Learn how to set up a company in Dubai. Dubai is one of the most prominent global destinations for business and investment, as it provides a vibrant economic environment and a range of incentives that make it an ideal place to establish companies. The emirate is considered a global beacon of innovation and development, as it combines modern infrastructure, government facilities, and advanced economic systems that encourage investment. Starting a business in Dubai is not just an opportunity for economic expansion, it is a strategic step towards achieving global success. Through this article, we will review the basic steps and procedures required to establish a company in Dubai , and reveal how to take advantage of the advantages provided by this leading city to achieve your business goals.
Establishing a company in Dubai
Advantages of establishing a company in Dubai
- Advanced business environment: Dubai provides advanced infrastructure and modern facilities, including business centers and free zones that contribute to enhancing business efficiency.
- Tax exemptions: Dubai offers encouraging tax exemptions, including exemption from corporate income tax in most free zones, which contributes to improving business profitability.
- Full Foreign Ownership: Free zones allow foreign companies to own 100% of the shares, giving investors complete control over their business.
- Ease of establishment procedures: Simplified systems and procedures contribute to speeding up the process of registering companies and obtaining the necessary licenses, which reduces the time and effort required to establish the company.
- Stable legal and investment environment: Dubai has a developed legal system and regulatory institutions that protect investors’ rights and enhance the business climate.
- Diverse investment opportunities: Dubai provides investment opportunities in multiple fields such as technology, trade, industry, and services, allowing investors to choose the most appropriate field.
- Strategic Location: Dubai is a global transportation and trade hub, providing easy access to the markets of the Middle East, Asia, Africa and Europe.
- Facilities in financing and services: Dubai provides access to a wide range of financial and banking services, including loans and investments, in addition to supporting startups.
- Cultural diversity and global appeal: Dubai attracts professionals and investors from all over the world, creating a diverse and culturally rich business environment.
- Active business community: Dubai provides a wide network of companies and organizations that can be a partner, supplier or client, enhancing opportunities for growth and expansion.
Establishing a company in Dubai offers many advantages that contribute to success and growth, and enhances the position of companies in the global market.
Types of companies in Dubai
Here is a table showing the different types of companies in Dubai, with their main characteristics and requirements:
| Company type | Main characteristics | Main requirements |
|---|---|---|
| Limited Liability Company (LLC) | – Joint ownership between foreign and local investors – Limited liability for shareholders | – A local partner owns 51% of the shares – License from the Department of Economic Development (DED) |
| A company in a free zone (Free Zone) | – 100% foreign ownership – Tax exemptions – Ease of export and import | – Choosing a free zone – Submitting a license application to the administrative body of the free zone |
| Branch of a foreign company | – No need to establish a new legal entity – follows the rules of the parent company | – Submit an application to the Ministry of Economy – License from the Department of Economic Development (DED) |
| Sole proprietorship | – Owned by one individual – Simplification of management and licensing | – Submitting a license application – the owner’s personal documents |
| Cooperative company | – A group of individuals or companies sharing a business goal – intended for small businesses | – Preparing founding documents – Submitting a license application |
This table provides an overview of the main types of companies that can be established in Dubai, and gives an overview of the basic characteristics and requirements for each type.
Conditions for establishing a company in Dubai
- Determine the type of commercial activity in that the activity that the company will undertake must be determined, as each type of activity requires its own approvals and licensing from the relevant authorities. In addition to other conditions for establishing a company in Dubai :
- Choosing the company’s legal structure: Select the appropriate legal structure such as a limited liability company (LLC), a branch of a foreign company, or a sole proprietorship, according to the nature of the activity and business requirements.
- Providing a local partner (for non-free zones): If a company is established in Dubai outside the free zones, a local partner who owns 51% of the company’s shares is required.
- Choosing a trade name: Choose a trade name for the company that adheres to the rules and regulations in force in Dubai, and the name must not be similar to the names of other companies.
- Providing a commercial headquarters: Company registration requires a physical business address in Dubai, whether it is an office or commercial space, depending on the type of company and activity.
- Preparing legal documents: Submitting the required documents such as the articles of incorporation, the company’s articles of association, and a copy of the passport for the owners and managers.
- Obtaining a commercial license: Submit an application to obtain a commercial license from the Department of Economic Development (DED) or the administrative body of the free zone, according to the company’s website.
- Providing capital: In some cases, it is required to deposit the necessary capital in a bank account in the name of the company depending on the type of legal structure.
- Apply for visas: If the company will employ individuals, an application must be made for work and residence visas for employees.
- Compliance with legal and tax requirements: Compliance with all local laws and regulations related to taxation, accounting, and financial reporting.
- Registration in the Chamber of Commerce: The company must be registered with the Dubai Chamber of Commerce to obtain a certificate of registration and membership.
Meeting these conditions contributes to ensuring a smooth company establishment process, and ensures compliance with all legal and procedural requirements in Dubai.
Steps to establish a company in Dubai
- Determine the type of business activity: Choose the type of activity that your company will undertake, as this varies based on your market requirements. The activity can be commercial, industrial, or service.
- Choosing a company’s legal structure: Determine the legal structure that best suits your business, such as a limited liability company (LLC), a branch of a foreign company, or a sole proprietorship. The choice depends on the scale of activity and resources.
- Determine the location of the company: Decide on the location of the company in Dubai, whether in a free zone (free zone) or in a non-free zone. Available features and services vary based on the location chosen.
- Apply for a business license: Apply for the appropriate business license from the Department of Economic Development (DED) or from the administrative body of your chosen free zone.
- Choosing a company name: Choose a trade name for your company and request approval from the competent authorities, taking into account that the name is compatible with local laws.
- Preparing legal documents: Prepare the required legal documents such as the articles of association and articles of association, and go to a notary to have them notarized if necessary.
- Open a bank account: Open a bank account in the name of the company, and deposit the required capital according to the type and structure of the company.
- Obtaining Visas: Apply for work and residence visas for employees and owners if necessary.
- Company registration: Register your company with the relevant government agencies, such as the Department of Economic Development or the Administrative Authority of the Free Zone.
- Obtaining the necessary permits and cards: Obtain any additional permits or cards that may be required for your activity, such as an activity card or work permit.
- Tax and Regulatory Compliance: Ensure compliance with all local laws and regulations, including tax and financial reporting requirements. By following these steps, you will be able to successfully establish your company in Dubai, and benefit from the distinctive economic environment that the emirate provides.
How long does it take to set up a company in Dubai?
The duration of establishing a company in Dubai depends on several factors, including the type of company, its location, and the complexity of the required procedures. In general, the time it may take to establish a company can be divided into the following stages:
- Choosing the type of company and preparing documents (1-2 weeks): Determine the type of activity, choose the legal structure, and provide legal documents such as articles of incorporation and personal statements.
- Apply for a license (1-4 weeks): Apply for a business license from the Department of Economic Development (DED) or the administrative body of the free zone, depending on the type of company and its location.
- Open a bank account and provide capital (1-2 weeks): Open a bank account and deposit the required capital, if this is part of the company’s requirements.
- Completing registration and licensing procedures (2-4 weeks): Completing the company registration procedures and obtaining the necessary permits and licenses.
- Obtaining visas and hiring employees (2-3 weeks): Submit applications for work and residence visas for employees, if necessary.
In total, the process of setting up a company in Dubai can take from 4 to 8 weeks, depending on how quickly documents and procedures are completed and all requirements are met. It is best to work with local consultants or incorporation services companies such as Atqan to speed up the process and ensure compliance with all laws.
At the conclusion of our article about establishing a company in Dubai , it becomes clear that the emirate offers an ideal investment environment that combines legal facilities, advanced infrastructure, and tax exemptions that encourage entrepreneurship. Through specific steps and clear conditions, investors can successfully establish their companies and benefit from the many advantages that Dubai offers as a global business center. Starting a business in Dubai is not only about achieving economic growth, but also about taking advantage of its strategic location and business-friendly environment. With the support provided by government agencies and consulting companies such as Atqan, investors can devote themselves to focusing on developing their business and facing challenges with confidence. Deciding to set up a company in Dubai represents a strategic step towards achieving global success and expanding into new markets.
Frequently asked questions about setting up a company in Dubai
What are free zones and what are their benefits?
Free zones in Dubai are zones designated for foreign companies that allow 100% ownership by foreigners, provide tax exemptions, and facilitate establishment procedures. It is characterized by quick procedures and provides business support services.
Can I fully own a company in Dubai?
Yes, you can fully own a company if you establish it in a free zone. In non-freelance companies, it requires a local partner to own 51% of the shares.
What are the requirements to obtain a business license in Dubai?
Submit an application for a license from the Department of Economic Development (DED) or the administrative body of the free zone, submit the required documents such as the articles of association, and provide personal documents.
How long does it usually take to set up a company in Dubai?
The process of setting up a company in Dubai usually takes 4 to 8 weeks, depending on the speed of completion of documents, procedures and licensing requirements.
