Some people wonder about Company formation in Dubai To establish their company in Dubai, because the economy of the United Arab Emirates initially depended on trade, on the extraction of fish and pearls from the sea and on sales, but when a change occurred and the United Arab Emirates was distinguished by its high economy. Many investors turned their attention to the United Arab Emirates because of the high economy, as the United Arab Emirates became one of the richest Arab countries whose economy depends mainly on oil instead of the sea and its products, which made many foreigners and visitors, this contributes to the success of all the commercial projects they established. As a result, many people tend to invest their money in it and start new commercial projects to increase their income. However, many conditions are required to start a business in the United Arab Emirates, including the importance of establishing and owning a business. Our company works to help you start a business, as our company is one of the best companies working in the field of establishing businesses and services for entrepreneurs.
Company formation in Dubai
Company formation in Dubai
Starting a business in Dubai is one of the most important prerequisites for starting a new business in Dubai, as there must be a company prepared according to the conditions set by private companies.
Our company helps you build your business the way you want in the best locations and locations that appeal to employees.
Because our company has a wealth of experience in this field and is considered the best company to start a business.
- Starting a business requires several steps:
- Choosing a company name for the company, because this name is used to distinguish the company from other companies.
- Register and obtain a commercial license.
- Complete all procedures and obtain permits from the competent authorities.
- Pay the required fees to the government agencies responsible for doing business in Dubai.
Our company completes all these requirements while establishing companies, making you own the company ready to operate because it seeks your comfort and works to save you time and effort.
Types of companies in Dubai
This table provides a comprehensive overview of the different types of companies that can be established in Dubai, each with different requirements and features that suit the needs of investors and businessmen. Here is a table showing the different types of companies that can be established in Dubai:
| Type of Company | the description |
|---|---|
| Limited Liability Company (LLC) | A company that can include from 2 to 50 partners, whose liability is determined by the value of their shares in the company. |
| Free Zone Company | A company established in one of Dubai’s free zones, enjoying benefits such as full foreign ownership and tax exemptions. |
| Joint stock company | A company in which two or more partners participate, and they are jointly and severally liable for the company’s debts and obligations. |
| Public Joint Stock Company (PSC) | A company that can issue public shares that are traded on the stock exchange, provided that it has a large number of shareholders and a large capital. |
| Private Joint Stock Company (PRSC) | A company similar to a public joint stock company but whose shares are not offered to the public and are often owned by a limited number of investors. |
| Foreign company branch | A branch of a foreign company registered outside the UAE, which can operate within Dubai and is subject to specific laws and procedures. |
| Representative office | A representative office represents a foreign company and performs marketing and advertising tasks, but does not conduct commercial activities or conclude contracts on behalf of the company. |
| Solidarity Company | A company in which two or more partners share in all aspects of the business and profit, and have unlimited liability for the company’s debts. |
| Joint venture company | A temporary company established to complete a specific project, which ends when the project is completed, and does not require official registration. |
Establishing companies in the Dubai Free Zone
There are some areas located in remote locations called free zones. These are the geographical areas responsible for the sale, storage, export and import of goods. There are many free zones in the UAE, as the free zones of the UAE have reached about 40 zones, in addition to many more that are happening.
Its establishment and free zones have many advantages that have prompted most people to start their businesses in them and owning and starting a business in the free zones is much simpler than anywhere else in Dubai, from Establishing companies in the free zone:
It does not need to be owned by any UAE national and may even be owned by a foreigner or a subsidiary of a parent company in another country.
All products in the free zones are tax exempt, and establishing companies in the free zones does not require a sponsor. All goods traded in the free zones are exempt from customs. You can start your business in the free zone and start your business effortlessly through our company, which guarantees you to establish the best companies with the best free zone services in the shortest time and at the lowest cost.
Conditions for establishing companies in Dubai
Establishing companies in Dubai is subject to a set of conditions that must be adhered to. These conditions usually include, but are not necessarily limited to, the following:
- UAE National Partner: A UAE national partner is usually required to establish some types of companies in Dubai, such as a Limited Liability Company (LLC).
- Statement from the concerned authorities: Depending on the type of business activity and where the company is established, permits or approvals may be required from relevant authorities such as the Department of Economic Development (DED) or the Free Zone Authority.
- Authorized capital: Establishing some companies in Dubai may require an approved capital that is determined according to local laws and regulations.
- Availability of necessary documents: A set of documents such as the Memorandum of Association, Articles of Association, Government approvals, etc., must be submitted as per the requirements of the concerned authorities.
- Compliance with laws and regulations: Companies must comply with local and federal laws and regulations governing their business operations in Dubai.
These are some of the basic requirements to consider when setting up a company in Dubai, and these requirements can vary depending on the type of company and its business activity. Therefore, it is always advisable to check the current legal requirements and local legislation before starting the incorporation process.
Setting up a business in Dubai requires taking into account several aspects that affect the final cost, including government fees, company registration fees, necessary licenses, rents, and other operational costs such as manpower costs, legal and accounting services. These costs can vary depending on the type of company and the free zone or non-free zone in which it is being established. Additionally, setting up a business in some sectors may require additional procedures such as insurance and trademark registration, which increases the overall costs. Dubai is one of the prominent business destinations due to its strategic location and advanced infrastructure, and this is reflected in the cost of setting up a business in it.
Cost of establishing companies in Dubai Free Zone
Steps to establish companies in Dubai
Company formation in Dubai There are several steps required to ensure compliance with local laws and regulations. Here are the basic steps to establish a company in Dubai:
1. Determine the type of business activity
Determining the type of business activity is the first and most important step in the process of establishing a company in Dubai. The type of business activity depends on the field in which you wish to operate, such as trade, services, industry, or professional activities. This choice determines the license required to practice this activity and any additional approvals that may be required from the relevant authorities. For example, some business activities may require approvals from specific authorities such as the Ministry of Health for medical activities or the Roads and Transport Authority for transportation.
2. Choosing the legal structure of the company
Choosing a legal structure for your company is a crucial step in the incorporation process in Dubai, as it determines the legal and financial responsibilities of the company and its founders. There are several options available, such as a Limited Liability Company (LLC), which is a popular choice for local and international investors due to the flexibility and limited liability it provides to shareholders.
3. Choosing a business name
Choosing a trade name is an important and vital step when establishing a company in Dubai, as the chosen name must be in line with the laws and regulations of the Department of Economic Development (DED). The trade name should be unique and distinctive, and should not conflict with the names already registered to avoid any legal disputes or rejection of the application.
4. Obtaining initial approvals
Obtaining initial approvals is an essential step in the process of setting up a company in Dubai. The application for initial approval is submitted to the Department of Economic Development (DED) or the competent authority in the selected free zone. This approval aims to ensure that the proposed business activity complies with local regulations and laws.
5. Preparing the articles of association and bylaws
Preparing the Memorandum of Association and Articles of Association is a pivotal step in company formation in Dubai, as they reflect the organizational and legal structure of the company. This requires the preparation and documentation of these documents accurately in accordance with the type of company and the requirements of the Department of Economic Development (DED) or the competent authority in the chosen free zone.
6. Choosing a work location
Choosing a business location is a crucial step in setting up a company in Dubai, as the location should be suitable for the nature of the business and enhance the efficiency of daily operations. When choosing a location, factors such as proximity to target customers, available infrastructure, and availability of essential facilities and services should be considered.
7. Obtaining final approvals and licenses
Obtaining the necessary final approvals and licenses is a necessary step to complete the process of establishing a company in Dubai. After obtaining the initial approval, the founders must submit the required documents and obtain the final approvals from the relevant government authorities, such as the Department of Economic Development (DED) or the relevant authorities in the free zones.
8. Company registration
Registering the company in the commercial register is the final step in the process of establishing a company in Dubai. This procedure also requires submitting the required documents to the competent authorities such as the Department of Economic Development (DED) or the concerned authority in the selected free zone.
9. Open a bank account
Opening a bank account in the name of the company is a vital step to facilitate financial transactions and manage funds effectively. This procedure requires submitting a set of required documents to the selected local bank, such as the commercial registration certificate, the articles of association, and the founders’ identity document. After receiving the company documents, the company’s bank account is opened, and a bank representative is appointed to facilitate all financial transactions.
10. Applying for residence permits
Opening a bank account in the name of the company is a vital step to facilitate financial transactions and manage funds effectively. This procedure requires submitting a set of required documents to the selected local bank, such as the commercial registration certificate, the articles of association, and the founders’ identity document. After receiving the company documents, the company’s bank account is opened, and a bank representative is appointed to facilitate all financial transactions.
11. Receiving the commercial license
Receiving the trade license is the final and crucial step in the process of establishing a company in Dubai. After completing all the previous steps and obtaining the necessary approvals and licenses, the trade license is issued, which grants the company the right to practice its commercial activity legally and officially.
By following these steps, you can: Company formation in Dubai Easily and efficiently, while ensuring compliance with all local laws and regulations.
In conclusion of this article, it can be said that Company formation in Dubai It is an important process that is fraught with challenges and necessary steps. This process requires a broad understanding of local laws and regulations, as well as careful planning and coordination with the relevant authorities. By following the right steps and obtaining the necessary approvals, investors can realize their dreams of establishing and operating successful companies in the Emirate of Dubai. The thriving economic environment and the facilities available to businesses allow them to grow and prosper, making Dubai an ideal destination for businesses in the region and across the world. If you are looking to set up a company in Dubai, seeking professional assistance and good planning will be key to your success.
Frequently asked questions about establishing companies in Dubai
What types of companies can be established in Dubai?
Several types of companies can be established in Dubai, including a limited liability company (LLC), a free zone company, a sole proprietorship, a personal joint stock company, and an overseas branch.
What are the basic steps to establish a company in Dubai?
The basic steps include choosing the appropriate company type, determining the business activity, submitting the necessary applications and documents, obtaining the necessary approvals and licenses, opening a bank account, and registering the company in the commercial register.
What are the legal requirements for company formation in Dubai?
Legal requirements vary depending on the type of company, but typically include a memorandum of association, articles of association, and approvals from the relevant government authorities.
Can foreigners establish companies in Dubai?
Yes, foreigners can establish companies in Dubai provided that there is a UAE national partner in a certain percentage depending on the type of company.
