Establishing companies in Dubai

01 Jan Establishing companies in Dubai

The procedures for establishing companies in Dubai are diverse and flexible, as the emirate offers several options for investors, such as establishing companies in free zones such as the Jebel Ali Zone, the Dubai Investment Zone, or other areas. Dubai is also characterized by laws and regulations that enhance the ease of establishing companies and provide effective legal protection for investors.

In this article, I will explore the basic steps for establishing a company in Dubai , including choosing the appropriate type of company, procedures for obtaining the necessary licenses, and the importance of consulting specialized offices such as Itqan Legal Services and Consulting Company, which provides comprehensive support to investors at all stages of establishing and managing companies in Dubai. .

Establishing companies in Dubai

Establishing a company in Dubai is an important strategic step for investors who want to benefit from the advanced business environment in the region. Itqan Company provides comprehensive support to its clients during the process of establishing companies in Dubai, from determining the appropriate legal structure and choosing the ideal location for the business to implementing the necessary legal and administrative procedures. Using its vast experience in the field, Atqan ensures that all requirements are met efficiently and taking into account vital legal points, making it easier for clients to build a strong foundation for the success of their business in Dubai.

Itqan Company’s services are distinguished by its dedication to providing advice and support throughout the company’s establishment journey, from local partnership arrangements to the issuance of commercial licenses and specialized legal consultations. Cooperation with Itqan enhances the chances of success for investors seeking to establish in Dubai, making it the ideal choice for those looking for a strategic partner that provides comprehensive and customized support to achieve their economic goals in this global business center.

Steps to establish companies in Dubai

First, the type of business activity is determined by determining the nature of your business and whether you need a commercial, professional, or industrial license. Here are the main steps for establishing a company in Dubai :

• Choosing the legal form of the company: such as a limited liability company (LLC), a sole proprietorship, or a branch of a foreign company.
• Choosing a business name: Make sure that the name is available and approved by the Department of Economic Development.
• Determine the location of the company: Choose a suitable office or workspace according to your type of activity.
• Obtaining initial approval: Submit a request to obtain initial approval from the Department of Economic Development.
• Preparing the articles of association and articles of association: Documenting the agreements between the partners, if any.
• Obtaining additional approvals: Some activities may require approvals from other government agencies.
• Office rental: Signed a rental contract and obtained a no-objection certificate from the municipality.
• Apply for a license: Submit all required documents to the Department of Economic Development.
• Obtaining work visas: If you need to hire employees.

Conditions for establishing companies in Dubai

Establishing a company in Dubai is subject to several conditions that vary according to the types of companies, but here are some general conditions that must be considered when planning to establish a company in Dubai:

1. Legal type of company: You must choose the appropriate type from the available options such as limited liability company, sole proprietorship, subsidiary company.
2. Approvals and licenses: Some business activities may require special approvals or licenses from relevant government agencies.
3. Capital: The capital needed to establish the company must be determined, although some ranges do not require a minimum capital.
4. Shareholders and Partners: The identities and roles of shareholders or partners in the company must be determined.
5. Legal Office: It is necessary to appoint a local legal office to carry out incorporation, licensing and legal follow-up procedures.
6. Location: The company’s location must be determined, whether it is within the emirate or in one of the free zones.
7. Compliance with UAE regulations and laws: The company must comply with all applicable UAE regulations and legislation.

These are some basic points, but the actual terms may vary depending on the type of company and business activity chosen.

Advantages of establishing companies in Dubai

• Regardless of the financial budget, a business of any size can be started.
• The UAE government supports investors and entrepreneurs and works to provide services to facilitate the establishment of companies in Dubai.
• The high human density in the city of Dubai has increased consumer needs, which contributes to the importance of establishing new and different projects to meet consumer needs.
• The government in Dubai is concerned with providing comfort for citizens and expatriates and providing all services.
• The availability of all services with high quality and the authorities’ support for projects makes Dubai the best city for investment.
• Ease and speed of completing the necessary papers and procedures for establishing companies and government services, which facilitates the process of establishing companies in Dubai easily and in record time.
• Dubai is interested in creating many events and conferences to stimulate the industry and trade movement, such as Expo.
• Joint Gulf cooperation between the Gulf countries facilitates the process of establishing companies in Dubai.
• Establishing companies in Dubai allows residency in any emirate, whether Abu Dhabi, Sharjah, Ras Al Khaimah, Ajman, Dubai and others.
• Residency in Dubai provides many advantages, such as travel to European countries that does not require a visa, and ease of entering the Gulf countries.

Do not hesitate to contact our team of experts and consultants at Itqan. We have years of experience in establishing companies in Dubai and we carry out all procedures in the shortest time and lowest cost.

Can I establish a company without a local partner in Dubai?

You can establish a company in Dubai without a local partner. There are several options available for this:

1. Free Zone Company (FZE): You can establish a limited liability company (FZE) in one of the free zones in Dubai without the need for a local partner. This option is suitable for small and medium businesses.
2. Private Joint Stock Company: You can establish a private joint stock company in Dubai where you are the sole foreign owner. This option is suitable for large and multinational companies.
3. Representative Office: You can establish a representative office for your foreign company in Dubai without the need for a local partner. This option is also suitable for companies that want to be present and introduce themselves in the UAE market.
   In all cases, you will need to obtain the necessary licenses and approvals from the relevant authorities in Dubai and the United Arab Emirates. Capital requirements and legal procedures must also be considered for each option.

Taxes that apply to companies in Dubai

There are several types of taxes that may apply to companies in Dubai and the UAE:

Value Added Tax (VAT)

• VAT was implemented in the UAE at a rate of 5% as of 2018.
• This tax applies to most goods and services provided in Dubai and the UAE.

Corporate tax

• There is no tax on corporate profits in Dubai and the UAE in general.
• But taxes may apply to companies operating in certain sectors such as oil and gas and banking.

Personal income taxes

• There is no personal income tax in Dubai and the UAE.
• Recruitment and HR fees may apply to companies in Dubai.
• These fees include the costs of residence visas and health insurance for employees.

Companies operating in Dubai and the UAE must ensure that they comply with all applicable taxes and fees according to the nature of their activity and location.

Licenses required to establish companies in Dubai

To establish companies in Dubai, there are several licenses and procedures you need, depending on the type of company you want to establish and the activity you intend to practice. Here is a list of the most important licenses required:

1. Business license: Your business activity is required to be registered with the Ministry of Economy or the local municipality, as this license determines the type of services or goods provided by the company.
2. Industrial license (if any): If your company deals in the field of industry, you may need a special industrial license issued by the competent authorities.
3. Professional license (if available): For professional activities such as medicine, engineering, accounting, you need a professional license from accredited professional bodies.
4. Building license (if applicable): If you work in the construction and civil engineering field, you may need a special license from the municipality or the Real Estate Regulatory Authority.
5. Food and public health licensing: For companies that deal with foodstuffs or public health, special licenses are issued by the competent authorities.
6. Municipal and commercial licenses: These include licenses such as advertising licence, architecture licence, building licence, land use licence, and others issued by Dubai Municipality.
7. Tourism License (if applicable): For tourism and travel companies, you need a special license from the Department of Tourism and Commerce Marketing in Dubai.
8. Environmental and health licensing: For companies that work in areas that affect the environment or public health, they may need special licenses from environmental and health authorities.

Services provided by Itqan Company for establishing companies in Dubai

Itqan Consulting Company may provide a wide range of services to help you establish a company in Dubai . These are some of the services you may provide:

• Incorporation and Planning Consulting: Advising on the best type of company to suit your needs and local legal requirements.
• Legal procedures and licenses: Assist in preparing and submitting all necessary documents for licenses and approvals from government agencies.
• Arranging local partnerships: If required, helps arrange local partners if the company requires it.
• Registration and legal establishment: Assistance with the legal registration and company establishment processes, including preparing the necessary contracts and documents.
• Financial and accounting services: Providing accounting, tax and financial auditing services to the company in accordance with local regulations.
• Management consulting and strategic management: providing advice on company management and developing strategies for growth and prosperity.
• Ongoing legal support: Providing ongoing legal support if required by the company regarding local laws and regulations.
• Administrative and office services: Providing administrative services such as office rental, logistical support, and secretarial services.

These services help you simplify the process of establishing and managing your company in Dubai, and ensure your compliance with all local regulations and legal requirements.

Concluding the discussion about establishing a company in Dubai , this diverse and dynamic landscape in the Emirate of Dubai shows great opportunities for investment seekers and businessmen. Thanks to its advanced infrastructure, supportive legal regulations, and stable economic environment, Dubai is one of the best places to set up and operate businesses easily and effectively. Whether you are planning to join the appropriate free zone or launch your business in any of the city’s neighbourhoods, you can rely on local consulting services to guide you through every step of the process. In short, setting up businesses in Dubai is a strategic investment that can open doors to success and growth in a thriving global market.

Frequently asked questions about establishing companies in Dubai

What types of companies can I establish in Dubai?

You can establish a limited liability company, sole proprietorship, subsidiary, or corporation in a free zone, to suit your needs and local conditions.

What are the basic steps to establish a company in Dubai?

The basic steps include choosing the type of company, determining the business name and location, preparing legal documents, obtaining the necessary licenses and approvals, and registering the company in the commercial registry.

Can I establish a company without a local partner in Dubai?

Yes, you can establish some types of companies such as a limited liability company in free zones without needing a local partner.

What licenses and approvals might I need to start working?

Licenses and approvals vary depending on the type of business, and typically include a business license, building permits if necessary, and other licenses specific to the specific activity.