01 Feb Procedures for establish a company in Dubai
Learn about the procedures for establishing a company in Dubai. Whether you are looking to establish a small company or make a large investment, the Emirate of Dubai provides a transparent legislative framework and effective government services that facilitate the establishment process and reduce administrative costs. In this article, we will overview the main procedures that investors must follow to establish a successful company in Dubai. This article focuses on clarifying the basic steps that need to be taken, including choosing the appropriate type of company, obtaining the necessary licenses, and registering the company with the relevant government bodies. We will also review some practical tips that will help speed up the process of setting up a company in Dubai and avoid common obstacles.
Procedures for establishing a company in Dubai
Establishing a company in Dubai requires following several basic procedures, which are as follows:
- Choosing the type of company: The investor must first choose the appropriate type of company, such as a limited liability company, a sole proprietorship, or a public or private joint-stock company, according to the nature of the business activity and financing needs.
- Determine the names and business activity: You must choose a name for the company and ensure its availability and compliance with local laws. The proposed company activity must also be determined and the necessary approvals obtained if necessary.
- Identifying shareholders and responsibilities: The identity of shareholders and their shares in the capital must be determined, in addition to defining responsibilities and administrative functions within the company.
- Preparation of legal documents: The company’s articles of incorporation and articles of association are prepared and documented in an appropriate legal manner, based on the chosen type of company and local laws.
- Governmental licenses and approvals: The necessary licenses must be obtained from local authorities and relevant government agencies, such as commercial licensing and professional permits depending on the company’s activity.
- Company registration: You must submit all required documents and pay the necessary fees to register the company with the competent authorities, such as the Department of Commerce and Industry in Dubai or the General Authority for Small and Medium Enterprises.
- Opening a bank account: After incorporation, a bank account must be opened in the name of the company to manage financial matters and commercial transactions.
- Social Security and Tax Registration: You must register with the Social Security Regulatory Authority and the local tax authority to ensure full compliance with tax and social legislation.
In short, establishing a company in Dubai requires following precise procedures and dealing with several government agencies, and local consulting companies specialized in this field can help greatly facilitate and accelerate these processes.
Conditions for establishing a company in Dubai
Establishing a company in Dubai requires compliance with several basic conditions, including at least the following:
- Company type: An appropriate type of company must be chosen according to the proposed business activity, such as a limited liability company, a sole proprietorship, or a public or private joint-stock company.
- Minimum Capital: The minimum capital required depends on the type of company chosen. Some types require a specified minimum capital, while sole proprietorships can be without a specified capital.
- Shareholders and responsibilities: The identity of shareholders and their shares in the capital must be determined, in addition to defining responsibilities and administrative functions within the company.
- Licenses and Permits: The necessary licenses must be obtained from local authorities and relevant authorities, such as a business license and professional permits to work in Dubai.
- Legal documents: The company’s articles of incorporation and articles of association must be prepared and documented in accordance with local laws and the requirements of government agencies.
- Official registration: Official company registration with the Department of Commerce and Industry in Dubai or the competent authority requires submitting the required documents and paying the relevant fees.
- Health Insurance and Social Security: Companies must insure with the Health Insurance Authority and register with the Employee Social Security Regulatory Authority.
- Tax Compliance: Businesses must comply with local tax laws and register with the local tax authority to achieve tax compliance.
Dubai is committed to providing a flexible and stimulating legislative environment for business, and facilitating procedures for establishing companies, making it a preferred destination for global and local businessmen alike.
Types of companies in Dubai
Here is a table showing the types of common companies in Dubai that you can choose from to establish your company in the desired manner, and you can contact our company to learn more, here are those companies:
Type of Company | a description |
---|---|
Limited Liability Company (LLC) | A company has a legal personality separate from its owners, and shareholders are liable for debts to a limited extent. |
Individual company | A company owned by one person who is responsible for all debts and obligations. |
Public Joint Stock Company (PJSC) | A company with an independent legal personality and a capital divided into shares that can be sold on the stock exchange. |
Private Joint Stock Company (PSC) | A company with an independent legal personality and a capital divided into shares that have not been sold on the stock exchange. |
The company is in the free zone | A company that enjoys benefits such as 100% foreign investment, tax breaks and easy labor laws. |
The conditions and procedures for establishing each type of company differ, and depend on the proposed business activity and the needs of investors.
The cost of establishing a company in Dubai
The cost of establishing a company in Dubai varies based on several factors, such as the type of company, the size of capital, and additional services that you may need. Here are several elements that include the costs of establishing a company:
- Registration fees: Includes company registration fees with the Department of Commerce and Industry or the competent authority in Dubai.
- Legal services fees: These can include the costs of preparing legal documents and the company’s articles of association.
- Consulting fees: If you use consulting services to help you with the incorporation process, there will be costs associated with them.
- Core capital: Some types of companies may require a minimum capital, and this amount must be secured.
- Advertisement fees: There can be fees for publishing company establishment announcements in official newspapers.
- Licenses and permits costs: If your company’s activity requires special licenses, you may face additional costs to obtain them.
- Costs of searching for administrative offices: Sometimes you may need to rent an office or space for the company’s headquarters, and this includes rent and furnishings costs.
Many investors recommend cooperating with specialized local consulting companies to facilitate the establishment process and reduce the costs and time required to complete the legal and administrative procedures.
Documents required to establish a company in Dubai
To establish a company in Dubai , the following legal papers are usually required. The required documents can vary depending on the type of company and the competent authority you will be dealing with, so it is always best to check the current requirements with the relevant authorities. Here is a general list of required documents:
- Registration application form: includes information about the company such as name, type of activity, and details of shareholders and managers.
- A copy of the ID card of shareholders and directors: The card must be valid and present for everyone.
- Recent certificate of good conduct for managers: This certificate is obtained from the relevant authorities.
- Company incorporation agreement: This is the document that defines the activity, contribution, and management.
- A copy of the activity license (if necessary): Trade requirements vary
Renewing the trade license to establish companies in Dubai
The process of renewing a commercial license for companies in Dubai requires following some procedures and submitting some necessary documents. Here’s an overview of what this procedure involves:
- Payment of fees: You must pay the required renewal fees, which vary based on the type of company and business activity.
- Necessary updates: Some entities may require updates or additional documents such as updating shareholder or director information if there are any changes.
- Application review: After submitting the application and documents, they are reviewed by the competent authority and may require some time to issue the renewed license.
- Submitting a renewal application: The commercial license renewal application is submitted to the competent authority, such as the Department of Commerce and Industry in Dubai.
- Submitting the necessary documents: The following documents must be submitted:
- A copy of the company’s original certificate of incorporation.
- A copy of the current lease contract for the company’s headquarters.
- A copy of the office rental agreement.
- A copy of the activity license (if required).
- A copy of the good certificate of directors.
Always make sure to check the exact requirements with the relevant authorities and follow up with consulting companies such as Itqan to ensure full and proper compliance with all necessary procedures.
Itqan Company services in establishing companies in Dubai
Itqan Company offers a wide range of services for establishing companies in Dubai, which includes:
- Providing specialized consultations to help clients choose the best type of company and determine the establishment requirements and necessary legal procedures.
- Assistance in preparing and organizing all documents necessary to establish the company and officially register it with the Department of Commerce and Industry or the competent authority in Dubai.
- Assistance in obtaining the necessary licenses and permits to start commercial activities, including business licenses and professional permits.
- Providing virtual office services for new companies, including receiving calls, email, and managing correspondence.
- Providing accounting and financial services to companies, including monthly preparation of accounts and financial reports.
- Supporting companies in managing human resources and providing administrative services necessary for daily operations.
- Providing advice on legal and tax compliance and assisting companies in complying with local laws and legislation.
Itqan Company seeks to provide comprehensive solutions that meet the needs of new companies in Dubai, ensuring full compliance with legal and administrative requirements, and making it easier for customers to navigate the local business environment with ease and effectiveness.
In the conclusion of an article about establishing a company in Dubai , the importance of good preparation and careful planning before embarking on this important process can be emphasized. Dubai is considered one of the most prominent global destinations for entrepreneurship, as it provides a flexible and stimulating legal environment that attracts entrepreneurs from all over the world. By collaborating with local experts and adhering to local legal procedures, investors can achieve sustainable success and successfully achieve their business goals in this dynamic market.
Frequently asked questions about establishing companies in Dubai
What types of companies can be established in Dubai?
Several types of companies can be established in Dubai, such as Limited Liability Company (LLC), Sole Proprietorship Company, Public Joint Stock Company (PJSC), and Free Zone Company.
What are the basic steps to establish a company in Dubai?
The steps include choosing the type of company, choosing the company name and ensuring its availability, preparing and signing legal documents, and submitting the application to the Department of Commerce and Industry or the competent authority.
What are the documents required to establish a company in Dubai?
Documents usually include the company’s certificate of incorporation, a copy of the lease for the headquarters, a copy of the passport for shareholders and directors, and others depending on the type of company.
How long does it take to obtain a business license in Dubai?
The duration of obtaining a business license can vary depending on the type of company and local legal and administrative requirements, and usually ranges from weeks to months.
What are the expected costs of establishing a company in Dubai?
Costs vary based on the type of company and additional services required such as legal advice and virtual offices, and can include registration fees, seed capital, and administrative services fees.