Dubai is considered one of the most prominent global destinations for business and investment, and is distinguished by its strategic location linking East and West, its advanced infrastructure, and its diversified economy. For Saudi investors, Dubai offers tremendous opportunities for growth and prosperity, and offers a favorable business environment that supports the establishment and development of a company in Dubai for Saudis.
One of the main advantages of establishing a company in Dubai is the flexible and supportive legislation for business, as the emirate adopts policies that encourage foreign investment and protect the rights of investors. In addition, Dubai has a variety of free zones that offer tax incentives and customs exemptions, making it an attractive destination for investors wishing to establish their companies.
For Saudi investors, entering the Dubai market represents an opportunity to expand and grow in a safe and stable environment. Saudis can easily establish their companies in Dubai, thanks to the simplified and easy procedures for registering companies and obtaining the necessary licenses. The UAE government supports these efforts by providing integrated services and support facilities that help investors establish their companies quickly and efficiently.
Besides, Dubai is a global business center that provides access to new markets and multiple business opportunities. Saudi companies can benefit from strategic partnerships and business alliances with local and international companies, which enhances their ability to compete and innovate.
The high quality of life that Dubai provides cannot be overlooked, as it is one of the best cities to live and work, thanks to the high level of safety, excellent health and educational services, and the multicultural environment that embraces different nationalities and cultures.
In conclusion, establishing a company in Dubai for Saudis constitutes a strategic step that can bring many economic and commercial benefits, and open new horizons for growth and development in a dynamic and prosperous market.
Establishing a company in Dubai for Saudis
Procedures required to establish a company in Dubai
Establishing a company in Dubai requires following a set of legal and administrative procedures and steps to ensure compliance with local laws. Here are the basic steps to establish a company in Dubai:
- Determine the type of business: Determine the type of business you wish to engage in as this will affect the type of business license you need.
- Choosing a trade name: Choose a trade name that complies with local laws and conditions set by the Department of Economic Development. The name must be unique and not similar to other company names.
- Determine the legal form of the company: Determine the legal form of the company such as limited liability company (LLC), sole proprietorship, public joint stock company, etc.
- Obtaining initial approvals: Apply to obtain initial approvals from the competent authorities such as the Department of Economic Development and other regulatory bodies according to the type of activity.
- Preparing the Articles of Association: Preparing the Articles of Association and having it signed by all partners. The contract must be notarized by a notary.
- Rent an office or commercial space: Rent an office or commercial space as this is required to obtain a business license. You can rent a virtual office in some free zones if your type of activity allows it.
- Obtaining a commercial license: Apply for a commercial license from the Department of Economic Development or the free zone you have chosen. You will need to submit all required documents and pay the necessary fees.
- Company registration in the Chamber of Commerce: Register the company in the Dubai Chamber of Commerce and Industry to obtain chamber membership which may be required sometimes.
- Open a company bank account: Open a bank account in the name of the company to facilitate financial transactions.
- Registration in the value-added system (if applicable): If the company is subject to value-added tax, it must register in the value-added system with the Federal Tax Authority.
- Obtaining additional permits and licenses: Depending on the type of business, you may need to obtain additional permits or licenses from the relevant regulatory bodies.
Types of companies that Saudis can establish in Dubai
| Type of Company | the description |
|---|---|
| Limited Liability Company (LLC) | They are the most common type of company in Dubai. It can have from 2 to 50 partners, and offers significant advantages to foreign investors including the ability to own up to 100% of shares in most sectors. |
| Free Zones Company | These companies are given advantages such as 100% ownership by foreign investors, no taxes, and easy and fast incorporation procedures. The business operations of these companies must be within the free zones or abroad. |
| One person company | One person (whether an individual or a legal entity) can establish an LLC. This type is suitable for entrepreneurs and small businesses. |
| Holding Company | Typically used to manage a group of subsidiaries. Tax advantages are given and financial management and investment are facilitated. |
| Branches and subsidiaries | Saudi companies can establish branches or subsidiaries in Dubai, enabling them to expand their business activity in the UAE market. |
| General partnership | It consists of two or more partners, and all partners are considered fully responsible for the debts and financial obligations of the company. |
| Limited partnership | It consists of two or more partners, where at least one partner is responsible for managing the company and is legally responsible, while the other partners have limited liability. |
| Commercial Representative Office | It is used to promote the parent company’s business abroad without engaging in direct business activities. It is ideal for marketing, advertising and market research purposes. |
If you need detailed information about each of these types of companies or how to establish them, I will be happy to help you.
Costs associated with setting up a company in Dubai
Establishing a company in Dubai requires incurring a range of costs associated with administrative and legal procedures. Here are the most important costs to consider when establishing a company in Dubai:
- Cost of a commercial license: The cost of a commercial license varies based on the type of business activity, the legal form of the company, and the region in which it will operate (such as Dubai or one of the free zones).
- Company registration fees: Includes registration fees with various government agencies such as the Department of Economic Development and the Dubai Chamber of Commerce and Industry.
- The cost of renting an office: The cost of renting an office or commercial space varies depending on the location, the size of the space, and the type of property (whether in the city or in the free zones).
- The cost of preparing contracts and legal documents: includes the cost of preparing the articles of incorporation and other legal agreements and notarizing them with a notary.
- Government Fees and Permits: You may need to pay additional fees to obtain additional permits and licenses from the relevant regulatory bodies based on the type of business.
- The cost of professional services: includes the cost of legal and accounting consultations and company establishment services provided by specialized consulting companies.
- Insurance costs: You may need to purchase some types of insurance such as property or employee insurance based on the requirements of the business.
- Chamber of Commerce Membership Fees: Includes Dubai Chamber of Commerce and Industry registration and membership fees, which may be required for some business activities.
- The cost of equipping the office: includes the costs of equipping the office or commercial space with the furniture and equipment necessary to start the business.
- Additional activity fees: If the business requires additional activities such as importing and exporting goods, you may need to pay customs duties and shipping and customs clearance costs.
- Labor and Recruitment Cost: Includes the costs of hiring local or foreign workers, including salaries and other benefits.
Documents required to establish a company in Dubai
Establishing a company in Dubai requires submitting a set of legal and administrative documents to the competent authorities. Here are the basic documents required to establish a company in Dubai:
- Commercial license application form: Submit an application form to obtain a commercial license to the Department of Economic Development or the relevant free zone.
- Copies of Passports: Provide copies of passports of all proposed partners, shareholders and directors.
- Personal photos: Provide recent personal photos of all partners and managers.
- Memorandum of Association and Articles of Association: Preparing and submitting the Memorandum of Association and Articles of Association of the company and having them authenticated by a notary public.
- No objection certificate: Submit a no objection certificate from the current sponsor (if one of the partners works in the UAE).
- Business Plan: Submit a detailed business plan outlining the proposed business activity and business strategy.
- Initial approval: Obtaining initial approval from the Department of Economic Development or the body concerned with commercial activity.
- Office lease contract: Submit a copy of the office or commercial space lease contract, and the contract must be certified by the Dubai Land Department.
- Approval letter from the competent authorities: If the business activity requires approvals from other regulatory authorities, approval letters from these authorities must be submitted.
- Approval from the Ministry of Economy: In the case of some commercial activities, approval from the Ministry of Economy may be required.
- Capital Certificate: Providing proof of the required capital if this is part of the requirements for the type of business activity.
- Security approval: Security approval may be required for some foreign partners.
In conclusion, it can be said that establishing a company in Dubai for Saudis is considered a smart strategic move to exploit the diverse economic opportunities provided by the emirate. Dubai features a developed infrastructure, a legal system that encourages business, and a stable economic environment, making it an ideal destination for entrepreneurs and investors from the Kingdom of Saudi Arabia.
Establishing a company in Dubai requires following certain steps, including choosing the type of business activity, determining the legal form of the company, and obtaining the necessary approvals and licenses from the competent authorities. Saudis can benefit from free zones in Dubai that provide attractive facilities and tax exemptions, in addition to the possibility of full ownership of the company without the need for a local partner.
It is also important to consider financial aspects such as required capital, operational costs and rents. Dubai provides a competitive environment with ample opportunities to obtain financing from banks and financial institutions. In addition, Saudi entrepreneurs can benefit from government programs and initiatives that support startups and small and medium enterprises.
The most important frequently asked questions: Establishing a company in Dubai
What are the necessary steps to open a company bank account in Dubai?
The steps include submitting the required documents to the bank, such as the articles of incorporation, registration certificate, photos of partners, and lease contract, in addition to filling out the application form to open the account.
What are the licenses for companies in free zones?
Free zones provide special licenses that include advantages such as full ownership by foreigners, no taxes for a specific period, and ease of export and import.
Can foreigners establish a company in Dubai?
Yes, foreigners and foreign companies can fully own companies in Dubai, but there may be some requirements required depending on the type of company and activity.
What taxes apply to companies in Dubai?
Dubai offers a flexible tax environment, and does not impose income taxes on companies for most sectors, with the exception of some private sectors such as banks and real estate companies.
What are the financial and capital requirements needed to establish a company?
The financial requirements and necessary capital vary depending on the type of company and its activity, and there may be requirements to clarify the capital to be deposited in the company’s bank account.
