How to set up a company in Dubai in 7 steps? Setting up a company in Dubai represents an exciting and profitable opportunity for many entrepreneurs and investors. Dubai is one of the most prominent business centers in the world, with a stimulating investment environment, advanced infrastructure, and easy government services. If you are thinking of starting your own project in this dynamic city, here is a simple guide that shows you how to set up a company in Dubai in 7 clear steps. This article will help you understand the procedures and requirements necessary to successfully establish your company, enabling you to take advantage of the investment opportunities available in the market.
How to set up a company in Dubai
Setting up a company in Dubai is an organized and straightforward process if you follow the correct steps. Here are the steps to set up a company in Dubai:
Determine the type of company: Before starting, determine the type of company you want to establish (such as a limited liability company, a joint stock company, a branch of a foreign company, or a sole proprietorship). Each type has its own requirements and procedures.
Choose a company name: Choose a suitable name for your company according to local standards. Make sure that the name has not been used before and avoid prohibited words. You can check the availability of the name through the Department of Economic Development website.
Obtaining approvals: You need to obtain the necessary approvals from the relevant authorities, depending on the type of business activity. These approvals may include a license from the Ministry of Economy or any other relevant authorities.
Preparing documents: Gather the required documents such as passports, personal photos, and the company’s articles of association. Make sure that all legal requirements are met.
Registering and obtaining a license: Register your company with the Department of Economic Development, and submit all the required documents. After approval, you will receive a commercial license, which authorizes you to practice the business legally.
Opening a bank account: After obtaining the license, open a bank account in the name of the company. You will need to submit the company’s incorporation documents and license number.
Obtaining visas: If you plan to hire employees or work in the company, you will need to obtain the appropriate work visas for you and your employees.
Renting an office: If your company needs an office, rent an office within your scope of work. Make sure that the office complies with the licensing requirements.
Tax compliance: Make sure you understand your company’s tax obligations, and that it complies with local laws.
Starting operations: After completing all the previous steps, you can start your business operations and explore the opportunities available in the market.
Establishing a company in Dubai provides tremendous opportunities for growth and expansion, and following these steps will help you achieve success in the business world.
Requirements for establishing a company in Dubai
Establishing a company in Dubai requires adherence to several legal conditions and requirements, which vary based on the type of company and its activity. Here are the most important general conditions for establishing a company in Dubai:
Determining the type of company: The type of company must be determined (limited liability company, joint stock company, sole proprietorship, branch of a foreign company, etc.) as each type has different requirements.
Obtaining approvals: Obtaining the necessary approvals from the competent authorities, such as the Ministry of Economy and the Department of Economic Development, depending on the commercial activity.
Required documents: Submitting personal documents, such as a passport and personal photos of the company founders. The company’s articles of association and articles of association. Additional documents related to the workplace (such as an office lease contract).
Licenses: Obtaining a commercial license from the Department of Economic Development. The type of license depends on the commercial activity (commercial, industrial, professional, etc.).
Having a local agent: In some cases, foreign companies may need a local agent (local partner) who owns 51% of the shares, except in free zones that allow full ownership.
Opening a bank account: A bank account must be opened for the company after obtaining the license, and submitting the required documents.
Obtaining visas: Work visas for company founders and employees. This requires applying for work visas from the Ministry of Human Resources and Emiratisation.
Tax compliance: Ensure that tax obligations, including VAT, are understood and complied with if the company is eligible.
Office setup: A physical workplace must be provided in accordance with the license requirements, whether it is an office or commercial space.
Additional permits: Some commercial activities may require additional permits from certain government agencies, such as the Ministry of Health or the Roads and Transport Authority, depending on the nature of the activity.
Be sure to consult a legal advisor or a specialized service company to ensure compliance with all legal requirements and procedures necessary to successfully establish your company.
Documents required to establish a company in Dubai
To establish a company in Dubai, you need to submit a set of necessary papers and documents. Documents may vary depending on the type of company and its activity, but here is a list of the basic documents required:
Personal documents for the founders of the company: Copies of passports: Passports must be valid for the founders of the company.
Personal photos: Recent photos of the founders of the company.
Memorandum of Association: The memorandum of association must be prepared and signed by all partners. The contract includes details such as the name of the company, its type, its activity, and its capital.
Articles of Association: It includes the rules and regulations that will govern the work of the company.
Choosing a trade name: A document proving the choice of the trade name: A verified trade name selection form must be submitted.
Office lease contract: A lease contract for an office or actual workplace must be provided. It may be necessary to obtain a license from local authorities in some cases.
Approvals of the competent authorities: Depending on the type of activity, you may need approvals from entities such as the Ministry of Economy, the Health Authority, or others.
Submitting the application form: Company registration application form: The registration form required by the Department of Economic Development must be filled out.
Financial Documents: You may be required to provide documents proving that the required capital is in a bank account opened in the company’s name.
Proof of Identity: In some cases, you may need to provide the Emirates ID of the company founders.
Additional Permits (if required): Some activities require additional permits from different authorities, such as the Ministry of Health or the Roads and Transport Authority.
Company Insurance (if required): Some activities require company insurance, so you should check the insurance requirements for the activity. It is advisable to contact a legal advisor or a specialized service company to help you prepare the required paperwork and ensure that all legal requirements are met to successfully establish your company.
Advantages of Setting Up a Company in Dubai
Setting up a company in Dubai comes with many advantages that make it an attractive destination for many entrepreneurs and investors. Here are some of the main advantages:
Favourable Business Environment: Dubai is one of the most business-friendly cities in the world, with a well-developed infrastructure and legal system that supports entrepreneurs.
Low Taxes: There is no personal income tax for individuals, and corporate taxes are also low, which increases profitability.
Full ownership: In free zones, foreign owners are allowed to own 100% of the shares of companies without the need for a local partner.
Ease of procedures: The government facilitates the procedures for establishing companies, reducing the time and effort required to comply with legal requirements.
Diverse business opportunities: Business opportunities are available in a wide range of sectors such as trade, financial services, tourism, technology, and industry.
Access to global markets: Dubai is a global business hub, allowing easy access to markets in the Middle East, Asia, Africa, and Europe.
Luxurious living and high quality of life: Dubai offers a high standard of living with a wide range of services and amenities, making it an attractive place to live and work.
Advanced legal system: Dubai adopts laws that protect property rights and ensure fairness in business transactions.
Government support: The government provides significant support for emerging and innovative projects, with financing and development support programs.
Multiculturalism: Dubai hosts a diverse international community, making it easy for investors and entrepreneurs to communicate and build business relationships.
Economic stability: Dubai enjoys a stable economic environment and continuous growth, ensuring sustainable investment opportunities. Establishing a company in Dubai can be a strategic step towards success and growth, thanks to the city’s competitive advantages and wide investment opportunities.
Etqan Company’s Efforts to Establish a Company in Dubai
Etqan Company provides a comprehensive set of services to help investors and entrepreneurs establish their companies in Dubai, by following thoughtful and effective steps. Here are some of the efforts made by Etqan in this field:
Specialized Consultations: Etqan provides specialized legal and commercial consultations to help clients understand the requirements and procedures necessary to establish companies, ensuring that businesses start properly.
Licensing Procedures: Etqan helps in obtaining the necessary commercial licenses, facilitating the application process and ensuring that all legal requirements are met.
Choosing the Type of Company: The company provides advice on the best type of business entity that suits the client’s activity, whether it is a limited liability company, a branch of a foreign company, or a sole proprietorship.
Choosing a Trade Name: Etqan helps in choosing a suitable trade name and provides support in the process of registering the name and verifying its availability.
Document Preparation: Etqan provides services for preparing all documents required to establish a company, such as the articles of association and the articles of association, facilitating the registration process.
Opening a bank account: It helps in opening a bank account for the company after obtaining the license, which facilitates financial operations and banking transactions.
Providing support in government procedures: Itqan guides clients in all procedures related to government agencies, ensuring compliance with local laws.
Visas and work residency: It helps in obtaining work and residency visas for employees, which facilitates the recruitment of the necessary human cadres for work.
Providing market information: Itqan provides comprehensive information about the local market and investment opportunities, which helps clients in making informed decisions.
Post-establishment services: Itqan continues to provide support after the company is established through services such as license renewal, data update, and support for daily operations. Itqan is a reliable partner for investors and businessmen looking to establish their businesses in Dubai, as it contributes to facilitating all procedures and providing the required support to ensure their success in the market.
At the end of our article on how to establish a company in Dubai, we can confirm that Dubai is one of the best global destinations for starting a business. The city offers a favorable business environment that combines legal facilities, advanced infrastructure, and wide market opportunities. By following the systematic steps discussed, investors and entrepreneurs can successfully establish their companies and achieve their business goals. The importance of using specialized companies such as Itqan is also an essential step to ensure compliance with local laws and facilitate complex procedures. Through these partnerships, investors can focus on developing their businesses instead of getting bogged down in administrative details. Establishing a company in Dubai is not just a business opportunity, it is an investment in a bright future full of opportunities and growth. So, if you are thinking of entering the business world in Dubai, do not hesitate to take the first step towards achieving your business ambitions.
Frequently Asked Questions on How to Establish a Company in Dubai
What are the documents required to establish a company?
You need copies of the passports of the company founders, personal photos, the articles of association, the articles of association, the office lease contract, and approvals from the competent authorities depending on the type of activity.
Can foreigners establish a company in Dubai?
Yes, foreigners can establish companies in Dubai, especially in the free zones where they can own 100% of the shares.
Do I need a local agent to establish a company?
In some cases, such as setting up a company in onshore areas, you may need a local agent who owns 51% of the shares. However, in free zones, full foreign ownership is allowed.
