Establishing a company in Dubai is a great strategic move for investors and entrepreneurs looking to enter the thriving business market in the UAE. Dubai is one of the most attractive business destinations in the world thanks to its unique economic environment, modern infrastructure, and flexible legislation that supports business growth. In this article, we will review the basic steps to follow to establish a company in Dubai , from choosing the type of business activity and the required licenses, to the legal guidelines and administrative procedures that ensure your business starts smoothly and successfully. We will also focus on how to benefit from the services of specialized companies such as “Atqan” that provide full support in all stages of company establishment, making the process easier and saving time and effort.

How to set up a company in Dubai

How to set up a company in Dubai

Establishing a company in Dubai requires following specific steps to ensure compliance with local laws and enjoy the economic benefits that the emirate offers. Here are the main steps to establish a company in Dubai:

1. Determine the type of business activity: Choose the business activity you wish to practice, as the nature of the activity affects the type of license required. Dubai offers a variety of licenses such as commercial, industrial and tourism.
2. Choosing a Legal Structure: Determine the legal structure of the company (such as a limited liability company, a joint stock company, or a branch of a foreign company). Each structure has its own advantages and requirements.
3. Choosing a location : Choose a suitable location for your office or facility. You can choose between free zones that offer tax and customs benefits, or commercial areas within Dubai.
4. Registration and Licensing: Apply for a business license from the Department of Economic Development (DED) or the relevant authority in your chosen free zone. This includes submitting the required documents such as the lease contract, business plan, and passport.
5. Open a bank account: Open a business bank account in the name of the company after obtaining the license. The bank will ask you to provide the necessary documents such as the license and the articles of association.
6. Residence Visas: If you are planning to settle in Dubai or hire employees, make sure you obtain the necessary residence visas.
7. Register your company with the relevant authorities: Register your company with other government agencies such as the Legal Affairs Department, to obtain a tax registration number if necessary.
8. Dealing with consulting companies: It can be beneficial to cooperate with specialized consulting companies such as “Atqan” that provide comprehensive services including licenses, legal procedures, and the necessary consultations to establish the company efficiently.
9. Establishing a company in Dubai requires careful planning and a full understanding of the legal and administrative procedures, but the process can be accelerated and success achieved by seeking the help of experts in this field.

Advantages of establishing a company in Dubai

Establishing a company in Dubai offers many advantages that make it an attractive destination for investors and entrepreneurs. Here are some of the key features:

1. Thriving Business Environment: Dubai offers a distinct business environment with modern infrastructure and advanced facilities that support business growth. The city is a global hub for commerce and innovation.
2. Ease of procedures: Dubai seeks to simplify government procedures to facilitate the establishment of companies. The presence of free zones provides facilities for registration and licensing, which reduces bureaucracy.
3. Tax Exemptions: Many free zones in Dubai offer full tax exemptions on profits and no corporate tax, reducing financial burdens.
4. Full foreign ownership : In some free zones, foreigners can own 100% of the company without the need for a local partner, providing more control over the business.
5. Strategic Location: Dubai is located in a strategic geographical location between the East and the West, making it an ideal gateway for international trade and managing business operations in the Middle East, Asia and Africa.
6. Economic Diversity: Dubai hosts a diverse range of industries including technology, finance, tourism, and real estate, providing multiple opportunities for investment.
7. Global Marketing: Dubai is among the world’s leading destinations for trade and business, enhancing opportunities for expansion and growth both regionally and internationally.
8. Legal Protection: Dubai offers an advanced legal system that protects the rights of investors and ensures transparency in business transactions.
9. Low operating costs: In some free zones, operating costs may be lower, as office spaces are available at reasonable costs and with integrated services.
10. Multicultural Work Environment: Dubai hosts a wide range of nationalities and cultures, creating a diverse and inclusive work environment that supports innovation and knowledge sharing. Setting up a business in Dubai can provide great opportunities for growth and expansion in one of the most dynamic cities in the world.

Documents required to establish a company in Dubai

To set up a company in Dubai , you will need to submit a set of basic documents and procedures that vary depending on the type of company and the type of license required. Here is a general list of the required documents:

1. Company Establishment Application: Fill out the establishment application form provided by the Department of Economic Development (DED) or the relevant authority in the free zone.
2. Articles of Association: A copy of the articles of association or partnership agreement, which includes details of the partners, the company structure and its activities.
3. Business Plan: Provide a clear business plan that defines the nature of the business, objectives, and operational mechanisms.
4. Passports: Color copies of the passports of the founders, directors and shareholders.
5. Portraits: Recent portraits of founders and directors.
6. Lease Contract: A copy of the lease contract for the office or facility from which the company will operate its business, notarized by local authorities if necessary.
7. Residence Visas: For investors and managers if they are residents of the UAE, residence visas or proof of residence are required.
8. No Objection Certificate: In case of a local partner, a No Objection Certificate may be required from the local partner.
9. Previous Licenses: If the company is a branch of a foreign company, copies of the previous commercial license from the company’s home country must be submitted.
10. Initial Approval Form: If the activity requires approval from specific regulatory authorities, an Initial Approval Form must be submitted.
11. Bank Statements: To obtain a business bank account, the bank may require additional documentation such as a letter from the bank explaining the company’s financial status.
12. Additional Documents: In some cases, you may need to submit additional documents depending on the type of business and the requirements of the relevant department or authority. Requirements may vary depending on the type of company, free zone or head office in Dubai, so it is best to check the specific requirements with the Department of Economic Development (DED) or the authority supervising the free zone in which you plan to set up your company.

Conditions for establishing a company in Dubai

Establishing a company in Dubai requires compliance with a set of terms and requirements to ensure that the company is in compliance with local laws and regulations. The basic requirements include:

1. Determine the type of business activity: The business activity that the company will carry out must be determined, as the type of license required varies depending on the activity.
2. Choosing a Legal Structure: Choose the right legal structure for your company, such as a limited liability company (LLC), a public joint stock company, or a branch of a foreign company. Each structure has its own terms and requirements.
3. Register in Free Zones or Commercial Zones: Determine whether you want to establish your company in a free zone or commercial zone in Dubai. Each offers different benefits and specific requirements.
4. Submit a business plan: You may need to submit a clear business plan that includes details of the business, target market, and growth strategies.
5. Providing an office address: An office address must be provided for the company, either by renting an office or obtaining a virtual office service in the case of free zones.
6. Providing papers and documents: Providing the required papers such as passports, lease contracts, articles of association, and permits for private activities.
7. Registration with local authorities: Register with the Department of Economic Development (DED) or the relevant authority in the free zone to obtain a business license.
8. Compliance with employment requirements: Adherence to local labor laws, including employee registration and obtaining work visas if required.
9. Conducting security checks: In some cases, security checks may be required for founders and directors.
10. Open a business bank account: Open a bank account in the company’s name to facilitate financial and business transactions.
11. Trademark Registration: Register your company’s trademark to ensure protection of intellectual property rights.
12. Compliance with local legislation: Comply with all local laws and regulations related to taxes, environment, health and safety.

Adhering to these requirements helps in establishing a successful company that is compliant with local regulations in Dubai, and makes it easier for you to expand and grow in the thriving business environment.

In conclusion, establishing a company in Dubai represents a great strategic opportunity to benefit from the vibrant business environment and advanced infrastructure that the emirate offers. By adhering to the basic steps and choosing the right legal structure, investors and entrepreneurs can benefit from the many advantages that Dubai offers, including tax exemptions, full foreign ownership, and its strategic global location. Moreover, using experts and specialists such as “Atqan” can help speed up and facilitate the incorporation process and ensure its compliance with local laws. With careful planning and thoughtful execution, new companies can achieve sustainable success in this dynamic market, opening new doors for growth and expansion regionally and internationally.