One Central – Offices No. 4 Dubai | Office: +971 45686046
ITQAN is a company that specializes in business setup and business growth

How to Start a Company in Dubai: Steps and Benefits

Establishing a company in Dubai South

٠١ يناير How to Start a Company in Dubai: Steps and Benefits

How to establish a company in Dubai? Establishing a company in Dubai is a strategic step that represents a stepping stone to success in one of the world’s most dynamic markets. Dubai enjoys a distinguished investment environment, offering convenient legal and administrative facilities, making it a preferred destination for many businessmen and investors. In this article, we will discuss how to establish a company in Dubai, starting from choosing the type of company and location, all the way to obtaining the necessary licenses. We will also review the many advantages that make Dubai an ideal business environment, such as low taxes, advanced infrastructure, and cultural diversity that enhances opportunities for expansion and growth. This information will help you understand how to start your own business in Dubai and achieve your business goals efficiently and effectively.

How to Start a Company in Dubai: Steps and Benefits
How to Start a Company in Dubai: Steps and Benefits

Steps to establish a company in Dubai

Establishing a company in Dubai requires following a set of basic steps. Here are the main steps to establishing your company:

Determine the type of company: Choose the type of company you wish to establish, whether it is a limited liability company, a branch of a foreign company, or a sole proprietorship.
Choose the business activity: Determine the business activity you will operate, as you must obtain a license appropriate for that activity.

Choosing a Company Location: Choose the appropriate location for your company, whether in a free zone or a non-free zone. Free zones offer benefits such as full ownership and tax exemptions.
Registering a Trade Name: Choose a trade name that aligns with your business and apply for registration. The name must comply with local laws.
Obtaining Licenses: You may need a trade license and additional licenses depending on your business. You can apply for licenses through the Department of Economic Development or the relevant authority in the free zone.
Opening a Bank Account: Open a business bank account in the company’s name after obtaining the necessary licenses.
Submitting Required Documents: Submit all required documents, such as copies of passports, licenses, and the Articles of Association.
Issuing a Certificate of Incorporation: After reviewing the documents, the relevant authority will issue you a Certificate of Incorporation.
Registering Employees: If you plan to employ employees, register them according to local laws and obtain the necessary visas.
Seeking Legal or Consulting Services: It is preferable to work with specialized consulting firms such as Atqan to ensure that all procedures are completed correctly and efficiently. By completing these steps, you can establish your company in Dubai and begin operating in a promising investment environment.

Advantages of Establishing a Company in Dubai

Establishing a company in Dubai comes with a range of advantages that make it an ideal destination for investors and businessmen. Here are some of these advantages:

Full Foreign Ownership: In many free zones, foreign investors are allowed to own 100% of the company without the need for a local partner.
Tax Exemptions: There are no corporate taxes in most free zones, which helps increase profitability.
A Favorable Business Environment: Dubai offers advanced infrastructure, banking facilities, and a regulatory environment that encourages investment.
Ease of Procedures: Dubai has an efficient and rapid administrative system, which facilitates the process of establishing companies and obtaining licenses.
Cultural Diversity: Dubai is a meeting point for different cultures, facilitating interaction with global markets and enhancing growth opportunities.
Access to Global Markets: Dubai’s strategic geographic location makes it an important commercial hub, providing access to markets in the Middle East, Asia, and Africa.
Technology and Innovation: Dubai supports innovation and technology, providing significant opportunities for technology projects and startups.
Political and Economic Stability: Dubai provides a stable and secure investment environment, which enhances investor confidence. Logistics Facilities: Dubai offers a sophisticated transportation and shipping infrastructure, facilitating distribution and trade operations.
Diverse Opportunities: Dubai offers diverse opportunities in various sectors such as tourism, real estate, technology, and financial services. In short, establishing a company in Dubai is not only a strategic move but also an opportunity to benefit from a stimulating and rewarding investment environment.

Documents Required for Company Establishment in Dubai

To establish a company in Dubai, you will need a set of basic documents. The required documents vary slightly depending on the type and activity of the company. Here is a list of generally required documents:

Company Registration Application: Complete the company registration application form, which can be obtained from the Department of Economic Development or the relevant authority in the free zone.
Copies of Passports: Valid passport copies of all shareholders and directors.
Personal Photographs: Recent personal photographs of the shareholders and directors.
Business Plan: Prepare a clear business plan that includes details about the business activity, target market, and operating strategy.
Memorandum of Association: Prepare a draft of the articles of association, which should include details about the partners and ownership percentages.
Company Name: Provide 2-3 company name suggestions, ensuring they comply with local laws.
Additional Licenses: Depending on the type of activity, you may need additional licenses (such as health or educational licenses).
Site Documents: Provide documents proving the right to use the premises (such as a lease or ownership certificate).
Identity Proof: Provide proof of identity for shareholders (such as a national ID card).
Government Approvals: In some cases, you may need to obtain special approvals from relevant government agencies depending on the nature of the activity. Be sure to review the specific requirements with the relevant authority or with a legal advisor, such as Atqan, to ensure all paperwork is completed correctly and smoothly.

How to Start a Company in Dubai: Steps and Benefits
How to Start a Company in Dubai: Steps and Benefits

Requirements for Establishing a Company in Dubai

Establishing a company in Dubai requires compliance with a set of conditions that vary depending on the type and activity of the company. Here are the most important general requirements for establishing a company in Dubai:

 

  • Determine the type of company you wish to establish, whether it is a limited liability company, a joint-stock company, or a branch of a foreign company.
  • Number of partners: There must be a minimum number of partners, which can be one person for a sole proprietorship or two for a limited liability company.
  • Legal age: All partners and managers must be at least 21 years old.
  • Choose the business activity: The business activity the company will engage in must be determined and ensure it complies with the required licenses.
  • Location of the company: The company must be located in a free zone or a non-free zone, as laws and privileges differ between the two zones.
  • Compliance with local laws: The company’s activities must comply with local laws and regulations, including commercial and labor laws.
  • Submit required documents: Required documents must be submitted, such as passports, personal photos, and the articles of association.
  • Obtaining the necessary licenses: The required licenses must be obtained from the Department of
  • Economic Development or the relevant authority in the free zone.
  • Determining the ownership structure: For some businesses, you may need a local partner who owns a certain percentage of the shares, but this usually applies to non-free zone companies.
  • Obtaining work visas: If you plan to employ employees, you must obtain the necessary work visas in accordance with local laws. It is essential to review local laws and consult with a legal advisor or a specialized firm such as Atqan to ensure compliance with all required requirements.

The specific time required to establish a company in Dubai

The time required to establish a company in Dubai depends on several factors, including the type of company and the required procedures. Generally, the incorporation period can be estimated as follows:

Initial procedures: Choosing and registering a company name: 1 to 3 days. Obtaining preliminary approvals (if required): 1 to 5 days.
Preparing documents: Preparing the required documents (articles of association, business plans, etc.): 1 to 3 days, depending on the processing efficiency.
Final Registration and Licensing: Submitting a commercial license application: 3 to 10 days, depending on the type of activity and the speed of review by the competent authorities.
Opening a Bank Account: Opening a business bank account: 3 to 7 days, depending on the bank and requirements.
Employment and Visa Procedures: If you plan to hire employees, it may take 1 to 2 weeks to obtain the required visas. Generally, the process of establishing a company in Dubai can take from two weeks to a month to complete all procedures if everything goes smoothly. However, if you work with a legal advisor or a specialized firm such as Atqan, the process may be further expedited and facilitated.