How to set up a company in Dubai? Dubai is one of the most prominent global destinations that attract entrepreneurs and investors from all over the world thanks to its thriving economic environment and advanced infrastructure. The process of setting up a company in Dubai is a promising opportunity for growth and expansion in the Middle East region, as Dubai provides many facilities and services for emerging companies and investors. Setting up a company in Dubai requires compliance with a set of conditions and procedures that include determining the type of company, choosing the business activity, and obtaining the required licenses. Costs also vary based on several factors such as the location of the company, the type of commercial license, and the size of the business activity. Free zones in Dubai are an ideal choice for those seeking to establish companies with full foreign ownership with tax benefits and other facilities.

Conditions for setting up a company in Dubai

The conditions for setting up a company in Dubai include a set of procedures and requirements that investors must adhere to to ensure that the company is established legally and smoothly. The most important of these conditions are:

Determining the type of company: The investor must choose the type of company he wants to establish, such as a limited liability company (LLC), a branch of a foreign company, or a company in a free zone.
Choosing a business activity: The business activity that the company will engage in must be carefully determined, as licenses and conditions vary depending on the type of activity chosen.

Obtaining approvals and licenses: Most business activities require obtaining approvals from the relevant government agencies, such as the Department of Economic Development (DED) for general commercial activities, or the competent authorities in the free zones.

Finding the company’s location: Establishing a company requires having an official address in Dubai, whether inside or outside the free zones.

Minimum capital: The minimum capital required varies depending on the type of company and the area in which the company will be established.

Registration procedures: Include submitting the necessary documents such as shareholder passports, lease contracts, and business plans.

Appointing a local service agent (if necessary): Some business activities require appointing a local service agent for foreign companies.

These conditions are essential to ensure that the company is legally established in Dubai and to benefit from the significant investment advantages offered by the emirate.

Cost factors for establishing a company in Dubai

The cost of establishing a company in Dubai varies based on several important factors that directly affect the total expenses. The most prominent of these factors are:

Type of commercial license: The cost of a commercial license varies according to the chosen commercial activity (commercial, industrial, professional), as some activities require special licenses from certain regulatory authorities, which increases costs.
Geographical location: The price of establishing companies varies based on their location, whether inside or outside the free zones. Free zones provide many facilities such as tax exemptions and full foreign ownership, but they may sometimes be expensive compared to other areas.
Type of company: The cost of establishing a limited liability company (LLC) differs from the cost of establishing a branch of a foreign company or a company in a free zone, as the legal requirements and administrative fees differ for each type.
Size of business: The larger the business in terms of the number of employees or capital, the higher the costs associated with establishing the company, such as licensing fees and rents.
Office rent: The cost of renting offices or workspaces varies depending on the area chosen, as central and upscale areas have higher rental costs compared to other areas.
Government fees: Costs include registration and document documentation fees, in addition to visa issuance fees and other government procedures.
Additional Services: Some businesses may require additional services such as legal or accounting advice, which increases the overall cost of setting up a business. It is important for investors to take these factors into consideration when planning to set up a business in Dubai, as costs can vary greatly depending on the choices and decisions they make.

How to set up a company in Dubai

Setting up a company in Dubai requires following a set of basic steps to ensure compliance with legal procedures and achieve success in the emirate’s advanced economic environment. Here are the main steps to set up a company in Dubai:

Choosing the type of company: The investor must determine the type of company he wants to establish, such as a limited liability company (LLC), a branch of a foreign company, or a company in one of the free zones. Each type has different conditions and requirements.
Determining the business activity: It is necessary to accurately determine the business activity, as the competent authorities will issue licenses based on the type of activity. There are many business activities available, from commercial and professional to industrial.
Choosing the company’s location: The company’s location is determined based on the investor’s desire to operate within Dubai or in one of the free zones. Free zones offer advantages such as full foreign ownership, while companies outside the free zones require a local partner for some activities.
Obtaining a trade name: A trade name must be chosen that complies with Dubai laws and does not conflict with any existing trademark. The trade name can be reserved through the Department of Economic Development (DED) or the competent free zone authority.
Submitting the required documents: This includes submitting documents such as shareholder passports, lease contracts, and forms required by the Department of Economic Development or the competent authority in the free zones.
Obtaining approvals and licenses: After submitting the documents, approvals are obtained from the relevant government authorities. If the activity requires additional approvals (such as health or education), these must be obtained from the relevant authorities.
Finding a location for the company: The company must have a legal address in Dubai. An office can be rented or flexible offices can be used in the free zones.
Paying fees and obtaining a license: After completing the procedures and obtaining the necessary approvals, the required government fees are paid and the trade license is obtained to start the activity.
Obtaining visas: Once the license is obtained, the company can apply for residence visas for employees and shareholders.
Opening a bank account: After receiving the trade license, a bank account can be opened for the company in Dubai to start financial operations. By following these steps, a company can be successfully established in Dubai, whether inside or outside the free zones, and benefit from the thriving economic climate in the emirate.

The importance of establishing a company in Dubai

Establishing a company in Dubai has many benefits and advantages that make it a preferred destination for entrepreneurs and investors from all over the world. The importance of establishing a company in Dubai is evident in the following:

A stable and prosperous investment environment: Dubai is one of the most economically and politically stable cities in the Middle East, providing a safe and encouraging environment for investment. The advanced infrastructure and modern facilities make it an ideal destination for companies seeking growth and expansion.
A global strategic location: Dubai enjoys a unique geographical location, as it is a gateway between Asian, European, and African markets. This location allows companies easy access to a large number of international markets, which enhances opportunities for expansion and global success.
Legal and tax facilities: Dubai provides many legal facilities for foreign investors, including full foreign ownership of companies within free zones. In addition, the city is characterized by the presence of encouraging tax policies, such as the absence of personal or corporate income taxes in most cases.
Specialized free zones: Dubai contains a group of free zones that provide unique investment advantages, such as tax exemption and 100% foreign ownership. These areas provide an ideal environment for entrepreneurs, where they can benefit from various government and investment facilities.
Advanced infrastructure: Dubai has an advanced infrastructure that includes world-class transportation networks, international ports and airports, and distinguished logistics services. This infrastructure makes it a major center for trade and investment in the region.
Diversity of economic sectors: Dubai supports various economic sectors, from trade and technology to real estate and tourism. This diversity allows investors the opportunity to choose between many fields to achieve success.
Ease of obtaining residency: By establishing a company in Dubai, entrepreneurs and investors can obtain residency visas for themselves and their families, making it easier for them to live and work in the city.
Establishing a company in Dubai provides great opportunities for growth and expansion in a strong economic environment, with a wide range of benefits and facilities that make it an ideal destination for businessmen and investors.

Etqan Company Services for Establishing a Company in Dubai

Etqan Company provides a comprehensive range of services to help investors and businessmen establish their companies in Dubai easily and quickly. The company focuses on providing practical solutions and the necessary support to establish companies and comply with legal procedures, ensuring a successful start in Dubai’s thriving economic environment. Etqan services include:

Legal and commercial consultations: Etqan provides specialized consultations on all aspects of establishing companies in Dubai, including choosing the appropriate type of company, determining the business activity, and understanding local laws and regulations.

Establishing companies in and outside the free zones: The company provides specialized services for establishing companies in the free zones in Dubai that grant 100% foreign ownership, as well as local companies outside the free zones. Etqan follows up on all necessary procedures and documents until the process is completed.

Obtaining commercial licenses: Etqan facilitates the procedures for obtaining various commercial licenses, whether for commercial, industrial or professional licenses. The company also handles all necessary licenses and approvals from government agencies.
Providing work and office locations: Itqan helps in choosing suitable locations for the company’s headquarters, whether by renting ready-made offices in free zones or in other locations in Dubai, in line with the clients’ needs.

Residence visa procedures: The company provides services to manage the process of obtaining residence visas for investors, employees and their families, including all government procedures related to visas.

Dealing with government agencies: Itqan handles all transactions with government agencies such as the Department of Economic Development (DED), free zone authorities, customs, and other departments to ensure full compliance.

Accounting and tax services: Itqan provides comprehensive accounting services, including account preparation, financial reports, and tax services to ensure compliance with local and international tax laws.
Support for start-ups: The company provides support programs for start-ups, including consulting and guidance services to enhance the chances of success of the project from the beginning.
Registration of branches and foreign companies: Itqan provides services for registering branches or subsidiaries of foreign companies wishing to expand to Dubai, and provides support in the regulatory compliance process.
With its extensive experience, Itqan helps investors overcome administrative and bureaucratic complexities, making it easier for them to start their businesses in Dubai in a short time and with minimal effort.

In conclusion, establishing a company in Dubai is a strategic step that opens up broad horizons for investors and entrepreneurs to achieve success and expansion in a distinguished global economic environment. Thanks to government facilities and advanced infrastructure, in addition to the strategic location and tax benefits, Dubai has become a major center for attracting investments and global companies. Although there are some procedures and conditions that must be followed, the opportunities and advantages offered by the city make establishing a company in it an ideal choice for anyone seeking to build a successful project in the Middle East and beyond.

Frequently asked questions about establishing a company in Dubai

What are the basic requirements for establishing a company in Dubai?
The requirements include choosing the type of company, determining the business activity, obtaining a commercial license, and choosing the company’s location (inside or outside the free zones), in addition to submitting the necessary documents such as passports and a business plan.

Can foreigners own 100% of the company in Dubai?
Yes, foreigners can own 100% of the company in the free zones. Outside the free zones, foreign ownership depends on the type of business activity, as you may need a local partner for some activities.

How much does it cost to establish a company in Dubai?
Costs vary based on several factors such as the type of trade license, the location of the company (inside or outside the free zone), and the type of business activity. Costs include licensing fees, office rental, and government fees.