What are the costs of establishing a company in the UAE?

What are the costs of establishing a company in the UAE? It is now possible for any person in the Emirates, regardless of his financial ability and financial budget, to start any type of commercial activity there. This is due to the different living conditions there and the multiplicity of its requirements and expenses. It is also due to the difference and multiplicity of types of investment and its needs between each emirate and another in the Emirates. We notice an increase in the proportion of population, an increase in the number of births, and an increase in people heading to the Emirates, which has led to the need for many diverse and different services necessary for life. This leads to a multiplicity of investments in Dubai, whether they are investors holding Emirati citizenship who own capital or they are migrant workers, etc. It is considered one of the best countries in which you can start a new trade or any new investment, whatever its type, even if it is establishing a company in the Emirates.

Establishing a company in the UAE

To establish your company in the Emirates with the help of Itqan Company, you must follow a series of official and legal steps. The Itqan team provides full support to prepare the necessary documents for registration, including articles of incorporation and application forms, and facilitates communication with relevant authorities such as the Department of Economic Development. In addition, they help in choosing the right company type and identifying suitable business activities, facilitating the company establishment process and ensuring full compliance with local laws in the UAE.

Costs of establishing a company in the UAE

The costs of establishing a company in the Emirates are limited to several expenses, which are as follows:

1. The price of obtaining a commercial license (license to practice business).
2. The price of purchasing the site for the office or the company that conducts business through it, whether renting or purchasing.
3. The purchase price of items also related to the furniture and décor of the office or the company in which you conduct your business.
4. The price for obtaining and obtaining work permits for sponsored employees and the visas required for them under the name of your new company.
5. The price of opening a new bank account in the name of the company in a bank and then depositing the minimum capital according to the type of your business activity.
6. The cost of the legal form of the company, meaning that it is commercial, industrial, or professional, has a fundamental role in determining the cost of establishment. The cost of establishing industrial companies is higher than that of establishing commercial and professional companies.
   Finally, the cost of obtaining a commercial license in Dubai.

Steps to establish a company in the UAE

Despite the facilities provided by the UAE government in establishing investment companies there for migrant workers, it has made clear that it has set several basic conditions that must be adhered to, which are as follows:

Determine the nature of the company’s activity

It is necessary to determine the nature of the activity of the company that you wish to establish in the Emirates, and the number of activities varies depending on whether it is a commercial activity, a professional activity, or an industrial activity, and all of them are economic activities, and we all know that the number of economic activities in the Emirates is approximately twenty thousand multiple economic activities, and the Emirati government is working on Facilitating determining the type of this activity.

Determine the legal form of the company

It is also necessary to determine the legal form of the company so that the competent bodies know in which type of companies your new company will adapt. There are five types of companies according to its legal form, which are (solidarity company, limited liability company, public joint-stock company, private joint-stock company, and civil works company).

Trade name registration

The trade name when establishing a company in the Emirates is what distinguishes any license from another. It is also related to the form and activity of the company and is approved under several conditions that are stipulated and applied by the Department of Economic Development before approving it, namely that the trade name does not contain any words that are inappropriate for the country. The name must not contravene public taste and country specificity, and the company name (trade name) must accurately and clearly reflect the commercial activity.

Obtain initial approval

After determining the company’s commercial activity, determining its legal form, and knowing and registering its trade name, you must now obtain initial approval from the competent authorities and bodies for your economic activity for the company, and you must proceed in order to obtain the approval of the authorities related to the activity.

Preparing the articles of incorporation and choosing a location for your business

Concluding or preparing the contract for establishing a company in Jebel Ali, establishing a company in the free zone, or establishing a company in the Emirates involves bringing the original contract of incorporation in agreement between you and the competent authorities in the Emirates or in the free zone. You must also choose a location to establish the company in Jebel Ali. Or establish a company in the Emirates. To conduct your business, established companies must have an existing physical address located in the United Arab Emirates.

Obtaining approvals from the authorities concerned with the facility’s activity

Some activities and projects that take place in the Emirates require obtaining additional approvals from regulating bodies competent for those projects in question, such as approval from the Ministry of Economy, the Ministry of Interior, the Ministry of Justice and Civil Defense.

Obtaining the license

After completing all the aforementioned procedures to prepare and establish an investment company in Jebel Ali or establish a company in the Emirates, you can now receive the license to practice the activity for which you want to establish the company after attaching many of the required documents and paying the commercial license fees for establishing companies, then after registering in the Chamber of Commerce. As a member.

Residence and investment in the Emirates

Residence and investment in the Emirates have a close relationship linked to each other in the multiplicity of commercial activities in Sharjah and the activation of the movement of the trade and investment market, making it one of the best countries in which investment can be made through skilled migrant workers. Capital owners have established several investment companies in it in order to invest their money, and this is in addition to The services provided by the UAE government to facilitate the investment process in the Emirates.

It also works to provide the special needs of new projects in all ways and as quickly as possible and works to facilitate all the facilities and services necessary to start any type of these investments and also works to provide housing in them by reducing the rate of real estate rents or purchasing them, which makes buying any property in the Emirates a real investor. There he has the right to own it and invest in it, whatever its value.

Real estate residency in the Emirates is also considered what leads to real estate investment, and real estate investment in the Emirates consists of purchasing any building, any residential facility, any company, or purchasing a piece of land to establish an investment company on it, but with the availability of several conditions that are available and not restricted at all.

Steps to establish a company in the UAE

Advantages of establishing a company in the UAE

Establishing a company in the UAE has several advantages that make it an exciting destination for investment and business:

• Suitable investment environment: The UAE provides a suitable and stable investment environment with laws and regulations that encourage foreign investment and protect the rights of investors.
• Distinctive strategic location: The UAE is located in the heart of the Middle East, which facilitates access to global markets and enhances international trade opportunities.
• Diversified economy: The UAE economy is highly diversified, providing broad opportunities in various sectors such as oil and gas, tourism, technology, financial services, and retail.
• Advanced infrastructure: The UAE has a modern and advanced infrastructure that includes airports, ports, and excellent transportation networks, which facilitates transportation and distribution operations.
• Supportive government policies: The UAE government adopts policies that support businesses, such as tax facilities and clear legislation that facilitates procedures for establishing companies.
• Availability of skilled workforce: A skilled, multinational workforce is available in the UAE, which contributes to success and innovation in business.
• Competitive prices and costs: The UAE offers strong competition in prices and costs compared to other global markets, which makes it attractive for investment and permanent residence.
• Advanced legal system: The UAE has an advanced legal system that protects the rights of individuals and companies, and helps resolve disputes in effective and objective ways.

In addition, the UAE adopts incentive policies to support innovation and development of small and medium businesses, which increases its attractiveness as a distinguished international investment center.

In short, establishing a company in the UAE is considered a tangible strategic step towards exploiting the diverse economic opportunities available in this modern country. Thanks to its favorable investment environment and modern legislation that supports business, investors can benefit from advanced infrastructure and a connected global market. The UAE also offers great opportunities for innovation and growth in various sectors, which contributes to building successful and sustainable companies. So, if you are thinking about establishing a new company, the UAE provides you with the necessary framework to start your success journey with confidence and stability.

Frequently asked questions about establishing a company in the UAE