Establishing a company in Dubai represents a strategic and vital step for many who seek to achieve their entrepreneurial dreams and build their professional future. The business market in Dubai is characterized by dynamism and diversity, and provides ample opportunities for success and development. Establishing companies in Dubai requires precise knowledge of the procedures for establishing a company in Dubai and the necessary steps that must be followed.

Establishing a company in this thriving city is a strategic investment step. Dubai offers a great environment for entrepreneurship, as it provides diverse opportunities and legislative facilities that make the process of establishing companies relatively easy.

Dubai offers investors the opportunity to access a broad and diverse market, whether they aim to provide services or manufacture products. In order to successfully start this business journey, investors must follow a series of specific actions.

The procedures for establishing a company in Dubai include learning about the different types of companies available and choosing the most appropriate type according to the purpose of the business and legal and commercial requirements. After that, investors must determine the name of the company, prepare the necessary legal documents, and apply to the local authorities to obtain the necessary approvals.

The importance of advance planning and professional advice during the company formation process in Dubai cannot be stressed enough. Adherence to legal requirements and local legislation ensures full compliance and a successful experience in the business environment in Dubai.

Through this article, we will explore in detail the procedures for setting up a company in Dubai and the challenges and opportunities available in this growing market, helping potential investors and entrepreneurs make the right decisions and achieve success in their business journey.

Procedures for establishing a company in Dubai

Procedures for establishing a company in Dubai

Experts on the procedures for establishing a company in Dubai confirmed that the UAE government supports startups, provides golden opportunities, and facilitates the procedures for establishing a company in Dubai.

1. Choose an activity

The first step in the procedures for establishing a company in Dubai is to determine the appropriate activity for which you are conducting the procedures for establishing a company in Dubai.

2. Commercial registration

Commercial registration is linked to choosing the company name and must comply with some conditions in order to obtain the approval of the Department of Economic Development:

• It should not be contrary to public taste.
• It does not contain words and phrases.
• It indicates the legal form of the company.
• Not be registered with another company.
• Reflects the business activity of the company.

3. Obtain initial approval

Approval must be obtained from the General Directorate of Residency and Foreigners Affairs, then approval from the rest of the relevant authorities in Dubai. Regarding foreigners, approval is required from the General Directorate of Residency and Foreigners Affairs.

4. Choose the company’s headquarters

Choosing a workplace for the company, whether purchasing or renting, must add a license to the current activity and it must have the following:

• The partner in the new company must be a shareholder or owner in the parent company.
• The number of licenses for one party should not exceed 10 licenses for the same site.
• The area of ​​the license site must not be less than 200 square feet.

5. Obtaining approvals from the relevant authorities

Some commercial projects need additional approvals from other competent authorities such as the Ministry of Interior, the Ministry of Civil Defense, the Ministry of Justice, and the Ministry of Economy if the activity is related to an activity such as selling firefighting equipment.

6. Obtaining a commercial license

The last steps of the procedures for establishing a company in Dubai, where after completing all the previous steps, the investor can receive the license and attach some documents and papers with it, in addition to the economic development steps to pay the costs of the license fees and then register in the UAE Chamber of Commerce as a member.

Different types of companies that can be established in Dubai

 Here are the different types of companies that can be established in Dubai:

Costs required to establish a company in Dubai

The costs of establishing a company in Dubai may vary based on several factors such as company type, size, activity, and local legal and administrative requirements. Here is a list of the basic costs that you may encounter during the process of establishing a company in Dubai:

1. Registration fees: This includes the registration fees paid to the Department of Economic Development in Dubai or the other concerned authority, and these fees vary according to the type of company and its activity.
2. Legal Services Fees: If you decide to use the services of legal advisors to assist you in the company formation process, there may be fees for these services.
3. Contract and Agreement Costs: Preparing the necessary articles of incorporation and agreements for the company can involve additional costs.
4. License fees: There may be additional fees to obtain the necessary licenses for the company’s activity, such as building permits or industrial licenses.
5. Rental costs: If a company needs an office or work space, there will be rental costs that vary depending on the location and size of the space.
6. Residence and visa fees: If you intend to work or reside in Dubai, there may be fees for obtaining a residence and work visa.
7. Employee costs: If you plan to hire employees, there will be costs for their salaries and fringe benefits.

Establishing a company in Dubai

Establishing a company in Dubai requires following a series of specific steps that include specific legal and administrative procedures. The process of establishing a company begins with determining the appropriate type of company for the business activity to be carried out, whether it is an individual company, a joint stock company, or a limited liability company, according to the needs and goals of the founders.

Then, the documents required to register the company are prepared, which may include the articles of incorporation and articles of association, in addition to providing personal documents for the founders and determining the location of the company. All documents must comply with local regulations and laws applicable in Dubai.

After that, the application is submitted to the competent authorities, such as the Dubai Economic Development Department (DED), and the required fees are paid. Additional inspections or approvals may be required before final approval is obtained.

After successfully completing the previous procedures, the company’s final commercial license will be issued. The founders must comply with the financial and legal obligations imposed by local authorities in Dubai, including taxes and periodic financial reports.

Ultimately, new business owners in Dubai need to be aware of the legal regulations and legislation related to their business, which can change from time to time, so they should follow any developments in commercial and tax laws to ensure constant compliance.

Documents required to establish a company in Dubai

There is a list of papers required to establish a company in Dubai, which varies slightly depending on the type of company and business activity chosen. However, here is a general list of documents you may need:

• Registration Application Form: An official document containing the founders’ information and details of the proposed company.
• Copy of the founders’ passport: A certified copy of the passport is provided to each of the founders.
• A recent personal photo of the founders: A recent personal photo of each of the founders must be submitted.
• Company Memorandum and Articles of Association: A document that defines the company’s structure, share distribution, and responsibilities among the founders.
• A certified copy of the lease contract for the commercial address: A certified copy of the lease contract for the proposed location of the company must be submitted.
• Health certificate statement: The founders must obtain a health certificate proving their readiness to work.
• Letter of support from the bank: Founders need a letter from the bank confirming the financial resources available to establish the company.
• Power of attorney (if necessary): If there is a legal representative to carry out the procedures on behalf of the founders, this document may be necessary.

Establishing a company in Dubai

Commercial licenses in Dubai

Dubai is characterized by a developed and diverse business environment, and offers many types of business licenses that suit the different needs of investors and entrepreneurs. Here are some types of business licenses in Dubai :

1. General Commercial License: This license allows the practice of a variety of general commercial activities, such as wholesale and retail trade and professional services.
2. Professional License: This license allows individuals to practice a specific profession or skill, such as medicine, engineering, accounting, legal consulting, and others.
3. Industrial License: This license allows companies to manufacture products or perform industrial processes, such as manufacturing, packaging, and packaging.
4. Craftsman License: This license allows individuals to practice traditional crafts and handicrafts, such as tailoring, carpentry, and blacksmithing.
5. Tourism License: Granted to companies operating in the tourism and travel sector, such as tourism agencies, hotels, and restaurants.
6. Media License: Granted to companies working in the field of media, publishing and media production, such as advertising companies and audio-visual production companies.

These are some of the common types of business licenses in Dubai, and details and requirements can vary based on the type of activity and local regulations.

Conditions for establishing a company in Dubai

Establishing a company in Dubai requires compliance with some basic conditions and requirements. Here are some general conditions to consider:

1. Local partner: In the event of establishing a limited liability company (LLC) in Dubai, there must be a local partner who owns a share of no less than 51% of the company’s capital. This local partner can be an individual or a local company.
2. Commercial activity: The company’s activity must be precisely defined according to the classifications approved in Dubai. The company’s activity must comply with local regulations and laws, and the licenses and permits required to practice this activity must be obtained.
3. Minimum Capital: The minimum capital required to establish a company should be determined according to the type of company and business activity. The minimum capital is determined based on local regulations and legislation, and requirements may vary from one sector to another.
4. Required documents: A set of documents must be submitted to establish the company, such as certified copies of shareholders’ passports, photographs, lease contracts, powers of attorney, business plans, etc. The type of documents required varies depending on the type of company and business activity.
5. Work Licenses: The necessary work licenses must be obtained for the employees the company will employ. This requires submitting the required documents and adhering to local policies and regulations related to employment and work.
6. Legal and Regulatory Requirements: Must comply with local laws and regulations in Dubai and comply with applicable legal and regulatory requirements in the field of business.

Advantages of establishing a company in Dubai

Establishing a company in Dubai can have many advantages and benefits, including:

• Developed commercial environment: Dubai is characterized by a vibrant and developed commercial environment, which provides broad business and investment opportunities.
• Distinctive strategic location: Dubai is located in a strategic place on the world map, making it a major center for trade and business in the Middle East.
• Advanced infrastructure: Dubai has a modern and advanced infrastructure, which facilitates transportation, communications and logistics operations.
• Flexible laws and a strong judicial system: Dubai has flexible and effective commercial laws and a strong judicial system that protects the rights of investors and companies.
• Free zones and commercial zones: Dubai offers free zones and special commercial zones, providing a stimulating environment for business with great facilities.
• Multicultural Society: Dubai has a diverse and multicultural society, providing opportunities for international cooperation and global expansion.
• Incentive offers and facilities: The Dubai government offers offers and incentives to investors and companies, such as tax exemptions and facilities in obtaining licenses.
• Strong Consumer Market: Dubai residents have a high level of purchasing power, making it a fruitful market for companies and businesses.

At the conclusion of this article, it can be said that establishing a company in Dubai requires compliance with a number of necessary conditions and requirements. These conditions include having a local partner in the case of limited liability companies, determining the company’s activity and complying with the required licenses, determining the required minimum capital, submitting the required documents, obtaining the necessary business licenses, and complying with local laws and regulations.

Establishing a company in Dubai gives you great opportunities to thrive in Dubai’s dynamic market and benefit from its advanced infrastructure and economic stability. With government support and facilities available, you can start business with confidence and grow your company successfully.

However, you must adhere to the specific terms and requirements and consult with competent legal counsel to ensure full compliance with local laws and regulations. With their guidance and advice, you can avoid any potential legal problems and ensure the continued success of your company in Dubai.

In short, establishing a company in Dubai is a crucial step towards achieving a successful business vision. By adhering to the terms and requirements and cooperating with the competent authorities, you can benefit from the economic and commercial advantages that Dubai offers and achieve success in the local and global business market.

The most frequently asked questions about establishing a company in Dubai