Dubai is one of the most attractive investment destinations for foreigners seeking to establish their companies in a sophisticated and stable business environment. The emirate offers a range of advantages, including advanced infrastructure, flexible laws, and a strategic location that connects global markets, making it a vital center for business and investment. In order to achieve success in this promising market, a foreign investor needs to understand the basic steps for establishing a company in Dubai, which include several legal and administrative procedures to ensure full compliance with local laws.

Establishing a company in Dubai for foreigners begins with determining the appropriate type of business activity. The investor must choose the activity that aligns with his investment plans and goals, whether in the trade, industry, or services sector. The legal form of the company must also be chosen, as foreigners can establish companies in free zones or on the mainland, each of which enjoys different advantages related to ownership, costs, and regulatory procedures.

After determining the activity and legal form, the stage of registering the trade name and obtaining initial approvals from the competent authorities comes to ensure that the name does not conflict with the registered trademarks. After that, the required documents are prepared, including the passport, business plan, articles of association, and some special approvals depending on the type of commercial activity chosen. The investor must also rent a headquarters for the company in accordance with the regulatory requirements in Dubai and obtain a lease contract notarized by the competent authorities.

After completing all the documents, the application is submitted to the competent authorities to obtain the required commercial license, the fees and procedures of which vary according to the nature of the activity and the region in which the company is established. A bank account is also opened for the company to complete financial transactions and deposit the initial capital according to the licensing requirements. Itqan Company can provide full support to foreign investors by facilitating the legal and administrative procedures to ensure the establishment of the company quickly and efficiently, allowing them to focus on growing their business and achieving success in the UAE market.

Types of business licenses available to foreigners in Dubai

Dubai is considered one of the most prominent investment destinations in the world due to its attractive economic environment and advanced infrastructure that allows foreigners the opportunity to easily establish their companies and benefit from government facilities that encourage entrepreneurship. Obtaining a commercial license is the basic step to starting any commercial activity, as it determines the nature of the activity that can be practiced within the emirate. The commercial licenses available to foreigners in Dubai vary to suit different economic sectors and allow investors the freedom to choose activities that are in line with their investment vision, whether they wish to establish a commercial, industrial, or professional company, or even operate a tourism activity.

The type of license required varies depending on the business activity that the investor intends to practice in Dubai. The requirements and conditions for obtaining a license also differ between the mainland and the free zones, as each zone provides special advantages that suit the needs of foreign investors. Therefore, it is necessary to understand the differences between the different licenses to determine the best option that achieves investment goals in the best possible way. It is also possible for Itqan Company to provide the necessary support to investors in choosing the appropriate license and facilitating all legal and administrative procedures to ensure that the company is established quickly and efficiently.

Types of business licenses available to foreigners in Dubai

•  Commercial license

Designed for companies engaged in commercial activities such as commodity and merchandise trading, import, export and distribution, and is suitable for investors wishing to manage their businesses in the general trade sector.

•  Industrial license

It is granted to companies operating in the field of production, manufacturing, and assembly of products, as it requires obtaining approvals from the competent regulatory authorities and is suitable for investors who wish to establish factories or production units.

• Professional License

It is directed to individuals and companies that provide professional services such as legal and engineering consulting, information technology services, and accounting, where the investor is allowed to own the company 100% without the need for a local partner.

• Tourist license

It is granted to companies operating in the tourism and travel sector, such as travel agencies, hotels, and hospitality services, and requires obtaining special approvals from the Department of Tourism and relevant regulatory authorities.

• Free license

It is granted to investors wishing to establish their companies within the free zones, as it allows them 100% ownership with tax exemptions and additional benefits such as not needing a local partner.

Foreign investors can choose the appropriate type of license according to the nature of their activity and investment objectives. To facilitate the process, Itqan can provide specialized consultations and assist investors in choosing the most appropriate license and completing all legal procedures quickly and efficiently.

The difference between establishing a company in the free zones and the mainland

Dubai is one of the world’s leading investment destinations, providing a flexible and attractive business environment for investors of various nationalities. The emirate offers foreign investors multiple options for establishing their companies, including establishing a company in free zones or on the mainland, each with its own advantages and requirements that suit the needs of different investors. Choosing the most appropriate location depends on the nature of the business activity and the investor’s objectives. Free zones offer numerous exemptions and facilities, while the mainland provides the freedom to conduct business within the local market.

Free zones are an ideal environment for investors focused on international trade or industrial production. They offer numerous incentives, such as full foreign ownership and zero profit tax, making them an attractive option for startups and multinational corporations. In contrast, the mainland allows businesses to operate within the UAE without geographical restrictions, making it suitable for entrepreneurs who want to engage directly with the local market and work with government agencies and national companies. Therefore, investors should study the differences between these two options to make the most appropriate decision for their business.

The difference between establishing a company in the free zones and the mainland

•  foreign ownership

In free zones, a foreign investor can own 100% of the company without the need for a local partner
on the mainland. Previously, a 51% local partner was required for some activities, but the laws have been amended to allow full foreign ownership in many sectors.

•  Scope of business

Companies registered in free zones can only conduct business within the local market through a local agent or distributor.
Companies in the mainland can freely conduct business within and outside the country without restrictions.

•  Taxes and fees

Free zones enjoy corporate and income tax exemptions for specific periods, which helps reduce operating costs.
Mainland companies are required to pay corporate taxes in accordance with applicable laws.

•  Physical office requirements

In free zones, companies can benefit from flexible options such as virtual offices and shared facilities.
On the mainland, renting a physical office is required as part of the licensing requirements.

•  Ease of procedures and costs

Establishing a company in a free zone is often faster and easier, as regulatory authorities provide comprehensive solutions and direct services to investors
on the mainland. Procedures may be more complex due to the multiple regulatory bodies, but they offer greater flexibility in operating.
The choice between a free zone and a mainland depends on the nature of the business and the investor’s objectives. Free zones offer tax advantages and full ownership, while the mainland allows the freedom to operate within the local market and deal with clients and companies in the UAE. Itqan can provide the necessary advice and help investors choose the most appropriate option based on their needs, making it easier for them to make the optimal decision to ensure the success of their business.

Documents required to establish a company in Dubai for foreigners

Dubai is considered one of the best global destinations for establishing businesses, thanks to its attractive investment environment and advanced infrastructure that supports entrepreneurs and investors from around the world. The emirate offers numerous options for establishing businesses, whether in free zones or on the mainland, giving investors the freedom to choose the environment that best suits their business. However, establishing a company in Dubai requires fulfilling a number of legal conditions and requirements, the most important of which is submitting the required documents, which vary depending on the type of business activity and the company’s geographical location.

Preparing documents is a crucial step in the company formation process, facilitating government procedures and ensuring compliance with local laws. These documents include information about the investor’s identity, the type of business activity, and the ownership structure, as well as any special licenses and approvals that may be required for certain activities. By enlisting the help of Itqan, investors can receive the necessary assistance to prepare the required documents and complete the legal procedures quickly and easily, saving them time and effort on their journey to establishing a successful business in Dubai.

Documents required to establish a company in Dubai for foreigners

• Passport and residence visa

A valid copy of the passport of all partners and shareholders in the company must be provided, in addition to a copy of the residence visa, if applicable.

•  personal photos

Recent personal photos with a white background are required for all partners and shareholders, in accordance with approved official standards.

• No Objection Letter (if applicable)

If the investor is a resident of the UAE and works for another entity, it may be necessary to submit a no-objection letter from his current employer allowing him to establish his own company.

• workplan

Some businesses require a detailed business plan that explains the nature of the business, the expected capital, and the operational strategy, especially if the company will operate in the financial or investment sector.

• Special approvals

Some activities, such as medical, educational, or financial services, may require special approvals from the relevant authorities before obtaining a license.

Basic costs of starting a company in Dubai

Dubai is one of the most attractive cities for investors and entrepreneurs from around the world, thanks to its advanced investment environment and advanced infrastructure that supports business growth. Establishing a company in Dubai requires careful planning and a comprehensive understanding of the basic costs associated with this process. Costs vary based on the type of company, geographical location (either in a free zone or on the mainland), the nature of the business, and licensing requirements. However, Dubai offers a variety of options that allow investors to establish their companies according to their budgets and business goals.

The basic costs of establishing a company in Dubai include several factors, such as company registration fees, issuing trade licenses, office rentals, and other government fees that vary depending on the nature of the business. Investors should also consider the costs of additional services such as visas, residency, and bank guarantees, if applicable. Choosing the right location for the company’s operations can significantly impact costs, as free zones offer financial advantages and tax breaks compared to the mainland, helping startups reduce operating expenses and maximize Dubai’s investment environment.

Our company’s role in establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners is a strategic step that provides extensive investment opportunities in a thriving economic environment. The emirate features flexible procedures that facilitate international investors starting their businesses and benefiting from the advanced infrastructure and strategic location that connects global markets. However, the success of establishing a company depends on following the correct steps to ensure compliance with local laws and obtaining the necessary licenses.

The basic steps for establishing a company in Dubai include choosing the appropriate business activity and determining the legal form, whether in the free zones or on the mainland. Registering the trade name and obtaining initial approvals from the relevant authorities is also an essential part of the establishment process, in addition to preparing the required documents, which include the passport, the articles of association, the business plan, and renting an official headquarters for the company in accordance with regulatory requirements.

After completing these steps, the commercial license application is submitted to the competent authorities and the required fees are paid in order for the license to be issued, which allows the commercial activity to be carried out legally. A bank account must also be opened for the company and the capital deposited according to the specified requirements to ensure the smooth running of financial operations. All of these procedures require precision and good planning to ensure the success of the project from the beginning.

Here comes the role of Itqan Company, which provides comprehensive support to foreign investors by providing legal and administrative consultations and facilitating all government procedures, which helps speed up the establishment process and avoid any potential complications. The company also provides customized solutions for each investor based on his needs and the nature of his activity, which ensures achieving the best results in the UAE market. Therefore, relying on the experience and knowledge provided by Itqan can be the key to success for any investor seeking to establish his company in Dubai and launch into the business world with confidence and stability.

Frequently asked questions about establishing a company in Dubai for foreigners