Establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners represents an important strategic step for foreigners who are happy to invest in one of the fastest growing economies in the world. Dubai is distinguished by its advanced infrastructure, vibrant business environment, and flexible legislation that supports foreign investment. Establishing a company here provides investors with many opportunities, whether in traditional sectors such as real estate and trade, or in innovation and technology in free zones.

The article explores the basic steps of setting up a company in Dubai , starting with choosing the appropriate company type, preparing the necessary documents, and applying for the necessary licenses and permits. The article also highlights the investment opportunities available in the emirate, and provides advice on how to take advantage of Dubai’s advanced infrastructure and vibrant consumer market.

Establishing a company in Dubai for foreigners

Steps to establish a company in Dubai as a foreign investor

Here are the basic steps for establishing a company in Dubai as a foreign investor:

1. Choose the type of company: Decide what type of company you want to establish, such as a limited liability company (LLC), a free zone company, or a sole proprietorship.
2. Choosing a trade name: Choose a suitable name for the company and make sure that it is compatible with local laws and is not already registered.
3. Determine the capital contribution: Decide on the value of the capital and ensure its availability when establishing the company.
4. Arrange documents: Prepare the required documents such as the investor’s passport, business plan (if required), and any certificates or other documentation.
5. Submit a license application: Submit an application to obtain the appropriate license for the type of company you wish to establish.
6. Obtain necessary approvals: Obtain necessary government approvals, such as company name approval and environmental licenses if required.
7. Open a bank account: Open a bank account for the company and deposit the required capital.
8. Establishing the company in the commercial registry: Register the company in the commercial registry and obtain a registration certificate.
9. Obtaining a residence visa: If you need a residence visa for senior management or shareholders, apply for it.
10. Securing offices and employees: Determine a location for the company’s headquarters and manage other administrative matters such as securing employees and offices.

Documents required to establish a company in Dubai

To set up a company in Dubai , the following papers are usually required:

• Passport: A copy of the passport of both foreign and local founders.
• Personal photos: Recent personal photos of the founders.
• Business Plan: In some cases, the UAE authorities may require a detailed business plan.
• Trade name: Register the company’s chosen trade name, and ensure that it is not already in use.
• Social Agreement: If the company is a limited liability company (LLC), it may need a social agreement between shareholders.
• Bank Certificate: The founders need to submit a bank certificate proving that the required capital has been deposited in the company’s bank account.
• Legal power of attorney: If a legal agent is used to represent the company, a certified power of attorney must be provided.
• Articles of Association: A copy of the company’s articles of association, including the bylaws and basic information of the company.
• Special licenses: Some commercial activities may require special licenses from local authorities or relevant authorities.
• Certificates of qualifications: If the company deals in a specialized field, it may need certificates proving the qualifications of the founders.

Licenses required in Dubai

In Dubai, the necessary licenses vary depending on the type of business activity and the location where the business operation will take place. Here are some basic licenses you may need:

• General commercial license: issued to companies that intend to engage in general commercial activities.
• Special commercial license: issued to companies that plan to engage in certain or specific activities.
• Industrial license: issued to companies that produce goods or carry out manufacturing operations.
• Professional License: Issued to individuals who provide professional services such as medicine, engineering, law, etc.
• Tourist license: issued for activities related to tourism and hospitality.
• E-commerce license: issued to companies that operate online.
• Restaurant or café licence: issued to restaurants, cafés and fast food restaurants.
• Building license: issued to companies working in the field of construction and civil engineering.
• Transport license: issued to companies working in the field of transport and logistics services.
• Entertainment license: issued for recreational activities such as amusement parks and entertainment centers.

Types of companies available to foreigners in Dubai

In Dubai, foreigners can establish several types of companies, mainly including:

1. Limited Liability Company (LLC): Allows foreigners to own up to 49% of the capital, with an Emirati partner owning the remaining share (51%).
2. Company in the free zone: Free zones in Dubai provide opportunities for foreigners to own 100% without the need for an Emirati partner.
3. Public Company: Allows foreigners to own up to 100% in specified sectors, such as retail and general trade, with the condition of obtaining a special license from local authorities.
4. Sole Proprietorship or Sole Proprietorship Limited Liability Company: Allows foreigners to act as an individual investor with limited or unlimited liability.
5. Partnership Company: It relies on a partnership agreement between foreigners and local partners, specifying their shares in the capital and profits.

Expected costs of establishing a company in Dubai

The costs of establishing a company in Dubai vary depending on the type of company and where it is established, and usually include the following elements:

1. Company registration fees: Includes company registration and establishment fees in the Department of Trade and Industry or in a specific free zone.
2. Core Capital: Some types of companies in Dubai may require a certain core capital. The required capital depends on the type of company and its activity.
3. Legal and accounting consulting fees: You may need consulting services to guide you through the company formation process and compliance with local laws.
4. Licenses and permits costs: You may need to pay fees to obtain the necessary licenses for the company, such as a business license and operating license depending on the type of activity.
5. Rent and office costs: If you need an office for company operations, you may need to pay monthly or annual rent for the office.
6. Research and initial marketing costs: You may need to invest in market study and initial marketing to attract customers and partners.
7. Government taxes and fees: These include taxes and fees applied by the local government, such as value-added tax (VAT) and others.
8. Certificates and translation costs: You may need to pay costs to obtain approved certificates or to translate documents if you deal in languages ​​other than Arabic or English.

Top tips for foreigners wishing to establish a company in Dubai

For foreigners wishing to establish a successful company in Dubai, here are some important tips:

• Market exploration and careful research: Before embarking on any operation, study the local market and understand the demand and potential competition.
• Choose a local partner or legal agent carefully: In some cases, establishing a company requires a local partner or legal agent. Make sure to choose a reliable partner with a good reputation.
• Understand local laws and regulations: Ensure compliance with all local laws and regulations related to foreign business and investments.
• Choose a strategic location: Choose a suitable location for your company headquarters that is compatible with your business activity and easy to reach by customers and partners.
• Taking advantage of free zones and low tax outlets: If the nature of your business allows, make sure you take advantage of free zones that provide tax benefits and investment facilities.
• Use local services for support: Contract reliable local accounting, law and consulting services to ensure compliance and legal and financial support.
• Innovation and Technology: Rely on technology and innovation in your business to increase work efficiency and provide better services to customers.
• Building a strong network of relationships: Invest in building strong relationships with local partners, customers and suppliers to enhance growth and expansion opportunities.
• Marketing and digital presence: Determine an effective marketing strategy targeting the local and global market, and use digital presence effectively to reach a wider audience.
• Continue to learn and improve: Stay up to date with the latest developments in your industry and continue to improve your processes and services based on your experiences and market changes.

To conclude this article, it is clear that setting up a company in Dubai for foreigners is an exciting and rewarding option. The Emirate of Dubai provides a developed and diverse investment environment, where foreigners can benefit from business opportunities and economic growth.

One of the most important advantages that Dubai provides to foreigners is the presence of free zones, which provide an integrated commercial environment and exceptional features. These free zones provide customs facilities, tax exemptions, flexible financing, and access to the regional and global market. Dubai also provides advanced infrastructure and various financial and banking services that facilitate companies’ operations and enhance their success.

In addition, Dubai’s system of laws and regulations provides clear protection of intellectual property rights and ease of doing business. Foreigners can establish local companies or branches of their foreign companies, and enjoy complete freedom of business ownership and profits.

The most important frequently asked questions about establishing a company in Dubai for foreigners