers a large consumer market thanks to its diverse and vibrant community.
Stimulating investment policy: Dubai is characterized by stimulating investment policies and legal flexibility that supports freedom of business and foreign investment.
Advanced Laws: Dubai has a developed and effective legal system that protects investors’ rights and facilitates business procedures.
Distinctive geographical location: Dubai’s location in the heart of the Middle East is a strategic trading point, which facilitates access to surrounding and global markets.
Cultural and linguistic diversity: Dubai has a diverse, multicultural and multilingual environment, which facilitates dealing with partners and clients of different nationalities.

In conclusion, opening a company in Dubai can be a great opportunity for foreigners who want to explore global business opportunities. Dubai offers an ideal investment environment with a wide range of opportunities in different sectors. The process of establishing a company requires administrative and legal procedures, but local registration offices and advisory services can facilitate this process. When the company is established, foreigners can take advantage of Dubai’s advanced infrastructure and strong logistics network to support business growth.

Frequently asked questions about opening a company in Dubai for foreigners

What types of companies can foreigners establish in Dubai?

Foreigners can establish local companies, subsidiaries or free zone companies in Dubai. The appropriate type depends on the type of business and the owner’s requirements.

What are the basic steps to establish a company in Dubai?

The steps include choosing the type of company, specifying names and titles, submitting the documents required for registration, and obtaining the appropriate work licenses.