Learn about the steps to establish a company in Dubai at the lowest costs because it is considered an important strategic step towards achieving success in the global business market, thanks to the favorable economic environment and advanced infrastructure provided by the emirate. However, in order to make the most of these opportunities without exceeding the budget, it requires precise knowledge of the steps to establish a company at the lowest possible costs. In this article, we will review the basic steps that must be followed to establish a company in Dubai in a cost-effective manner, starting with choosing the appropriate type of company, all the way to the necessary legal procedures and licenses, through to taking advantage of the incentives and benefits offered by free zones. We will provide you with a practical guide aimed at making the most of the available resources without harming the quality of the services provided, while knowing the steps to establish a company in Dubai at the lowest costs.

Steps to establish a company in Dubai 

Establishing a company in Dubai requires following a set of basic steps to ensure compliance with local laws and achieve success. Here are the steps to establish a company in Dubai:

1. Determine the type of company and business activity: Before starting, you must determine the type of company (limited liability, partnership, branch, or subsidiary of a foreign company) and the business activity that you will undertake. This will help determine appropriate legal and financial requirements.
2. Choosing a company name: Choose a business name that complies with local laws. The name must be unique and not similar to the names of other companies. It must also be taken into account that the name is consistent with the nature of the business activity.
3. Choosing a company location: Select a location for your company, whether in a free zone or outside it. Free zones offer benefits such as full foreign ownership and tax exemptions, while companies outside free zones need a local partner.
4. Submit an application for a commercial license: Establishing a company requires obtaining a commercial license from the Department of Economic Development in Dubai or the body responsible for licensing in the free zone. Licenses can be different depending on the type of business.
5. Preparing legal documents: Prepare the required documents such as the articles of incorporation, lease, identity documents, and signature authorizations. You may also need to provide a copy of the business plan.
6. Opening a bank account for the company: After obtaining the license, open a bank account in the name of the company to facilitate financial transactions.
7. Registration with government agencies: Register your company with the relevant government agencies such as the Emirates Authority for Standardization and Metrology, the Electricity and Water Authority, and others depending on the company’s activity.
8. Employment and visa insurance: Secure visas for employees and register them in the social and health insurance system.
9. Obtain insurance: It is important to insure the company against potential risks. Coverage can include property insurance, liability insurance, and employee health insurance.
10. Starting a business: After completing all the previous steps, you can start operating the company and investing successfully in the Dubai market.

Establishing a company in Dubai requires careful planning and knowledge of all legal and administrative requirements to ensure the success of the establishment process and the effective achievement of business objectives.

Advantages of establishing a company in Dubai 

Establishing a company in Dubai offers many advantages that make it a preferred destination for business. Here are some key features:

1. Favorable business environment : Dubai is one of the most attractive cities for investments thanks to its advanced infrastructure and commercial facilities, which provides a suitable environment for starting and growing businesses.
2. Tax breaks : In many free zones, companies can benefit from full tax breaks on profits and no corporate tax.
3. Full foreign ownership : Companies established in free zones enjoy the advantage of full foreign ownership, which allows foreign businessmen to fully control the company without the need for a local partner.
4. Ease of procedures : Dubai offers fast and efficient procedures for establishing companies, including registration and licensing processes, which reduces the time and effort required to start work.
5. Strategic location : Dubai is located in a strategic geographical location linking East and West, facilitating access to multiple markets in Europe, Asia and Africa.
6. Advanced infrastructure : Dubai provides excellent infrastructure that includes ports, airports, and transportation roads, which contributes to facilitating trade and transportation.
7. Opportunities for business partnerships : Dubai attracts major international companies, providing great opportunities for cooperation and partnership with international companies.
8. Availability of qualified workforce : Dubai includes a wide range of highly skilled workforce, which facilitates the recruitment of appropriate talent.
9. Advanced financial markets : Dubai provides advanced financial markets including the Dubai Financial Market and Abu Dhabi Securities Market, making it easier for companies to raise financing and invest.
10. Life and luxury benefits : Dubai offers a high standard of life, including advanced educational and health facilities, making it an attractive place to live and work. Establishing a company in Dubai opens doors to many business opportunities and allows you to benefit from a dynamic and supportive business environment.

Costs of steps to establish a company in Dubai 

The costs of setting up a company in Dubai vary based on several key factors, which include:

1. Company type and location : A company in a free zone. Costs are usually lower due to tax and customs privileges and full foreign ownership. However, costs may include registration, license and office fees. A company outside the free zone requires a local partner and may include additional costs for profit sharing and compliance with legal requirements.
2. Commercial License : The cost of obtaining a commercial license varies according to the type of commercial activity. Industrial and commercial activities may be less expensive compared to specialized activities.
3. Office and rent : In free zones, you can choose a small office or co-working space at lower costs. Outside the free zones, rental costs may be higher depending on location and size.
4. Legal and administrative fees : Legal fees include the costs of preparing legal documents such as articles of incorporation, agreements, and authorizations. You may also need the services of an attorney or legal advisor.
5. Opening a bank account : Some banks may charge fees for opening business accounts or may require a minimum balance.
6. Work and Employment Visas : Visa costs for employees may vary based on the number of employees and the type of visas required.
7. Insurances : Required insurances such as employee health insurance, property insurance, and liability insurance may result in additional costs.
8. Other costs : These include costs such as registration fees with government agencies, business consulting costs, and website creation and marketing costs.

Accurate costing requires careful consideration of the above factors and appropriate planning to ensure maximum benefit from available resources and avoid unnecessary costs.

Itqan Company services in establishing companies in Dubai

Itqan Company offers a comprehensive range of services to facilitate the process of establishing companies in Dubai . Its services include:

1. Legal and commercial consultations : Providing legal consultations on choosing the most appropriate type of company and the desired commercial activity. The company helps understand legal requirements and local regulations to ensure full compliance.
2. Registration and licensing procedures : Assist clients in preparing and submitting registration applications to obtain the required business licenses. This service includes preparing the necessary documents, such as the articles of incorporation, agreements, and other documents.
3. Site selection and office establishment : Providing advice on choosing the ideal location to establish the office, whether in free zones or outside them. This service also includes assistance with renting office space and providing virtual offices if necessary.
4. Opening bank accounts : Facilitating the process of opening bank accounts for the company. The service includes advising on suitable banks and providing assistance in gathering the required documents.
5. Visas and work permits : Providing support in procedures for obtaining work and residency visas for employees and investors. The service includes preparing applications and dealing with concerned parties.
6. Compliance and Regulations : Ensure compliance with legal requirements and local regulations. This service includes reviewing documents and ensuring that all processes comply with applicable laws.
7. Post-incorporation services : Providing ongoing support after the company is established, including renewing licenses, submitting annual reports, and updating records.
8. Tax and insurance consultations : Providing consultation on tax and insurance issues to ensure the company’s compliance with all laws related to taxes and social insurance.
9. Integrated consulting services : This includes providing integrated consultations in all aspects of establishing companies, including growth, expansion, and financing strategies.

Itqan Company seeks to provide comprehensive and effective services that contribute to simplifying and accelerating the process of establishing companies in Dubai, allowing clients to focus on growing their business and achieving their commercial goals.

Establishing a company in Dubai represents a golden opportunity to gain access to one of the most vibrant and growing markets in the world. Thanks to its advanced business environment, legal facilities, and tax exemptions, Dubai provides an ideal platform for investors and entrepreneurs to achieve their expansion and innovation goals. By following the right steps and understanding the legal requirements, companies can benefit from the many advantages that the emirate offers, such as full foreign ownership, excellent infrastructure, and strategic location. Whether you are thinking about establishing a company in a free zone or in greater Dubai, careful planning and cooperation with specialized experts can greatly contribute to speeding up the process and avoiding obstacles. In the end, establishing a company in Dubai is not just a step towards achieving commercial success, but rather an investment in a bright future and broad prospects for business growth.

 

Frequently asked questions about establishing a company in Dubai

Can foreigners fully own a company in Dubai?

Yes, in free zones, foreigners can own the company 100%. Outside the free zones, there must be a local partner who owns a share of no less than 51% of the company’s shares.

What are the basic costs of setting up a company in Dubai?

Costs include business licensing, office rent, legal fees, bank account opening, work visas, and insurances.

What are the main advantages of setting up a company in Dubai?

Tax exemptions, full ownership of foreigners in free zones, a favorable business environment, a strategic location, advanced infrastructure, and ease of company establishment procedures.

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

The time depends on the type of company and the procedures required, but it usually takes from two weeks to a month to complete the incorporation process.