How to open a company in Dubai? Dubai is considered one of the most attractive cities for business in the world, providing a distinguished commercial environment and diverse investment opportunities. If you are thinking of opening a company in Dubai, you are on the verge of entering a market characterized by growth and prosperity. But, how do you get started? In this article, we will review five main steps that will help you open a company in Dubai, starting from choosing the type of company to obtaining the necessary licenses. Read on to discover how you can achieve your business ambitions in this global city.

How to open a company in Dubai – 5 steps Get to know them

If you want to open a company in Dubai, here are five basic steps to follow:

Choosing the type of company: Determine the type of company you want to establish, whether it is a limited liability company (LLC), a branch of a foreign company, or a sole proprietorship. The type of company should be consistent with your targeted business activity.

Choosing a trade name: Choose a trade name that reflects the nature of your business, while adhering to Dubai’s legal standards. The name must be unique and not used by other companies.
Obtaining approvals: Apply for the necessary approvals from local authorities, such as the Department of Economic Development (DED) or the authority responsible for commercial activity in the free zone.

Submitting the required documents: Gather all the necessary documents, including passports, lease contracts, and financial forms. Then submit them to the relevant authorities to complete the registration process.

Obtaining commercial licenses: After the documents are approved, obtain the final commercial license that allows you to start your business legally in Dubai. By following these steps, you can open your company in Dubai and achieve your business goals successfully.

Required documents to open a company in Dubai

For the procedures of establishing a company in Dubai, you need to prepare a set of basic papers and documents. Here is a list of the required documents:

Copies of passports: Copies of passports must be submitted for all shareholders and directors of the company.
Personal photos: Recent personal photos are usually required for shareholders and directors.
Business plan: A document detailing the business plan, including the type of activity, target market, and business strategy.
Company registration form: The company registration form must be completed and submitted to the relevant authorities.
Lease Contract: If you are renting a place to conduct your business, you must submit the initial lease contract for the site.
Authorizations: If there are persons representing shareholders or directors, they must submit official authorizations from them.
Activity-specific permits: Some commercial activities require special permits, so you must check the requirements related to your activity.
Additional documents: Additional documents may be required depending on the type of company or activity, such as certificates of experience or previous licenses.
Be sure to review these documents with the Economic Development Authority or the authority responsible for the free zones in which you plan to operate, as requirements may vary depending on the type of company and location.

Conditions for establishing a company in Dubai

Establishing a company in Dubai requires compliance with a number of basic conditions, here are the most important of these conditions:

Choosing the type of company: You must determine the type of company you wish to establish, whether it is a limited liability company (LLC), a sole proprietorship, or a branch of a foreign company, as the conditions vary according to the type.
Partners: In the case of establishing a limited liability company, a local partner is required to own 51% of the shares. While in free zones, you can own the company entirely without the need for a local partner.
Trade name: A trade name must be chosen that complies with local laws, and must be unique and not used by other companies.

Obtaining the necessary licenses: The required licenses must be obtained from government agencies such as the Department of Economic Development or the authority responsible for the free zone.

Business location: A physical place to practice the business activity must be provided, whether it is an office or a store, and a lease contract or a document proving ownership of the place must be provided.

Financial investment: Opening a company in Dubai requires providing evidence of the necessary capital, as requirements vary depending on the type of company and activity.

Compliance with regulations: Local regulations and laws related to the business activity must be adhered to, including tax and labor laws.

Submitting the required documents: All required documents must be prepared and submitted, such as passports, personal photos, and a business plan.

Be sure to consult the competent authorities or specialized consulting companies to ensure compliance with all the conditions necessary to establish your company successfully.

Factors in the cost of establishing a company in Dubai

First, the cost of establishing a limited liability company (LLC) may differ from the cost of a sole proprietorship or a branch of a foreign company. Companies in free zones are often less expensive than those located outside the free zones. The cost of establishing a company in Dubai is affected by several key factors, including:

Location of the company: Rents vary depending on the location. Free zones offer competitive rates, but locations in the city center or commercial areas may be higher.
Government fees: These include registration costs and government fees for obtaining the necessary licenses. These fees vary depending on the type of business and the area.
Minimum capital: You may need to provide a minimum amount of capital required to establish the company, and this varies depending on the type of business and activity.
Consulting services: If you hire consulting firms or lawyers to help you with the procedures, you will need to calculate the cost of these services.
Operating costs: These include the costs of operating the company such as employee salaries, utilities, marketing, and insurance.
Taxes: In Dubai, certain business activities are subject to certain taxes, so any potential tax obligations must be calculated.
Special licenses: Some activities require additional licenses, such as tourism or health activities, which may increase the cost of establishment. Accurately identifying these factors helps in estimating the total cost of establishing a company in Dubai. It is preferable to consult experts or consulting companies to obtain accurate estimates that suit your business plan.

Itqan Company Services in Establishing Companies in Dubai

Itqan Company provides a comprehensive range of services to support investors and businessmen in establishing companies in Dubai. These services include:

Legal Consultations: Itqan provides comprehensive legal consultations related to establishing companies, including choosing the appropriate legal structure and complying with local requirements.

Company Registration: Itqan handles the procedures for registering companies of all types, whether they are limited liability companies, sole proprietorships, or branches of foreign companies.

Obtaining Licenses: Itqan helps its clients obtain the necessary commercial licenses from the competent authorities, which facilitates the legal start of the business.
Providing support in preparing documents: The company helps in preparing the necessary documents for establishing the company, such as business plans, lease contracts, and legal agreements.
Providing offices and workspaces: Itqan provides office leasing and commercial space fit-out services, making it easier for investors to start their business in a professional environment.

Accounting and tax services: Itqan provides accounting and tax consultations to help companies comply with local laws and provide accurate financial reports.
Support in dealing with government agencies: Itqan facilitates the process of communicating with government agencies, which helps speed up the establishment procedures and obtain the necessary approvals.
Providing recruitment services: Itqan helps in hiring the necessary cadres for the company and provides advice on labor laws in the UAE. By using Itqan’s services, investors can obtain comprehensive support that makes it easier for them to establish and manage their companies successfully in Dubai.

In conclusion, starting a company in Dubai is a strategic step towards achieving business goals and economic growth. We have reviewed the basic steps that include choosing the type of company, preparing the necessary documents, and obtaining the required licenses. This process ensures that you are complying with local laws and providing a suitable environment for your business. It is important to be aware of the factors that affect the cost of incorporation, as well as the services available from consulting firms such as Itqan, which provide the necessary support to ensure the success of the incorporation process. If you are ready to get started, Dubai offers you ample opportunities for growth and innovation. Take the first step today and begin your journey towards establishing your own business in one of the most dynamic cities in the world.

Frequently Asked Questions about How to Open a Company in Dubai

Can I open a company in Dubai without a local partner?
Yes, you can open a company in the free zones without the need for a local partner, while it is required in the case of limited liability companies (LLCs).

What are the costs associated with starting a company in Dubai?
The costs include registration fees, licensing fees, office rent, and the minimum capital required, in addition to any consulting services you may require.

How long does it take to open a company in Dubai?
The duration varies depending on the type of company and the procedures, but it usually ranges from two weeks to a month.