How to Open a Company in Dubai, Establishing a company in Dubai is a strategic step for local and international investors seeking to benefit from the promising economic opportunities offered by the emirate. Dubai is one of the most prominent global business destinations thanks to its advanced business environment and flexible procedures, making it ideal for establishing companies in various sectors. Dubai provides a transparent legal system and attractive tax benefits, making it an attraction for investors from all over the world. Itqan is one of the leading companies in providing integrated services to support the process of establishing companies in Dubai, helping investors understand the complex procedures and speed up the establishment process with ease.
When deciding to open a company in Dubai, there are a set of basic steps that the investor must follow to ensure success, starting with choosing the most appropriate type of company, whether it is a limited liability company, a company wholly owned by foreigners in free zones, or even an offshore company. Then, the investor must determine the business activity he wants to practice, which requires obtaining the appropriate commercial license. Itqan facilitates these steps by providing legal advice and administrative support to ensure full compliance with the legal requirements in Dubai.
Establishing a company in Dubai also requires a thorough knowledge of all the fees and procedures related to commercial licenses, in addition to the documents required to register the company. By cooperating with Itqan Company, investors can obtain all the details on how to establish a company in Dubai, ensuring a strong start for their business in the UAE market.
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ToggleTypes of companies that can be established in Dubai
Dubai is one of the most attractive investment destinations for foreign investors, thanks to its stable economic environment, advanced business structure, and diverse opportunities it offers to investors from all over the world. When considering establishing a company in Dubai, investors should be familiar with the different types of companies available, as UAE law offers multiple options that suit different business activities. Investors can choose from companies that suit their needs and circumstances, whether they want to operate within the local market, in free zones, or in international activities. Each type of company comes with its own legal and financial advantages, allowing investors to determine what is best for them based on their business goals.
Types of companies that can be established in Dubai:
Limited Liability Company (LLC): This is the most common type of company in Dubai, and allows a company to be established wholly owned by foreigners but with a local partner (UAE national) owning 51% of the company’s shares. This company is suitable for those who want to operate within the local market.
Free Zone Company: Dubai’s free zones offer excellent opportunities for foreign investors to establish their companies without the need for a local partner. These companies offer many benefits such as tax exemption, full foreign ownership, and no restrictions on transferring funds.
Offshore Company: Offshore companies are companies that are established in Dubai but operate outside the country. This type of company is suitable for individuals and companies who want to manage their investments or properties in Dubai or the Gulf region through a flexible legal structure.
Sole Proprietorship: This is a company owned by a single individual, and is the ideal choice for people who want to start their business in Dubai independently without the need for a partner. In this type of company, the individual is solely responsible for all aspects of the company.
Civil Company: These companies are established between professionals such as doctors, lawyers, and engineers. These companies are usually small in size and are established for the purpose of practicing a professional activity.
Branch of a foreign company: This type of company allows foreign companies wishing to enter the UAE market to open a branch in Dubai. This branch has the legal entity responsible for commercial activities within the UAE, and relies on a license affiliated with the parent company.
Commercial company with a specific purpose: This type of company is established to implement specific commercial objectives within a specific time frame, and is suitable for investors who wish to manage specific projects or execute specific deals.
Each type of these companies comes with its own terms and procedures that require careful planning and appropriate selection according to the investor’s needs and the nature of his work.
Basic Steps to Establish a Company in Dubai
Establishing a company in Dubai is a strategic step for many investors who want to enter one of the fastest growing markets in the world. Thanks to its advanced business environment, numerous investment opportunities, and government facilities, Dubai has become a major destination for foreign investors. If you are considering establishing your company in Dubai, knowing the basic steps to follow is crucial to ensuring that the process goes smoothly. In Dubai, the procedures vary depending on the type of company and the location you choose (inside the city or in one of the free zones). This article aims to explain the basic steps to establish a company in Dubai, starting from choosing the type of company and identifying the local partner, all the way to obtaining a trade license and complying with legal requirements.
Basic Steps to Establish a Company in Dubai:
Choosing the type of company: The first step in the process of establishing a company is to determine the type of legal entity you want to establish. You can choose between Limited Liability Companies (LLC), companies in free zones, offshore companies, or even opening a branch of a foreign company. Your choice depends on the nature of your business and the business goals you seek to achieve.
Choosing a company name: It requires choosing an appropriate name for your company, provided that it complies with local laws. The name should not be similar to other companies registered in Dubai and should reflect the type of business activity.
Determine the business activities: The business activities that the company will carry out must be determined, as this will affect the type of business license that you will need. Dubai offers a wide range of economic activities that investors can choose based on their desire.
Determine the location: If you are going to establish your company in one of the free zones, you will have the opportunity to own all the shares of the company. However, if you decide to operate in the local market, you will have to choose a suitable location in Dubai according to the requirements of the Department of Economic Development.
Preparing legal documents: It is necessary to prepare a number of legal documents such as passports, certificates of origin, articles of association, and specifying the local partner (if required). These documents must be complete and accurate to avoid any delays in the transactions.
Apply for a commercial license: After preparing the documents, you can apply for a commercial license from the Department of Economic Development or from the competent authority in the free zone you have chosen. Your application will be studied and the license will be granted according to the specified criteria.
Registering employees and opening a bank account: Once you have obtained the commercial license, you must register your employees with the relevant authorities such as the Ministry of Labor and the Social Insurance Department. A commercial bank account must also be opened in the company’s name in one of the approved banks in Dubai.
Receiving the commercial license: After completing the legal procedures and ensuring compliance with all conditions, you will receive the commercial license that allows you to start practicing the commercial activity legally.
By following these basic steps, investors can establish their companies in Dubai efficiently and easily, which contributes to enhancing their business opportunities in one of the most dynamic markets in the world.
Tax benefits for establishing a company in Dubai
Dubai is one of the world’s leading destinations for investment and business, as it offers significant economic benefits that attract investors from all over the world. The most prominent of these tax benefits that Dubai provides to companies and institutions, which contribute to stimulating economic growth and enhancing the business environment. Tax facilities are one of the main reasons that drive many companies to establish their branches or headquarters in Dubai, as the city provides an encouraging environment for investors and business owners, whether local or foreign. Thanks to flexible tax policies, investors can focus on expanding their business activities without worrying about the heavy tax burden. Through this article, we will discuss the most prominent tax benefits that Dubai offers for establishing companies.
Tax benefits of setting up a company in Dubai:
Exemption from income tax: One of the most prominent benefits that Dubai offers to investors is the complete exemption from corporate income tax. No tax is imposed on income generated from corporate activities within the city, which encourages investors to establish their companies and expand in the local and regional market.
Exemption from corporate tax: Dubai does not impose a tax on commercial companies in most sectors, except for some sectors such as banks and oil companies. This also includes companies in free zones, where investors can benefit from this exemption for a long period of time, which may reach 50 years.
Exemption from value-added tax (VAT) on many activities: Although the UAE has imposed a 5% value-added tax on goods and services, many commercial activities and companies operating in some sectors such as education, health and financial services are exempt from this tax, which contributes to reducing operating costs.
No capital gains tax: In Dubai, there is no tax on capital gains resulting from the sale of assets such as stocks and real estate, making Dubai an attractive environment for investors looking to expand their investment portfolio.
Exemption from personal income tax: If you work in Dubai as a natural person, you do not need to pay income tax on your salary or bonuses. This advantage makes Dubai a preferred destination for talented professionals from all over the world.
Existence of tax-free free zones: Many of Dubai’s free zones offer comprehensive tax exemptions, including income tax and corporate tax exemptions for up to 50 years. This gives businesses the ability to expand and grow in a tax-free environment.
Multiple tax-friendly options for small and medium-sized businesses: Dubai offers tax incentives for small and medium-sized businesses, making it an ideal environment for emerging businesses that want to expand without worrying about heavy tax financial burdens.
Through these tax benefits, Dubai provides an ideal environment for investors and businesses that want to grow and prosper without the tax obstacles they may face elsewhere, making it a global investment destination sought after by companies from all over the world.
Documents required to establish a company in Dubai
Establishing a company in Dubai is an important strategic step for many businessmen and investors who want to enter the growing UAE market. Dubai is one of the most attractive cities for investments thanks to its advanced business environment and the many opportunities it offers in various sectors. In order to start a business in Dubai, it is necessary to comply with the legal and administrative requirements set by the relevant authorities. One of these basic requirements is to provide the necessary documents that are an essential part of the procedures for establishing a company legally. These documents vary depending on the type of business activity and the area (free or main), but there are general documents that must be submitted in all cases. In this article, we will discuss the documents required to establish a company in Dubai and the importance of each of them in facilitating the registration process and launching your business.
Documents required to establish a company in Dubai:
Company registration application: The registration application is one of the basic documents that must be submitted to establish any type of company in Dubai. This application includes details about the type of business activity, shareholders, and the organizational structure of the company.
Passport copy: A copy of the passport of the founders and shareholders of the company must be submitted. This document is necessary to verify the identity of individuals wishing to establish the company.
Recent personal photos: Recent personal photos of the founders and executives are part of the documents required when applying for a commercial license.
Business plan: The business plan must include details about the business activity, the services or products that the company will provide, as well as the target group of customers. This plan helps convince the stakeholders of the feasibility of the project.
Proof of company address: If the company is established in major areas or free zones, it may be necessary to provide proof of the property or office that will be used as the company’s headquarters. This could be a contract or a letter from the owner.
Approval of the competent authorities: In some cases, you may need to obtain approval from some regulatory or governmental bodies if the company’s activity requires a special license or additional approval such as health or educational activities.
Incorporation agreement: The company’s incorporation agreement must be prepared, which includes the terms and conditions related to the rights and duties of partners and managers. This document is the basis for the process of establishing the company and determining its legal structure.
No-objection certificate: In some cases, founders of foreign companies are required to obtain a no-objection certificate from their previous employer or from the relevant government authorities, especially if they are residents of the UAE.
Reserve a trade name: A distinctive trade name for the company must be chosen and reserved through the relevant authorities. This requires that the name is not duplicated and not reserved by other companies in Dubai.
Industrial or Professional Licenses: If the company will operate in sectors that require additional licenses such as the industrial or professional sector, the necessary documents to obtain these licenses will be necessary.
By preparing and submitting these documents in accordance with the legal procedures in Dubai, investors can establish their company smoothly and without delay.
Our company’s role in opening a company in Dubai
Opening a company in Dubai is an important step towards achieving success in one of the most attractive global markets for investments. By choosing Dubai as a location to establish your company, you can benefit from a flexible and advanced business environment, in addition to attractive tax benefits and a strategic location that allows you to access international markets. With the many options available to investors, it is essential to choose the type that is most suitable for your company and that is in line with your business goals and the activity you wish to practice.
Itqan is an ideal partner for investors wishing to establish a company in Dubai. It provides full support and guidance to ensure that the process runs smoothly from start to finish. Itqan’s services include legal consultations, representation before government agencies, and providing all information related to the steps and procedures required to establish a company in Dubai. Whether you want to establish a company in the free zones or in the local market, Itqan offers you flexible and effective solutions that suit your needs and ensure full compliance with local regulations.
When you cooperate with Itqan, you can overcome complex bureaucratic challenges and benefit from the extensive experience of its specialized team. The company also guarantees you simplification of procedures and reduction of any delays that may occur during the registration and licensing process. This allows you to focus on developing and growing your business instead of worrying about legal and administrative procedures. Ultimately, this cooperation guarantees you a strong start in the UAE market and ensures the long-term success of your company in Dubai.
Frequently Asked Questions about Starting a Business in Dubai
What types of companies can be established in Dubai?
There are several types of companies that can be established in Dubai, such as limited liability companies (LLC), sole proprietorships, companies in free zones, offshore companies, and others. The most appropriate type varies based on the type of activity, location, and legal structure required.
What are the basic procedures for establishing a company in Dubai?
The basic procedures for establishing a company in Dubai include choosing the type of company, determining the business activity, choosing the company name, submitting a commercial license application, registering the company with the relevant authorities, opening a bank account, and submitting the required documents.
Can foreigners establish a company in Dubai?
Yes, foreigners can establish a company in Dubai, whether in free zones or through limited liability companies (LLCs), but some types require a local partner in the event of establishing companies in the local market outside the free zones.
What are the tax benefits of establishing a company in Dubai?
Dubai offers attractive tax benefits to investors, such as tax exemptions on income and profits in many free zones, low corporate taxes, and no personal income tax.
How long does it take to set up a company in Dubai?
The time it takes to set up a company in Dubai depends on the type of company and the documents provided. Generally, the process can be completed within days or weeks, especially if all the documents are ready.
How long does it take to set up a company in Dubai?
The required documents include the founders’ passport, a personal photo, the lease agreement (if applicable), business activity permits, and any other documents depending on the type of company and location.
Can I set up a company in Dubai without having a physical office?
Yes, it is possible to set up a company in some free zones without the need for a physical office. A virtual address or shared office can be provided in many free zones.