Establishing companies in Dubai

Establishing a company in Dubai represents an important strategic step for investors seeking to exploit promising opportunities in the vibrant business market in the UAE. Dubai is characterized by a dynamic and diverse economic environment, with advanced infrastructure and flexible laws that attract entrepreneurs from all over the world. The Emirate of Dubai is a leading center for business and trade, providing companies with many competitive advantages such as access to a large consumer market and the ability to access global networks.

In this article, we will explore the process of setting up a company in Dubai, from choosing the right company type, through the steps needed to register and obtain licenses, to the financial and legal advice necessary to ensure full compliance with local laws and deal effectively in Dubai’s diverse business environment. This article aims to provide a comprehensive and in-depth look at how to take advantage of the opportunities to establish a company in Dubai and benefit from the successful business experience in this modern and prosperous emirate.

Procedures for establishing companies in Dubai

Here is an overview of the basic procedures for setting up a company in Dubai :

1. Choosing a company type: Investors must choose the appropriate company type that is compatible with their business activity, such as a limited liability company (LLC), a sole proprietorship, or a company in a free zone.
2. Determine the commercial activity: You must determine the commercial activities that the company will undertake, and ensure that they comply with the activities permitted in Dubai.
3. Reserve the company name: The company name must be reserved, and its availability and compliance with local laws must be ensured, through the Department of Economic Development or the competent authority in the free zone.
4. Preparing the Memorandum of Association and Foundation Agreement: You must prepare the Memorandum of Association and the Foundation Agreement that specifies the details of the company such as shareholders, capital, and scope of business.
5. Providing the necessary documents: This requires submitting the required documents, such as copies of passports, contracts, payment receipts, and permits for commercial activity, to the relevant authorities.
6. Pay the required fees: You must pay the fees related to registering the company and obtaining a commercial license, and these fees vary based on the type of company and the scope of its activities.
7. Obtaining a commercial license: After completing all procedures, submitting the necessary documents, and paying the fees, a commercial license can be obtained, which allows the start of commercial activities legally.
8. Opening a bank account: Once the business license is obtained, a bank account can be opened for the company in one of the recognized banks in Dubai to manage financial matters.
9. Tax and insurance compliance: The company must be registered in the tax and social insurance system and provide health insurance to employees as needed.

Fees for establishing a company in Dubai

The costs of establishing a company in Dubai consist of several elements, including:

• Registration fees: Depends on the type of company and its location, and includes the costs of obtaining a commercial license from the Department of Economic Development or the competent authority in the free zone.
• Company name reservation fees: Paid to the Department of Economic Development to reserve the company name and ensure its availability.
• Legal documents preparation fees: This includes the costs of preparing the articles of incorporation and the incorporation agreement and having them authenticated before an accredited lawyer.
• Legal and administrative consulting costs: If you use consulting services to facilitate the incorporation process and ensure full compliance with local laws.
• Costs of obtaining the necessary licenses: such as environmental permits or health permits, depending on the company’s activity.
• Costs of opening a bank account: May include account fees and other banking services.
• Accommodation and visa costs: If necessary, providing residence visas for shareholders and employees.

Types of companies that can be established in Dubai

These types provide flexibility in choosing the appropriate organizational structure for investing or establishing a business in Dubai, and each of them requires specific procedures and requirements that must be adhered to in accordance with local laws and the directives of official authorities.

Documents required to establish a company in Dubai

To incorporate a company in Dubai , the following documents are usually required:

1. Copy of founders’ passport: Color copies of passports must be submitted for all founders and shareholders of the company.
2. Recent personal photos: Recent personal photos of all founders and shareholders, certified by the Department of Economic Development or the competent authority.
3. Articles of Association: A document containing the details of the company, such as its name, type, address, and expected activities. This contract must be signed by the founders.
4. Partners Agreement (if the company is a partnership): A document that specifies the rights and duties of each partner in the company.
5. No Objection Certificate: If one of the founders or shareholders is currently working for another company, you may need a No Objection Certificate from that company.
6. Bank Reference Letter: The person responsible for opening the company’s bank account needs a letter from the bank proving good financial reputation.
7. Business Plan: Some government agencies or banks may request a detailed business plan that explains the company’s goals and future plans.
8. Power of Attorney: If there are agents acting on behalf of the founders in the incorporation process, a formal power of attorney may be required.

Necessary licenses and permits to start the business

To start a business in Dubai, companies usually require obtaining several licenses and permits depending on the type of activity and specific location. Here is a general list of common licenses and permits you may need:

• Business License: Each company is required to obtain an official license allowing it to practice the specific business activity. This license is obtained from the Department of Economic Development or the competent government agency.
• Building permit (if the company owns a building): If you own a building, you may need a building permit issued by the Municipality and Planning Authority or the competent authority.
• Health and Safety License: This can be required for businesses that operate activities that require health and safety standards to be observed, such as places where the public is present.
• Environment and Nature Conservation License: Companies that directly or indirectly affect the environment may be required to obtain a special environment license.
• Advertising and general advertising license: If you plan to use general advertising to market your services or products, you may need a special advertising license.
• Land use permit: If your company’s activities require special use of land, you may need a special permit from local authorities.
• Work license: To employ local or expatriate workers, you must obtain a work license from the Ministry of Human Resources and Emiratisation or the relevant authority.
• Security and Safety License: In some cases, you may need a security and safety license, especially if you work in sectors that require specific security standards.
• Public Land Use Permit: If you need to use sidewalks or public land for commercial purposes, you may need a special permit from the relevant municipality or agency.
• Licenses for specific industries: Specific industries may require special licenses, such as food or chemical industries, which are obtained from the competent authorities.

By the end of the article on establishing a company in Dubai , it clearly appears that Dubai has an inspiring and stimulating investment environment that attracts entrepreneurs from all over the world. If you are thinking about establishing a company here, you are entering into a business experience characterized by political and economic stability, advanced infrastructure, and modern laws that facilitate conducting business. Dubai is a free zone that includes many major markets and diverse investment opportunities, making it a favorite destination for investors.

In addition, Dubai’s company incorporation procedures are relatively easy, as investors can benefit from fast and efficient incorporation processes, with a wide range of different types of companies that can be established depending on their business needs and strategies.

The most important frequently asked questions about establishing companies in Dubai