If you are considering establishing a company in Dubai as a foreigner, Dubai is considered one of the most attractive cities for business in the world, as it provides a distinguished investment environment and multiple opportunities for success. This is a strategic move for many, as you can benefit from advanced infrastructure and flexibility in regulatory procedures.
Establishing a company in Dubai requires following specific procedures and adhering to specific conditions, and this includes many aspects such as determining the appropriate type of company, obtaining the necessary licenses, and determining the location of the company within Dubai based on the business needs and target market.
It is important to understand the business environment in Dubai and the laws and regulations that govern the establishment of companies, in addition to consulting with local experts to ensure that the right decisions are made and potential problems are avoided.
In this article, we will take a general overview of the steps for establishing a company in Dubai for foreigners , focusing on the main aspects without going into the fine details of each step.
Steps to establish a company in Dubai for foreigners
Establishing a company in Dubai for foreigners is an important strategic step to invest in a developed and prosperous business environment. Dubai is characterized by advanced infrastructure and an encouraging investment environment, making it an ideal destination for successful businesses. Here are the steps for establishing a company in Dubai for foreigners:
- Choosing a company type: Above all, you should choose the right company type for your business, such as limited liability company (LLC), sole proprietorship, public or private company, etc.
- Choosing and registering a name: You must choose a unique name for the company and confirm its compliance with local regulations and legislation. The name is then registered with the Department of Economic Development (DED) in Dubai.
- Identification of shareholders and shareholdings: The identity of foreign shareholders and the shareholdings of each of them must be determined in accordance with local laws.
- Determine the commercial activity: The commercial activity that the company will undertake must be determined, and the necessary licenses must be obtained from the relevant authorities.
- Provision of a corporate office: A company office must be provided in Dubai, whether it is a physical office or a virtual office, as per the requirements of local laws.
- Obtaining a commercial license: After registering the company and determining the commercial activity, a commercial license must be obtained from the Department of Economic Development (DED).
- Additional licenses: The company may need additional licenses depending on its commercial activity, such as industrial, commercial, or other licenses, and they must be obtained from the competent authorities.
- Identification of the tax office: The company must identify and register the tax office for tax purposes, in accordance with local tax legislation.
- Providing a bank account: The company must open a local bank account in Dubai to manage its financial operations.
- Obtaining work permits: In the event of employing foreign employees, the company must obtain work permits and residence visas for them.
These steps are general, and the exact requirements can vary based on the type of company, business activity and government legislation in Dubai. Therefore, it is always advisable to check the current requirements and legal guidelines from reliable sources before starting the company formation process.
Conditions for establishing a company in Dubai for foreigners
Establishing a company in Dubai for foreigners requires following some conditions and procedures. Here are some important points:
- Legal type of company: Foreigners can establish a company in Dubai individually (by establishing a sole proprietorship) or in the form of a limited liability company. The latter type is the most common choice for foreigners.
- Required Capital: Companies in Dubai must determine a basic capital. For companies that carry out external activities, the minimum capital must be 300,000 dirhams.
- Employing local workers: Companies must employ local workers in a certain percentage in accordance with UAE labor laws.
- Head Office: The foreign company must establish a head office in Dubai.
- Licenses and Permits: A company may need local licenses and permits depending on its business activity.
- Local partner: In the case of a commercial company, there must be an Emirati national partner who owns 51% of the company’s share, but agreements can be reached that guarantee the rights of foreign partners.
These terms vary slightly depending on the exact type of company and local laws. Therefore, it is advisable to speak with Itqan company experts in Dubai to obtain accurate information and guidance on company establishment procedures.
The importance of establishing a company in Dubai for foreigners
Establishing a company in Dubai for foreigners can have several benefits and importance, including:
- Access to a vibrant market: Dubai is considered a global business and financial centre, providing companies with the opportunity to access a vibrant and diverse market.
- Advanced Infrastructure: Dubai provides advanced infrastructure and high-quality services, making it an ideal place for businesses to set up.
- Strategic Location: Dubai\\\’s strategic location allows easy access to many markets in the Middle East, North Africa and even South Asia.
- Favorable legal environment: Dubai provides a business-friendly legal environment, with clear and reasonable business laws.
- Economic Freedom: Dubai provides a free economic environment that provides companies with opportunities for growth and expansion.
- Government Facilities: The Dubai Government provides the necessary facilities for new companies through fast and efficient government services.
- Cultural Diversity: Dubai has great cultural diversity, which enhances business opportunities and international partnerships.
- Tourism and Entertainment: Dubai is an important tourist destination, which provides opportunities for companies in the tourism and entertainment sector. These factors make establishing a company in Dubai an important and feasible step for foreigners looking for new business opportunities and economic growth.
Legal requirements for establishing companies in Dubai
Establishing companies in Dubai for foreigners is subject to some legal conditions and requirements, and these requirements vary depending on the type of company. Here\\\’s an overview of some of the main terms:
- Legal type of company: Foreigners must determine the appropriate legal type for their company, whether it is a sole proprietorship, limited liability company, or other.
- Local Partnership: In the case of trading companies, there must be a local partner who owns a certain share in the company. However, agreements can be reached that grant foreign partners certain rights and protect their interests.
- Capital: The minimum required capital is determined by the type of business activity. For example, for companies carrying out offshore activities, the minimum capital must be 300,000 dirhams.
- Licenses and permits: The company may need local licenses and permits from the relevant authorities depending on its business activity.
- Head Office: The foreign company must establish a head office in Dubai.
- Legal Compliance: The company must comply with all local and federal laws and regulations related to business in Dubai and the UAE.
These points form part of the basic requirements for establishing companies in Dubai for foreigners, but there are more details and procedures that must be followed. Therefore, it is recommended to speak with Itqan Company\\\’s expert consultants in Dubai to obtain accurate information and guidance on company establishment procedures.
Papers and documents to establish a company in Dubai
Establishing a company in Dubai requires submitting a set of papers and documents. Here is a general list of basic documents you may need, but always check the exact requirements for the type of company you wish to establish:
- Registration Application Form: An official registration application form must be filled out to establish the company.
- Social Agreement Form: If the company is formed by partners, a social agreement must be prepared that specifies the rights and obligations of the partners.
- Power of attorney form: If you appoint a specific person to handle the incorporation proceedings on your behalf.
- A copy of the passport: A copy of the passport of all shareholders and directors must be submitted.
- Personal photo: A recent personal photo of all shareholders and directors.
- Personal receipt: A recent bank statement for all shareholders and managers.
- Approval from Emirati partners: if there are local partners.
- Incorporation Deeds: If you own a property in Dubai and want to use it as a company headquarters.
- Authorization: If a lawyer or legal advisor is appointed to handle the incorporation procedures.
- Shareholder Credibility Report: Foreigners need to submit a report proving their financial ability to establish the company.
- Legal power of attorney: If you intend to appoint another person to represent you before government agencies.
You must check the exact requirements by Itqan Company in Dubai and ensure that all necessary papers and documents are completed before submitting the incorporation application.
The importance of establishing a company in Dubai for foreigners
Can a foreigner establish a company in Dubai?
Yes, foreigners are allowed to establish a fully owned company in some free zones in Dubai, such as Jebel Ali Free Zone (JAFZA) and Dubai Investment Park. Companies in these areas can be wholly foreign-owned, and are usually known as “100% joint-stock limited liability companies” (FZ-LLC). These free zones are considered an attractive haven for businesses thanks to their flexible policies and developed infrastructure, and usually offer a range of benefits to companies located there.
In addition, foreigners wishing to establish a fully owned company in Dubai must adhere to certain conditions and requirements. For example, they must obtain prior permission from the local authorities, specifically from the Free Zone Authority concerned with the free zone in which they intend to invest. They must also submit a set of documents and guarantees, and specify the type of business activity they wish to practice.
There are also costs associated with setting up a company in a free zone, such as registration fees and annual license fees. However, these costs can be reasonable compared to the benefits offered by a free zone, such as no income taxes and no restrictions on transferring profits or capital.
It is worth noting that people wishing to establish a company in Dubai should consult local legal or financial advisors to obtain the necessary advice about the required steps, expected costs, and any other details related to establishing the company.
Itqan for establishing companies in Dubai
Establishing a company in Dubai for foreigners is a strategic and interesting step in the global business world. Implementing the right steps can open wide doors of opportunity and success in this dynamic market.
First and foremost, the importance of business planning and market research must be understood. These first steps represent the strong foundation any entrepreneur needs to succeed in Dubai. Next, comes the search for a reliable partner such as Itqan Company to help you actually implement your plans and achieve your goals with confidence and sustainability.
When you have completed the preparatory steps, the focus comes on implementing the marketing strategy and building the brand. Through innovation and creativity, you can attract customers and achieve sustainable success in the local and global market.
In conclusion, you must be prepared to face challenges and changes in the business environment. In conjunction with this, you must maintain a spirit of innovation and flexibility, as these qualities are key to surviving and thriving in the dynamic and evolving Dubai market.
Frequently asked questions about establishing a company in Dubai
What types of companies can be established in Dubai?
Companies such as sole proprietorships, limited liability companies, personal companies, and joint stock companies can be established.
What are the basic steps to establish a company in Dubai?
Determine the type of company, name, activity, and partners (if any), and submit the application to obtain the necessary licenses from the relevant authorities.
Can a foreigner establish a fully owned company in Dubai?
Yes, foreigners can establish a fully owned company in the free zones in Dubai.
What are the expected fees and costs for establishing a company in Dubai?
Fees and costs vary depending on the type of company and services required, and may include costs for licenses and necessary capital.
What taxes must companies pay in Dubai?
In the customs excise and free zones, no taxes are imposed on companies, while in the rest of Dubai, companies are subject to value-added tax and corporate tax.
Can companies get financing in Dubai?
Yes, companies can obtain financing from banks and financial institutions in Dubai and the UAE.
What foreign investments are allowed in Dubai?
Foreign investment laws vary depending on the type of company and economic sector, but full ownership by foreigners is usually permitted in free zones.
