Steps and procedures for establishing a company in Dubai

Dubai is considered one of the most dynamic and diverse cities in the world, known for its stimulating economic environment and provision of multiple investment opportunities. Establishing a company in Dubai can be an important strategic step for entrepreneurs and investors seeking to tap regional and international markets. However, starting a business in this city requires following specific legal steps and procedures to ensure full compliance with local regulations.

In this article, we will discuss in detail the steps and procedures necessary to establish a company in Dubai , starting with choosing the appropriate type of company, through obtaining the necessary licenses, all the way to completing registration and membership procedures. This comprehensive guide will help you understand the legal and regulatory requirements, making it easier for you to successfully and effectively establish your company in one of the fastest growing cities in the world.

Steps and procedures for establishing a company in Dubai

Steps to establish a company in Dubai

Establishing a company in Dubai requires following a set of basic procedures to ensure compliance with legal and administrative requirements. Below are the steps and procedures for establishing a company in Dubai:

1. Determine the company type: Choose the company type that best suits your business, such as a limited liability company (LLC), joint stock company, sole proprietorship, or free zone company. Each type has its own advantages and requirements.
2. Preparing a business plan: Prepare a detailed business plan that includes market analysis, business strategy, financial projections, and marketing plan. This plan is necessary to be presented to the relevant authorities and may be necessary to obtain financing.
3. Choose a company name: Choose a company name that is consistent with local laws. Make sure the name is not duplicated and does not conflict with other registered trade names. You may need to obtain pre-approval for the name from the Department of Economic Development.
4. Determine office location: Choose a suitable location for the company’s office. You can rent a commercial office or get a virtual office if you operate from free zones. Make sure the lease complies with legal requirements.
5. Submit a company registration application: Submit a company registration application to the Department of Economic Development in Dubai or the relevant authority in the free zone, if your company will be operating from there. Submit all required documents and fill out the necessary forms.
6. Obtaining a commercial license: After reviewing and approving the application, you will receive a commercial license that authorizes you to start working legally. Make sure to keep a copy of the license and update it when needed.
7. Open a company bank account: Open a business bank account in the name of the company. You may need to provide additional documents such as a business license and lease contract to complete the account opening process.
8. Visa and Residency Secure: Obtain residence and business visas for investors and employees. You will need to submit new visa applications and submit to the required medical examinations.
9. Company registration for taxes: Register the company with the tax authority if your business is subject to value-added tax (VAT) or any other taxes. Ensure compliance with all local tax requirements.
10. Recruitment and Training: Hire and train the right employees for your company. Ensure a suitable work environment is provided and employees are trained on service and operating standards.
11. Marketing and Launch: Start marketing your company through multiple channels such as social media, advertising campaigns, and public relations. Set up an opening event if necessary.
12. Monitor compliance: After startup, ensure compliance with all local laws and regulations and continue to follow regulatory updates to ensure continued compliance.

Choose the type of companies in Dubai

When considering establishing a company in Dubai , choosing the type of company is one of the most basic steps to take. This step depends on the nature of your business and your future goals, as well as the legal structure you wish to adopt. In Dubai, there are three main types of companies: local companies, free companies, and offshore companies. We will go over each type in detail to enable you to make the best decision.

• Local companies

Local companies are companies that establish and carry out their activities within the borders of the Emirate of Dubai and are subject to local laws. The local company must have an Emirati partner who owns no less than 51% of the capital. Local companies provide broad opportunities to access the local market and deal with customers and suppliers within the country. These companies also enjoy strong government support and the ability to participate in government tenders.

• Free companies

Free companies, or free zone companies, are companies that are established in one of the free zones in Dubai, such as Jebel Ali Free Zone or Dubai Media City. These companies are fully exempt from taxes on income and profits, as well as full (100%) foreign ownership. Free enterprises can freely deal with international markets and benefit from the advanced infrastructure and superior logistics services provided by free zones. However, it must be kept in mind that free enterprises cannot conduct direct business within the local market without appointing a local commercial agent.

• External companies

Offshore companies, or offshore companies, are companies that are established in Dubai but carry out their activities outside the country’s borders. These companies aim to facilitate international business and provide a flexible and efficient tax structure. Offshore companies enjoy full foreign ownership and multiple tax exemptions, but are not eligible to conduct business activities within the UAE. Offshore companies can be used for asset management, financial planning, and setting up investment funds.

By choosing the right type of company, you can make the most of the business opportunities available in Dubai and ensure compliance with local laws and regulations. This choice will help you build a strong foundation for your company’s success and expand your business in the future.

Obtaining the necessary licenses in Dubai

The process of obtaining the necessary licenses to establish a company in Dubai is a crucial step to ensure compliance with local laws and regulations. The type of license required depends on the nature of the activities that the company will carry out. In this section, we’ll go over the different types of licenses and how to obtain them.

Commercial license

A business license is the most common type of license, and is granted to companies operating in the areas of general trade or retail. To obtain this license, you must follow the following steps:

1. Submit an application to the Dubai Economic Development Department (DED) that includes detailed information about the company, such as the company name, nature of business activity, and geographical location.
2. Submit a copy of the passport of the owner or partners.
3. Signing the lease contract for the company’s headquarters and submitting it to DED.
4. Pay the necessary fees to obtain a commercial license.
5. After the application is reviewed and approved, the commercial license will be issued.

Industrial license

The industrial license is granted to companies operating in the fields of manufacturing and production. This includes factories and companies that assemble or manufacture products. To obtain this license, you must follow the following steps:

1. Submit an application to the Dubai Department of Economic Development (DED) that includes details of industrial activity and products to be manufactured.
2. Submit a detailed work plan that explains the production stages and required equipment.
3. Obtain approval from the Environment, Health and Safety Authority (EHS) to ensure compliance with environmental standards.
4. Signing the lease contract for the factory site and submitting it to DED.
5. Pay the necessary fees to obtain an industrial license.
6. After reviewing and approving the application, the industrial license will be issued.

Professional license

A professional license is granted to individuals and companies that provide professional services, such as engineering consulting, legal services, and medical services. To obtain this license, you must follow the following steps:

1. Submit a request to the Dubai Department of Economic Development (DED) that includes details about the nature of the professional services to be provided.
2. Provide certificates of academic and professional qualifications of the owner or key employees.
3. Obtaining approval from the competent authorities such as the Engineers Syndicate or the Ministry of Health, depending on the type of service provided.
4. Signing the lease contract for the company’s headquarters and submitting it to DED.
5. Pay the necessary fees to obtain a professional license.
6. After reviewing and approving the application, the professional license will be issued.

Once the necessary licenses are obtained, the company can start practicing its commercial, industrial or professional activities in Dubai legally, ensuring compliance with local laws and enhancing trust with customers and partners.

Registration and membership procedures in Dubai

The process of setting up a company in Dubai includes several steps and procedures necessary to ensure full compliance with local laws and regulations. In this section, we will review the basic steps for registering and obtaining membership in the relevant authorities.

Registration with the Dubai Chamber of Commerce and Industry

Registration with the Dubai Chamber of Commerce and Industry is an essential step for every company wishing to operate within the emirate. Companies must submit a set of necessary documents, which include:

1. Registration request: You must fill out the registration request form available on the Dubai Chamber website or by visiting one of its branches.
2. Memorandum of Association and Articles of Association: Submit a certified copy of the Memorandum of Association and Articles of Association of the company.
3. Commercial License: A copy of the commercial license obtained from the Department of Economic Development.
4. Identity and Nationality: Providing copies of passports and national identities of partners and shareholders.

After submitting these documents, Dubai Chamber reviews the application and ensures that all conditions and requirements are met.

Obtain a registration certificate

After completing the registration process with the Dubai Chamber of Commerce and Industry, the company must obtain a registration certificate. This certificate serves as official proof of the company’s membership in the Chamber, and allows it to legally conduct business within the emirate. To obtain the certificate, you must pay the required fees, which vary depending on the type and size of the company.

Membership in the competent authorities

In addition to registering with the Dubai Chamber, some businesses may require membership in other competent bodies. Here are some examples of where companies may need to register:

1. Department of Economic Development: For commercial and industrial activities, you must register with the Department of Economic Development in Dubai to obtain the necessary licenses.
2. Federal Authority for Identity and Citizenship: For companies that employ foreign workers, they must register with the authority to obtain work and residency visas.
3. Telecommunications Regulatory Authority: For companies working in the field of communications and information technology, approvals and licenses must be obtained from the Authority.
4. Health authorities: For companies operating in the medical or pharmaceutical field, they must register with the competent health authorities to obtain the necessary licenses.

By completing these steps, the company is ready to conduct its business activity in Dubai legally and effectively. Following up on compliance with local laws and regulations ensures the company’s success and continuity in the dynamic and renewable Dubai market.

Establishing a company in Dubai can be a pivotal step towards achieving business success in one of the most dynamic markets in the world. By following the steps and procedures described in this article, investors and entrepreneurs can ensure that their company is established legally and smoothly. Choosing the appropriate type of company, whether it is a local, free or foreign company, is the first step to success. Next comes obtaining the necessary licenses that allow the company to operate in accordance with local laws and regulations, which contributes to building a strong reputation and trust among customers and business partners.

The procedures for registering and joining the Dubai Chamber of Commerce and Industry and obtaining the necessary certificates are an integral part of the establishment process, as it helps strengthen the company’s credibility and ensure its adherence to the required standards. Through membership in the relevant authorities, companies can benefit from a wide range of services and support that enhance their chances of success and growth.

In conclusion, establishing a company in Dubai is a promising investment that requires good planning and careful knowledge of legal and administrative procedures. By following the guidelines and steps outlined in this article, investors can achieve their business goals and benefit from the great opportunities that Dubai offers as a leading global market.

The most frequently asked questions about establishing a company in Dubai