Best Company Formation in Dubai, Opening a company in Dubai is a strategic step for entrepreneurs and investors seeking to benefit from the dynamic and thriving business environment provided by this global city. Dubai is one of the best business destinations in the world thanks to its distinguished location as a link between the East and the West, in addition to a modern infrastructure and flexible laws that encourage investment. However, with increasing opportunities and challenges, investors need specialized support in understanding the legal and procedural requirements to establish their companies properly and effectively. This is where the importance of cooperating with consulting companies specialized in establishing companies in Dubai comes into play.
“Itqan” Company is one of the most prominent companies that provide company formation services in Dubai, as it is distinguished by its ability to facilitate all procedures necessary to start a business. “Itqan” provides a comprehensive set of services that include legal consultations, determining the type of appropriate licenses, submitting initial approvals, as well as assistance in choosing the most appropriate location for the company, whether in the free zones or within Dubai mainland.
“Itqan” also provides customized solutions for each type of company to suit the needs of investors, whether they are looking to open a branch of an existing company or establish a new company from scratch. With its highly experienced professional team in dealing with government agencies and the details of local procedures, “Itqan” provides fast and efficient services that contribute to accelerating the process of establishing a company and ensuring compliance with local laws. Therefore, working with a company like “Itqan” is the ideal choice for investors seeking to establish their businesses in Dubai legally and safely.
Table of Contents
ToggleTypes of companies that can be established in Dubai
Dubai is one of the most attractive investment destinations in the world, providing a flexible and easy business environment for both local and foreign investors. Dubai enjoys a strategic location at the crossroads of East and West, and provides a wide range of business opportunities in various sectors. One of the most important features of Dubai is the diversity of types of companies that can be established, allowing investors to choose the form that best suits their needs and business goals. The types of companies in Dubai vary according to geographical location and type of business activity, making it easier for investors to make the right decision. In this context, companies in Dubai can be divided into several main types, and in this article we will discuss the most prominent of these types and what distinguishes each of them.
Limited Liability Companies (LLC): Limited liability companies are one of the most common types in Dubai, as they are established under a partnership between local and foreign investors. The local partner typically owns 51% of the shares, while the foreign investor owns 49% of the shares. This type of company is suitable for businesses that want to expand within the local market.
Companies in Free Zones: Dubai’s free zones offer foreign investors the opportunity to own 100% of the company without the need for a local partner. Free zones offer many benefits such as tax and customs exemptions, making them an ideal choice for many companies targeting international markets.
Sole Proprietorships: Investors can establish sole proprietorships in Dubai, where the individual is the sole owner of the company. This type of company requires the least number of procedures and can be established quickly and at a low cost, making it suitable for small businesses or individual activities.
Private and Public Joint Stock Companies: Private or public joint stock companies can be established in Dubai, and these companies are considered the most complex types of companies that require high capital. This type of company allows investors to raise capital by selling shares to investors.
Holding Companies: Holding companies are established in Dubai with the aim of controlling a group of other companies, and allowing profits to be distributed effectively among subsidiaries.
Joint Venture Companies: This type of company allows for the establishment of a business venture between local and foreign investors with joint capital. This option can be ideal when the project requires local expertise and knowledge of the UAE market. Offshore Companies: Offshore companies are companies operating in Dubai but are not taxed in the country, as their activities are limited to international trade and do not interfere in the local market. This option is suitable for investors looking to operate outside the UAE while making Dubai a global business hub.
Business Licenses Required to Establish a Company in Dubai
Dubai is one of the most prominent business destinations in the world, providing a dynamic and flexible business environment for investors from all over the world. Establishing a company in Dubai requires obtaining an appropriate business license, and the type of license depends on the type of business activity the investor wishes to practice. Business licenses are the basis that allows investors to conduct their business activities legally within Dubai. There are several types of licenses that can be obtained according to the requirements of the business activity. In this article, we will discuss the basic types of business licenses required to establish a company in Dubai.
Commercial License: This license is intended for companies that carry out commercial activities, such as selling goods and products. It includes businesses that sell products or provide sales services within the local market.
Industrial License: This license is granted to companies operating in the fields of manufacturing and production. It includes industrial activities that aim to convert raw materials into saleable goods.
Professional License: This license is granted to businesses that provide professional services such as legal, accounting, medical, or technical consultations. This license reflects activities that rely on special knowledge and skills.
Tourism License: This license is for businesses operating in the tourism sector such as travel agencies, hotels, or any other activity related to tourism and entertainment. This license includes companies targeting tourists and travelers.
Free Zone Commercial License: If the activity will be carried out within one of the free zones in Dubai, a special license will be issued for companies operating in that area. This license allows foreign investors to have full ownership of the company without the need for a local partner.
Holding Company License: This license is granted to companies that wish to own other companies, and these companies are usually not commercially active, but rather focus on managing investments.
Non-Profit License: This license is granted to organizations that do not aim to achieve commercial profits, such as charities or social institutions.
Virtual License: This license includes companies that provide online services such as e-commerce or specialized internet services, and is a popular option for starting businesses that do not require a physical presence in Dubai.
Each type of these commercial licenses in Dubai requires specific procedures and documents to obtain the appropriate license, and investors must choose the most appropriate license according to their business activities and investment plans.
Documents required to establish a company in Dubai
Establishing a company in Dubai requires a set of legal and administrative procedures to ensure that the work is conducted legally and in an organized manner. Dubai is a distinguished investment destination that provides various opportunities for local and international investors. In order to establish a company in Dubai, investors must follow specific steps and submit the required documents to obtain the appropriate license. The required documents vary depending on the type of business activity and the area in which the company will be established, whether in the free zones, on the mainland, or in a special economic zone. In this article, we will learn about the basic documents that an investor needs to establish a company in Dubai.
Company establishment application: This application is one of the first documents that must be submitted to obtain a commercial license, and must be filled out with detailed information about the company and the desired business activity.
Passport copy: A copy of the passport must be submitted for investors and partners in the company, as well as copies for any foreign employees who will be required to be employed within the company. This copy must be valid.
A copy of the UAE visa: If the investor or any of his partners has a valid residence visa in the Emirates, a copy of it must be submitted.
Proof of address: The investor must provide proof of address through a recent utility bill (such as electricity or water) from the UAE to prove the partner’s place of residence.
Initial permit from the Department of Economic Development: Before starting the company’s establishment, an initial permit must be obtained from the Department of Economic Development in Dubai, after submitting the basic documents that include details of the company’s name and business activity.
Articles of Association and Partners’ Agreement: The Articles of Association (usually if the company is a limited liability company) are required, which defines the rights and duties of the partners.
Company Business Plan: A detailed business plan must be submitted that outlines the business objectives and activities, financial plans, as well as the marketing strategy, which helps demonstrate the seriousness of the company’s project.
Business Licenses: Depending on the type of activity the company will undertake, the necessary licenses or approvals must be submitted from other relevant authorities, such as health, environmental, or industrial authorities.
Local Regulatory Authority Approval (if required): Some activities may require obtaining approvals from specific regulatory bodies such as the General Civil Aviation Authority or the Health Authority, depending on the type of business activity.
Office or workspace rent: If the company will operate on the mainland or within one of the free zones that require a physical office, a lease contract or document proving the availability of the necessary workspace must be submitted. The required documents vary depending on the type of activity and the location chosen to establish the company. It is important for the investor to cooperate with a specialized consulting company such as Itqan to expedite the procedures and ensure that the documents are submitted correctly.
Our company’s role in establishing companies in Dubai
In conclusion, it can be said that choosing a reliable and specialized company to establish businesses in Dubai is crucial to the success of any commercial project. “Itqan” is the ideal choice for investors and entrepreneurs seeking to launch their companies in Dubai in a legal and effective manner. Thanks to “Itqan’s” extensive experience in the local market and its ability to provide professional advice and practical guidance, it plays a pivotal role in facilitating all aspects of the company establishment process, starting from choosing the most appropriate type of license to completing all government procedures.
“Itqan” also distinguishes itself by providing innovative solutions that keep pace with the needs of modern companies, in line with changes in the market and the requirements of official bodies. In addition, “Itqan” provides its clients with many support services that contribute to accelerating procedures and reducing costs, which contributes to the success of projects and achieving business goals in a short time. By using “Itqan”, clients receive continuous support from a specialized and highly efficient team in various legal, financial and administrative aspects, ensuring that the company establishment in Dubai is carried out smoothly and according to the highest standards of professionalism. Thus, partnering with Etqan Company gives investors security and confidence that all the details of establishing the company have been done in accordance with the laws in force in Dubai, which facilitates their expansion and growth in the local and international market.
Frequently asked questions about establishing companies in Dubai
What are the types of companies that can be established in Dubai?
Several types of companies can be established in Dubai, such as limited liability companies (LLC), sole proprietorships, companies in free zones, and public or private joint stock companies. Each type has its own characteristics and depends on the nature of the business activity and the needs of the investor.
What are the documents required to establish a company in Dubai?
The process of establishing a company in Dubai requires basic documents such as a valid passport for the founders, residence visas (if available), copies of the Emirates ID (if available), and a copy of the commercial lease contract (if a place of work has been determined). Some activities may require additional documents depending on the type of activity.
Does an investor have to have an Emirati partner to establish a company in Dubai?
In the case of establishing a limited liability company (LLC) in Dubai, there must be an Emirati partner who owns 51% of the company’s shares. However, in free zones, an investor can own 100% of the company’s shares without the need for a local partner.
Does an investor need to have an Emirati partner to establish a company in Dubai?
The licenses required depend on the type of business activity. In Dubai, there are different types of licenses such as a commercial license (for commercial activities), an industrial license (for production activities), and a professional license (for professional and consulting activities).
How long does it take to establish a company in Dubai?
The duration of establishing a company in Dubai can range from one week to several weeks, depending on the type of company and the required documents. The establishment procedures in free zones may be faster compared to companies that require a commercial license in Dubai mainland.
How long does it take to establish a company in Dubai?
This varies depending on the type of business and the area you wish to operate in. In some free zones, a foreign investor can own 100% of the shares. However, in the case of establishing a company in Dubai mainland, it often requires a local partner who owns 51% of the company’s shares.