Establishing a company in Dubai is a strategic step for many businessmen and investors, given the ideal business environment and many advantages the city offers. The process of establishing a company goes through several main stages that ensure compliance with legal regulations and achieving business goals. These stages begin with good planning and determining the type of company and business activity, followed by the stage of choosing the appropriate free zone or office location, then obtaining the necessary licenses from the competent authorities. After that, administrative procedures are dealt with, such as opening a bank account and preparing legal documents. All of this requires cooperation with specialized entities, such as “Atqan” Company, to ensure that the process runs smoothly and efficiently. By understanding these stages, investors can achieve success in their journey towards establishing a company in Dubai.
Stages of establishing a company in Dubai
Establishing a company in Dubai requires following a set of basic stages to ensure achieving business goals and complying with legal requirements. Here are the main stages of establishing a company in Dubai:
Determining the type of company: The investor must determine the type of company he wants to establish, whether it is a limited liability company, a branch of a foreign company, or a sole proprietorship.
Choosing the business activity: Choosing the business activity that the company will carry out, and it must be consistent with the activities permitted in the chosen area.
Choosing a free zone or location: Determine whether the company will operate in a free zone (such as Dubai Free Zone) or on the mainland. Each option has different advantages, such as full ownership in free zones.
Registering a trade name: Choosing a suitable trade name for the company and registering it with the Department of Economic Development or the competent authority in the free zone.
Obtaining licenses: Applying for the necessary licenses to conduct business. Requirements vary depending on the type of company and activity.
Preparing legal documents: Preparing legal contracts and agreements, such as the company’s articles of association and memorandum of association.
Opening a bank account: Opening a bank account for the company to facilitate financial transactions and capital management.
Registering employees: If the company will employ employees, they must be registered according to the UAE labor laws.
Additional licenses: In some cases, companies may need additional licenses such as special activity permits.
Starting operations: After completing all the procedures, commercial operations and marketing of products or services can begin.
By following these steps, investors can establish a successful company in Dubai and benefit from the wide business opportunities offered by the city.
The importance of establishing a company in Dubai
Establishing a company in Dubai is an important step for many investors and entrepreneurs, due to the many advantages the city offers as a global business destination. Here are the most important benefits of establishing a company in Dubai:
A stimulating investment environment: Dubai provides a stable and prosperous economic environment with policies that encourage foreign investment, making it one of the best investment destinations in the world.
Tax exemptions: Dubai is characterized by flexible tax policies, such as exemption from personal income tax and corporate taxes in free zones, which reduces the financial burden on investors.
Strategic location: Dubai is located in a strategic location linking Europe, Asia and Africa, making it a global center for trade, transportation and logistics services.
Advanced infrastructure: Dubai has a modern and integrated infrastructure that includes airports, ports and transportation, which facilitates business operations and provides a competitive business environment.
Economic diversity: Dubai relies on diverse economic sectors such as trade, tourism, real estate and technology, which provides multiple opportunities for investors in various fields.
Full Foreign Ownership: In free zones, investors are allowed to fully own their companies without the need for a local partner, which enhances management and decision-making freedom.
Ease of company formation: Dubai offers quick and easy procedures for company formation, whether in free zones or the mainland, allowing companies to start operations quickly.
Global expansion opportunities: With easy access to global markets, Dubai gives companies the ability to expand internationally and reach a diverse customer base.
Establishing a company in Dubai is a smart investment, thanks to these factors that enhance growth and business stability for investors.
Documents required to establish a company in Dubai
To establish a company in Dubai, a set of necessary documents must be submitted to ensure compliance with local laws and facilitate administrative procedures. The required documents vary depending on the type of company and location (mainland or free zone), but there are some basic documents that investors need. Here are the required documents:
Passport copy: A copy of the passport must be submitted for each partner or shareholder in the company, including managers.
Personal photographs: Recent personal photographs with a white background for each partner or manager, as used in official documents.
Business plan (optional): Some free zones require the submission of a business plan detailing the business activity and future goals.
Application form: Fill out the company establishment application form provided by the Department of Economic Development (in the mainland) or the competent authority in the free zone.
Proof of residence: Provide proof of residence (such as an electricity or water bill) for each partner or manager, especially if they are residents of the UAE.
Memorandum of Association: Requires the signing of the memorandum of association (in the case of limited liability companies), which specifies the partners’ shares, roles and responsibilities.
Articles of Association: A copy of the company’s articles of association, which specifies the nature of the business and the management structure.
Business License: Apply for a license for the business activity that the company will be operating. The activity is carefully selected to be in compliance with local laws.
No Objection Certificate (NOC): If one of the partners or directors is a resident of the UAE on a visa issued by another party, they may be required to submit a No Objection Certificate from the current sponsor.
Power of Attorney: If an agent is appointed to handle the incorporation procedures, a power of attorney must be submitted.
Parent Company License (for branches): If the new company is a branch of a foreign company, a copy of the parent company’s license and incorporation documents must be submitted.
After preparing these documents, investors can apply to the relevant authorities to complete the company incorporation procedures and obtain the necessary license to start business in Dubai.
Cost Factors for Company Incorporation in Dubai
The cost of company incorporation in Dubai is affected by several basic factors that determine the final amount required to start the business. Understanding these factors helps investors set a suitable budget and take advantage of the available options. Here are the most important factors that affect the cost of company incorporation in Dubai:
Type of company: The type of company (limited liability company, branch of a foreign company, sole proprietorship) differs in legal requirements, and thus affects the cost of incorporation.
Location (mainland or free zone): The cost of incorporation varies depending on whether the company is established in the mainland or in one of the free zones. Free zones often offer benefits such as full foreign ownership, but fees can be higher than in the mainland.
Type of business: Licensing and compliance fees vary depending on the type of business you choose. Some activities require special licenses, which increases the cost.
Capital requirements: Some types of companies specify a minimum capital requirement, which must be deposited in a bank account designated for the company, which affects the overall cost.
Licensing: The cost of licensing varies depending on the type of business license required (commercial, industrial, services). Each license has its own fees that vary depending on the activity and location.
Office or space rent: Renting an office or workspace is a major factor in the cost of incorporation. Free zones may offer packages that include office space, while in the mainland companies must rent a physical office.
Government fees: There are government fees related to company registration, issuance of licenses, and dealing with the relevant authorities. These fees vary depending on the region and type of company.
Additional Services: Investors may require additional services such as legal advice, document preparation, or appointing agents to facilitate the incorporation process, which increases the cost.
Visas: The cost of residency visas for investors and workers varies based on the number of visas required and the policies of each region.
Future Operating Costs: It is essential to take into account recurring operating costs, such as trade license renewal fees, visa fees, and administrative costs.
By understanding these factors, investors can determine the appropriate budget for company formation in Dubai and take advantage of the available options to achieve success in the UAE market.
Etqan Company Services for Establishing Companies in Dubai
Etqan Company provides a comprehensive range of services that facilitate the process of establishing companies in Dubai and help investors start their businesses quickly and efficiently. Here are the most prominent services provided by “Etqan” for establishing companies in Dubai:
Legal Consultations: Etqan provides comprehensive legal consultations to investors to ensure compliance with local laws and regulations related to establishing companies. This includes providing advice on the appropriate type of company, the required conditions, and the necessary documents.
Choosing a Business Activity: Etqan helps investors choose the most appropriate business activity based on their business plans and goals, and ensuring that the activity is in compliance with local laws.
Company Registration: Etqan handles the process of registering the company with the relevant government agencies such as the Department of Economic Development or free zones. This includes registering the trade name and preparing the required documents.
Obtaining Licenses: Etqan facilitates the process of obtaining the necessary commercial licenses, whether the license is commercial, industrial, or service, while following up on all legal procedures to ensure that licenses are obtained quickly.
Preparing Documents: Etqan handles the preparation of all documents necessary for establishing the company, such as the articles of association, bylaws, and partners’ contracts. These documents are prepared in accordance with the legal requirements in Dubai.
Providing offices and workspaces: Atqan provides integrated solutions for offices and workspaces, whether in the mainland or free zones, making it easy for investors to start working immediately.
Opening bank accounts: Atqan contributes to facilitating the process of opening bank accounts for new companies in Dubai, ensuring smooth management of capital and financial operations.
Residence visas: Atqan helps in obtaining residence visas for investors and employees of the company, and provides all procedures related to immigration and residence.
Renewal services: In addition to establishing companies, Atqan provides periodic renewal services for commercial licenses and other licenses, ensuring the continuation of work without complications.
Supporting foreign companies: Atqan supports foreign companies wishing to establish branches in Dubai, by providing specialized advice and assistance in legal and administrative procedures.
Through these services, Atqan helps investors establish their companies in Dubai quickly and easily, saving them time and effort and focusing on achieving their business goals.
In conclusion, it can be said that establishing a company in Dubai is a strategic step full of wide business opportunities. By carefully following the basic steps, such as choosing the type of company and business activity, submitting the necessary documents, and obtaining the appropriate licenses, investors can ensure the success of the incorporation process. Collaborating with specialized entities such as “Atqan” facilitates these steps and ensures achieving legal compliance with minimal complexity. Thanks to the advanced infrastructure and thriving economic environment in Dubai, new companies can flourish and achieve great success in the global market.
Frequently asked questions about the stages of establishing a company in Dubai
Do I need a local partner to establish a company in Dubai?
In the mainland, companies need a local partner who owns 51% of the shares. However, in the free zones, full foreign ownership is allowed without the need for a local partner.
Can a company be established in Dubai without being present in the Emirates?
What is the cost of establishing a company in Dubai?
The cost varies based on the type of company, location (mainland or free zone), and type of business activity. Costs include government fees, activity licenses, and office rental fees.
