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Procedures for establishing a company in Dubai

١٠ يناير Procedures for establishing a company in Dubai

Dubai is one of the world’s leading destinations for business and investment, thanks to its distinguished economic environment, advanced infrastructure, and favorable government policies that encourage the establishment of companies. Whether you are a local or foreign businessman, Dubai offers diverse opportunities to establish businesses in different fields such as trade, services, technology, and industry. Investors can establish their companies in Dubai through the mainland or free zones, each of which provides unique advantages that suit different types of business activities.

فتح سجل تجاري في دبي

One of the most important factors that make Dubai an ideal destination for establishing companies is its strategic location that connects the markets of the East and the West, in addition to the flexible tax system and tax exemptions available in the free zones. Moreover, Dubai provides a safe and stable investment environment, which enhances the desire of many investors to establish their companies in it. Despite these advantages, the process of establishing a company in Dubai requires accurate knowledge of legal and administrative procedures, including choosing the business activity, choosing the optimal type of company, and complying with local government requirements.

In this article, we will discuss the steps to establish a company in Dubai, focusing on the required documents, costs, and benefits that Dubai offers as an investment destination. We will also review the most important options available to investors, whether through the mainland or free zones, and what procedures must be followed to ensure the establishment of a successful and thriving company in Dubai.

Procedures for establishing a company in Dubai

To establish a company in Dubai, you usually need to follow the following steps:

Choosing the type of company: The types of companies available in Dubai may vary, such as a sole proprietorship, limited company, subsidiary company, etc. Choose the type that suits your business activity.

Choosing the company name: You must choose a unique and non-repeated name for your company and ensure that it complies with the requirements of the Ministry of Commerce and Industry in Dubai.

Preparing the necessary documents: Establishing a company usually requires preparing documents such as the articles of association, company incorporation contracts, and others depending on the chosen type.

Visiting the Department of Commerce: You must visit the local Department of Commerce or the relevant authority to submit the necessary documents and data to register the company.

Paying fees: You must pay the fees required for the company establishment process and obtain the necessary licenses.
Obtaining government approvals: You may need to obtain special approvals or licenses from various government agencies depending on the company’s activity.
Company Registration: After completing the previous procedures, the company is registered in the commercial register and obtaining the necessary business license.
Opening a bank account: A commercial bank account must be opened in the name of the company to manage financial transactions.
Compliance with tax legislation: It is necessary to ensure compliance with tax legislation and register the company with the tax authorities.

Licenses Obtainable in Dubai

In the Emirate of Dubai, a variety of licenses and permits can be obtained depending on the type of business activity you wish to practice. Here are some common licenses that can be obtained in Dubai:

General Commercial License: Allows companies to carry out general commercial activities and trade goods in the local market.
Professional Commercial License: Issued to individuals who carry out a commercial or professional activity individually, such as doctors, lawyers, and engineers.
Professional License for Companies: Allows companies to provide specific professional services, such as engineering or medical consulting.
Industrial Commercial License: Issued to companies operating in the industrial and manufacturing sector.
E-commerce License: Allows companies to sell products and provide services online.
Retail License: Issued to companies that sell products directly to consumers.
Restaurant or Café License: Issued to restaurants and cafés to provide food services.
Building License: Issued to companies involved in construction and civil engineering works.
Tourism License: Issued to companies in the tourism and travel sector.
International Trade License: Issued to companies that aim to participate in international trade.

Basic Documents for Establishing a Company in Dubai

To establish a company in Dubai, there are a set of basic documents that must be prepared according to the type of company and the area (such as free zone or outside it). Here are the basic documents required:

Passport: A copy of a valid passport for all founders, managers, and investors.
Residence visa: If the founders are residents of the UAE, a copy of the current residence visa must be submitted.
Birth certificates: Some cases require submitting birth certificates for the founding individuals.
A copy of the Emirates ID card: For each founder and manager.
Residential address: Proof of address (such as a utility bill or rental contract) for the company founders and managers.
Business plan: Includes a detailed description of the business activities that the company will carry out, and future growth plans.
Memorandum of Association (MOA): This contract specifies the organizational structure of the company and its activities, in addition to the responsibilities of the individuals involved.
No Objection Certificate: If one of the founders is an employee of another company, a No Objection Certificate must be submitted from the employer.
Initial approval: From the Department of Economic Development in Dubai, which is an initial step before obtaining a commercial license.
Business License: If the company is established in a non-free zone, it is necessary to apply for a commercial license from the competent authorities.

In conclusion, it can be said that establishing a company in Dubai is a strategic step towards entering a vital and thriving market at the regional and international levels. Dubai provides an advanced investment environment, thanks to its modern infrastructure, legal facilities, and tax exemptions, making it an ideal destination for those wishing to establish companies from all over the world, especially Gulf citizens.

Establishing a company in Dubai gives investors the opportunity to grow and expand in a stable and safe environment, as flexible government policies contribute to enhancing economic activity and attracting investments. The available options such as establishing companies in the mainland or free zones give investors great flexibility in choosing the most appropriate structure for their companies according to the type of business activity.

It is important for the investor to be aware of all the legal and financial procedures related to establishing companies in Dubai, including the required documents, establishment costs, and legal conditions. Gulf investors can benefit from full ownership in free zones, which enhances the chances of success and growth in global markets.

In addition, Dubai can contribute to strengthening the investor relations network by connecting them to other markets in the region and the world. With government support and the availability of specialized consulting services, establishing a company in Dubai is an easy and straightforward process.

Ultimately, establishing a company in Dubai is not just an economic opportunity but a long-term investment in the success of the business, opening the way for companies to achieve their expansion and innovation goals in the international market.

Top Frequently Asked Questions About Starting a Company in Dubai

Can foreigners establish a company in Dubai?
Yes, foreigners can establish a company in Dubai, whether on the mainland with a local partner or in the free zones where foreigners can own 100% of the company.

Does establishing a company in Dubai require an Emirati partner?
In the case of establishing a company on the mainland, the law requires an Emirati partner who owns 51% of the company’s shares. In the free zones, foreigners can own 100% of the company.

What are the costs associated with establishing a company in Dubai?
The costs vary depending on the type of activity, location, and size of the company. Costs include commercial license fees, office rental, visa fees, and legal documentation procedures.

How long is a company license in Dubai?
Business licenses in Dubai are usually valid for one year, and must be renewed annually to avoid fines.