Some people would like to know the steps to establish companies for entrepreneurs in Dubai because when entrepreneurs decide to establish their companies in Dubai, the initial steps are crucial to ensuring the success of this entrepreneurial business. Dubai is considered one of the most prominent economic centers in the world, providing a favorable investment environment and broad opportunities for development and growth. Through cooperation with Itqan Company, businessmen can benefit from its expertise and specialized services in establishing companies and facilitating administrative processes.
In this article, we will highlight the main steps of establishing companies for businessmen in Dubai , focusing on the vital role that Itqan plays in guiding and assisting entrepreneurs in this vital process. We will provide a comprehensive overview of the procedures required to establish companies in Dubai, from strategic planning to registering the company and obtaining the necessary licenses.
How to establish a company in Dubai
Some people would like to know how to establish a company in Dubai because Dubai is one of the emirates that has the most investments in all fields and how it is an emirate full of activity, vitality and strong economic activity, so there are several steps that must be followed:
- Determine the type of company: Before starting to establish the company, you must determine the type of company you want to create, such as a sole proprietorship, joint-stock company, or partnership. The most appropriate legal structure must be chosen according to the business activity and your needs.
- Company Name: Choose a company name that is unique and not similar to any other company located in Dubai. The availability of the name must be verified and registered with the Dubai Department of Economic Development.
- Geographical location: Locate the company in Dubai and obtain the necessary approvals from the relevant authorities such as the municipality and the General Directorate of Residency and Foreigners Affairs.
- Preparing legal documents: Prepare the legal documents required to establish the company, such as the partnership agreement or the company’s articles of association. These documents must be submitted to the Dubai Department of Economic Development.
- Pay fees and costs: Pay the fees and costs required to establish the company and keep payment receipts as proof of this.
- Obtaining the license: After completing all legal and administrative procedures, the review and audit will be conducted by the Department of Economic Development in Dubai. If approved, you will obtain an official license to conduct your business in Dubai.
- Compliance with local laws: Once you obtain a license, you must comply with all local laws and regulations and adhere to financial and accounting requirements.
It should be noted that these steps for establishing companies for businessmen in Dubai may differ somewhat depending on the type of company and industry in which it operates. It is best to work with Itqan consultants to obtain appropriate legal advice and ensure compliance with all legal and administrative requirements in Dubai.
Conditions for establishing a company in the Emirates
Costs of establishing companies for businessmen in Dubai
The costs of setting up a company in Dubai vary based on the type of company and the industry in which it operates. Here are some approximate costs that may be involved in setting up a company in Dubai:
- Licensing fees: Includes company registration, licensing, and business permit fees. These fees may vary based on the type of company and its activity.
- Virtual Office Fees: If you need a virtual office for your company, there may be a monthly or annual fee to rent it.
- Real estate costs: If you plan to buy or rent a place for your company headquarters, there will be costs associated with this, such as rent, insurance, and real estate fees.
- Attorney and Consultant Fees: You may need to retain an attorney or legal consultant to help you prepare legal documents and assist with the incorporation process. The costs for these services will vary based on the attorney or consultant and the scope of work required.
- Accounting and auditing costs: You may need accounting and auditing services for your company. These costs will vary based on the size of the company and financial audit requirements.
- Business fees: If you intend to hire employees, you may need to pay fees for work visas, recruitment, health insurance, and workers’ insurance.
- Registration and social insurance costs: You may need to register your company with responsible authorities such as the Department of Economic Development and Social Security, and there are costs associated with these processes.
The cost of establishing a company in Dubai
Commercial license to establish a company in Dubai
To obtain a commercial license, there are steps for establishing a company in Dubai that the investor must follow in order to obtain many advantages, so the following steps must be followed:
- Determine the work activity: Determine the work activity you wish to practice in the company. The activity must be compatible with the classifications permitted in Dubai.
- Choose the legal type: Select the legal type of company you wish to establish, such as sole establishment, joint stock company (LLC), limited company (Ltd), etc.
- Company Name: Select a company name that is unique and not similar to any other company. The availability of the name must be verified and registered with the Dubai Department of Economic Development.
- Geographical location: Locate the company in Dubai and obtain the necessary approval from the relevant authorities such as the municipality and the General Directorate of Residency and Foreigners Affairs.
- Submitting the required documents: The required documents may vary according to the type of company and its activity, but usually include: a license application form, a copy of the shareholders’ passport, a shareholder authorization form for another person to handle the procedures, and other related documents.
- Payment of fees: Pay the fees required to submit the license application. You should check the applicable fee structures in Dubai and ensure correct payment.
- Audit and Review: The license application and submitted documents will be reviewed by the competent authorities in Dubai. An interview may be required to clarify information or provide additional documentation if necessary.
- License issuance: If your license application is approved and all requirements are met, you will be granted an official business license allowing you to conduct your business in Dubai.
Costs of obtaining a commercial license to establish a company in Dubai
The costs of obtaining a commercial license to establish a company in Dubai vary depending on the type of license and the company’s activity. Here are some common business licenses in Dubai and an estimate of their costs:
- General Trade License: Allows the practice of general commercial activities. The price of this license depends on the size of the company and economic activity.
- Limited Liability Company License: allows the establishment of a limited liability company. This license includes company registration, licensing and business permit fees.
- Free Zone Trade License: Allows the establishment of a company in one of the free zones in Dubai. The costs of this license vary based on the specific free zone and the company’s activity.
- E-commerce License: Allows the establishment and operation of an e-commerce company. The costs of this license vary depending on the type of activity and electronic requirements.
It should be noted that these costs are estimates and may change based on changes in local regulations and policies. It is highly recommended to check official sources and consult with competent authorities in Dubai to get an accurate estimate of the costs and procedures required to obtain the appropriate trade license for your company.
Steps to establish companies for businessmen in Dubai
Common mistakes when establishing companies in Dubai
Setting up a company in Dubai is an important process and needs attention to detail and compliance with local laws and regulations. Here are some common mistakes entrepreneurs can make when setting up companies in Dubai:
- Lack of understanding of local laws and regulations: It is necessary to understand the regulations and regulations that regulate business activity in Dubai. Laws may vary from one area to another, and ignoring or non-compliance with these laws can lead to legal problems.
- Not choosing the appropriate legal structure: The appropriate legal structure for the company’s activity must be chosen. Not choosing the right structure can affect taxes, permits, ownership, and more.
- Not preparing the budget well: You must have a good budget that covers the establishment and operating costs. Negligence in financial planning can lead to financial difficulties in the future.
- Ignoring necessary elements of the contract: When signing contracts and agreements, you should check the terms and conditions carefully. Not paying attention to small details may lead to problems in the future.
- Insufficient consultation: It is necessary to obtain advice from a local lawyer or legal consultant specialized in establishing companies in Dubai. These experts can guide you and provide the necessary advice.
- Not planning for taxes: You should be aware of the tax systems in Dubai and how to legally reduce tax costs. Ignoring this aspect can lead to overpayment of taxes.
- Not conducting market research: A business feasibility study should be conducted to understand the market, competition and opportunities before starting the business. Not doing enough research may lead to the failure of the company.
- Not investing in marketing: You should plan a strong marketing strategy to promote the company. Lack of attention to marketing can make it difficult to attract new clients and customers.
To avoid these mistakes, it is necessary to seek help from our company’s experts and communicate with our company’s experts to achieve the best results and do complete research and consultation before starting work on the steps to establish companies for businessmen in Dubai.
Most important frequently asked questions
Can foreign businessmen establish a company in Dubai?
Yes, foreign businessmen can establish a company in Dubai, and the company can be 100% owned with special permits in certain areas.
What are the main steps to establish a company in Dubai?
The steps include choosing the type and classification, determining the economic activity, submitting the required documents to the Economic Department, obtaining a work permit, and registering the company in the commercial registry.
Is there a minimum capital required to establish a company in Dubai?
It depends on the type of company, as there can be a minimum capital requirement for some types.
What are the permitted commercial activities in Dubai?
Most business activities can be performed in Dubai, but there may be some restrictions on the activities chosen.
Is it possible to change the company’s activity after incorporation?
Yes, the company’s activity can be changed after incorporation, provided that the necessary approvals are obtained.
What are the differences between the types of companies in Dubai?
The main differences between companies include the scope of responsibility, required capital, and possible authorizations for activities.
Can foreign companies open branches in Dubai?
Yes, foreign companies can open branches in Dubai with special licenses.
