What is the cost of establishing a company in Dubai ? Dubai is one of the most prominent global destinations for entrepreneurs and investors seeking to establish their companies in a thriving business environment brimming with opportunities. With numerous free zones and government facilities, establishing a company in Dubai has become an attractive option for investors of various nationalities. However, the cost of establishing a company varies based on several factors, such as the type of business activity, location, licensing requirements, and registration fees. In this article, we will review the factors that affect the cost of establishing a company in Dubai, focusing on the options available to investors wishing to enter the UAE market on a well-thought-out budget.

Cost of establishing a company in Dubai

The cost of establishing a company in Dubai depends on a number of factors that directly impact the budget required to start the business. These factors include:

• Type of business activity : The required fees vary depending on the nature of the activity, as commercial, industrial, and service activities require different licenses with varying fees.
• Location and incorporation: Costs vary depending on whether the company is established on the mainland or in a free zone. Free zones offer tax exemptions but different registration fees.
• Business license fees: These fees include the cost of obtaining a license from the relevant authorities, such as the Dubai Department of Economic Development or free zone authorities.
• Visas and Residency: Some activities require residency visas for investors and employees, which adds an additional cost depending on the number of visas required.
• Renting a company headquarters: Rent varies depending on location, with costs being higher in busy business districts, while free zones offer offices and workspace at competitive rates.
• Government fees and legal procedures: These include registration fees, contract documentation, and work permits, which vary depending on the type of company and its regulating body.
• Capital Required: Some businesses require a minimum amount of authorized capital, which may affect the overall cost of incorporation.
• It is preferable to seek the assistance of specialized consultants such as Atqan Company to ensure reduced costs and facilitate the incorporation procedures in accordance with the legal requirements in Dubai.

Steps to establish a company in Dubai

The process of establishing a company in Dubai involves several basic steps, which vary depending on the type of company and the location where it is established. The following are the most important steps required:

1. Define the business activity: The type of business activity the company will engage in must be determined, as this affects the type of commercial license required and the authority responsible for issuing it.

2. Choosing a legal structure: The legal form of the company, such as a sole proprietorship, limited liability company, or branch of a foreign company, is determined according to the requirements of the business and investors.

3. Determine the company name: You must choose a trade name that complies with UAE laws, and ensure that it is not duplicated or in violation of the regulations in force in Dubai.

4. Submitting an application for a commercial license: An official application is submitted to the competent authority, such as the Department of Economic Development if the company is on the mainland, or to the Free Zone Authority if the company is within one of the free zones. .

5. Preparing the articles of association and partnership agreement : If there are partners, a notarized articles of association must be prepared that specifies the ownership percentages and responsibilities between the parties, and it must be certified by official authorities.

6. Determine the company’s headquarters: An office or official headquarters must be rented for the company in accordance with licensing requirements, as the commercial address must be registered with the relevant authorities.

7. Obtaining government approvals: Some commercial activities may require additional approvals from other government agencies, such as the Health Authority or Dubai Municipality, depending on the nature of the activity.

8. Pay the fees and receive the license: After completing all procedures, the government fees and license fees are paid, and then the official commercial license is issued to the company.

9. Opening a bank account for the company: Opening a bank account in the company’s name is a necessary step for conducting official financial transactions and managing the business with ease.

10. Issuing residence visas: After obtaining the license, the investor can apply for residence visas for himself and the company’s employees, according to the number of visas permitted.

All of these steps can be facilitated by using Atqan, which offers comprehensive services to help investors establish their companies in Dubai as quickly as possible and at the lowest cost.

Advantages of establishing a company in Dubai

Establishing a company in Dubai is distinguished numerous benefits that make it a preferred investment destination for entrepreneurs and investors from around the world. Some of the most notable benefits include:

1. Advanced investment environment: Dubai provides an advanced business environment that supports business growth, thanks to its advanced infrastructure, modern technology, and legislation that supports foreign investment.

2. Tax exemptions : In free zones, investors enjoy tax exemptions on personal and corporate income, in addition to no taxes on profits for long periods, which increases the attractiveness of investment.

3. Full foreign ownership: Dubai offers 100% foreign ownership in most free zones, and modern laws allow full ownership in many activities on the mainland without the need for a local partner.

4. Ease of establishment procedures: Investors can establish their companies quickly thanks to simplified procedures, advanced digital systems, and the ability to obtain licenses in just a few days.

5. Access to global markets: Dubai’s strategic location provides investors with easy access to Asian, European, and African markets, making it a global hub for business and trade.

6. Multiple free zones : Dubai has more than 30 free zones specializing in various sectors, allowing investors to choose the environment that best suits the nature of their business and benefit from the facilities offered by each zone.

7. Availability of skilled labor: Dubai is a global destination for talent and expertise, where business owners can employ the best talent from various nationalities thanks to the facilities provided for recruiting workers.

8. Ease of obtaining residence visas: Establishing a company in Dubai allows investors, their families, and employees to obtain residence visas, facilitating settlement and living in a safe and stable environment.

9. Banking and financial facilities: Dubai offers a sophisticated banking system that makes it easy for companies to open bank accounts, conduct financial transfers, and access international banking services.

10. Strong government support: The Dubai government is keen to support the business sector through economic initiatives, financing programs, and investment incentives aimed at enhancing the growth and success of companies.

How can Atqan help you? Atqan can assist you with all stages of establishing your company in Dubai, from selecting the appropriate activity, through licensing procedures, to opening bank accounts and obtaining visas, ensuring a smooth and successful experience in the UAE business market.

Conditions for establishing a company in Dubai

Establishing a company in Dubai requires fulfilling a set of requirements that vary depending on the type of business activity and the location where it is established, whether on the mainland or in the free zones. The most important requirements are as follows:

1. Determine the business activity: The business activity must be selected from the list of approved activities in Dubai, as the nature of the activity determines the type of commercial license required.

2. Choosing the company’s legal form: The appropriate legal entity must be determined, such as a limited liability company on the mainland, a sole proprietorship for entrepreneurs, a branch of a foreign or local company, or a company in a free zone with additional benefits.
3. Choosing an approved trade name: The trade name must be chosen in accordance with Dubai laws, must not include prohibited terms, must not resemble other company names, and must reflect the nature of the business activity.

4. Providing an official company headquarters: A registered business address in Dubai, whether on the mainland or within one of the free zones, is required, along with a notarized lease contract.

5. Obtaining the necessary approvals and licenses: Some commercial activities require obtaining additional approvals from the relevant authorities.

6. Determining the authorized capital: The authorized capital must be determined when establishing the company, and it varies depending on the type of activity and the selected free zone.

7. Appointment of a local partner (for certain mainland companies): For certain activities within the mainland, it may be required to appoint a local service agent or UAE national partner, in accordance with specific regulations.

8. Opening a company bank account: The company must open a business bank account in one of the approved banks in Dubai to conduct official financial transactions.

9. Obtaining residence visas: Investors and company employees can apply for residence visas depending on the type of company and the number of visas allowed.

10. Payment of government fees: You must pay the commercial license issuance fees, company registration fees, and administrative costs required to complete the incorporation procedures.

Atqan offers comprehensive services to help you establish your company in Dubai, including fulfilling all requirements, completing procedures quickly and easily, and providing legal advice to ensure your compliance with all local laws.

Establishing a company in Dubai is a strategic step that opens the door to investment opportunities in one of the world’s most prosperous economic environments. Thanks to its advanced infrastructure, business-friendly laws, and government facilities, investors can easily start their businesses and benefit from tax exemptions and Dubai’s prime geographical location. With numerous options available, both on the mainland and in free zones, every investor can choose the model that best suits their business requirements.

To ensure your company’s establishment is swift and efficient, Atqan provides comprehensive support covering all stages of the incorporation process, from selecting a business activity and obtaining licenses, to opening bank accounts and obtaining visas. With its extensive experience in the UAE market, Atqan ensures a smooth and successful incorporation process, enabling you to focus on growing your business with confidence and security.

Frequently asked questions about starting a company in Dubai