Costs of establishing a company in Dubai

In light of the continuous economic development in Dubai, the idea of ​​establishing a company in this global city is considered an important step for many to achieve their business goals. However, this decision requires careful consideration of the expected costs and good preparation for potential expenses. The costs of establishing a company in Dubai depend on several factors, including the type of company, the geographical scope of the business, and the licenses required.

In this article, we will explore the costs associated with setting up a company in Dubai with Itqan, and how investors can utilize its services to facilitate this process.

Establishing a company in Dubai involves specific costs that include registration and licensing fees, legal advice, labour, offices, and infrastructure. However, through Itqan Company, investors can reduce these costs and achieve financial savings.

Itqan Company provides innovative financial solutions and integrated services to save costs and achieve efficiency in the company establishment process. The company works to provide a solid financial plan that ensures that resources are used effectively in accordance with the company’s requirements.

By benefiting from Itqan Company’s experience and knowledge in the field of establishing companies in Dubai , investors can achieve financial sustainability and achieve a return on investment. The company carefully analyzes and evaluates costs and provides transparent financial services appropriate to customer needs.

Costs of establishing a company in Dubai

The costs of setting up a company in Dubai vary based on several factors, including the type of company, business size, and local legal and administrative requirements. Here’s an overview of the costs that can be involved in setting up a company in Dubai :

• Registration and license fees: The cost of registering the company and obtaining a business license from local authorities. These fees usually include company registration fees, business licensing fees, and legal consultation fees if necessary.
• Nominal capital: Some types of companies require a specific nominal capital, and a portion of this capital must be paid when the company is established.
• Real estate costs: These include the costs of renting or purchasing the office or commercial space needed for your company, and these costs may vary based on the location of the property, its size, and available amenities.
• Consulting and Professional Services Costs: The cost of obtaining legal and accounting advice to assist you in preparing the necessary documentation and complying with local laws and regulations.
• Visa and residency costs: You may need to pay costs to obtain visas and residency to work and reside in Dubai. These costs include visa and residency fees and medical examination if necessary.
• Labor costs: This includes the costs of hiring and securing the labor needed to start the business, and these costs can vary based on the types of jobs and salaries decided upon.
• Marketing and advertising costs: You may incur additional marketing and advertising costs to attract customers and enhance your company’s brand.

Basic steps to establish a company in Dubai

Establishing a company in Dubai requires following a series of specific steps. Here are basic steps to follow:

1. Determine the type of company: Before starting, you must determine the type of company you want to establish, such as a sole proprietorship or a limited liability company.
2. Choosing a company name: You must choose a unique and appropriate name for the company and ensure that it complies with Dubai registration laws.
3. Determine the business activity: The scope of the business and commercial activities that the company will undertake must be determined.
4. Obtaining the necessary licenses: You must obtain the necessary government licenses to start the business, such as a commercial license and a construction license if necessary.
5. Identify shareholders and directors: The identity of shareholders and directors must be identified and their responsibilities and rights must be framed.
6. Submitting the necessary applications: After meeting the conditions, the required applications and documents must be submitted to the relevant authorities, such as the Department of Economic Development in Dubai.
7. Signing contracts and paying fees: After approval, contracts must be signed, the fees required to issue the license must be paid, and they must be confirmed.
8. Opening a bank account: A bank account must be opened for the company to manage financial matters and commercial transactions.
9. Company registration for tax: If a company qualifies, it must be registered for tax and comply with local tax legislation.
10. Starting to work: After receiving the license, you can start working and implement your business plans.

Tax laws for establishing a company in Dubai

In Dubai, there are some tax laws that expatriate companies must adhere to. Here’s an overview of the main tax laws for setting up a company in Dubai:

1. Value Added Tax (VAT): VAT was imposed in the UAE effective January 1, 2018. Businesses with annual revenues exceeding a certain quorum limit must register with the UAE Tax and Customs Authority (FTA) and submit monthly or quarterly reports .
2. Real Estate Tax: Corporations must pay a real estate tax estimated at a percentage of the assessed value of the property. The tax rate varies according to the type of property and its location.
3. Income tax: In Dubai, no income tax is imposed on companies in most sectors, with the exception of banks, financial and oil companies. Therefore, companies in these sectors may be subject to income tax at a certain rate on their profits.
4. Income-producing real estate tax: This tax is imposed on real estate that is used for income-generating purposes, such as commercial and residential rental properties. This tax is calculated based on the current value of the property and the annual net income generated.
5. Government fees and costs: In addition to taxes, businesses may be subject to paying other government fees such as registration fees and annual renewal fees.

Documents required to establish a company in Dubai

The documents required to establish a company in Dubai vary based on the type of company, the type of business activity, and the region in which you wish to establish the company. However, here is a general list of documents that may be required:

1. Company registration form: includes information on the type of company, proposed business activity, shareholders and directors.
2. A copy of the passport for shareholders and directors: The copy must be valid.
3. Certificate of Proof of Address: A document proving the proposed company address must be submitted.
4. Business Plan: A document that outlines the company’s operational goals and plans.
5. Power of attorney or legal agent (if necessary): Registration may require the provision of authorization allowing a lawyer or legal agent to represent the company in legal proceedings.
6. Partners Agreement (if there are partners): A document that explains the rights and obligations of the partners and the distribution of profits.
7. Bank Account Signature Form: Includes details of the bank account that the company will use.
8. No objection certificate (if necessary): You may need a no objection certificate from the relevant government authorities.
9. Certified report from a sworn accountant (in some cases): Some free zones may require a certified report from a sworn accountant proving the financial strength of the company.
10. Activity licenses (if relevant): In some cases, a company may need special licenses to carry out a specific activity.

Tips for establishing a company in Dubai

Here are some tips for setting up a company in Dubai with an introduction first:

• Research and Planning: Before embarking on the incorporation process, do extensive research about the market in Dubai and understand the business environment and opportunities available. Determine the type of company that best suits your business vision and needs.
• Develop an integrated business plan: Develop an integrated business plan that defines your business goals and the steps to implement them, including organizational structure, marketing, financing, and operating plans.
• Find a local partner: If you are not a UAE citizen, you will usually need a local partner to establish your company. Find a reliable and collaborative partner to provide the necessary support and comply with local laws.
• Determine the location and type of company: Decide on the type of company you want to establish and choose the appropriate location according to your business activity and needs.
• Compliance with local legislation: Ensure that you understand and comply with all local laws and regulations related to establishing and operating companies in Dubai and the UAE.
• Consult a local attorney: Collaborate with a local attorney or legal advisor to ensure compliance with local laws and regulations and that necessary procedures are properly implemented.
• Consult a local accountant: Work with a local accountant to understand the financial aspects of your business, determine financial needs, and provide advice on taxes and financial reporting.
• Communication with government agencies: Communicate with the relevant government agencies in Dubai and the Emirates to obtain the necessary information about the legal procedures and requirements for establishing a company.
• Prepare for expected costs: Identify and estimate all expected costs of establishing the company including registration fees, legal advice, real estate, and other costs.
• Build your network: Leveraging local networks to build important relationships with companies and individuals in Dubai can contribute to the success of your business.

At the conclusion of this article, we recognize the importance of understanding the costs associated with establishing a company in Dubai and the role of Itqan Company in facilitating this process at the lowest possible cost. Establishing a company in Dubai is an important investment and strategic decision, and knowing the costs associated with it helps investors make an informed and informed decision.

Itqan Company plays a crucial role in achieving financial efficiency and reducing costs in the process of establishing a company in Dubai . Thanks to its experience and integrated services, the company provides effective financial solutions and solid financial plans that meet the needs of investors.

By benefiting from Itqan Company’s services, investors can achieve financial savings and precisely control costs. The company analyzes and reviews every financial aspect of the process and provides appropriate and transparent financial advice.

The most frequently asked questions about establishing a company in Dubai