How to establish a company in Dubai . Establishing a company in Dubai requires completing a series of procedures and approvals required by the Department of Economic Development and other relevant authorities to officially register the facility. First, you must determine the type of activity you want to engage in, and this in turn will determine the parties associated with the activity and the permitted legal forms.
Our work team will provide all support to you and your partners during all the steps of establishing a company in Dubai, starting with determining the type of activity, choosing the trade name, obtaining security approval, and then preparing all the documents required to complete the procedures for establishing the company in Dubai.
All you have to do is set a time to meet with our experts to discuss the details of the activity of the company you wish to establish and submit all the required personal documents to them. Then, on your behalf, we will complete all the steps with the various government agencies in order to obtain a business license in Dubai in the shortest possible time.
The period required to obtain a business license is closely related to the type of activity or activities you wish to practice, in addition to the legal form of the company. There are commercial activities that require approvals from more than one governmental or federal entity, but the Dubai government always guarantees to all investors the provision of unparalleled services and facilities from In order to make Dubai the ideal destination for establishing a business.
Establishing a company in Dubai
Establishing a company in Dubai is an important strategic step for investors and entrepreneurs seeking to benefit from the dynamic and thriving business environment in the emirate. Dubai is considered one of the most attractive destinations for investment thanks to its advanced infrastructure, tax incentives, and stable economic environment. The first step in establishing a company in Dubai is choosing the appropriate type of legal entity, which may vary between a limited liability company (LLC), a joint stock company, or even companies in free zones. Choosing a company type requires careful consideration of business objectives and requirements.
After choosing the entity type, comes the registration and licensing stage. A set of basic documents such as passport, residence permit, and a copy of the rental contract must be submitted to the company office. These documents are submitted to the Department of Economic Development (DED) to obtain the business license. Companies that choose to operate in free zones need to apply through the relevant free zone authority, which provides various facilities including tax exemption and preferential customs duties.
The location of the company also plays a crucial role in the success of the business. Dubai offers a range of options for flexible offices and workspaces. The location must be chosen based on market strategy and business needs. Once a license is obtained and a location is selected, a strong accounting system must be established and competent staff hired to support daily operations.
Finally, it is necessary to adhere to local laws and keep up with regulatory changes to ensure the smooth operation of the company. Investing in expansion and innovation over time can contribute significantly to the company’s success and growth in the vibrant UAE market.
How to establish a company in Dubai
Establishing a company in Dubai requires compliance with a number of legal and procedural requirements. Laws and regulations vary depending on the type of company and where you want to establish it, whether it is in free zones, postal areas, or elsewhere. However, here are some general requirements involved in the process of setting up a company in Dubai:
- Choosing the type of company: You must determine the type of company you wish to establish, whether it is an individual company, a limited liability company, a company in free zones, or others.
- Company name registration: You should choose an appropriate name for your company and verify that it is not duplicate and complies with local regulations.
- Providing Capital: The required capital must be provided in accordance with the law. Capital varies depending on the type of company.
- Obtaining an establishment permit: You need to obtain an establishment permit from the relevant government agencies.
- Residence and work visas: If you intend to live and work in Dubai, you must obtain a residence and work visa.
- Contracts and legal documents: Contracts and legal documents necessary to establish the company and determine the rights and obligations of partners and shareholders must be prepared and signed.
- Executive Office: Public companies and companies that do not have an office in free zones or postal zones must come up with an executive office in Dubai.
- Licenses and Permits: There can be additional licenses and permits depending on the company’s activity, which must be complied with.
- Opening a bank account: You need to open a bank account in Dubai for business purposes.
- Tax Compliance: You need to comply with Dubai tax laws and submit the required tax reports and returns.
- Compliance with Labor Laws: You must comply with local labor laws and employment-related regulations.
Establishing a company in Dubai usually requires the assistance of legal advisors or company incorporation consultants who have experience in legal and procedural matters in Dubai. You should always speak with the appropriate government agencies to ensure you understand all current and updated requirements.
Taxes required to be paid when establishing a company in Dubai
The taxes that must be paid when establishing a company in Dubai vary depending on the type of company, its activity and its location, and some of the taxes and fees that may be relevant include:
- Value-added tax (VAT): Value-added tax is applied in the United Arab Emirates at a rate of 5% on local and international goods and services. Companies registered for VAT include the obligation to pay this tax and submit periodic reports.
- Corporate Taxes: Corporate taxes apply to the profits made by a company. In the UAE, corporate tax is imposed on national companies at 0% in most sectors, and on foreign companies in some cases.
- Government fees: Government fees can include costs for company registration, renewal of business permits and licenses, and other necessary administrative procedures.
- Advertising fees: There can be fees depending on the size of the capital or the type of company paid to the Ministry of Economy.
- Estate tax: If you own property that you use for corporate purposes, you may need to pay estate tax on that property.
- Work Permit Fees: If you employ foreign workers, there can be a work permit fee for foreign employees.
- Local consumption taxes: Some economic activities are subject to additional local taxes based on activity and sales.
Any new company in Dubai must comply with all applicable taxes and fees and regularly file the required tax and financial reports. It is always best to consult a tax professional or financial advisor to understand the specific tax details that apply to your company and ensure full compliance.
Costs of establishing a company in Dubai
Establishing a company in Dubai requires investment in several key aspects, which may vary depending on the type of company, its location, and the scope of its work. First, the costs of obtaining a commercial license represent an essential part of the expenses, as they vary based on the type of company (such as a limited liability company, a joint stock company, or a company in a free zone) and the commercial activity. This requires paying registration and license fees which are necessary upfront costs.
Second, there are site and construction expenses. Choosing a suitable location for a corporate office or workplace can require renting commercial space, and these costs vary depending on location and property type. If the company requires an office or work space, the rental and furnishing costs become part of the fixed expenses.
Third, operating costs include office equipment such as furniture, technology equipment, and business management software. In addition, employment costs are calculated, which include salaries and benefits for employees.
Fourth, establishing a company also requires legal and accounting costs, which include legal consulting, accounting services, and auditing. It is necessary to hire consultants to ensure compliance with local laws and organize documents and financial statements.
Finally, companies may need to invest in marketing and brand building to secure a strong start in the market. Costs associated with marketing include advertising campaigns, website design and development, and digital marketing tools.
Managing these costs requires careful planning to ensure the company’s sustainability and growth in Dubai’s dynamic business environment.
In conclusion, starting a company in Dubai is an exciting and rewarding opportunity for individuals and investors seeking success in one of the fastest growing markets in the world. Cooperation with Itqan Company represents a strategic step towards facilitating the establishment process and ensuring its success. Thanks to its extensive experience and deep understanding of the regulatory and business environment in Dubai, Itqan provides comprehensive support covering all aspects of company establishment, from legal procedures and licensing, to site selection and financial planning.
Itqan Company not only provides basic services for establishing companies, but also ensures the provision of specialized consultations and customized solutions that meet the needs of each client. By relying on the expertise of its specialized team, investors can bypass bureaucratic challenges and ensure the start of their work smoothly and efficiently.
In short, cooperation with Itqan Company allows investors to devote themselves to focusing on the growth and development of their business, while the company assumes responsibility for the administrative and legal aspects. Investing time and resources in this collaboration can have a significant positive impact on the success and sustainability of the project in the evolving Dubai market. By choosing Itqan Company as a partner in the journey of establishing your company, you guarantee yourself a strong start and a distinguished path towards achieving your business goals.
The most frequently asked questions about establishing a company in Dubai
What types of companies are available to establish in Dubai?
The main types include: limited liability company (LLC), public or private joint stock company, free zone company, and sole proprietorship. Each type has different legal and regulatory requirements.
How long does the process of establishing a company in Dubai take?
The duration of incorporation can vary from several weeks to several months, depending on the type of company, the region, and the completion of the required documents. Usually, companies in free zones enjoy faster procedures compared to companies outside them.
Can one person establish a company in Dubai?
Yes, one person can establish a sole proprietorship or a limited liability company with the owner as the sole partner. In joint stock companies, you may need a specific number of partners.
Do I need a local partner to set up a company in Dubai?
In the case of limited liability companies (LLC) operating outside free zones, the law requires a local partner to hold 51% of the shares. In companies managed from free zones, full foreign ownership may be available.
Can I open a bank account for my company in Dubai easily?
Yes, you can open a bank account for your company, but the process may require submitting various documents such as a business license, lease contract, and identity documents of shareholders and directors.
