How to open a company in Dubai? Dubai is one of the most prominent global destinations for business and investment, providing an ideal environment for leadership and economic growth. Government facilities and advanced infrastructure contribute to making it an attractive center for many investors and businessmen from all over the world. If you are thinking of opening a company in Dubai, there are a set of basic steps that must be followed to ensure the success of your project. From choosing the type of company and determining the business activity, to the legal procedures and required licenses, in this article we will review how to open a company in Dubai in a systematic and effective way, helping you achieve your business goals efficiently.
Procedures for opening a company in Dubai
Opening a company in Dubai requires following a set of specific procedures to ensure compliance with local laws and achieve success. Here are the basic steps to open a company in Dubai:
Determine the type of company: You must first determine the type of company you want to establish, such as a limited liability company, a branch of a foreign company, or a sole proprietorship. The choice depends on the type of business activity and your personal requirements.
Choose the business activity: Determine the business activity you want to practice, as it must comply with the licenses required by the competent authorities in Dubai.
Choosing a trade name: Choose a trade name that matches your business activity and must comply with the naming laws in the UAE. The name must be registered with the Department of Economic Development in Dubai.
Obtaining initial approvals: After choosing the name and activity, initial approvals must be obtained from the relevant government agencies, such as the Department of Economic Development and Dubai Municipality.
Preparing legal documents: A set of required legal documents must be prepared, including the articles of association, internal agreements, and determining the shares between partners if there is more than one partner.
Submitting a license application: Submit your application for a commercial license from the Department of Economic Development, attaching the required documents and paying the appropriate fees.
Renting an office: You must have a physical address for an office or workplace, as some free zones may require a physical office.
Opening a bank account: After obtaining the license, you can open a commercial bank account in the company’s name.
Registering employees: If you plan to hire employees, you must register them with the Ministry of Human Resources and Emiratisation.
Obtaining special licenses: Depending on the type of activity, you may need to obtain additional licenses from competent authorities, such as the Ministry of Health or the Tourism Authority.
After completing these steps, you will have completed the necessary procedures to open your company in Dubai. It is important to ensure that you comply with all local laws and regulations to avoid any future problems.
Dubai Company Opening Fees
The costs of setting up a company in Dubai are affected by several factors, and vary according to the type of business activity, type of company, and location. Here are some of the main factors that affect the cost of opening a company in Dubai:
Type of company: The cost of establishing a limited liability company (LLC) is different from the cost of establishing a branch of a foreign company or a sole proprietorship. Each type has its own requirements and costs.
Business license: The costs of business licenses vary depending on the business activity. Some activities require higher fees due to their specific nature.
Location: Rental costs for offices vary depending on the location. Business centers in free zones may be more expensive than traditional business areas.
Registration fees: These include registration fees with government agencies such as the Department of Economic Development and Dubai Municipality. These fees vary depending on the type of company and activity.
Legal and advisory services: If you use advisory or legal services, additional costs will be added, including preparing documents and assisting with procedures.
Visas and Residency: If you plan to hire employees or obtain visas for yourself, you will need to pay visa and residency fees.
Additional Requirements: Some activities require additional licenses or permits from relevant authorities, which increases the overall costs.
Operating Expenses: These include office costs, services, and basic supplies you will need to run your business.
Conditions for opening a company in Dubai
To open a company in Dubai, there are a set of conditions and requirements that must be met to ensure compliance with local laws. Here are the basic conditions for opening a company in Dubai:
Determine the type of company: You must choose the type of company that suits your business activity, such as a limited liability company (LLC), a sole proprietorship, or a branch of a foreign company.
Trade name: You must choose a trade name that is consistent with the activity and is unique and not previously registered. The name must comply with the naming laws in the Emirates.
Minimum capital: The minimum capital required varies depending on the type of company. In the case of limited liability companies, you may need a certain capital according to the business activities.
Determine the business activity: The business activity must be clearly defined, as you need to obtain the appropriate license for the activity you plan to practice.
Office or place of business: You must have a physical address for an office or place of business, as some free zones require the presence of an actual office.
Preparing legal documents: It is necessary to prepare a set of legal documents, such as the articles of association, internal agreements, and any other relevant documents.
Permits and Licenses: The necessary licenses must be obtained from the relevant government agencies, such as the Department of Economic Development and Dubai Municipality.
Additional requirements depending on the activity: Some activities may require additional licenses or permits, such as financial or health activities.
Visas and residencies: The necessary visas must be applied for for the company founders and employees.
Tax compliance: Local tax laws must be adhered to, including VAT registration (if the activity is subject to them).
Ensuring that all of these requirements are met facilitates the process of opening a company and ensures compliance with local laws and regulations. It is always preferable to consult a legal advisor or a company specialized in establishing companies such as Itqan Company to ensure a smooth process.
Documents required to open a company in Dubai
To establish a company in Dubai, you need a set of basic documents and papers. Here is a list of the required documents:
Registration application form: The company registration application form must be filled out, which can be obtained from the Department of Economic Development in Dubai.
Passport copy: A color copy of the passport of the company founders and key employees must be provided.
Personal photo: A recent personal photo of the company founders, usually on a white background.
Determine the trade name: A list of proposed trade names (3-5 names) must be submitted for review and approval.
Articles of Association: The articles of association must be prepared, which specify the details of the company, such as its type, activity, and partners’ shares.
Approval of the competent authorities: You may need to obtain approvals from competent authorities, such as the Ministry of Health or the Tourism Authority, depending on the type of activity.
Proof of office address: A document proving the address of the office or place of work must be submitted, such as a lease or a usage agreement.
Determine the business activity: The business activity must be clearly defined and the required documents must be submitted according to the activity (if any).
Financial statements: Financial statements or business plans may be required, especially if you have partners or investors.
Special approvals (if required): If your company requires special permits or licenses, the necessary documents must be submitted to obtain these approvals.
Requirements vary slightly depending on the type of company and its activity, so it is best to check with the competent authorities or consult a company specialized in establishing companies such as our company, Itqan, to obtain an accurate list of the required papers based on your case.
How long does it take to open a company in Dubai?
Opening a company in Dubai is a process that requires careful planning and specific procedures, and many may wonder how long it takes to complete this process. In general, the duration of opening a company can range from about two weeks to a month, but this depends on several factors. First, the speed of preparing the required documents, such as the articles of association, trade name, and approvals from government agencies. If all documents are ready, the application can be completed more quickly.
Second, the type of company and its activity play an important role in determining the time period. Opening a company in a free zone may be faster compared to opening a limited liability company (LLC) that requires a local partner, as it may require obtaining more legal approvals.
Third, the availability of consulting services can also affect the speed of the process. Hiring specialized companies such as Atqan can facilitate things and contribute to accelerating the process of obtaining the necessary licenses and approvals. Finally, you should take into account any potential delays that may occur due to new developments or additional requirements that may arise during the process. Therefore, good planning and ensuring that all necessary documents are prepared in advance can help reduce the time it takes to open your company in Dubai.
In conclusion, opening a company in Dubai is a strategic step towards achieving success and growth in a dynamic and thriving business environment. By following clear steps and legal procedures required, investors and entrepreneurs can build a strong foundation for their projects. Dubai offers a wide range of investment opportunities, making it an ideal destination for businesses in various sectors. It is also important to seek the help of experts and consultants to ensure that you comply with local laws and facilitate the incorporation process. With good investment and proper planning, you can achieve your business goals and contribute to strengthening the local economy, making Dubai a starting point for a bright future for your project.
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. However, if you open a limited liability company (LLC) outside the free zones, you will need a local partner.
What are the documents required to open a company in Dubai?
The required documents include the registration application form, a copy of the passport, a personal photo, the articles of association, a document proving the office address, and approvals from the competent authorities depending on the activity.
Do I need visas for employees?
Yes, if you plan to hire employees, you will need to apply for visas and residencies for them.
