How to set up a company in Dubai

٢٠ مارس How to set up a company in Dubai

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How to set up a company in Dubai? Dubai is one of the most prominent global destinations for business and investment, thanks to its advanced economic environment and innovative business facilities. Setting up a company in Dubai provides a great opportunity for investors and businessmen to take advantage of diverse economic opportunities and enjoy many advantages, such as no corporate taxes and world-class infrastructure. To start setting up a company in Dubai, investors must understand the basic steps and legal and financial requirements. Among the initial steps that must be taken are: choosing the appropriate type of company, determining the location, and obtaining the necessary licenses. Investors can benefit from the services of consulting companies such as “Atqan” to facilitate this process and ensure their compliance with all local laws and regulations. This article will cover the basic steps for setting up a company in Dubai , detailing the processes related to obtaining licenses and legal procedures, in addition to reviewing some important tips to ensure the success of the establishment process.

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Steps to establish a company in Dubai

Establishing a company in Dubai requires following specific steps to ensure that you comply with local laws and obtain all necessary licenses. Here are the basic steps to establish a company in Dubai:

Determine the type of company and choose the business activity: Determine the business activity that the company will carry out, as this determines the type of license you need.
Choosing a company name: Choose a distinctive name that complies with Dubai’s trade name registration laws.
Choosing a Business Location: Decide on a location for your company, whether in a free zone or a commercial zone in Dubai. Free zones offer benefits such as full ownership and customs exemptions.
Preparing legal documents: Prepare the required documents such as articles of association, partners’ documents, and directors’ details.
Applying for a License: You may need to apply for a trade license from the Department of Economic Development (DED) or from the responsible authority in the free zone.
Open a bank account: Open a bank account in the company’s name to manage financial operations.
Register your company with government agencies: Register your company with relevant government agencies such as the Tax Authority, Social Security, etc.
Obtaining work and residence visas: Obtain work visas for employees and residence if necessary.
Office or Workspace Setup: Set up an office space or workspace that fits your company’s needs.
Comply with local laws: Ensure compliance with all local laws and regulations, including taxes and business licenses.
Additional Insurance and Licenses: You may need to obtain additional insurance or special licenses depending on the type of business.
By following these steps, you can successfully establish a company in Dubai and benefit from the great economic opportunities that the city offers. For additional support, you can seek the help of consulting companies such as “Atqan” to facilitate the procedures and provide legal and administrative advice.

Types of companies in Dubai

Here is a table showing the different types of companies in Dubai with some basic details for each type:

Company Type	the details
Limited Liability Company (LLC)	– Requires a 51% local partner. – Suitable for commercial and service companies. – Limited liability for partners.
Public Joint Stock Company	– Its shares can be traded in financial markets. – It requires a large number of shareholders. – The capital must be large.
Private Joint Stock Company	– Its shares cannot be publicly traded. – It requires a limited number of shareholders. – It is subject to specific laws.
Sole Proprietorship	– Owned by one person. – Suitable for small and service projects. – Unlimited liability for the owner.
Free Zone LLC	– Can be fully owned by foreigners. – Requires an office in the free zone. – Gets customs and tax exemptions.
Branch of a Foreign Company	– Subsidiary of a foreign company. – Subject to local laws but can enjoy some advantages. – The parent company must be old and have a good reputation.
Holding Company	– Owns shares in other companies. – Contributes to the organization and management of subsidiaries. – Provides tax and administrative benefits.
Foreign Limited Liability Company	– Requires a local partner or local agent as per the laws. – Provides full ownership for foreigners in some areas.

Each of these types of companies suits a different type of business and needs, and the appropriate type should be chosen based on the business requirements and strategies of the company.

Conditions for establishing a company in Dubai

First, determine the type of company (such as LLC, branch, sole proprietorship) based on the business activity. Here are the requirements for establishing a company in Dubai:

Obtaining a commercial license from the Department of Economic Development (DED) or the competent authority in the free zone.
In the event of establishing a company outside the free zones, there must be a local partner who owns 51% of the shares.
Choose a unique name that complies with Dubai naming laws.
Submit necessary documents such as passport, lease contracts, and business plan.
You must have a physical business location, which can be an office or commercial space.
Appointing a manager for the company, who may be one of the partners or someone else.
Comply with local laws and regulations related to business activity.
Open a bank account in the company’s name to manage financial transactions.
If you have employees, you must provide them with health insurance and apply for work visas.

Documents required to establish a company in Dubai

A copy of the passport of all partners and investors. Here are the documents required to establish a company in Dubai :

Recent passport-sized photographs of each partner.
Suggest a company name, making sure it is not already in circulation.
Lease agreement for an office or commercial location (can be temporary).
A document that explains the nature of the business, the target market, and the strategies followed.
If there are partners, their legal documents such as partnership contracts must be submitted.
If there is a director of the company, a power of attorney document must be submitted.
You may need additional approvals from other government agencies depending on the type of activity.
A document proving the opening of a bank account in the company’s name.
Acknowledgment of the partners’ approval to establish the company.

Advantages of establishing a company in Dubai

Establishing a company in Dubai has many advantages that make it a preferred destination for investors and businessmen. Here are some of the most prominent advantages:

Conducive Business Environment: Dubai offers a sophisticated and flexible business environment that allows businesses to grow and expand. Modern infrastructure and business facilities support startups.
No corporate tax: Dubai does not impose taxes on corporate profits or income, providing a significant financial advantage to investors.
Ease of incorporation procedures: Dubai has fast and efficient procedures for incorporating companies, making it easy to start a business in a short time.
Vast Market Opportunities: Dubai offers access to multiple international markets thanks to its strategic location as a global trading hub, allowing companies to reach new markets in the Middle East, Asia and Africa.
Diversified Economy: Dubai has a diversified economy that includes the financial, trade, services and tourism sectors, providing many opportunities for investment in various fields.
Foreign Investment Facilitation: Dubai offers attractive opportunities for foreign direct investment, with flexible rules allowing full ownership of companies by foreigners in free zones.
Advanced infrastructure: Dubai has a modern infrastructure including ports, airports, roads and communications, which facilitates the movement of trade and business management.
Banking Facilities: Dubai offers a variety of banking and insurance services, making it easy to manage money and financial transactions.
Free Zone Incentives: Dubai’s free zones offer incentives such as customs exemptions, full company ownership, and flexibility in remittance of funds.
Political and security stability: Dubai provides a safe and politically stable environment, which enhances confidence and encourages investment.
These advantages contribute to making Dubai an attractive destination for establishing companies, which contributes to attracting global investments and enhancing economic growth.

In conclusion, setting up a company in Dubai is a strategic move that offers many opportunities and potentials for growth and prosperity. With its dynamic business environment, tax exemptions, and advanced infrastructure, Dubai has become an attractive destination for investors and entrepreneurs from all over the world. By adhering to the right legal procedures and understanding the market requirements, investors can achieve tangible success in this growing market. So, if you are thinking of starting your own business, Dubai provides you with the ideal base to realize your vision and achieve your business goals. With proper planning and support, you can be part of the success story that this innovative city is writing.

Frequently asked questions about company formation in Dubai

Do companies need a physical office in Dubai?

Yes, companies usually need a physical office in Dubai, either in the free zones or in business areas outside the free zones.

What are the requirements for obtaining work and residence visas?

Obtaining work and residence visas requires submitting documents such as a passport, personal photos, and an employment contract. Specialized consultants can facilitate this process.