How to set up a company in Dubai

١٠ فبراير How to set up a company in Dubai

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Dubai is one of the most prominent global economic destinations that attracts businessmen and investors from all over the world. Thanks to its strategic location as an international business hub, its supportive economic environment, and its diverse economic options, Dubai offers ample opportunities for establishing companies in various sectors. If you are thinking of starting a company in Dubai , you are entering a world full of possibilities that can enhance your success and business growth.

Dubai has a strong reputation as a modern financial and business hub, thanks to its advanced infrastructure and stimulating legal environment. The city offers a range of free zones that offer unique facilities to businesses, such as 100% foreign ownership and attractive tax exemptions. The local government also offers programs and initiatives to support entrepreneurs and investors, making Dubai an ideal destination for establishing a startup or expanding a business.

From choosing the right company type and registering with the relevant authorities, to the necessary licenses and legal procedures, setting up a company in Dubai requires careful planning and a comprehensive understanding of local requirements. This article provides a comprehensive overview of the essential steps, requirements and procedures involved in setting up a company in Dubai, helping you make informed decisions and achieve sustainable success in this dynamic business environment.

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How to set up a company in Dubai

To establish a company in Dubai, you can follow these steps:

Determine the type of company and activity: Determine the type of company you want to establish, such as a limited liability company (LLC), a joint stock company, or a sole proprietorship. You must also determine the business activity that the company will carry out.
Choosing a trade name: Choose a trade name for the company that complies with Dubai laws and reflects the company’s activity. Ensure that the name is available through the Dubai Department of Economic Development portal.
Prepare a business plan: Prepare a detailed business plan that includes information about the business, target market, expected costs, and expected revenues.
Rent an office: Find a suitable location and rent an office or workspace. In some cases, there may be specific requirements for office space based on the type of business.
Registration and Licensing: Apply for a business license from the Dubai Department of Economic Development. This involves filling out the required forms, submitting the necessary documents, and paying the fees.
Preparing legal documents: Prepare the required legal documents, such as the articles of incorporation, the company’s bylaws, and the partners’ statement. You can hire a specialized lawyer to ensure that the documents comply with local laws.
Open a bank account: Open a business bank account in the name of the company. You will need to provide the legal documents and licenses you have obtained from the Department of Economic Development.
Work and Residence Visas: Apply for work and residence visas for employees, as well as investor visas if required.
Government Registration: Register the company with other government agencies such as the General Tax Authority (if there is a VAT) and the Ministry of Human Resources and Emiratisation.
Insurance: Make sure you have the necessary insurance, such as civil liability insurance and workers’ compensation insurance.
Comply with local laws: Ensure compliance with all local laws, including regulations related to taxes, employment, and trade.

Company formation fees in Dubai

The fees for setting up a company in Dubai can include several main elements:

Licensing fees: These include the fees paid to obtain a commercial license from the Department of Economic Development, which vary depending on the type of business activity and the type of company.
Rental costs: These include the costs of renting an office or workspace, and depend on the location, size of the space, and available amenities.
Legal fees: These include legal consultation fees for preparing legal documents such as articles of association and drafting contracts.
Bank Account Opening Costs: Includes fees associated with opening and managing a business bank account.
Visa and residency costs: Includes fees for issuing work visas and residency permits for investors and employees.
Insurance costs: include fees related to obtaining the necessary insurance, such as civil liability insurance and workers’ insurance.
Registration and stamp duty costs: These include fees related to registering the company in the commercial registers and paying any required stamp duty.
Additional costs: Additional costs may include consulting services, marketing, and office fit-out.

Documents required to establish a company in Dubai

To set up a company in Dubai, you need to submit a set of basic documents. The required documents may vary depending on the type of company and its activity, but in general, they include the following documents:

Passports: Copies of passports of all founders, investors and directors.
Personal Photos: Recent personal photos of founders and directors, may be required for visas and residencies.
Articles of Association and Memorandum of Association: The articles of association (or partners’ agreement) that defines the company’s structure and activity, as well as the articles of association that regulate the company’s internal operations.
Proof of address: Documents proving the residential address of the founders and investors, such as a utility bill or lease.
License Certificate: Application for a commercial license from the Department of Economic Development in Dubai.
Lease Agreement: A lease agreement for an office or workspace, and must be certified if from a leasing agency.
Business Plan: A business plan that outlines the company’s business, target market, financial plans, and growth strategies.
Approval from competent authorities: If the business activity requires special approvals, such as activities related to health or the environment, you may need to submit additional documents.
Partners’ signatures: The founders’ signatures on the required documents, including the articles of association and bylaws.
Bank Deposit Report: A report showing the deposit of required capital into the business bank account.
Special Certificates: Some activities may require additional certificates, such as health certificates for restaurants or technical licenses for some activities.

Licenses required to establish a company in Dubai

The licenses required to set up a company in Dubai vary depending on the type of business activity and the type of company. In general, the basic licenses include the following:

Trade License: Issued by the Department of Economic Development (DED) in Dubai, it is required for all general commercial activities, including retail, distribution, and general trading.
Professional License: Granted to businesses that provide professional services such as consulting, law, accounting, and engineering. Also issued by the Department of Economic Development.
Industrial License: Issued to companies operating in industrial or production activities. Includes manufacturing, repair, and assembly. This license is issued by the Department of Economic Development.
Tourism License: Required for companies operating in the tourism and hospitality sector, such as hotels, travel agencies, and tourism offices. Issued by the Department of Tourism and Commerce Marketing in Dubai.
Free Trade License (in free zones): Issued by the authority of the free zone in which the company intends to operate. Includes commercial, industrial, and service activities, and allows 100% ownership of the company by foreigners without the need for a local partner.
Financial Activities License: If the company provides financial services such as banking, insurance, or financial consulting, it needs a license from the Emirates Financial Markets Authority or the Central Bank of the UAE.
Health Activities License: Required for companies operating in the health sector, such as clinics, hospitals, and pharmacies. Issued by the Ministry of Health and Community Protection or local health authorities.
Environmental Activities License: For some activities that may affect the environment, such as heavy industries or businesses that require waste disposal, a license from the Ministry of Climate Change and Environment is required.
Educational Activities License: If the company provides educational or training services, such as schools or training centers, you will need a license from the Knowledge and Human Development Authority in Dubai.
Real Estate Business License: Companies operating in the real estate sector, such as real estate agencies, require a license from the Dubai Land Department.

In conclusion of this article on setting up a company in Dubai , we find that Dubai provides an investment environment rich in opportunities and privileges that make it an attractive destination for businesses from all over the world. With easy procedures, advanced infrastructure, and a strategic location, Dubai provides an ideal climate to support the growth and development of companies.

The process of setting up a company in Dubai involves a series of basic steps such as choosing the type of company, determining the business activity, and completing the necessary documents. With a range of free zones that offer benefits such as 100% foreign ownership and tax exemption, investors can benefit from a supportive environment for their business growth.

There is no doubt that investing in Dubai brings with it many benefits, but it is essential for companies to be fully aware of the legal and financial procedures involved in the process. With careful research and proper planning, new companies can overcome the challenges and achieve success in the competitive Dubai market.

Ultimately, Dubai is an ideal environment for investors and entrepreneurs, providing full support throughout all stages of company establishment. Understanding the steps and requirements will enable investors to achieve their goals and grow their businesses effectively in this leading city.