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Establishing a company in Dubai for Saudis

٢٨ يونيو Establishing a company in Dubai for Saudis

Establishing a company in Dubai for Saudis is a successful strategic step for those wishing to expand and invest in one of the most vibrant markets in the world. Dubai is distinguished by its strategic geographical location, the development of its modern infrastructure, and the commercial environment that encourages investment. In addition, the UAE government provides multiple incentives to facilitate company establishment procedures, especially for Gulf investors such as the Saudis who can benefit from special privileges. Establishing a company in Dubai is a gateway to achieving commercial success, thanks to the legal and legislative facilities and the lack of the need for a local partner in some free zones, which makes it an attractive destination for Saudi investors looking for new opportunities.

Establishing

Establishing a company in Dubai for Saudis

Requirements for establishing a company in Dubai for Saudis

Establishing a company in Dubai for Saudis requires fulfilling a set of conditions and procedures that facilitate the entry of Saudi investors into the UAE market. These requirements include the following:

  1. Choosing the company type : The investor must choose the appropriate company type for his business, such as a limited liability company (LLC), a free zone company, or a branch office.
  2. Commercial Registration : It requires obtaining initial approval from the Department of Economic Development in Dubai, and specifying the trade name in accordance with the conditions.
  3. Contracts and documentation : The company’s articles of incorporation must be submitted and documented with the relevant authorities in Dubai, such as the Department of Economic Development or the relevant free zone.
  4. Renting a headquarters : An office or physical headquarters for the company must be rented, whether inside Dubai or in one of the free zones, depending on the type of commercial activity.
  5. Capital : The required capital must be provided, which varies according to the type of company and location, and may require depositing it in a bank account in the UAE.
  6. Licenses and permits : The company needs to obtain the necessary licenses to practice commercial activity, such as a commercial license from the competent authorities.
  7. Legal procedures : If the company is in a free zone, an Emirati partner may not be required. Outside the free zones, you may need a local partner who owns a percentage of the shares in accordance with UAE law.
  8. Personal documents : Submit a copy of the passport and residence visa, in addition to other required official documents such as the Saudi ID card and a certificate of good standing.

Fulfilling these requirements helps Saudis successfully establish their companies in Dubai and take advantage of the vast business opportunities the city offers.

Licenses required to establish a company in Dubai for Saudis

To establish a company in Dubai for Saudis, there are a set of licenses that must be obtained to ensure that business is conducted legally and efficiently. The licenses required vary based on the type of business activity and location (whether within Dubai or in the free zones). The following are the most important licenses required:

  1. Commercial license : Issued by the Department of Economic Development in Dubai and is considered essential for all commercial activities. This license includes general commercial activities such as selling, distribution, import and export.
  2. Professional license : specific to activities that depend on professional skills and expertise, such as consulting, legal services, financial auditing, and medical services.
  3. Industrial license : Issued to those wishing to operate industrial activities such as manufacturing and production, and requires obtaining additional approvals from the Ministry of Economy and Dubai Municipality.
  4. Tourist license : necessary if the company’s activity is related to tourism, such as travel agencies, tour operators, and hotels. This license is issued by the Department of Tourism and Commerce Marketing in Dubai.
  5. Free zone license : If the company will operate within one of the free zones in Dubai, such as Jebel Ali or Dubai South , a license must be obtained from the authority concerned with that zone. Licenses vary according to the type of activity, such as a commercial, industrial, or service license.
  6. Additional approvals : Some private activities may require additional approvals from relevant government agencies, such as the Dubai Health Authority, Dubai Police, or the Ministry of Environment and Water, depending on the type of activity.

After obtaining these business licenses in Dubai , the company can operate legally in Dubai, while benefiting from the prosperous and investment-encouraging economic environment.

Conditions for establishing a company in Dubai for Saudis

Establishing a company in Dubai for Saudis requires fulfilling some conditions set by the UAE government to facilitate the entry of Saudi investors into the market. Conditions may vary based on the type of company and its location, whether within Dubai or in the free zones. Here are the basic conditions:

  1. Choosing the type of business activity : The investor must determine the business activity he wishes to practice. This step is essential because it determines the type of licenses required.
  2. Determine the type of company : You can choose between several types of companies, such as a limited liability company (LLC), a company in the free zone, or a representative office. Each type has its own advantages and conditions.
  3. Obtaining initial approval : A request must be submitted to the Department of Economic Development or the relevant authority in the free zone to obtain initial approval after specifying the company name and type of activity.
  4. Choosing a trade name : It is necessary to choose a trade name that is consistent with UAE laws and is unique. The name should be consistent with the business and avoid any prohibited names.
  5. Capital : Capital requirements vary depending on the type of company and location. In some free zones, a large capital may not be required, while in limited liability companies (LLC) there can be a minimum capital requirement.
  6. Renting an office or headquarters : You must rent an office or physical headquarters in Dubai or the free zone. Some free zones provide flexible or virtual workspaces for small businesses and startups.
  7. Personal Documents : Copies of passport, visa, and national ID card for Saudis must be submitted. A certificate of good standing may also be required.
  8. Legal contracts : Requires the preparation and documentation of the company’s articles of incorporation or partnership agreement (if there is a partner). These contracts must be documented with the relevant government agencies .
  9. Local partner (outside the free zones) : If the business activity is outside the free zones, the law may require a local Emirati partner who owns a certain percentage of the company. In free zones, a local partner is not required.
  10. Obtaining a commercial license : After completing the required procedures and submitting all documents, a commercial license is issued that allows the company to operate legally in Dubai.

Fulfilling these conditions enables Saudis to establish their companies in Dubai smoothly and benefit from the great economic advantages that the emirate offers.

The importance of establishing a company in Dubai for Saudis

Establishing a company in Dubai for Saudis is a strategic step of great importance, as Dubai offers a prosperous economic environment that attracts investors from all over the world, especially from the Gulf countries. Here are the most important benefits that make establishing a company in Dubai attractive to Saudis:

  1. Strategic geographical location : Dubai is located in the heart of the Gulf and global region, making it a distinguished commercial center that allows Saudis to access new global markets and expand their commercial activities easily.
  2. Encouraging investment environment : Dubai has a flexible investment environment and offers many incentives, such as full tax exemptions in free zones, and no personal income tax. This makes it an attractive destination for investment.
  3. Benefiting from free zones : Dubai provides many free zones that allow investors to establish their companies without the need for a local Emirati partner, while owning full ownership rights to the company. Free zones also provide great facilities in legal procedures.
  4. World-class infrastructure : Dubai has advanced infrastructure that includes modern ports, airports, and an extensive road network, which facilitates import and export operations, which is important for companies looking to expand into international markets.
  5. Easy access to financing and banking services : Dubai is an international financial center, allowing Saudis to access advanced banking services and easy financing opportunities, whether through local or international banks.
  6. Political and economic stability : Dubai is characterized by political and economic stability, which gives investors confidence in a safe and sustainable business environment. This stability encourages Saudis to invest long-term without worrying about market fluctuations or political conditions.
  7. Ease of legal procedures : The UAE government’s facilitation of company establishment procedures has made Dubai an easy and fast destination for establishing companies, while reducing bureaucracy and simplifying the required steps.
  8. Growth and expansion opportunities : The diverse market in Dubai provides great opportunities for growth, whether in the commercial, industrial or services sector. This makes it an ideal destination for Saudis looking to achieve greater returns and expand their business.

Establishing a company in Dubai gives Saudi investors the ability to benefit from the great economic potential and promising opportunities that the emirate provides in a developed and stable investment environment.

How long does it take to establish a company in Dubai for Saudis?

The duration of establishing a company in Dubai for Saudis depends on several factors such as the type of company, commercial activity, and location (within Dubai or in the free zones). However, the process can be divided into the following steps:

  1. Initial approval : usually takes 1 to 3 business days. It includes submitting an application to the Department of Economic Development or the relevant authority in the free zone to obtain approval of the trade name and activity.
  2. Preparation of documents and contracts : Preparing and notarizing documents (such as articles of incorporation and lease) takes 1 to 5 days, depending on the speed of submission and completion of documents.
  3. Renting an office or headquarters : Finding and renting a physical headquarters can take from a day to a week, depending on the availability of space and choosing the appropriate location.
  4. Obtaining a commercial license : Issuing a commercial license after submitting all documents may take from 1 to 7 days, and varies depending on the type of activity and the nature of the licenses required.

In general, the process of establishing a company in Dubai for Saudis takes an average of 5 to 15 working days , if all documents are ready and the procedures go smoothly. The period may be shorter in some free zones that provide quick and simplified procedures, and may be slightly longer if additional approvals from government agencies are needed.

In conclusion, establishing a company in Dubai for Saudis is a strategic step towards expanding the business scope and exploiting the diverse investment opportunities that the emirate offers. Thanks to the advanced economic environment, distinctive geographical location, and government facilities, the Saudi investor can easily establish his company and enjoy many benefits such as tax exemptions and advanced infrastructure. Investing in Dubai provides promising opportunities for growth and expansion both locally and internationally, making it an ideal destination for ambitious Saudi investors looking to achieve sustainable success in a safe and stable business environment.

Frequently asked questions about establishing a company in Dubai for Saudis