If you are considering setting up a company in Dubai as a foreigner, understanding the costs associated with this process is an important step. The business market in Dubai is among the thriving global markets and is favored by many international entrepreneurs, but it is important to be aware of the cost of setting up a company in Dubai for foreigners there.

The costs of establishing a company in Dubai for foreigners consist of several aspects, including the government fees required to register the company and obtain the necessary licenses, the costs of renting the office and commercial space, in addition to expenses related to consulting and legal services that you may need during the establishment and operation process.

It is also good to keep in mind that the cost of establishing a company in Dubai for foreigners may vary depending on the type of company you wish to establish, whether it is an individual company or a joint stock company, and this requires a careful examination of the requirements and expected costs for each type.

It is important that you conduct a careful feasibility study and consult with Itqan consultants to ensure that you fully understand the costs and procedures necessary to successfully establish your company in Dubai. In this article, we will explore a wide range of details about the costs of setting up a company in Dubai for foreigners without mentioning any specific price details, which will help you make informed and informed decisions in this area.

Establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners represents an important strategic step towards investing in one of the most prosperous cities in the world. Foreigners have various opportunities in Dubai to establish their companies, and the local law provides them with a business-friendly environment. Establishing a company in Dubai for foreigners requires adherence to some procedures and requirements that ensure the process runs smoothly in accordance with local laws and applicable legislation. Being patient and cooperating with the relevant authorities in Dubai are essential steps to ensure the success of the incorporation process. This process usually includes choosing the appropriate type of company, determining the required papers, submitting the necessary applications and documents, paying the prescribed fees, and waiting for the application to be reviewed and approved by the relevant authorities. Hiring specialist company law consultants or lawyers in Dubai is a smart investment to ensure full compliance with legislation and avoid potential problems in the future. Establishing a company in Dubai for foreigners opens the door to vast opportunities for investment and growth in this dynamic and thriving market.

Steps to establish a company in Dubai for foreigners

Dubai is one of the most attractive cities for business and investment in the world, offering exciting opportunities for foreigners who want to set up their companies here. Dubai is distinguished by its advanced infrastructure and flexible laws that facilitate procedures for establishing companies in Dubai for foreign investors. But before embarking on this exciting process, foreign investors must follow a series of necessary steps, which include:

1. Research and planning: Study the market and determine the type of company you want to establish and the region in which you want to establish it. Make sure you understand licensing requirements and local laws.
2. Choosing the right type of company: Choose the type of company that suits your needs and the type of business activity you want to practice, such as a limited joint stock company (LLC) or a free zone company.
3. Name selection and registration: Choose an appropriate name for the company and make sure it has not already been chosen. Then, register the company with the relevant authorities and obtain the necessary work permit.
4. Identify a local partner: If laws require a local partner, contact a trusted partner for this purpose and establish the necessary agreements.
5. Preparing the required documents: Prepare the company’s incorporation documents, which may include incorporation contracts, profit distribution documents, and other required documents.
6. Opening a bank account: Open a bank account for the company in a local bank and transfer the required capital.
7. Obtaining visas: Submit applications for the necessary visas for foreign employees who will work in the company.
8. Tax Registration: Register the company to obtain a tax number and comply with all local tax laws.
9. Starting work: After completing all the previous steps, you can start operating your company in Dubai.

The cost of establishing a company in Dubai for foreigners

The cost of establishing a company in Dubai for foreigners is affected by several factors, including the type of company, the size of the planned business, the region in which you want to establish the company (free zone or other), and additional services you may need such as legal and accounting advice. Fees and costs vary widely, but there are some general elements that can affect the cost of setting up a company in Dubai:

1. License fees: The cost of obtaining a license varies depending on the type of company and the region it belongs to.
2. Registration and establishment fees: This includes company registration and establishment fees, and these fees may vary based on the type and size.
3. Capital: Establishing some companies may require providing specific capital, and this capital varies according to the type of company and local laws.
4. Additional services fees: such as legal and accounting consultations, and these services may affect the total cost.
5. Virtual or physical office: If the company needs a physical office in Dubai, there will be costs associated with it.
6. Other government fees: such as work and residency visa fees if the company recruits employees from abroad.

Since prices are subject to change and vary greatly between different services and companies, it is recommended to contact the Itqan Company team to obtain an accurate estimate of the cost of establishing a company in Dubai for foreigners.

Conditions for establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners requires compliance with some specific conditions and laws. Here are some basic conditions:

1. Local agent: There must be a local agent residing in the UAE to represent the company before the local authorities. The agent must be a UAE citizen or a local company.
2. Minimum capital: The capital required to establish a company varies depending on the type of company and its activity. For example, establishing a limited liability company (LLC) requires a minimum capital set at a certain amount.
3. Work permits: The necessary work permits must be obtained from the relevant government agencies, and they vary according to the type of commercial activity and industry.
4. Legal documents: The legal documents required to establish the company must be submitted, which include the passport and residence permits for foreign investors, as well as documents related to the local agent.
5. Special Licenses and Permits: There may be special licenses or permits required depending on the business\\\’s activity, such as building permits, food and beverage licenses, and professional services licenses.
6. Compliance with laws and legislation: The company must comply with all local and federal laws and legislation related to the establishment and operation of companies in Dubai and the Emirates in general.
7. Compliance with free zone conditions (if free zone): If a company intends to establish in a particular free zone, it must comply with the conditions for establishing companies in that free zone.

Important documents for establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners requires submitting a set of basic and necessary documents. Here is a list of some of these documents:

• Passport and residence visa: Foreign shareholders are required to submit a copy of their passports and residence visas in the UAE.
• Business Plan: A detailed business plan must be submitted that explains the nature of the proposed business activity and the company’s future business plans.
• Bank confirmations: Foreign investors must provide bank confirmations proving the adequacy of the capital required to establish the company.
• Contribution Agreement: If there are multiple shareholders, a contribution agreement must be signed specifying the shares and financial obligations of each shareholder.
• Application Form: You must fill out and submit the official company incorporation application form which contains details of the company, shareholders, company activity and capital.
• Authorization form: If there is an agent or legal representative of the company, he must submit an authorization form proving his competence to represent the company.
• Lease Contract: A copy of the lease contract must be submitted to the office or company headquarters in Dubai.
• Establishment license: In some cases, local authorities may require a prior establishment license or permits from the competent authorities depending on the type of business activity.

The cost of establishing a company in Dubai

Licenses necessary to establish the company in Dubai

To establish a company in Dubai, a number of necessary licenses and permits are required to ensure compliance with local laws and regulations. Here is a list of some of the basic licenses you may need:

1. General Commercial License: This is the basic license that allows the company to conduct its commercial activity in Dubai.
2. Free Zone Permit: If you plan to establish your company in one of the free zones in Dubai, you will need to obtain a permit from the relevant free zone.
3. Virtual office or office space permit: Dubai authorities may require you to provide an office address for the company, and you can avail the virtual office option if you do not need a physical office space.
4. Special Economic Activities Permit: You may need a specific permit for the type of economic activity the company intends to engage in, whether it is manufacturing, retail, consulting, etc.
5. Professional declarations (if required): Some professional activities, such as medicine, engineering, and law, may require obtaining professional declarations from the relevant bodies.
6. Municipal and other government licenses: The company you intend to establish may require obtaining licenses from municipal and other government agencies depending on its activity and location.

Advantages of establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners comes with many advantages and benefits that make it a preferred destination for international business and investments, and these advantages include:

• Advanced infrastructure: Dubai has an advanced infrastructure that includes international airports, ports, roads and communications, which facilitates transportation and communication with the world.
• Stable economic environment: Dubai is characterized by a stable and reliable economic environment, which provides a conducive environment for successful businesses and investments.
• Flexible Laws and Regulations: Dubai\\\’s laws and regulations regarding business and investment are flexible and innovative, facilitating the process of establishing and managing companies efficiently.
• Strategic location: Dubai is strategically located between east and west, making it an important center for trade and business in the region.
• Free zones and special zones: Dubai provides many free zones and special economic zones that provide financial and operational facilities and privileges to international companies.
• Foreign investment facilities: Dubai offers significant facilities for foreign investments, including intellectual property protection, visas, and tax facilities.
• Educated and multinational workforce: Dubai attracts a diverse range of competencies and talents from around the world, providing companies with access to an educated and multicultural workforce.

In conclusion, setting up a company in Dubai remains a crucial and important step for foreigners seeking to participate in the booming business market in the UAE. Dubai is an ideal environment for investment thanks to its flexible and supportive legislation for small, medium and large businesses alike. By taking advantage of the professional and advisory services available in Dubai, foreign investors can overcome potential challenges and build successful companies in the local and global market. Regardless of the final cost of setting up a company, the opportunities and benefits available in Dubai stand out as an ideal choice for foreigners looking for a dynamic and innovative business environment.

The most frequently asked questions about establishing a company in Dubai for foreigners