The possibility of establishing a company in Dubai for foreigners is an essential part of the modern and evolving economic environment in the United Arab Emirates. Dubai offers vast opportunities for foreign investors who wish to establish and operate their companies in a region with global ambitions. Dubai’s legal system is transparent and efficient, making it a preferred destination for many entrepreneurs and international companies.
When foreigners look to establish a company in Dubai, they find an encouraging environment characterized by diversity and technological development, which facilitates expansion and growth. In addition, it offers foreigners many options regarding the type of company they wish to establish, such as limited companies, foundations and partnerships, allowing them to choose the optimal structure that suits their business needs and strategies.
The UAE authorities are working to simplify and facilitate procedures for foreign investors, which includes establishment procedures and obtaining the necessary licenses in a smooth and efficient manner. In addition, Dubai offers advanced infrastructure and excellent logistics services, making it an ideal destination to establish and grow a business sustainably and successfully.
It is worth noting that establishing a company in Dubai for foreigners requires compliance with some legal conditions and requirements, which can be discussed in detail in the following stages of this article. Therefore, we will continue in the next parts of the article by discussing these aspects in greater and more detail, which will help foreign investors understand the steps and procedures required to successfully establish their company in Dubai.
If you want to establish a company in Dubai as a foreign investor, you must follow several important procedures to achieve this goal. Here is an overview of the basic procedures for setting up a company in Dubai for foreigners:
- Choosing a company type: Determine the appropriate company type, such as a limited liability company (LLC) or sole proprietorship, according to the business activity and investment needs.
- Choosing a company name: Choose a unique name for the company and ensure its compliance with local laws and legislation.
- Determining the commercial registration: Obtaining the commercial registration from the Department of Economic Development (DED) in Dubai, which is the essential step to start the incorporation process.
- Determine location and address: Determine the location of the company’s office and provide a specific address that is consistent with local laws.
- Identifying shareholders and obtaining licenses: Determining the identity of the shareholders and determining the shareholdings, and then obtaining the necessary licenses from the relevant government agencies.
- Preparing legal documents: Preparing the company’s incorporation contracts and legal documents, documenting them and submitting them to the relevant government agencies.
- Payment of fees and costs: Pay the fees required to register and establish the company, including registration fees, licenses, etc.
- Industrial permit (if necessary): In the case of some commercial activities, you may require obtaining an industrial permit from the relevant authorities.
- Issuing the necessary licenses: After completing the previous procedures, the necessary licenses are issued to start the company’s operations in Dubai.
It should be noted that these procedures are a general overview and may vary based on company type, business activity and geographic region. It is necessary to obtain legal advice through Itqan Company to ensure compliance with all legal and regulatory procedures and conditions.
Conditions for establishing a company in Dubai for foreigners
Establishing a company in Dubai for foreigners requires following a set of procedures and conditions to ensure compliance with local laws and obtaining the necessary licenses. Here are the basic steps and conditions:
Choose the company type
When choosing the type of company in Dubai, foreigners have multiple options depending on the location of the company and the desired business activity. Foreigners can establish a company in free zones, such as a free zone company (FZ LLC), where full foreign ownership is permitted without the need for a local partner. This option allows foreign investors to take full control of their company and enjoy a range of benefits, including tax exemptions and customs facilities. Outside the free zones, foreigners can establish a limited liability company (LLC) in cooperation with a national partner who owns 51% of the company, while the foreign investor retains 49%. This model provides a recognized legal framework and provides access to the local market and government projects, making it an attractive option for many investors.
Determine the business activity
When determining business activity in Dubai, the investor must choose the activity he wishes to undertake and ensure that it is permitted according to local regulations. This step is crucial to ensuring that the process runs smoothly and that the necessary licenses are obtained without complications. Business activities vary and range from retail and professional services to manufacturing and technology. It is important to review the list of permitted activities in Dubai and ensure that the chosen activity complies with the requirements of local regulations. In addition, some commercial activities require special approvals from relevant government agencies, such as the Ministry of Health, the Civil Aviation Authority, or Dubai Municipality. Obtaining these approvals is necessary to ensure full compliance with the laws and avoid any obstacles that may hinder the start of the business.
Choose a company name
Choosing a company name is an essential step in establishing a company in Dubai, as the investor must choose a unique business name that adheres to local regulations and does not conflict with previously registered names. The name should reflect the company’s identity and business activity in a professional and attractive manner. After selecting the appropriate name, the investor must submit an application to reserve the trade name with the Department of Economic Development. The department reviews the application and ensures that there is no conflict with other registered names. After approval, the name is reserved for a specific period until the establishment procedures are completed. Choosing and reserving the trade name correctly contributes to building a strong identity for the company and ensures compliance with local laws, allowing the investor to proceed with the rest of the steps of establishing the company with confidence and clarity.
Obtaining initial approvals
To obtain initial approvals when establishing a company in Dubai, an application must be submitted to the competent authorities such as the Department of Economic Development or the chosen free zone authority. This step is considered essential for starting the company establishment process, as it includes providing the necessary information about the desired business activity, the type of company, and its trade name. The competent authorities review the application and ensure its compliance with local regulations and laws. Obtaining initial approvals ensures to the investor that his business activity is permitted and he can proceed with the rest of the steps of establishing the company. Furthermore, some businesses may require additional approvals from certain regulatory bodies, making this stage crucial in avoiding future delays and ensuring full compliance.
Locate the company
Determining the location of the company is a vital step when establishing a company in Dubai, as the investor must rent or buy an office or commercial space that suits the type of business activity and the targeted geographical location. Choosing the right location plays a big role in the success of a business, so factors that include access to target customers, proximity to business partners, and availability of the necessary infrastructure must be taken into account. The chosen location must be registered and licensed by the relevant authorities to ensure compliance with local laws. This requires obtaining the necessary approvals and permits from Dubai Municipality or the chosen free zone authority, according to the company’s website. Ensuring that the site is properly registered and licensed helps avoid any future legal problems and provides a conducive business environment for growth and prosperity.
Preparing legal documents
Preparing legal documents is a crucial step in the process of establishing a company in Dubai, as the company’s articles of incorporation and articles of association must be prepared clearly and accurately, as the articles of association include all the details related to the company, such as the names of shareholders, the shareholding percentage of each partner, and the goals and commercial activities of the company. After preparing these documents, they must be notarized by a notary to ensure their authenticity and legality. In addition, if the company plans to engage in special business activities that require additional approvals, such as financial or health activities, the necessary approvals must be obtained from the relevant regulatory authorities before moving forward. This step ensures that all documents and approvals comply with local laws, allowing the company to operate smoothly and fully comply with Dubai’s legal systems.
Open bank account
Opening a bank account in the company’s name in a local bank is a necessary step to facilitate daily financial operations and manage funds efficiently. This procedure requires submitting a set of legal documents that include the company’s articles of incorporation, articles of association, commercial license, and copies of the passports of shareholders and authorized signatories. A bank account helps organize cash flows, pay bills, receive payments, and handle operational expenses smoothly. In addition, a bank account allows a company to build a financial record that enhances its credibility and facilitates access to financing and other financial services in the future. Choosing the right bank that provides banking services that effectively meet the company’s needs is an important part of a business management strategy.
Obtain an establishment card
Obtaining an establishment card from the Emirates Identity Authority is a crucial step to completing the procedures for establishing a company in Dubai. The establishment card is an official document that confirms the company’s registration in the country and allows it to carry out various transactions such as recruiting workers and contracting with government agencies. After obtaining the establishment card, the company must register itself with the Ministry of Labor and the Immigration Department to ensure compliance with local laws related to employment and immigration.
Registering the company with these entities facilitates the recruitment process and allows the issuance of work and residence permits for employees. In addition, the company must insure employees in accordance with local regulations to guarantee their rights and provide a safe working environment. Proper recruitment and insurance enhances the company’s stability and enables it to attract talent and achieve sustainable growth in the UAE market.
Employment and insurance
Securing employees working in the company in accordance with local laws is an essential part of the company’s obligations towards its employees. The company must provide health insurance to all employees, as this insurance is a legal requirement in Dubai to ensure that employees receive the necessary health care. In addition to health insurance, the company must register employees in the social insurance system to secure their rights in cases of injury or illness during work.
Ensuring compliance with these requirements not only meets legal requirements, but also contributes to building a safe and sustainable working environment. Providing the necessary insurances enhances employee satisfaction and loyalty, which helps the company attract and retain distinguished talent, and thus supports the continued growth and success of the business.
These procedures may vary slightly depending on the type of activity and geographical location within Dubai. It is always preferable to seek the assistance of Itqan Company’s specialized consultants to ensure that all procedures are completed correctly.
Establishing a company in Dubai for foreigners
Itqan company for establishing companies in Dubai
Establishing a company in Dubai for foreigners is considered a smart strategic move, as the city enjoys a developed investment environment and a legal climate that encourages business. By providing partnership opportunities with Itqan, the company allows foreign investors to benefit from its extensive experience in the field of business management and investment in Dubai and the United Arab Emirates.
Dubai is a cosmopolitan, multicultural city and a leading business center in the Middle East. It provides advanced infrastructure, an encouraging legal framework, and easy access to global markets, which enhances the chances of success for startups and foreign investors.
Thanks to the fruitful cooperation with Itqan, the new company has a unique opportunity to expand and grow. Itqan provides comprehensive services including registration, licensing, legal and tax consulting, enabling the startup to focus on growing its business and effectively achieving its vision.
In conclusion, the establishment of a company in Dubai for foreigners in cooperation with Itqan embodies a strategic investment vision. This cooperation provides the opportunity for foreigners to benefit from Dubai’s potential and achieve their success in a dynamic and evolving business environment. With Itqan’s support, entrepreneurial dreams become a reality, and provides opportunities for expansion and growth in a competitive market. Itqan’s commitment to providing comprehensive support and assistance in all aspects of business makes it a strong partner for foreigners who wish to establish their companies in Dubai.
Frequently asked questions about establishing a company in Dubai for foreigners
What are the different types of companies that foreigners can establish in Dubai?
Foreigners can establish a limited liability company (LLC), a sole proprietorship, a sole proprietorship of private or public type, a free zone company, or a sole proprietorship limited liability company.
Do foreigners have to partner with an Emirati citizen to establish a company in Dubai?
Yes, in general cases, a partnership with an Emirati citizen of up to 51% of the capital is required.
What are the basic procedures for establishing a company in Dubai?
Determine the type of company, name, activity, and required capital, identify the local partner if necessary, submit the required documents to the relevant authorities, and obtain the necessary approvals and licenses.
What are the approximate costs of setting up a company in Dubai?
Costs vary depending on the type of company, capital, legal and administrative requirements. Costs include government fees, licensing fees, and legal consulting costs.
What are the guarantees required to establish a company in Dubai?
Concerned authorities may request financial guarantees or bank guarantees, and this depends on the type of company, capital and local laws.
What are the next steps after establishing the company?
After establishing the company, you must adhere to its legal and administrative obligations, join the local Chamber of Commerce, update tax and insurance data, and adhere to all necessary licenses and permits.
