May 04 What are the costs of establishing a company in the Emirates?

The United Arab Emirates is an ideal destination for setting up companies and businesses. However, setting up a company in the UAE involves a number of challenges and costs of setting up a company in the UAE.

Itqan, a leading business consultancy firm, provides support and guidance to entrepreneurs and investors seeking to establish their companies in the UAE. Itqan works with clients throughout the entire process of starting a company, from planning to implementing plans and operating.

In this article, we will review the costs of establishing a company in the UAE and discuss the factors that influence determining these costs. We will also highlight the role of Itqan Company in providing the expertise and knowledge necessary to overcome these challenges and achieve success in establishing the company.

Establishing a company in the Emirates The UAE is an important strategic step for entrepreneurship, as the UAE has a developed and encouraging investment environment that attracts investors from all over the world. There are several types of companies that can be established in the UAE, such as sole proprietorships, limited liability companies, and companies in free zones, which gives investors great flexibility in choosing the legal structure that best suits their business.

The costs of setting up a company in Dubai vary depending on the type of company and the location where it is established. These costs typically include licensing and registration fees, office and commercial space rental costs, and legal and administrative consulting fees. Investors wishing to set up a company in the UAE should be aware of the expected costs and legal and administrative procedures required to establish and start operating a company.

It is worth noting that the UAE enjoys investment-friendly policies that include tax exemptions, customs facilities, and easy registration procedures, making it an ideal destination for entrepreneurship and expanding business activities.

How to establish a company in the Emirates

Establishing a company in the Emirates It requires following certain legal procedures and adhering to local regulations and laws. Here are the general steps to establish a company in the UAE:

1. Select company type: You must first determine the type of company you wish to establish, whether it is a sole proprietorship, a limited liability company, a public or private joint stock company, according to the proposed business activity and legal and regulatory needs.
2. Choosing a trade name: The business name chosen should be unique and not similar to the names of other companies already in the market, and it should be in line with local regulations.
3. Identify stakeholders and responsibilities: The identity of the shareholders and their shares in the company must be determined, and the responsibilities and powers of each shareholder must be specified.
4. Determine the headquarters: The location of the company’s head office must be specified, and must comply with local regulations and registration requirements.
5. Submit a license application: After determining the type of company, trade name and headquarters, the license application must be submitted to the relevant government authorities, such as the Department of Economic Development in each emirate.
6. Completing legal procedures: Once the license application is approved, the necessary legal procedures must be completed to establish the company, including preparing and signing contracts and legal documents.
7. Official registration: After completing the legal procedures, the company is officially registered in the emirate’s commercial register, through the Department of Economic Development or the Federal Authority for Regulating Labor in the emirate.
8. Obtaining the necessary licenses: Some businesses may require additional licenses from the relevant government authorities, such as building permits or municipal permits.
9. Opening a bank account: A company bank account must be opened to manage financial and business transactions.

Costs of establishing a company in the Emirates

Costs can vary greatly depending on several factors such as the type of company to be established, the economic activity you will be doing, the geographical location, the services required, and legal factors. For example, they can include: Cost of setting up a company in Dubai the following:

• The cost of obtaining a commercial license (license to practice business).
• The purchase price of the site for the office or company through which you conduct business, whether it is rented or purchased.
• The purchase price of items related to furniture and decoration for the office or company where you do your business.
• The cost of obtaining and obtaining work permits for sponsored employees and the visas required for them under the name of your new company.
• The cost of opening a new bank account in the company’s name in one of the banks, then depositing the minimum capital depending on the type of your business activity.
• The cost of the legal form of the company, meaning that it is commercial, industrial or professional, has a fundamental role in determining the cost of establishment. The cost of establishing industrial companies is higher than that of establishing commercial and professional companies.
• Finally, the cost of obtaining a commercial license in Dubai.

Tax benefits in the UAE

The UAE has a range of tax advantages that make it a preferred destination for investment and business establishment. These advantages include:

1. No income tax on individuals and companies: In most of the Emirates, there is no income tax on individuals and companies, which attracts investors and companies to set up their businesses there.
2. Low VAT: VAT in the UAE is only 5% on some goods and services, which is low compared to many other countries.
3. Tax exemptions and facilities for investors: The UAE offers a wide range of tax exemptions and facilities for companies and investors, such as fee and tax exemptions for start-ups and strategic industries.
4. No taxes on capital and capital gains: The UAE does not impose taxes on capital or capital gains, making it a convenient destination for international investments.
5. Double Taxation Avoidance Agreements: The UAE is moving forward with signing double taxation avoidance agreements with several other countries, facilitating international trade and investment.
6. Advanced infrastructure and favorable business environment: The UAE has a well-developed infrastructure and a conducive business environment, making it easy to set up and operate businesses efficiently.

Types of companies that can be established in the UAE

Residency and investment in the Emirates

The UAE is considered one of the best distinguished places to invest in, but Investing in the UAE It requires many conditions, the most important of which is residency. We are now clarifying the relationship between investment and residency in the Emirates for migrant workers who have excellent investment ideas and capital, while developing an investment plan, and they want to know about residency in the Emirates and its relationship to investment. We will clarify, pointing out the impact of residency on investment in the Emirates and how to reside there and the conditions of residency in the Emirates in general and what are the best places where they can invest their money there and determine the best locations and the role of the Emirati government in activating and stimulating investment in the Emirates. These questions we will answer in this topic. Residency and investment in the Emirates have a close relationship linked to each other in the multiplicity of commercial activities in Sharjah and stimulating the movement of the trade and investment market, making it one of the best countries in which to invest through skilled migrant workers with capital to establish several investment companies in it to invest their money. This is in addition to what the Emirati government provides in terms of providing services to facilitate the investment process in the Emirates. It also works to provide the needs of new projects in all ways and as quickly as possible and works to facilitate all the facilities and services necessary to start any type of these investments and also works to provide housing in it by reducing the percentage Real estate rentals or purchases, which makes the purchaser of any property in the Emirates a real investor there and has the right to own and invest in it, whatever its value. Also, real estate residency in the Emirates is what leads to real estate investment, and real estate investment in the Emirates is the purchase of any building or any residential facility or any company or the purchase of a plot of land to establish an investment company on it, but with the availability of several conditions that are available and absolutely unrestricted.

Advantages of establishing a company in the UAE

Establishing a company in the UAE can provide many advantages and opportunities for businessmen and investors, including:

• Suitable investment environment: The UAE has a suitable and stable investment environment, which attracts investors from all over the world to establish companies and expand their businesses.
• Distinctive strategic location: The UAE is located at the heart of the Middle East, making it a hub for trade and business in the region, and providing easy access to emerging and developed markets in the region.
• Advanced infrastructure: The UAE has a sophisticated infrastructure including airports, ports, roads, and communications and technology facilities, which facilitate transportation and distribution operations and support businesses.
• Flexible rules and regulations: The UAE adopts flexible laws and regulations that encourage investment and facilitate the procedures for establishing and operating companies, which facilitates the work of businessmen and protects their interests.
• Low tax rates: The UAE is characterised by a tax policy that includes most economic sectors with tax exemptions or low tax rates, which contributes to stimulating investment and increasing profits.
• Availability of skilled labor: The UAE offers a dynamic labour market that attracts skilled and talented workers from all over the world, making it easier for businesses to operate and succeed.
• International presence: The UAE is home to many regional and international headquarters of major companies, providing opportunities for collaboration and partnerships and enhancing the international presence of companies based there.
• Government facilities: The UAE government offers a range of facilities and support to businesses, including financing programmes, logistical assistance, and legal support.

In conclusion, setting up a company in the UAE presents an exciting opportunity for many investors looking to succeed in a dynamic and advanced business environment. Although the costs of setting up a company in Dubai are an important factor to consider, the opportunities that the UAE offers stand out as a significant competitive advantage.

It is important for investors to have a good understanding of the costs of setting up a company in Dubai and the types of companies available to them, including the advantages and challenges they may face in this context. They should also consider other factors such as the local market and labor and commercial laws.

In short, it is considered Establishing a company in the Emirates A strategic and challenging move, but one that offers tremendous opportunities for success and expansion. It is essential to do good research and planning before starting, and to work with local advisors to ensure the business plan is successfully implemented.

Frequently asked questions about the costs of establishing a company in the Emirates