Types of companies in Dubai

Dubai is considered one of the most prominent global destinations for establishing companies in Dubai , thanks to its thriving economic environment and advanced infrastructure. Dubai\’s legal system allows for the establishment of different types of companies, meeting the needs of both local and international investors. Companies in Dubai can be classified into three main types:

• Local companies

Local companies include those that are established within the UAE and operate within its geographical scope. Establishing a local company requires a local partner to own a certain percentage of shares, which is usually 51%. These companies are ideal for businesses targeting the local market and taking advantage of the strong economy of the UAE. These companies can be of the type of limited liability companies, or public and private joint-stock companies.

• External companies

Offshore companies or international companies are those that are established in other countries but wish to do business in Dubai. These companies have greater flexibility in managing their business as they do not require a local partner. Offshore companies can open branches or representative offices in Dubai, allowing them to benefit from the thriving economic environment and tax breaks. It is always recommended to obtain legal advice to understand the legal and administrative requirements for establishing an offshore company in Dubai.

• Free zones

Dubai\’s free zones are considered one of the most attractive options for foreign investors, as they provide an encouraging economic environment and multiple advantages. Companies established in free zones are characterized by 100% foreign ownership, tax exemptions of up to 50 years, in addition to the complete freedom to transfer profits and capital. Dubai includes a large number of free zones, such as Jebel Ali Free Zone, Dubai Internet City, and the Dubai International Financial Centre. Each free zone specializes in a specific type of industry and service, making it easier for investors to choose the most suitable area for their business activity.

By selecting the right company type, investors can take advantage of the many opportunities available in Dubai, whether they are aiming for the local market or global markets.

Procedures for establishing a company in Dubai

Establishing a company in Dubai requires following a set of specific steps and procedures to ensure compliance with local laws and regulations. These procedures include several basic stages related to choosing the type of company, submitting the required documents, and obtaining the necessary licenses.

Choose the company type

The first step in establishing a company in Dubai is to determine the type of company you want to create. There are several types of companies in Dubai, including local companies, offshore companies, and companies in free zones. The choice of company type can affect several factors such as ownership, legal procedures, and costs involved in establishing the company. It is important to consult a legal advisor or accountant before making this decision to ensure you choose the most appropriate type for your business.

Submit the required documents

After choosing the type of company, a set of required papers and documents must be submitted to the competent authorities. These documents may include:

• Company establishment application form: contains detailed information about the proposed company.
• Copies of passports: for founders and partners.
• Company Articles of Association: Specifies the terms and conditions of the company.
• Business plan: describes the type of business activity and business strategy.
• No objection certificate: May be required from the local sponsor or the concerned authority.

The documents required vary depending on the type of company and the region in which it will be established.

Obtaining licenses

The process of establishing a company in Dubai requires obtaining the necessary licenses to operate legally. These licenses include:

• Commercial licence: which permits the practice of commercial activity and specifies the type of permitted activity.
• Professional license: If the company provides professional services such as consulting or legal services.
• Industrial licence: if the company works in the field of manufacturing or production.

Applications to obtain these licenses must be submitted to the relevant authorities such as the Department of Economic Development in Dubai or the responsible authorities in the free zones. Some businesses may require additional approvals from certain regulatory authorities.

By carefully following these steps and procedures, you can successfully establish your company in Dubai and benefit from the great business opportunities that the city has to offer.

Advantages of establishing a company in Dubai

Dubai is considered one of the most prominent global destinations for establishing companies, thanks to the many advantages it offers to investors and entrepreneurs. Establishing a company in Dubai provides many opportunities and capabilities that contribute to enhancing growth and success. Below we review some of these advantages:

• Advanced infrastructure

Dubai has a world-class infrastructure that includes an advanced network of roads, ports and airports, facilitating international transportation and shipping operations. In addition, the city provides advanced technical infrastructure with high-speed internet services and modern facilities that meet the needs of companies of all sizes and sectors.

• Tax exemptions

Dubai offers a favorable tax system for investors, with local and international companies enjoying attractive tax exemptions. Dubai does not have a personal or corporate income tax in most sectors, making it an ideal environment for making profits and increasing financial returns.

• Strategic location

Dubai, with its distinctive geographical location, is a meeting point between East and West, making it an important commercial center that facilitates access to regional and global markets. Dubai\’s strategic location allows companies to benefit from vast business opportunities and expand their business easily.

These advantages combine advanced infrastructure, attractive tax exemptions, and an ideal strategic location, making Dubai a preferred destination for establishing companies and achieving sustainable success.

In conclusion, it can be said that establishing a company in Dubai represents a golden opportunity for investors and entrepreneurs looking for a stimulating and advanced business environment. By reviewing the different types of companies available in Dubai, whether they are local companies, foreign companies, or those located in free zones, the flexibility of the economic system in Dubai and its ability to meet the needs of different types of businesses was demonstrated.

The procedures for establishing a company in Dubai are not as complicated as some might think, and they include choosing the type of company, submitting the required documents, and obtaining the necessary licenses. These measures aim to facilitate investors\’ entry into the market and ensure their compliance with local laws and regulations, which enhances the stability and growth of the local economy.

The advantages that Dubai provides for establishing companies are countless; The advanced infrastructure, tax exemptions, and strategic location linking the East and the West are all factors that make Dubai an ideal destination for everyone seeking success and excellence in the field of business.

Through this article, we hope that we have provided a comprehensive and detailed vision of the process of establishing a company in Dubai and the great benefits that you can gain from this step. Dubai is not just a city; It is a global economic hub that offers limitless opportunities for growth and prosperity. So, if you are thinking about entering the world of business, do not hesitate to consider Dubai as your first destination.

The most frequently asked questions about establishing a company in Dubai