The cost of establishing a company in Dubai for Gulf citizens

Dubai is one of the leading cities in the world for establishing companies in Dubai , and plays a vital role in attracting investors from the Gulf countries. Many Gulf Arabs wonder about the cost of establishing a company in Dubai for Gulf Arabs in this thriving global economic center.

Establishing a company in Dubai for Gulf nationals is an important strategic step, as they enjoy unique advantages of geographical proximity, cultural compatibility, and distinctive government facilities. By understanding the financial expenses associated with establishment, Gulf investors can determine an accurate strategy that matches their investment and expansion goals.

In this article, we will detail the expected costs of establishing a company in Dubai, including licensing fees, administrative costs, and potential tax benefits, in order to provide a comprehensive view that enables Gulf investors to make informed and calculated business decisions.

The cost of establishing a company in Dubai for Gulf citizens

Establishing a company in Dubai  

When Gulf businessmen and investors think about establishing a company in Dubai , they find themselves faced with an exciting investment opportunity that enjoys a distinctive legislative and economic environment. Dubai is considered one of the most prominent cities that attract investments in the Middle East, as it provides many opportunities for growth and expansion in various economic sectors. Dubai offers Gulf investors the ability to choose between multiple types of companies, including sole proprietorships, limited liability companies, and companies in free zones, allowing them to determine the structure that best suits their business activity and operational needs.

Regarding procedures, Gulf investors must take several basic steps such as obtaining an establishment permit from the competent authorities, specifying the commercial activity, opening a bank account, in addition to registering the company with the Department of Commerce and Economy and other relevant government agencies. The expected costs for establishing and operating the company also vary depending on the type and location, and include licensing fees, rent, and general administrative costs.

Procedures for establishing a company in Dubai for Gulf citizens

The procedures for establishing a company in Dubai for Gulf nationals are not difficult, but are very easy and include the following steps:

The first step: Choose the name of the activity that the company will undertake. The name is what distinguishes one commercial license from another and is also linked to the company’s activity.

The second step: Obtaining approval from the relevant authorities.

The third step: Obtaining initial approval from the competent authorities and following up in order to obtain the approval of the authorities related to the company’s activity.

The fourth step: Choosing the headquarters where the company will be established and that it meets the necessary conditions and licenses.

The fifth step: Obtain the license and attach some documents and papers to it, then register in the Chamber of Commerce as a member.

The cost of establishing a company in Dubai for Gulf citizens 

The costs of establishing a company in Dubai for Gulf nationals vary based on several factors, including the type of company, its location, and the services required. Here’s an overview of the main costs you may face:

1. License fees: License fees vary depending on the type of company, such as sole proprietorships, limited liability companies, or companies in free zones.
2. Rental costs: Businesses must pay rental costs for the offices or commercial space they rent, and these costs vary based on the location and size of the space.
3. Administration costs: These costs include daily administration expenses such as wages and salaries, and general administrative spending.
4. Registration and declaration fees: These fees include the costs of registering the company with the Department of Commerce and Economy and other relevant government agencies.
5. Legal and accounting consulting costs: These costs can be part of administrative costs, as legal and accounting consulting helps ensure compliance with local legislation and achieve financial transparency.
6. Required capital: Some types of companies may require a specific basic capital, which is determined according to the requirements of each type of company.

Steps to establish a company in Dubai for Gulf citizens

For Gulf nationals wishing to establish a company in Dubai, here are general steps that can be followed:

• Choosing the type of company: Decide what type of company you want to establish, whether it is an individual company, a joint-stock company, a stock company, or any other type that suits your needs and goals.
• Choosing a company name: Choose a company name that complies with local laws and that expresses the company’s identity and goals.
• Determine the location and free zone: Choose the appropriate location for your company, whether it is in a free zone, a commercial zone, or another place that suits your business.
• Determine the contribution and capital: Determine the capital required to establish the company and the necessary contribution by the founders.
• Preparing the necessary documents: Prepare all necessary documents such as incorporation contracts, powers of attorney, tax forms, founders’ personal identity, and other documents depending on the type of company.
• Submitting a license application: Submit an application to obtain a company license to the competent government authority, whether it is the Department of Economic Development or any other body that regulates your economic activity.
• Obtaining the necessary approvals: Wait for receiving final approvals from local authorities and competent authorities, which may include security, environmental, and other approvals as needed.
• Chamber of Commerce Registration: After obtaining the license, register the company with the local Chamber of Commerce to obtain an official registration certificate.
• Official opening and operation: After completing all legal and administrative procedures, you can now start your official business in Dubai.

Important papers to establish a company in Dubai

To establish a company in Dubai , you need to submit a number of basic papers and documents that vary slightly depending on the type of company and where you choose to establish it. Here is a list of the main papers that are usually required:

• Incorporation application form: It contains company details such as company name, type of activity, headquarter address, and details of shareholders and managers.
• Incorporation document or social contract: This document specifies the company’s articles of association and details the distribution of capital and responsibilities between shareholders and managers.
• Shareholding certificate (if the company requires it): The shareholding certificate confirms the shareholders’ commitment to pay the required capital to the company.
• Legal Certificate of Directors and Shareholders: proving the identities and signatures of the directors and major shareholders of the company.
• Commercial Activity Permit: This permit specifies the type of commercial activity that a company can engage in in Dubai.
• Financial report or financial forecast: Some companies may be required to submit a financial report or financial forecast that explains the company’s financial project in the near future.
• Company money vouchers: The required capital must be deposited in the company’s account at the local bank and a voucher must be submitted to confirm this.
• Financial Reports for Directors: These documents can be required to check the financial background of key managers in the company.
• Identity documents and residence permits: for both directors and major shareholders of the company.
• Business License: If the company intends to hire employees from abroad, it may need a business license for each employee.