What are the papers required to open a company in Dubai? As for starting to open a company in Dubai, there is a set of necessary papers and documents that must be prepared to ensure that the establishment process runs smoothly and efficiently. Dubai is one of the most attractive destinations for investment thanks to its vibrant and stable economic environment. Many investors prefer to establish their companies in the emirate to benefit from government facilities and laws that encourage investment. The required papers vary according to the type of activity and company, and usually include personal documents, such as a passport and personal photos, in addition to submitting a business plan that explains the objectives and intended activity. We will review what are the papers required to open a company in Dubai.
What are the papers required to open a company in Dubai
To open a company in Dubai, there is a set of papers and documents required to ensure the completion of legal procedures. These papers may vary depending on the type of company and the area in which the company will be established, whether in free zones or on the mainland. But in general, the required papers include:
Passport copy: Copies of a valid passport must be submitted for all shareholders and directors.
Personal photos: Submit passport-sized personal photos for shareholders and directors.
Business Plan: In some cases, you may be required to submit a business plan outlining the company’s activities and the services it will provide.
Registration Application Form: Fill out and submit the commercial registration application form provided by the relevant authorities.
Articles of Association: Prepare and notarize the company’s articles of association according to the type of company and applicable laws.
No Objection Certificate (if applicable): If a shareholder or director is currently working in the UAE, he or she may be required to submit a No Objection Certificate from the current employer.
Signing a Lease Agreement: If you intend to open an office outside the free zones, you will need a lease agreement for the company’s headquarters.
By submitting these documents, you can begin the formal procedures to open a company in Dubai and benefit from the emirate’s attractive business environment.
How to open a company in Dubai
Opening a company in Dubai requires following a set of legal and administrative steps. These steps vary depending on the type of company you want to establish and the area in which you want to set up your business, whether in the free zones or the mainland (outside the free zones). Here are the general steps to open a company in Dubai:
Determine the type of business activity: The first step is to determine the activity you want to practice. Dubai offers a wide range of commercial, industrial and service activities. Determining the type of activity will help you know the type of license required.
Choose the legal structure of the company: Determine the legal form in which you want to register your company, which varies between a limited liability company (LLC), a branch of a foreign company, a sole proprietorship and a partnership. Choosing the appropriate structure depends on the number of partners and the type of activity.
Choose a trade name: Choose a distinctive trade name for your company while adhering to the rules and conditions specified by the Dubai Department of Economic Development (DED). The name must reflect the business activity and not include unacceptable words.
Obtaining initial approvals: After determining the activity and choosing the trade name, you must submit an application to obtain initial approvals from the competent authorities such as the Department of Economic Development, and sometimes from other specialized authorities depending on the activity.
Preparing the Articles of Association: To complete the procedures, the Articles of Association must be prepared and documented with the signatures of all partners. In the case of a Limited Liability Company (LLC), the contract must include the distribution of shares among the partners.
Determining the location of the company: If your company will operate outside the free zones, you will need a lease contract for an office or business location. You must choose a location that meets the requirements of the authorities, and document the lease contract at the Dubai Land and Property Authority.
Applying for a license: After completing all the papers and approvals, you can apply for a commercial license. This is done through the Department of Economic Development in Dubai, which grants you the necessary license to practice the activity.
Opening a bank account: Once you obtain the commercial license, you can open a bank account for the company in one of the local or international banks operating in Dubai.
Obtaining work visas: If you plan to employ employees in your company, you can apply for work visas for them based on the shares available to you according to the type of activity and place of work.
By following these steps, you can establish your company in Dubai and start practicing your business activity in an economic environment that encourages and supports investment.
Dubai Company Setup Fees
The cost of setting up a company in Dubai depends on a number of factors related to the type of company, its location, and the business activity you intend to practice. Here are the main factors that affect the cost of setting up a company in Dubai:
Type of business license:
There are several types of business licenses such as commercial, industrial, professional, and tourism licenses. The cost of the license varies depending on the type of business activity and the field in which you operate. Some activities may require special licenses or approvals from specific government agencies, which increases the cost.
Geographical area:
Costs vary between free zones and the mainland (outside the free zones). Setting up a company in free zones such as Dubai South, Jebel Ali, or Dubai Internet City offers many advantages such as full foreign ownership and tax exemptions, but the initial fees may be higher. In contrast, companies opened in the mainland may require a local partner to own 51% of the company.
Headquarters or office
Renting a business premises is a key factor in determining the cost of starting a company. The rental cost depends on the location and size of the office. In free zones, rental fees are often included in the incorporation package, while in the mainland you will need a separate lease.
Number of Visas Required
The number of employees you will employ affects costs, as companies are required to pay for work visas for their employees. In free zones, a limited number of visas are allocated based on the size of the office and the number of employees required.
Registration and License Fees
There are fees associated with formally registering the company and obtaining a trade license from the Department of Economic Development (DED) or the relevant free zone authority. These fees include commercial registration and initial approvals, as well as an annual license fee.
Consultancy and Agency Services
If you are using a consultancy firm such as Itqan to facilitate the incorporation process, agency or consultancy fees may be added to the costs. Consultancy firms often provide comprehensive support in registering and submitting the required paperwork.
Government Service Costs
These include government fees related to licensing procedures, legal documentation of articles of association, and registration of contracts with the Land and Property Department or the relevant authorities.
Paid-up Capital
Some types of companies require a specific capital deposit in the bank to obtain a license. In free zones, this requirement is often not mandatory, but in the mainland some companies may need to prove capital. In addition to health insurance, every company must provide health insurance for employees, and this is part of the operating costs that must be taken into account when establishing the company.
Administrative and operating expenses
Administrative and operating expenses include fees related to the day-to-day running of the company such as electricity, internet, legal and accounting services, and maintenance. In short, the cost of opening a company in Dubai depends on several factors, and it is always advisable to seek advice from specialists to accurately estimate the budget and ensure the process runs smoothly.
Advantages of opening a company in Dubai
Opening a company in Dubai offers many advantages that make it an attractive destination for investment and business. The most important of these advantages are:
Tax exemptions: One of the most prominent advantages of establishing companies in Dubai, especially in the free zones, is the exemption from personal income tax and corporate tax, in addition to the absence of taxes on the transfer of profits or capital abroad.
Full foreign ownership: In the free zones, foreign investors are allowed to own 100% of the company without the need for a local partner, which is a great advantage compared to investing in the mainland, which previously required a local partner who owned 51%.
Facilities in establishment procedures: Dubai offers flexible and fast procedures for establishing companies, as investors can complete the process relatively quickly with the help of specialized companies such as Itqan, which provides full support in all establishment steps from licensing to opening bank accounts.
Access to global markets: Dubai’s strategic location makes it an ideal gateway to access markets in the Middle East, Africa and Asia. Dubai is also a global trade center that connects many global economies thanks to its port and international airport.
Diversity of Free Zones: Dubai has a large number of free zones that serve various industries and sectors, such as Jebel Ali, Dubai South, and Dubai Internet City, allowing companies to choose the area that suits their activity and requirements.
Residence Visas: Establishing a company in Dubai allows investors, their families, and their employees to obtain long-term residence visas, which facilitates the process of living and working in Dubai and enhances the stability of the company and its employees.
Advanced Infrastructure: Dubai has a world-class infrastructure that includes advanced road networks, seaports, international airports, and highly efficient communications facilities, which contributes to facilitating business operations and enhancing business growth.
Investment Protection: The laws in Dubai protect the rights of investors and provide them with a safe environment for doing business. The authorities are keen to provide a legal system that protects foreign investors and provides them with equal opportunities.
Attracting Talent: As a global city, Dubai attracts talent and skilled workers from all over the world, which contributes to the success of companies through the availability of diverse and distinctive experiences.
In short, opening a company in Dubai provides excellent investment opportunities, supported by a thriving economic environment and business facilities that make Dubai one of the best destinations for entrepreneurs and investors.
Etqan Company’s skills in establishing companies in Dubai
Etqan Company is distinguished by its advanced skills and expertise in establishing companies in Dubai, making it an ideal partner for investors and entrepreneurs. Here are the most prominent skills that Etqan Company has in this field:
Legal and regulatory expertise: Etqan Company has extensive knowledge of all laws and regulations related to establishing companies in Dubai, whether in free zones or the mainland. This helps clients avoid any legal obstacles and ensure that the process runs smoothly in accordance with local laws.
Managing procedures quickly and efficiently: Etqan expedites all the steps required to establish companies, starting from submitting the necessary papers, obtaining official approvals, and completing the commercial registration procedures. Their expertise allows them to manage all these stages with high efficiency and in a short time.
Providing customized solutions: Etqan provides solutions tailored to meet the needs of each individual client. Whether an investor wants to establish a small, medium, or large company, Atqan provides the appropriate support for each type of business, including choosing the appropriate legal structure.
In conclusion, preparing the required paperwork to open a company in Dubai is an essential step to ensure the success of the establishment process legally and smoothly. By understanding the registration requirements and necessary documents, such as the trade license, articles of association, and legal identity, investors can facilitate the procedures and speed up the start of their business. Using specialized companies such as Atqan helps ensure that all requirements are met accurately and efficiently, saving time and effort and allowing investors to focus on developing their business.
Frequently asked questions about what are the papers required to inspect a company in Dubai
What are the types of commercial licenses available in Dubai?
There are several types of commercial licenses, including commercial, industrial, professional, and tourism licenses, and the license is chosen based on the type of business activity you wish to practice.
Can non-residents establish a company in Dubai?
Yes, non-residents can establish a company in Dubai, especially in free zones that allow full foreign ownership without the need for a local partner.
Do the required documents differ depending on the type of company or region?
Yes, the documents vary depending on the type of company and the area you wish to establish the company in, whether in the free zones or on the mainland. In the free zones, the procedures and documents may be less complicated compared to the mainland.
