Costs of setting up a company in Dubai? Dubai is one of the most prominent global destinations for business and investment thanks to its thriving economic environment and flexibility in dealing with startups and investors. However, setting up a company in Dubai requires accurate knowledge of the costs associated with this process. The costs of setting up a company in Dubai vary based on several factors such as the type of company and the location where it is registered, whether within the free zones or in the local market. In addition, costs include licensing fees, office rental costs, and legal procedures fees. Understanding these costs in advance is an essential step to setting a successful budget and launching a profitable business project.

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Factors of company formation costs in Dubai

The costs of establishing a company in Dubai are affected by several main factors, which are:

1. Type of company: The type of company you wish to establish (sole proprietorship, limited liability company, branch of a foreign company) varies in terms of the required costs, as each type has different conditions and costs.
2. Location: Establishing a company in the free zones differs from establishing it in the local market in terms of fees and procedures. Free zones offer advantages such as not needing a local partner and lower taxes, but licensing and rental costs may be higher.
3. Licensing fees: These fees include the fees for issuing a commercial, industrial or professional license, and these fees vary depending on the business activity you choose.
4. Office or commercial space rent: It depends on the location and size of the office. Offices in prime or economic areas such as downtown or free zones have higher costs than others.
5. Legal procedures: These include fees for legal registration, contracts, and documentation by the competent authorities. These costs vary depending on the type of company and its legal requirements.
6. Financing and Operating Costs: These include the costs of hiring employees, purchasing equipment, marketing, insurance, and other operating expenses that must be taken into account when setting a budget. Understanding these factors helps investors plan properly and get the most out of their investment.

Steps to establish a company in Dubai

Establishing a company in Dubai requires following a set of legal and administrative steps to ensure compliance with local legislation. Here are the most important basic steps to establish a company in Dubai:

1. Determine the type of company: The first step is to choose the type of company you want to establish. It can be a limited liability company, a sole proprietorship, a branch of a foreign company, or a company in a free zone.
2. Choosing the business activity: The activity that the company will carry out must be determined, whether it is commercial, industrial or professional. Requirements and licenses vary depending on the type of activity.
3. Choosing a trade name: A trade name must be chosen that complies with Dubai trade name laws. The name should not conflict with trademarks or contain prohibited words.
4. Location: You can choose between free zones or the local market in Dubai. Free zones offer many advantages such as 100% foreign ownership, while setting up a company in the local market requires a 51% Emirati partner for companies outside the free zones.
5. Submitting documents: This step involves submitting documents such as a copy of your passport, articles of association, and office rental or physical address for the company. The required documents vary depending on the type of company.
6. Obtaining approvals: Initial approvals must be obtained from the Department of Economic Development or the relevant authorities based on the type of business activity.
7. Issuance of the commercial license: After the initial approval and completion of all procedures, the commercial license is issued by the Department of Economic Development or the relevant free zone authority.
8. Registration in the Chamber of Commerce: After the license is issued, the company must be registered in the Dubai Chamber of Commerce and Industry to obtain a membership certificate.
9. Opening a bank account: After obtaining the trade license, you can open a bank account in the name of the company in one of the banks in Dubai.
10. Complete residency procedures (if applicable): If you intend to reside in Dubai, you must apply for a residency visa for the persons involved in the management of the company.
11. Following these steps ensures that you set up a company in Dubai legally and smoothly, allowing you to take advantage of the city’s thriving investment environment.

Advantages of establishing a company in Dubai

Establishing a company in Dubai offers many advantages that make it an attractive destination for investors and entrepreneurs from all over the world. Here are some of the most prominent advantages of establishing a company in Dubai:

1. A thriving economic environment: Dubai has a strong and diversified economy, with advanced infrastructure and continuous government support for growth and investment, making it an ideal environment for startups, medium and large companies.
2. Strategic global location: Dubai is located at the heart of the world between Europe, Asia and Africa, making it a global hub for trade, travel and shipping, and providing easy access to global markets.
3. Full Foreign Ownership: In Dubai’s free zones, foreign investors can fully own their companies without the need for a local partner, which enhances their freedom to make decisions.
4. Tax exemptions: Dubai offers a favourable tax environment, with tax exemptions on personal income and corporate profits in many free zones, helping to increase financial returns.
5. Ease of company formation: The procedures for company formation in Dubai are quick and simple, with many free zones offering great facilities for incorporation and licensing procedures.
6. Advanced Infrastructure: Dubai offers a modern infrastructure that includes an excellent transportation network, advanced communications, and world-class logistics facilities, which facilitates business operations.
7. Political and security stability: Dubai is known for its political and security stability, making it a safe destination for investors and entrepreneurs to launch their projects without worry.
8. Market Diversity: Dubai has a wide variety of business activities, providing opportunities for companies in various sectors such as trade, real estate, tourism, technology, and financial services.
9. Freedom to transfer money: Dubai offers complete freedom to transfer profits and money abroad without restrictions, making it easier to conduct international business.
10. Support and financing programs: The government provides support and financing programs for small and medium enterprises, in addition to business incubators dedicated to encouraging innovation and entrepreneurship.
11. These features make Dubai a distinct investment destination for companies looking for an environment that supports growth and expansion on a global level.

Itqan Company Services in Establishing Companies in Dubai

Etqan Company provides a comprehensive range of services specialized in establishing companies in Dubai, and works to facilitate the process of launching businesses for local and international investors. The following are the most prominent services provided by Etqan Company in this field:

1. Legal and incorporation consultations: Itqan provides comprehensive consultations on the types of companies suitable for investors’ activities, whether in free zones or the local market, in addition to providing advice on the best legal structure.
2. Issuing commercial licenses: “Itqan” helps facilitate the process of obtaining commercial licenses from the competent authorities in Dubai, whether commercial, industrial, or professional licenses.
3. Choosing the right location: The company provides support in choosing the ideal location to establish the company, whether within one of the free zones or in Dubai Commercial, taking into account the requirements of the project and the commercial activity.
4. Preparing and documenting contracts: Itqan undertakes the preparation of all documents and contracts required to establish the company, including the articles of association, and documenting these contracts with the relevant authorities such as the Department of Economic Development.
5. Opening a bank account: The company provides a service to help new companies open bank accounts in Dubai, and communicate with local and international banks.
6. Dealing with government procedures: Itqan handles all procedures and licenses required by government departments and competent authorities, such as obtaining security approvals and registering with the Dubai Chamber of Commerce.
7. Residence and Visa Services: The company provides comprehensive support in obtaining visas and residence permits for investors and employees of the company, in addition to family visas if necessary.
8. Providing workspaces: Itqan provides flexible solutions for office spaces, including renting virtual or physical offices to suit the company’s needs.
9. Follow-up services: After establishing the company, “Itqan” provides periodic follow-up services such as renewing commercial licenses, and providing financial and tax consultations to ensure that operations continue smoothly.
10. Through these integrated services, Itqan facilitates the process of establishing companies in Dubai , allowing investors to focus on managing their businesses and expanding in a growth-friendly business environment.