How to set up a company in Dubai for foreigners? Dubai is considered one of the most prominent global destinations for establishing foreign companies, thanks to its attractive investment environment and advanced infrastructure. The city is distinguished by its strategic location that connects the East and the West, which opens wide doors to access global markets. Dubai also provides many facilities for foreign investors, starting from easy and flexible company establishment procedures to tax incentives and full foreign ownership in many free zones. Setting up a company in Dubai for foreigners is a strategic step for entrepreneurs looking to achieve great success in a vibrant and innovative business environment.

Company formation in Dubai for foreigners

Requirements for establishing a company in Dubai for foreigners

To establish a company in Dubai for foreigners, there are a set of requirements that must be met:

1. Choosing the type of company: The foreign investor must determine the type of company he wishes to establish, whether it is a limited liability company, a branch of a foreign company, or a company in one of the free zones.
2. Obtaining approvals: The investor needs to obtain approvals from the relevant government agencies, such as the Dubai Department of Economic Development or the Free Zone Authority, depending on the company’s website.
3. Preparing documents: The required documents include the company’s articles of association and memorandum of association, in addition to the passports of the partners and investors and residence permits if they are residents of the UAE.
4. Opening a bank account: The new company must open a bank account in a local bank in Dubai to deposit the required capital and facilitate financial transactions.
5. Renting an office: The company must rent an office or workspace in Dubai as the official address of the company.
6. Obtaining a commercial license: After completing all the previous requirements, you can apply for a commercial license, which allows you to legally practice commercial activity in Dubai. These requirements ensure the establishment of a successful company in Dubai, taking into account local laws and regulations.

Advantages of establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners comes with many advantages, including:

1. Full Foreign Ownership: Dubai allows foreigners to own 100% of companies in most free zones, giving them complete control over their projects without the need for a local partner.
2. Tax incentives: Dubai has a favourable tax environment, offering corporate tax exemption on most commercial activities in free zones, helping to increase profits and reduce costs.
3. Advanced investment environment: Dubai offers modern infrastructure and advanced commercial facilities, which enhances the ease of starting a business and ensures the smooth flow of business operations.
4. Strategic Location: Dubai enjoys an excellent geographical location that links the markets of the East and the West, facilitating access to global markets and enhancing opportunities for international expansion.
5. Ease of establishment procedures: Dubai offers fast and efficient company establishment procedures, with comprehensive support and assistance services available to facilitate registration and obtaining commercial licenses.
6. Multiple Free Zones: Dubai has a variety of free zones, each specializing in a specific sector, allowing companies to choose the most suitable one according to their business activity and needs.
7. Intellectual Property Protection: Dubai is committed to implementing strict laws to protect intellectual property rights, which enhances the security and stability of business investments.
8. Advanced Banking Services: Dubai offers an advanced banking system with a variety of banking services that meet the needs of businesses, making it easy to manage funds and conduct business transactions. These advantages make Dubai a preferred destination for foreigners looking to set up their businesses and take advantage of available investment opportunities.

Cost Factors of Company Formation in Dubai for Foreigners

The cost of establishing a company in Dubai for foreigners depends on several factors, including:

1. Company Type: The cost of incorporation varies depending on the type of company (such as a limited liability company, a branch of a foreign company, or a company in a free zone).
2. Company location: Whether you choose to establish the company in a free zone or in a non-free zone, as costs vary greatly between these locations.
3. Licensing and Business License: Fees for obtaining a license and business license vary depending on the type of business and location.
4. Rent and Offices: The cost of renting an office or workspace, which depends on the location, space and services provided.
5. Documents and Registration: Includes costs related to preparing legal documents, such as the articles of incorporation and bylaws, and registering with government agencies.
6. Banking Requirements: Opening a corporate bank account may require different fees depending on the bank and account type.
7. Government fees: include fees paid to government agencies to obtain the necessary approvals and permits.
8. Advisory Services: You may require legal or accounting advisory services, which come with additional costs.
9. Labor costs: If you intend to hire employees, you must calculate the costs of hiring, including employee salaries and social insurance.
10. Insurance: You may need insurance for your company or some aspect of your business. Identifying these factors will help you accurately estimate the cost of starting your company and ensure it stays within your budget.

Foreigners have the right to full ownership of their company without a local partner.

Yes, foreigners are entitled to have full ownership of their company in Dubai without the need for a local partner in most cases, in the free zones. Here are the details:

1. Free Zones: Dubai allows foreigners to own 100% of companies in most free zones . In these zones, foreigners can establish a company with full ownership without the need for a local partner.
2. Non-Free Zones: In non-free zones, the law usually requires a local partner who is a UAE national, who owns a certain percentage of shares (usually 51%) in the LLC. However, there are some exceptions and other options, such as commercial agencies, which may allow foreigners to run their business in different ways.
3. Recent Amendments: In recent years, some amendments have been introduced that allow foreigners to fully own companies in some non-free sectors, but these amendments are still in the process of being implemented or may be limited to certain activities.

Therefore, if you are planning to set up a company in Dubai, the choice of location and type of company will affect the need for a local partner. It is best to consult with Itqan Company to ensure full compliance with laws and regulations.

Documents required to establish a company in Dubai for foreigners

To set up a company in Dubai for foreigners , you will need to submit a set of necessary documents. These documents include:

1. Passports: Color copies of passports of all partners and investors in the company.
2. Personal Photos: Recent personal photos of partners and investors.
3. Articles of Association and Memorandum of Association: Legal documents that define the structure of the company, its objectives, and the rights and obligations of the partners.
4. Initial Approval: Requesting initial approval from relevant government agencies, such as the Dubai Department of Economic Development or the Free Zone Authority.
5. Business Plan: Submit a detailed business plan that includes a description of the business, target market, and financial plan.
6. Lease: A lease for an office or business space that serves as a company’s official address.
7. Identity Documents: Additional identity documents may be required, such as birth certificates or marriage certificates if required.
8. Power of Attorney: A power of attorney if one partner appoints another person to handle legal proceedings.
9. No Objection Certificate: In some cases, you may need a No Objection Certificate from some of the existing entities or partners.
10. Proof of Address: Documents to prove the address of residence for foreigners if they are residents of the UAE.
11. Be sure to check the specific requirements with the government entity or free zone you choose to establish in, as requirements may vary slightly depending on location and type of activity.

In conclusion, Dubai is a great destination for foreigners looking to set up their businesses, thanks to its advanced investment environment and the many advantages it offers. From easy procedures and tax incentives to enjoying full ownership and expanding into global markets, Dubai has everything it takes to make a business successful. By taking advantage of advanced infrastructure and specialized consulting services, foreigners can turn their ideas into a thriving business reality. If you are looking to enter a global market and discover new opportunities, Dubai offers you the ideal platform to achieve your business goals.

Frequently asked questions about establishing a company in Dubai for foreigners