Establishing a company in Dubai is a strategic step towards entering a thriving market that provides diverse investment opportunities. Dubai is considered one of the most prominent business destinations in the world, thanks to its dynamic economic environment and advanced infrastructure. However, starting a business in Dubai requires following a set of precise steps and providing a set of basic papers and documents. In this article, we will review the necessary steps to establish a company in Dubai, starting from choosing the type of company and the appropriate location, all the way to submitting applications and registration procedures. We will also discuss the required papers, which include the necessary legal documents and licenses, to ensure establishing a company in Dubai smoothly and successfully.

Steps and papers required to establish a company in Dubai

Steps and papers required to establish a company in Dubai

Establishing a company in Dubai requires following specific steps and paperwork to ensure compliance with legal and administrative requirements. Here are the basic steps to establish a company in Dubai:

Steps to establish a company in Dubai

1. Choose the type of company (such as a limited liability company, a branch of a foreign company, or a public joint stock company).
   Determine the business activity the company will undertake.
2. Choose a business name that complies with local laws.
   Check the availability of the trade name and register it.
3. Determine the appropriate location for the company, whether it is in a free zone or a non-free zone.
   Rent or buy office or commercial space.
4. Preparing the company’s articles of incorporation and articles of association.
   Obtaining the necessary permits and licenses.
5. Submit an application to obtain a commercial license from the Department of Economic Development or the competent authority.
6. Open a bank account in the name of the company and put the required capital into it.
7. Register the company with the Department of Economic Development or the responsible authority.
   Obtain an establishment card and register the company with the Dubai Chamber of Commerce and Industry if necessary.
8. You may need additional permits depending on the business (e.g. work permit, health permit, etc.).
9. Recruit the necessary cadres and provide social and health insurance for employees.

After completing all the previous steps, you can start business operations and carry out the authorized activity.
Be sure to review any updates in the laws and regulations related to company formation in Dubai, and you may also need to consult a legal advisor or local expert to ensure full compliance.

Documents required to establish a company in Dubai

To establish a company in Dubai , you will need to submit a set of essential papers and documents to ensure compliance with legal and administrative requirements. Required paperwork usually includes:

1. An application form for registration and company establishment, which can be obtained from the Department of Economic Development or the competent authority.
2. Passports of company owners, directors and shareholders, copies must be valid.
3. Recent personal photos of individuals mentioned in passports.
4. The articles of incorporation include the details of the company, its structure, the purpose of its establishment, and the articles of association that regulate the company’s work.
5. Documents proving that the company has obtained the necessary licenses for its activity, such as a work permit, health permit, and others.
6. A business plan that explains the company’s activity, goals, and strategies.
7. A lease contract or title deed for the office where you will establish the company, or proof of the workplace.
8. Official authorization for appointed representatives to sign papers and documents on behalf of the company.
9. In the event of establishing a branch of a foreign company, you will need to submit parent company documents such as the registration certificate, articles of incorporation, and authorizations.
10. Proof of health and social insurance for employees if required.
11. Proof of payment of fees related to registering the company and obtaining a license.
    Requirements may vary slightly depending on the type of company and location, so it is recommended to check specific requirements with the Department of Economic Development or the relevant authority in Dubai.

Here is a table showing the different types of companies in Dubai, with basic details for each type:

Company type	Description	Features
Limited Liability Company (LLC)	A company consisting of two or more partners, but the partners are not personally liable for the company’s debts.	– Ease of establishment. – Limited liability for partners. – Suitable for small and medium businesses.
Private joint stock company	A company whose capital consists of shareholders and whose shares cannot be traded on the stock exchange.	– Limited liability. – Large capital. – Flexibility in attracting investors.
Public joint stock company	A company whose shares can be traded on a stock exchange.	– The possibility of raising large capital through the stock exchange. – Provides greater transparency.
Branch of a foreign company	A branch of a non-Emirati company.	– The foreign company is allowed to conduct business in Dubai. – Does not require a local partner.
Limited liability company in the free zone	A limited liability company operating in a free zone.	– Complete ownership by foreigners. – Tax exemptions. – Ease of establishment procedures.
Sole Proprietorship	A company owned by one individual, and the business activity can be limited.	– Full ownership by one person. – Suitable for small businesses.
Trading company	A type of company that deals with general commercial activities such as buying and selling.	– Public commercial activities are permitted. – It can be fully owned by foreigners in free zones.
Cooperative company	A company consists of a group of individuals or companies that work cooperatively to achieve a common goal.	– Sharing profits and losses. – Focuses on cooperation between members.
holding company	A company that owns shares in other companies and manages them through its investments.	– Allows control of multiple companies. – Suitable for large investments.

You should choose the company type based on your business and specific requirements, and there may be additional details for each company type based on specific regulations and procedures in Dubai.

 

Procedures for establishing a company in Dubai

Establishing a company in Dubai requires completing a set of procedures that vary depending on the type of company and its location. Here is an overview of the basic procedures for setting up a company in Dubai:

• Choose the appropriate company type (limited liability company, joint stock company, branch of a foreign company, etc.).
• Determine the business activity the company will undertake.
• Choose a business name that complies with local laws.
• Verify the availability of the trade name through the Department of Economic Development or the competent authority and register it.
• Locate the company, whether in a free or non-free zone.
• Rent or buy an office or commercial space and register the lease.
• Preparing the company’s articles of incorporation and articles of association.
• Preparing the necessary documents such as passports, personal photos, and authorizations.
• Submit an application to obtain a commercial license from the Department of Economic Development or the competent authority.
• Legal documents and a business plan may be required.
• Open a bank account in the name of the company and put the required capital in it according to the type of company.
• Obtain any additional permits or licenses depending on the business activity (such as health, environmental, etc. permits).
• Register the company with the Department of Economic Development or the responsible authority.
• Obtain an establishment card and register the company with the Dubai Chamber of Commerce and Industry if necessary.
• Employing the necessary cadres and providing social and health insurance for employees.
• After completing all the previous steps, you can start business operations and carry out the authorized activity.
• Ensure compliance with any additional requirements such as activity-specific licenses or additional registrations.

Details may vary slightly depending on the type of company and its location, so it is best to check the specific requirements with the relevant authorities in Dubai or consult Itqan.

 

Types of companies in Dubai

 

Cost factors for establishing a company in Dubai

The cost of setting up a company in Dubai can vary greatly based on several factors. Here are the most important factors that affect the cost of establishing a company in Dubai:

• Limited Liability Company (LLC) : Formation costs may include contract and articles of association fees, as well as licensing fees.
• Public or private joint stock company : requires more capital and additional costs for registration and procedures.
• Branch of a foreign company : You may need additional fees to register the branch and procedures related to the parent company.
• Free Zones : Costs in free zones are usually lower, but may include additional costs such as free zone rental fees.
• Non-Free Zone : Costs may be higher due to local partner requirements and other expenses.
• The capital required to establish a company varies depending on the type of company and business activity, and may affect the overall costs.
• The cost of leasing or purchasing office or commercial space varies depending on location and size.
• Commercial licensing fees and registration fees with government agencies may vary based on the type and size of the activity.
• Labor recruitment costs, including salaries, social and health insurance.
• The cost of preparing legal papers such as the articles of association and articles of association, and costs related to legal consultations.
• Required insurance costs such as accident insurance and health insurance for employees.
• There may be additional costs such as licensing costs for special activities, or environmental and health requirements.

It is important to check all the cost requirements to get an accurate estimate for setting up the company. It may also be beneficial to consult an expert company in Dubai, Itqan, to ensure compliance and accurately estimate costs.

In conclusion, establishing a company in Dubai is an important strategic step towards entering a market characterized by innovation and growth. By following careful procedures and meeting legal and administrative requirements, new companies can benefit from the encouraging business environment and advanced infrastructure that Dubai offers. Choosing the appropriate type of company, determining the optimal location, preparing the required papers, opening a bank account, and obtaining the necessary licenses are all essential steps that contribute to achieving success and business sustainability. Given the diverse economic opportunities and tax exemptions that Dubai offers, establishing a company there is not only an opportunity for growth and prosperity, but it is also a step towards achieving business goals effectively and efficiently. Therefore, it is essential to have a clear understanding of all aspects related to establishing a company and benefit from specialized advisory services to ensure you make the most of this wonderful investment environment.

 

Frequently asked questions about establishing a company in Dubai