The cost of establishing a company in Dubai

The cost of setting up a company in Dubai varies based on several factors, including the type of company, its structure, and the services you may need. Here are some aspects to consider in terms of cost:

• Company type: Sole proprietorship usually requires lower costs than establishing a limited liability company (LLC), as the legal structure is less complex. Or a limited liability company (LLC) The fees for establishing an LLC are usually more expensive, as it requires more complex legal and administrative procedures.
• Licenses and Permits: The cost includes the fees required to obtain a business license and necessary permits from local authorities.
• Location: The cost may vary depending on the company\\\’s location in a particular area in Dubai. Free zones may require additional fees.
• Legal and Financial Advice: If you require legal or financial advice from lawyers or financial advisors, these services may increase the cost.
• Government fees: Government fees include registration, license, and other services fees imposed by government agencies.
• Consulting Services: The cost may also include the use of consulting services to assist you in the company formation process.

Steps to establish a company in Dubai

Steps to establish a company in Dubai

Establishing a company in Dubai requires following specific steps to ensure compliance with local laws and regulations. Here are general steps for establishing a company in Dubai :

• Market Study: Conduct a marketing study to understand the market needs and competition in the area where you plan to establish your company.
• Choosing the type of company: Decide what type of company you want to establish, whether it is a sole proprietorship, a limited liability company (LLC), or a joint stock company.
• Choose Names: Choose a name for your business and make sure it complies with local laws and regulations.
• Legal arrangements: Determine the legal conditions and contracts for establishing the company and determine the rights and obligations of the partners (if there are any).
• Select the location: Choose the location where you would like your company to be located, whether it is within a free zone or in one of the other areas in Dubai.
• Obtaining approvals: You may need to obtain prior approvals from the relevant authorities or government bodies.
• Submitting documents: Submit the required documents to the competent government authorities to register the company and obtain a commercial license.
• Pay fees: Submit the required fees for company registration and obtain the necessary tax invoices and permits.
• Establish Infrastructure: Establish an infrastructure for your company by hiring employees, defining their roles, and providing any operational requirements.
• Customer Registration: If you operate in an industry that requires customer registration, take action.

Documents required to apply for establishing a company in Dubai

The documents required to submit an application to establish a company in Dubai may vary based on the type of company and the activity it carries out. However, usually, it can include the following documents:

• Application Form: An official application form containing basic information about the proposed company.
• Copy of passport: A copy of the passport for both shareholders and partners.
• Personal photos: Personal photos of shareholders and partners.
• No Objection Certificate: No objection certificate for both shareholders and partners.
• Company Memorandum of Association: A copy of the company’s Memorandum of Association and Articles of Association.
• Approval from government agencies: In some cases, you may need approval from the relevant government agencies.
• Business Plan: A business plan that outlines the company\\\’s goals and plans.
• Lease Contract: A copy of the lease contract for the company’s designated address.
• Registration fees: Pay the fees required to register the company.
• Bank certificate: A bank certificate confirming the deposit of capital in the company\\\’s bank account.

Licenses and permits required for companies in Dubai

Companies in Dubai obtain the necessary business licenses and permits by following the procedures specified by the relevant authorities. Here\\\’s an overview of some common licenses and permits:

• Company License: A company license is the basic permit that allows a company to conduct its activities in Dubai.
• Business License: Companies are required to obtain a license for their main business activity.
• Work Permit: A work permit is given to foreign employees to work in Dubai, and requires the company to submit applications for foreign employees.
• Group Work Permit: This relates to hiring a group of employees and securing their work permits.
• Self-employment permit: Allows individuals to practice their own business activities.
• Investment permit: includes investment permits for large projects or projects of an investment nature.
• Industry permit: required for companies operating in the field of industry and production.
• Building and construction licenses: Real estate and construction projects require special building and construction licenses.
• Food and health licenses: For companies in the food service industry, special licenses must be obtained to comply with health standards.
• Environmental Permit: Related to businesses that impact the environment and require permits to comply with environmental laws.

Types of companies available and their impact on costs

The United Arab Emirates is considered one of the main destinations for entrepreneurship in the world, as it provides a distinguished investment environment, encourages economic development, and promotes creativity and innovation. One of the basic steps that investors must take when starting their business in the UAE is to choose the type of company that is appropriate for their needs and business goals. The types of companies available in the UAE vary in terms of legal structure, liability, required capital, etc., which directly affects the costs and financial needs of investors. Here are the types of companies and their impact on costs:

Choosing the right type of company for your business in the UAE is a crucial step for the success of your business and achieving your business goals. By understanding different types of companies and their potential impact on costs, investors can make the right decision that suits their needs and financial circumstances.

The cost of establishing a company in Dubai for foreigners

When it comes to setting up a company in Dubai, investors often wonder about the cost differences between foreigners and nationals or GCC nationals. The answer is yes, there is a difference in cost between these categories, but not necessarily due to a radical difference in procedures but rather the result of some additional requirements for foreigners, which increases costs slightly.

1.  Additional requirements for foreign businessmen:

• Residence expenses: Foreign investors must bear additional accommodation costs, which include securing a place to stay, obtaining a local driver’s license, opening a bank account in the Emirates, and the procedures that follow.
• Translation and documentation fees: All documents related to the company must be translated into Arabic and officially documented, and these procedures add translation and certification expenses from the competent authorities.
• Additional government approvals: Establishing companies for foreigners requires obtaining some additional approvals, whether from the investor’s country of origin, the UAE embassy, ​​or the UAE Ministry of Foreign Affairs.

2. Other differences:

While these requirements do not require large sums of money, they may result in increased costs due to the need for translation, documentation, and obtaining additional government approvals. These costs may not be huge but they require careful knowledge of local procedures and laws, which may take additional time.

• Cooperation with specialized offices: To deal with these additional requirements efficiently and save time, it is preferable to cooperate with offices specialized in establishing companies, as they can provide the necessary assistance to ensure that the procedures are completed quickly and accurately.

Establishing a company in Dubai provides a range of economic advantages and opportunities to investors. Here are some key aspects that can be advantages for establishing a company in this region:

• Modern business environment: Dubai is one of the most developed and modern cities in the world, providing modern infrastructure and advanced technology.
• Market expansion: Dubai\\\’s distinguished location makes it a strategic turning point, enabling you to access diverse markets in the region and around the world.
• Encouraging policy: The UAE government adopts encouraging policies to promote investment and facilitate companies’ operations.
• Flexible labor laws: Dubai has flexible labor laws and understands the needs of investors, which contributes to making the business environment more flexible.
• Tax facilities: Obtaining tax advantages in Dubai, as the emirate does not impose taxes on profits or income.
• Advanced Infrastructure: Providing a modern and advanced infrastructure that supports all aspects of life and business.
• Centers of Economic Freedom: The presence of economic free zones such as the Jebel Ali region provides additional flexibility and investment opportunities.
• Flexibility in legal form: Providing various options for corporate legal structures such as limited liability companies and sole proprietorships.
• Diversity of sectors: Dubai provides investment opportunities in various sectors such as real estate, technology, tourism, and trade.
• International Presence: Dubai hosts many international exhibitions and events, which enhances the international presence of companies.

Requirements and procedures for establishing companies in Dubai

Establishing companies in Dubai requires adherence to several requirements and procedures. First, you must choose the right company type for your business, whether it is a sole proprietorship, limited liability company, or partnership. The unique company name is then determined and an application for company registration is submitted to the Dubai Department of Economic Development. After that, the company\\\’s scheduled work location must be determined and the necessary approvals must be obtained from the relevant authorities. The required capital is also determined and the necessary contracts such as the articles of incorporation and partner contracts are signed. After that, all documents and applications are submitted to the Department of Economic Development to register the company, and after registration the necessary tax and commercial license is obtained. Ultimately, the company must comply with all legal requirements and local legislation in force in Dubai.

The cost of establishing a company in Dubai

When looking to set up a company in Dubai, investors should keep in mind many different factors that may affect the final costs. Each type of company requires different amounts of money, and the cost can also be affected by legal factors and the region in which the company is located. The most important factors that investors should consider when establishing a company in Dubai are:

Company Registration Fees:
Company registration fees are one of the essential elements to consider when establishing any company in Dubai. This fee is considered a one-time payment upon establishing the company, and it varies based on the company structure, type of activity, and the region in which the company will be established. These fees can include the costs of registering the company with the commercial registry and obtaining the legal documents necessary to start the business. These fees usually include the costs of processing transactions and providing administrative services by government agencies. Company registration fees are an essential part of the cost of setting up a company in Dubai and vary depending on the company and its specific requirements.

Trade license fees:

When looking to establish a company in Dubai, the trade license fees are one of the most important factors to consider. The cost of obtaining a business license varies based on the type of business and activity that the company undertakes, as well as the region in which the company will be located.

This fee must be paid once upon obtaining the license, and is considered an essential part of the costs of setting up a company in Dubai. The cost of obtaining a commercial license can range between medium and high amounts, and depends on several factors, including the nature of the business and the specific commercial area.

capital:

When looking to start a company in Dubai, capital is one of the key factors to take into consideration. The capital required to establish the company varies according to the type of company and its scheduled activity. For example, establishing a limited liability company may require a larger amount of money than establishing a sole proprietorship.

Capital represents the financial value that shareholders provide to start the company\\\’s business activities. Capital can be used to cover a company\\\’s initial costs such as renting an office, purchasing equipment, paying legal fees, and financing other related activities.

The required capital must be in accordance with the requirements of local law in Dubai, and can be changed according to the company\\\’s needs in the future.

Market entry fees:
In addition to the basic fees for establishing a company in Dubai, there are some additional fees that may be involved in the market entry process. These fees may include waste costs, which are determined by the Dubai Waste Committee and estimated based on the size of the company\\\’s business activity. These fees may also include the foreign investor’s residency fee in Dubai, which is estimated at a certain percentage of the value of the housing or office contract. These additional fees should be taken into consideration when estimating the cost of establishing and operating a company in Dubai.

Office space costs:

Providing adequate office space is essential when setting up a company in Dubai. Office space costs vary depending on the size of the company and its actual needs. Investors can choose from a variety of options, from small offices in small business centers to residential buildings for large companies.

Office space costs in Dubai range from a variety of prices depending on location and facilities available. Low-cost offices can be found in select areas, while office space costs in luxury residential towers are higher.

Some buildings provide fully equipped office space including furniture, reception and cleaning services, which increases their cost. While small businesses can benefit from low-cost office space in co-working malls or low-cost buildings.

The hidden costs of establishing a startup in the UAE

Establishing a company in the UAE requires a lot of care and advance planning to deal with visible and hidden costs. When you start looking at the costs involved in setting up a company, obvious factors such as the cost of rent and licensing fees are often at the forefront of concern. But there are many hidden costs that must also be taken into consideration:

• The cost of renting or purchasing and equipping the company headquarters: You must consider the costs of commercial real estate in different regions of the Emirates and provide an appropriate budget for renting or purchasing in addition to the costs of equipping the office.
• Residence visa cost: If you are a foreign investor or intend to bring in non-Emirati employees, you will need to pay for residency visas for them.
• Labor costs: If qualified local labor is not available, you may need to sponsor non-Emirati workers and pay their labor costs.
• Housing costs for workers: If your company employs workers from outside the UAE, you must provide them with suitable housing in accordance with local laws.
• Municipal fees and medical insurance: You may be subject to paying municipal fees and employee medical insurance fees, depending on local regulations.
• Costs of opening bank accounts: You may incur additional costs when opening bank accounts for the company.
• Incorporation and documentation fees: In addition, you will need to pay a fee to notarize the documents required to establish the company.

The cost of establishing a company depending on the legal form

The cost of setting up a company in Dubai varies greatly based on the legal form of the company and the services required. Here\\\’s an overview of some common legal formalities and an estimate of their cost:

Sole Proprietorship:

• It is considered one of the less expensive options.
• The cost can range from no direct cost to a moderate fee for registering a business.

Personal company (Partnership):

• It requires additional cost to prepare partnership contracts and agreements between partners.
• Costs can be higher than for a sole proprietorship due to partnership regulation requirements.

Limited Liability Company – LLC:

• It includes the cost of registering the company, establishing it, and determining its legal structure.
• May include additional fees for legal advisors and other administrative services.

Joint Stock Company:

• It requires a higher cost due to the legal and financial complexity of this type of company.
• May include additional costs for legal counsel, auditing and administration.

Company in the Free Zone:

• Costs range depending on the exact type of company and the benefits offered by the free zone.
• May include costs for license registration and renewal, rent, and additional services.

The best company establishment offices in the Emirates

Itqan Company is considered one of the best company establishment offices in the Emirates, as it provides comprehensive and specialized services to individuals and companies wishing to establish their businesses in the United Arab Emirates. Itqan Company is distinguished by its professionalism and high experience in the field of establishing companies and providing legal and administrative consultations. Here are some of the reasons that make Itqan Company one of the best company establishment offices in the Emirates:

1. Experience and specialization: Itqan Company has a specialized work team with extensive experience in the field of establishing companies and local laws and regulations, which ensures that services are provided with high professionalism in accordance with the highest quality standards.
2. Integrated guidance: Itqan Company provides integrated consultations and comprehensive guidance to clients, starting from choosing the appropriate legal structure for the company until completing all legal and administrative procedures necessary to successfully establish the company.
3. A wide network of relationships: Thanks to its wide network of relationships in the local market and the ability to negotiate with government agencies, Itqan Company helps its clients in facilitating all administrative procedures and legal clearances quickly and effectively.
4. Providing legal support: Itqan Company provides integrated legal support to its clients, as the team of legal experts provides the necessary advice, resolves legal disputes, and helps protect the rights of clients.
5. Excellent reputation: Itqan Company has an excellent reputation in the market, as it has gained the trust of many clients and achieved great success in establishing companies and providing consulting services.

In short, Itqan Company is considered an excellent choice for individuals and companies wishing to establish their businesses in the Emirates, due to its provision of distinguished and integrated services with a high level of professionalism and quality.

Why invest in Dubai?

The Emirate of Dubai is one of the most prominent destinations that attract ambitious entrepreneurs seeking to start their projects in the United Arab Emirates, thanks to its advanced infrastructure and modern technological facilities. The Emirate of Dubai provides entrepreneurs with many advantages and luxury that contribute to the continuous success and development of their business.

Building a company in Dubai is considered an ideal choice for investors and businessmen, as the emirate is known for its ability to attract startups and provide an ideal environment for business growth. Dubai is characterized by easy access to the local market and customers, which makes establishing a company there more attractive than establishing it in free zones.

When starting your business in Dubai, you can choose from a wide range of suitable areas to establish your company, whether in vital commercial centers or business buildings available in the greater city of Dubai. This multiple presence is a clear advantage for companies targeting the local market and seeking to benefit from easy access to customers. Therefore, establishing a company in Dubai represents the ideal option for companies aiming to succeed and grow in the local market.

Our company\\\’s role in establishing a company in Dubai

The cost of establishing a company in Dubai in cooperation with Itqan Company is considered a valuable investment in achieving commercial success. By working with Itqan, investors can benefit from the deep experience and knowledge of its qualified team in the field of company formation in Dubai.

The cost of establishing a company varies depending on several factors, including the type of company, the size of the planned business, and the services required. Itqan Company will provide a transparent estimate of the total cost of the incorporation process, detailing all necessary fees and expenses.

When considering the cost, we must take into account that your cooperation with Itqan Company not only provides the necessary legal and advisory support, but also helps save the time and effort necessary for completion. Itqan team will manage all required administrative procedures and transactions accurately and effectively, allowing you to focus on developing and growing your business idea.

In addition, Itqan is a reliable partner that provides ongoing support after the company is established. Its team will provide assistance in renewing licenses, complying with financial controls, and resolving any other legal issues that arise during your business journey.

By choosing to partner with Itqan to establish your company in Dubai, you will have a partner who offers the experience and support needed to succeed in Dubai\\\’s dynamic business market. Do not hesitate to benefit from the services of Itqan Company to achieve your entrepreneurial goals and benefit from the promising opportunities provided by this thriving city.

The most frequently asked questions about establishing a company in Dubai