The procedures for establishing a company in Dubai have become more flexible than ever before due to the efforts of the relevant authorities in the UAE and the facilitation of procedures and privileges that the government grants to investors and the options it provides to determine the optimal path for the project. In this article, we will learn about the procedures for establishing a company in Dubai. Establishing a company is a crucial step towards achieving success and financial stability. In this article, we will explore together the company formation process in Dubai in collaboration with Itqan. We will highlight the necessary procedures for opening a company in Dubai and the main steps that must be taken to successfully establish your company in the Emirate of Dubai, in addition to the role of Itqan Company in providing support and assistance during this process. Let’s explore together how entrepreneurship and business excellence can become a reality by setting up your company in Dubai.

Establishing companies in Dubai

In Dubai, the company formation process is a vital task in the booming business market. It provides investors with the opportunity to benefit from the dynamic and flexible business environment that the emirate offers. Dubai offers an advanced legal and regulatory framework to facilitate the company formation process, making it one of the most attractive destinations for entrepreneurship globally.

With the diversity of economic sectors available, investors can choose the appropriate legal form for their company, whether it is a sole proprietorship, a limited liability company, a public company, or a company in a free zone. Dubai also provides a range of modern facilities and reliable financial institutions, which supports corporate operations and facilitates expansion into local and global markets.

With continued investments in technology and infrastructure, and encouraging laws, Dubai remains an ideal place for those wishing to build their companies and achieve their success in an innovative and evolving business environment.

Procedures for establishing a company in Dubai

Experts on the procedures for establishing a company in Dubai confirmed that the UAE government supports startups, provides golden opportunities, and facilitates the procedures for establishing a company in Dubai.

1. Choosing the activity: The first step in the procedures for establishing a company in Dubai is to determine the appropriate activity for which you are conducting the procedures for establishing a company in Dubai.

2. Commercial Registration: Commercial registration is linked to choosing the company name and must comply with some conditions in order to obtain the approval of the Department of Economic Development:

• It should not be contrary to public taste.
• It does not contain words and phrases.
• It indicates the legal form of the company.
• Not be registered with another company.
• Reflects the business activity of the company.

3. Obtaining initial approval: Approval must be obtained from the General Directorate of Residency and Foreigners Affairs, then approval from the rest of the relevant authorities in Dubai. Regarding foreigners, approval is required from the General Directorate of Residency and Foreigners Affairs.

4. Choosing the company’s headquarters: Choosing a workplace for the company, whether purchasing or renting. A license must be added to the current activity and it must have the following:

• The partner in the new company must be a shareholder or owner in the parent company.
• The number of licenses for one party should not exceed 10 licenses for the same site.
• The area of ​​the license site must not be less than 200 square feet.

5. Obtaining approvals from the relevant authorities: Some commercial projects need additional approvals from other competent authorities such as the Ministry of Interior, the Ministry of Civil Defense, the Ministry of Justice, and the Ministry of Economy if the activity is related to an activity such as selling fire-fighting equipment.

6. Obtaining a commercial license: The last step in the procedures for establishing a company in Dubai. After completing all the previous steps, the investor can receive the license and attach some documents and papers with it, in addition to the economic development steps to pay the costs of the license fees and then register in the UAE Chamber of Commerce as a member.

How to obtain the necessary licenses to establish a company

When starting a company in Dubai , obtaining the necessary licenses is crucial to ensuring that the process runs smoothly in accordance with local laws. To obtain the necessary licenses to establish a company in Dubai, you must follow the following steps:

1. Determine the type of company: Start by determining the type of company you want to establish, whether it is a sole proprietorship, a limited liability company, or a partnership company, according to the nature of your business and your goals.
2. Identify the business activity: Identify the company’s activity accurately and in accordance with recognized classifications in Dubai.
3. Submitting a license application: Submit a license application to establish the company to the relevant authorities. This can be done online or by visiting the relevant office.
4. Submitting the necessary documents: You may be asked to provide a specific set of documents, such as a passport, a photo, a lease agreement (if the company needs an office), and financial forms.
5. Pay fees: Pay the fees required to obtain licenses, which vary according to the type and size of the company.
6. Review and approval: After submitting the application and documents and paying the fees, your application will be reviewed by the relevant authorities, and after approval, you will obtain the necessary licenses to start work.
7. Registration in the commercial registry: After obtaining licenses, register the company in the local commercial registry and obtain a registration number.

Documents required to submit an application to establish a company in Dubai

When starting a company in Dubai , there are a set of documents that need to be submitted to the local authorities. These important documents include many essential legal and business information that define the identity and structure of the company. The following documents need to be prepared:

• A copy of the passport or ID card of the founders and partners.
• Company establishment application form (available from the relevant authorities in Dubai).
• Business plan or feasibility study for the company.
• The registered address of the company (it can be the address of a commercial services office).
• Partners agreement (if there are partners).
• A statement of financial capacity or financial guarantee (which may be required by banks or relevant authorities).
• A sealed statement from an accredited lawyer proving the legal validity of the documents submitted.
• Tax registration form (if filing taxes).
• A bank document proving the deposit of the required capital in the company’s bank account.
• Legal power of attorney form (if there is a lawyer representing the company).

Expected costs of establishing a company in Dubai

Company formation costs in Dubai vary based on several factors, including company type, business activity, location, size, and other legal and administrative requirements. However, here is a general estimate of the costs you may incur when setting up a company in Dubai:

• Company registration fees: Depends on the type of company and registered capital.
• Legal Consultation Fees: You may need to consult a lawyer to guide you through the incorporation process.
• Virtual Office Fees: If you do not have an office in Dubai, you may need to rent a virtual office for basic operations.
• Business fees for other activities: such as visas and permits required for employees.
• Bank account fees: To open a company bank account.
• Legal advertising fees: to publish an announcement about the establishment of the company in local newspapers.
• Tax Fee: You may need to pay local business taxes.

Tax laws applicable in Dubai for new companies

In Dubai, new companies enjoy a flexible and favorable tax environment, as tax laws generally apply to companies as follows:

• No personal income tax: There is no tax on the personal income of individuals in Dubai, including shareholders and employees of companies.
• Not charging value-added tax (VAT): VAT has been abolished in Dubai since 2018, but companies dealing in goods and services between the emirates must pay 5% VAT.
• Not imposing a tax on profits: Dubai does not impose a tax on profits for companies operating in most sectors, including new companies and already existing companies.
• Business license fees: Business license and permit fees vary depending on the type of company and its activity.
• Freedom in financial transfers: The financial authorities in Dubai allow freedom of financial transfers between local and international banks with ease.

Steps necessary to open a company bank account in Dubai

Here are the basic steps that individuals or companies usually follow to open a company bank account in Dubai:

1. Choose the bank: Choose the bank with which you would like to open the company’s bank account. The bank must be reliable and provide services that suit the company’s needs.
2. Prepare documents: Prepare the documents required by the bank. These documents may include:

• A copy of the personal documents of the company’s officials and shareholders.
• Application form to open a bank account.
• A copy of the company’s commercial registration certificate.
• A letter of power of attorney for the person authorized to open the account.

3. Visit the bank branch: Visit the selected bank branch and submit the required documents. You may be required to make an appointment in advance.
4. Fill out the forms and agreements: Fill out the necessary forms and agreements to open the account provided by the banks.
5. Identity verification: The bank may require that the identity of the company’s officers and shareholders be confirmed by bringing original identity documents.
6. Payment of fees: The bank may require payment of account opening fees.
7. Waiting for approval: After submitting the required documents and forms, the application is evaluated by the bank and may require some time to make the decision and open the account.
8. Receiving documents and debit card: After approval, you will receive documents for the bank account, including a debit card (if available).

Tips for successfully establishing companies in Dubai

When it comes to setting up companies in Dubai, this emirate is known for its thriving and dynamic business environment that provides many opportunities for success and development. However, success in your business venture remains a challenge that requires good planning and effective implementation. Here are some important tips for successfully establishing companies in Dubai:

• Good Research: Before starting the process, conduct thorough research about the market and industry in which you intend to work. Check competition, potential customer needs, and economic trends.
• Choosing the right activity: Choose an activity that matches your experiences and skills, and is compatible with local and regional demand. It may be necessary to obtain specialist advice to determine the most feasible activity.
• Good planning: developing a detailed and realistic business plan, including financial costs, time targets, marketing strategies, and growth plan.
• Strategic Partnerships: Exploiting opportunities to establish strategic partnerships with local and international companies, in order to enhance capabilities and expand the scope of work.
• Compliance with legal regulations: Ensure compliance with all local laws and regulations related to establishing companies and doing business.
• Benefiting from government support: Taking advantage of government programs and initiatives aimed at supporting entrepreneurship and developing small and medium-sized companies.
• Use of technology: Adopting modern technology solutions to enhance efficiency and improve company operations, including cloud computing and business applications.
• Building strong relationships: Build a strong network of relationships with customers, suppliers and business partners, listen to their feedback and meet their needs.
• Continue learning: Continuously develop personal and professional skills, and keep pace with developments in business and technology.
• Innovation and excellence: Be creative and innovative in your products and services, and look for opportunities to provide added value to your customers.

Our company’s role in establishing a company in Dubai

At the conclusion of this article, we have explored the process of establishing companies in Dubai in cooperation with Itqan Company. By understanding the basic steps, potential challenges and legal requirements, we can see that setting up a company in this emirate requires good planning and professional assistance.

Itqan Company provides comprehensive support and expert knowledge in the field of company formation in Dubai, making it easier for entrepreneurs and investors to access the market efficiently and effectively. Thanks to cooperation with Itqan Company, individuals can benefit from legal, regulatory and financial guidance to avoid obstacles and achieve success.

The most frequently asked questions about establishing a company in Dubai