We will now talk about the conditions for establishing a company in Dubai for foreigners, as it is one of the most distinguished countries for investment around the world. It is also considered one of the most important emirates in the United Arab Emirates, because it contains many excellent investment areas, which makes it a target in front of the eyes of investors and entrepreneurs to activate… their trade on its lands.
Dubai is one of the most prominent global investment destinations, as it opens its doors to entrepreneurs and foreign investors from all over the world to establish their companies and achieve their successes. Thanks to its distinguished business environment, advanced infrastructure, and continuous government support, Dubai has become a favorite destination for many seeking to benefit from its many and diverse business opportunities. Establishing a company in Dubai for foreigners is a strategic step towards entering new markets and benefiting from the continued economic growth in the region. In cooperation with local partners such as Itqan, foreign investors can receive the necessary guidance and support to establish their companies easily and efficiently, while ensuring full compliance with local laws and regulations. Dubai is an ideal environment for achieving business ambitions, as it provides unparalleled opportunities for growth and expansion in various economic sectors. How to establish a company in Dubai for foreigners remains one of the most important topics that investors search for to achieve their investment goals and benefit from the advantages of the dynamic and diverse UAE market.
Conditions for establishing a company in Dubai for foreigners
Foreigners can establish many different types of companies in Dubai, but some basic conditions must be met, including:
1- Obtaining a residence visa: Foreigners must obtain a residence visa to work and reside in Dubai, by obtaining a work permit from the company they wish to establish.
2- Choosing the appropriate economic activity: The appropriate economic activity must be chosen for the company, in accordance with the conditions and regulations in force in Dubai.
3- Submitting the necessary documents: The required documents must be submitted to prove the identity and nationality of the founders and the establishment of the company, including the necessary passports, visas, contracts, and certificates.
4- Obtaining licenses and permits: You must obtain the necessary licenses and permits to open the company, and these licenses and permits vary according to the type of company and economic activity.
5- Determine the official headquarters of the company: The official headquarters of the company must be determined in Dubai and registered with the competent authorities.
6- Obtaining a work permit: Foreigners must obtain the necessary work permit to work in the established company.
7- Obtaining security approval: Foreigners must obtain security approval from the competent authorities before establishing the company.
Consultation must be made with the competent authorities in Dubai to determine the conditions and local regulations necessary for establishing the company. More information about these conditions can be obtained through the competent authorities and authorities in Dubai.
Conditions for establishing a company in Dubai for foreigners
Licenses required to establish a company in Dubai
The licenses required to establish a company in Dubai vary depending on the type of company and the economic activity practiced by the company, but in general the required licenses can be summarized as follows:
1- Company establishment licence: This is considered the basic license and includes the legal procedures necessary to establish the company. It includes issuing documents, registering the founders, and determining the economic activity and registered capital.
2- Work permit: This license allows foreigners to work in the company, and requires submitting the necessary documents, such as a passport, visa, and health insurance.
3- Office licence: This license allows the company to use office space in specified areas, and the cost of this license varies according to the size of the required space.
4 – Economic activity license: This license allows the company to practice the specified economic activity, and the appropriate economic activity for the company must be determined when submitting the application for this license.
5- Advertising license: This license allows the company to advertise its commercial activity, and requires the submission of the required documents and health insurance.
6- Rental license: This license allows the company to rent office space or space to store products or goods.
It is necessary to consult with the competent authorities in Dubai to determine the exact licenses required to establish the company, as the number and type of licenses required may change according to the economic activity practiced, the location of the company, the size, and the legal nature of the company.
Advantages of establishing a company in Dubai
- Tax exemption:
This is an advantage that any investor is looking for, as there is no such thing as a tax, as the Emirates does not impose any taxes on establishing a company in Dubai for foreigners, as companies are completely exempt from any tax liability at a rate of 100 percent, for a period that may initially reach five years. Until the company is exempt from taxes for life.
- Diversity of business facilities:
Countries provide you with many business facilities that encourage investment in Dubai, and this depends on the type of activity that you want to establish and also on the capital that you specify to establish a company in Dubai for foreigners. There are several aspects to this diversity, which include many luxurious and equipped business centers. There are also distinctive shopping centers and many high-rise towers fully equipped for business. It is also distinguished by the diversity of industrial areas, as there are approximately ten free zones in Dubai with diverse activities between multiple logistical sectors, energy, media, and information technology.
- Infrastructure strength:
Dubai is considered one of the strongest cities in the Arab world and even in the Middle East in terms of the strength of its infrastructure, which makes it one of the best cities that attract investment, as it pumps a lot of huge capital in order to enhance the strength of its infrastructure and establishes many projects in Dubai in order to It attracts investors, as the state has allocated approximately 230 billion dirhams to improve the infrastructure, including road networks and buildings.
Costs of establishing a company in Dubai
Establishing a company in Dubai involves specific costs including government fees, consultancy services and overhead costs. These costs can vary depending on the type of company, its activity, and its location. Here is an overview of the basic costs to consider:
– The cost of obtaining a commercial license to practice business legally.
– The cost of obtaining and issuing work permits for sponsored employees and obtaining the required visas for them under the name of your new company.
– The cost of obtaining a commercial license in Dubai.
– The cost of purchasing the office’s site or the site through which you conduct business, whether rented or owned.
The cost of establishing 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.
– The cost of purchasing items related to furniture and decoration for the office or the company in which you do your business.
– The cost of opening a bank account in a bank in the name of the company and then depositing the minimum capital according to the type of your business activity.
Types of companies that foreigners can establish in Dubai
| Type of Company | the description | Foreign ownership | Advantages |
|---|---|---|---|
| Limited Liability Company (LLC) | A company in which the number of partners ranges from 2 to 50, and the partners’ liability is limited to the amount of their shares in the capital. | 100% in free zones | – Flexibility in management and financing. – Legal protection for shareholders. – Ability to work inside and outside the Emirates. |
| Free zone company | A company operating within specific free zones and enjoying many tax and customs exemptions. | 100% | – Tax and customs exemptions. – Ease of establishing and managing a business. – Excellent infrastructure and government support. |
| Civil company | A company that is owned by professionals such as doctors or engineers and operates in a specific professional field. | Unavailable | – Ability to provide professional services. – 100% local ownership is possible for professional professionals. |
| Company | A company wholly owned by a foreign company or part of an international group of companies. | 100% | – The ability to benefit from global resources and expertise. – Facilitating entry into the UAE market and benefiting from the advanced infrastructure. |
| Representative office | An office that represents the parent company in Dubai and is not involved in direct commercial activities. | 100% | – Low establishment cost. – Ability to study the market and build relationships. |
| Limited partnership | A partnership between a general partner, who is responsible for management and liabilities, and limited partners, whose liability is limited to the extent of their investments. | Unavailable | – Legal protection for limited partners. – Flexibility in distributing profits and losses. |
| Public joint stock company | A company whose shares can be traded on financial markets and is owned by several shareholders. | Only 49% for foreigners | – The possibility of raising large capital through an IPO. – Transparency in operations and management. |
| Private joint stock company | A company owned by a limited group of shareholders and not listed on the financial markets. | 100% in free zones | – Greater control over management and decisions. – Flexibility in allocating shares and transferring ownership. |
How to choose the appropriate free zone to establish a company
Establishing a company in the Dubai Free Zone is considered an important strategic choice for investors, as these areas provide an advanced commercial environment characterized by flexibility and effectiveness. Free zones in Dubai are considered among the most attractive areas for investment, as they provide many important advantages such as tax exemptions, full foreign ownership, and no need for specific capital, which makes the process of establishing companies in them easier and more efficient. In addition, free zones in Dubai provide advanced infrastructure and specialized support services that contribute to the success of companies and enhance opportunities for growth and expansion in the local and global market. Choosing the appropriate free zone to establish your company in Dubai depends on several factors that must be taken into account to ensure that it is The chosen area is appropriate to the nature of your business and your needs.
Below are steps and tips to help you choose the appropriate free zone:
1. Determine the type of business activity:
Each free zone in Dubai specializes in certain fields such as technology, financial services, trade, transportation, media, health care, and others. So you need to determine the nature of your business first.
2. Review of laws and legislation:
Each free zone has a set of laws and legislation that govern commercial activities within it. Check these laws and make sure they are in line with your business and requirements.
3. Consider geographical location:
Choosing a location close to customers and suppliers can reduce transportation costs and save time. Also, having the right infrastructure in the chosen geographical area is very important.
4. Infrastructure and services:
Ensure that the free zone provides appropriate infrastructure such as offices, warehouses, logistics facilities, and administrative services. Having these services can facilitate your daily operations.
5. Costs and fees:
Compare costs and fees in different free zones. This includes setup fees, rent, licenses, and service fees. Choose an area whose costs fit your budget.
6. Incentives and privileges:
Some free zones offer incentives and privileges such as tax exemptions, export and import facilities, and business support services. Make sure to take advantage of these incentives.
7. Legal and regulatory environment:
Check the legal and regulatory environment of the free zone, including the ease of handling legal and administrative procedures.
8. Partnerships and opportunities:
Choose a free zone that provides opportunities for networking and partnerships with other companies in the same field. This can help expand your professional network and increase collaboration opportunities.
9. Support and consulting services:
Some free zones provide support and consulting services for new companies. These services can be especially useful if you are new to the UAE market.
10. Professional advice:
Use Itqan Company’s consultants to help choose the appropriate free zone. Consultants can provide advice based on their experience and knowledge of the local market.
Examples of free zones in Dubai:
- Dubai Internet City (DIC): Suitable for technology and information companies.
- Dubai International Financial Center (DIFC): Suitable for financial companies and banks.
- Jebel Ali (JAFZA): Suitable for commercial and logistics companies.
- Dubai Healthcare City (DHCC): Suitable for healthcare and medical services companies.
- Dubai Science Park (DSO): Suitable for science and biotechnology companies.
Choosing the appropriate free zone to establish your company in Dubai requires careful study and consideration of several factors related to your business activity and needs. By following these steps and tips, you can ensure that you choose the area that provides you with the right environment for success and growth.
Establishing a company in Dubai for foreigners
Benefits of free zones for foreigners in Dubai
Free zones in Dubai offer many benefits to foreigners who wish to establish their companies there. These benefits make Dubai an attractive destination for investors and entrepreneurs from all over the world. Here are some of the main benefits:
1. Complete foreign ownership (100%):
Free zones in Dubai allow foreigners to fully own their companies without the need for a local partner. This gives investors complete freedom to manage and direct their business.
2. Tax exemptions:
Free zones provide tax exemptions on profits and income for long periods, which can be up to 50 years in some areas. In addition, there is no value added tax (VAT) or profits tax in most free zones.
3. Customs exemptions:
Free zones exempt imported and exported goods from customs duties, which reduces the costs of business operations and enhances logistics efficiency.
4. Simplified and fast establishment procedures:
Dubai free zones provide simplified and fast incorporation procedures, enabling companies to start operations in a short time. This includes ease of obtaining the necessary licenses and approvals.
5. Advanced infrastructure:
The free zones in Dubai are characterized by an advanced infrastructure that includes offices, warehouses, logistical facilities, and advanced communications networks. This infrastructure contributes to facilitating daily business operations.
6. Integrated support services:
Free zones offer a wide range of support services such as legal consulting, accounting services, and human resources services. These services make it easier for new companies to organize and manage their operations efficiently.
7. Flexible business environment:
Dubai’s free zones provide a flexible business environment that allows companies to conduct various business activities without strict restrictions. This can include trade, manufacturing, services, and other activities.
8. Employment facilities:
Free zones allow easy employment of foreign workers through simplified work visa procedures. This enables companies to attract the global skills needed to grow their businesses.
9. Opportunities for expansion and collaboration:
Dubai’s free zones provide an environment that provides opportunities for expansion and cooperation with other companies. Businesses can benefit from the business networks and professional communities found in these regions.
10. Access to global markets:
Dubai’s strategic location between Asia, Europe and Africa makes it a gateway to access global markets. Free zones provide logistical facilities that contribute to facilitating export and import operations.
11. Financial and banking facilities:
Free zones in Dubai offer financial and banking facilities such as local and international bank accounts, money transfer services, and commercial loan facilities.
12. Intellectual property protection:
Dubai’s free zones provide strong protection for intellectual property, encouraging companies to innovate and develop new products and services.
Dubai free zones are an ideal choice for foreigners who want to establish their companies in an environment that encourages and supports growth and innovation. These areas provide a wide range of benefits that make Dubai an attractive destination for investors and entrepreneurs from all over the world.
Opening a bank account to establish a company in Dubai
Opening a bank account to open a company in Dubai can be an important step to ensure a smooth process and avoid complications. Here are the basic steps for opening a bank account to establish a company in Dubai in cooperation with Itqan Company:
- Choosing the appropriate bank:
In cooperation with Itqan Company, you can get advice on the best banks that suit your company’s needs. Options include local and international banks with branches in Dubai.
- Preparing the necessary documents:
Preparing the required documents such as the passport, residence visa, company documents (memorandum of association, commercial registry, and company bylaws), and a copy of the passport of shareholders and managers.
- Submit an account opening request:
Itqan Company can help you fill out and submit the bank account opening application to the chosen bank. The application will include all information and documents required to ensure quick approval.
- Obtaining security approval:
Some banks in Dubai require security approval from the relevant authorities. Itqan Company can assist in submitting the necessary applications and following up on the procedures to obtain this approval.
- Negotiating terms and conditions:
Itqan Company can negotiate on your behalf to obtain the best banking terms and conditions, including fees and services provided.
- Opening an account and receiving details:
After obtaining security approval and fulfilling all conditions, the bank account will be opened. You will receive account details such as IBAN, account number and bank cards.
The best sectors to invest in Dubai for foreigners
Dubai is a diverse and advanced investment destination, providing wide opportunities for foreigners wishing to invest. There are several sectors that are considered interesting and popular among foreign investors in Dubai. However, successful investments must be considered to align vision, personal interests and past experience. Here are some sectors that many consider to be excellent investment areas in Dubai:
- Real Estate: The real estate sector in Dubai is considered attractive to foreign investors. Dubai is home to luxury real estate projects such as villas, residential apartments, commercial facilities and luxury hotels. There are investment opportunities in renting and selling real estate, and they usually achieve good returns.
- Tourism and Hospitality: The tourism and hospitality sector is thriving in Dubai, with the city receiving millions of tourists annually. You can invest in luxury hotels, restaurants, spas, and other tourism services.
- Technology and Innovation: The technology and innovation sector is a vibrant field in Dubai. The government encourages innovation, artificial intelligence and emerging technologies and provides support programs for startups in this field.
- Education and Training: The continued growth of the city requires the provision of education and training services. Investments can be made in private schools, educational centers, vocational training, and higher education.
- Creative and entertainment industries: Investment can be made in sectors such as arts, culture and entertainment, including the film industry, music, live events and sporting events.
The role of Itqan Company in facilitating the establishment of companies for foreigners in Dubai
Itqan Company plays a vital role in facilitating the process of establishing companies for foreigners in Dubai, through several services and benefits:
- Financial consultations: Itqan Company provides comprehensive financial consultations that help foreigners understand the financial conditions and requirements for establishing a company in Dubai.
- Guidance and guidance: Itqan helps clients make the right decisions about the appropriate type of company and the ideal place to establish it in Dubai.
- Legal and regulatory procedures: Itqan Company provides support in completing the legal and regulatory procedures necessary to establish the company, including submitting applications and negotiating with the relevant authorities.
- Coordination with government agencies: Itqan Company facilitates communication and coordination with government agencies in Dubai, which helps speed up the process of establishing the company.
- Support in opening bank accounts: Itqan Company provides support in opening the necessary bank accounts for the company, including negotiating with banks and submitting the required documents.
- Guidance in Taxes and Finance: Itqan provides guidance and specialized advice in the field of taxes and finances for new companies in Dubai.
- Logistical and marketing support: Itqan helps clients obtain the necessary logistical and marketing support to start their business operations in Dubai.
In short, Itqan Company seeks to provide integrated and comprehensive solutions that facilitate the process of establishing companies for foreigners in Dubai, which helps them start their businesses with confidence and success.
Frequently asked questions about establishing companies in Dubai for foreigners
What types of companies can foreigners establish in Dubai?
Foreigners can establish limited liability companies (LLC), sole proprietorships or limited partnerships, public or private joint-stock companies, and freehold companies.
What are the basic conditions for establishing a company for foreigners in Dubai?
Basic conditions include obtaining a license from the relevant authorities, determining the location of the company and providing a lease contract, identifying names and obtaining residence permits for officials and directors, and providing the required capital.
Does establishing a company for foreigners in Dubai require a local partner?
Not always, as foreigners can establish some types of companies without needing a local partner, such as freehold companies and some other types of companies.
What are the main legal and regulatory procedures that must be taken to establish a company for foreigners in Dubai?
Legal procedures include submitting an application for a license, determining the location of the company and providing a lease contract, preparing legal documents (memorandum of association, commercial registry), and submitting applications to the relevant authorities.
