Dubai is considered one of the most prominent global destinations for investment and business, as it provides an ideal environment for foreigners seeking to establish a company in Dubai for foreigners and achieve success in a market characterized by dynamism and diversity. Dubai enjoys a strategic geographical location that makes it a gateway to the markets of the Middle East, Asia and Africa, which enhances its attractiveness as a global commercial centre. In addition, Dubai provides advanced infrastructure and high-quality logistics services that support business growth and expansion.
Establishing a company in Dubai for foreigners is characterized by flexibility and the many facilities provided by the UAE government to attract foreign investments. The most prominent of these facilities is the possibility of 100% foreign ownership of companies in free zones, tax exemptions granted for long periods, and simplified bureaucratic procedures that facilitate the process of establishing a company. Dubai’s free zones, such as Jebel Ali Free Zone, Dubai Media City, and Dubai Internet City, are ideal environments for business as they offer attractive economic incentives and world-class infrastructure.
Establishing a company in Dubai for foreigners requires several basic steps, including choosing the appropriate company type, defining the business activity, preparing the necessary legal documents, submitting a registration application, and obtaining the necessary licenses. Many advisory and legal services are available in Dubai to help foreign investors navigate the legal and administrative complexities and ensure successful company establishment.
Establishing a company in Dubai for foreigners
Steps to establish a company in Dubai for foreigners
Establishing a company in Dubai is a simple and straightforward process compared to many other countries. Dubai provides a flexible and supportive economic environment for businesses, making it an ideal destination for foreigners wishing to start their businesses. Below are the steps to establish a company in Dubai for foreigners:
1. Determine the type of business activity
The first step is to determine the type of business activity you want to practice in Dubai. The type of license you will need depends on the activity you intend to undertake, whether it is commercial, industrial, or professional.
2. Choosing the legal form
You must choose the legal form of your company, which can be a limited liability company (LLC), a branch of a foreign company, or a representative office. The legal form varies based on the type of business and your specific requirements.
3. Choosing a trade name:
You must choose an appropriate trade name for your company, and it must be unique and not used by any other company in Dubai. The trade name must also comply with local laws and regulations.
4. Submit an application for initial approvals
After selecting the trade name, you must submit an application for initial approvals from the Department of Economic Development (DED) in Dubai. These approvals confirm that your company meets the conditions required to conduct business activity.
5. Preparing the Memorandum of Association and Partnership Agreement
Upon obtaining initial approvals, the Memorandum of Association and Partnership Agreement (if there are partners) must be prepared. These documents must be notarized by a notary.
6. Choosing a business location
You must select a suitable location for your business in Dubai. It can be an office or a shop depending on the nature of your business. A notarized lease must be submitted as part of the licensing requirements.
7. Obtaining final approvals
After preparing and submitting all the required documents, you will need to obtain final approvals from the competent authorities such as the Department of Economic Development and the Free Zone Authority if your company is in a free zone.
8. Issuance of a commercial license
Once all final approvals are obtained, you can submit a request to issue a commercial license from the Department of Economic Development or the relevant authority in the free zone.
9. Registration in the Chamber of Commerce
After issuing the commercial license, your company must be registered with the Dubai Chamber of Commerce and Industry to obtain chamber membership and benefit from its services.
10. Open a bank account
Finally, you need to open a business bank account in one of the local banks in Dubai to manage your financial and business operations.
Advantages of establishing a company in Dubai for foreigners
Dubai is considered the center of investments in the Middle East and the focus of attention of entrepreneurs and foreign investors to establish businesses on its soil thanks to the facilities, services and flexible procedures it provides. There are many advantages to establishing a company in Dubai for foreigners:
- Tax exemption in free zones: Free zones in Dubai are not subject to any type of taxes, neither on companies nor on the personal income of individuals, and they also provide freedom of disposal of profits and capital.
- Continuously developing infrastructure: One of the most important factors that makes Dubai suitable for investment is the strong and advanced infrastructure, as the continuous development of infrastructure plays a role in providing ease of movement and logistical support for projects.
- Diverse business facilities: The UAE government is keen to provide all types of facilities that serve investors. Facilities in Dubai vary according to the type of activity and the size of capital, such as shopping centers, towers, and others.
Costs of establishing a company in Dubai for foreigners
Establishing a company in Dubai is considered an important strategic step for many foreign investors, given the distinguished business environment and advanced infrastructure that Dubai offers. However, foreign investors should be aware of company incorporation costs, which may vary based on several factors. Here is an overview of the various costs without mentioning specific numbers:
1. License fees: One of the major costs of setting up a company in Dubai includes licensing fees. These fees depend on the type of business activity and the legal form of the company. There are fees for issuing a commercial license from the Department of Economic Development or the relevant authority in the free zone.
2. Government approvals fees: Establishment costs also include fees related to obtaining initial and final approvals from the competent government agencies. These approvals are necessary to ensure that the company’s activity complies with local laws and regulations.
3. Rental costs: The costs of renting an office or commercial space are considered an essential part of the costs. The rent varies based on the location, size of the property and the type of business to be carried out.
4. Trade name registration costs: New companies must register their trade name with the competent authorities, and this includes paying registration fees. The trade name must be unique and not used by any other company.
5. Fees for preparing contracts and legal documents: Preparing contracts and legal documents, such as the articles of incorporation and the partnership agreement, requires notarizing them with a notary, which includes paying additional fees.
6. Costs of professional services: Many companies use professional services such as lawyers or consultants to facilitate the incorporation process and ensure compliance with all legal requirements. The costs of these services depend on the complexity of the procedures and the type of services required.
7. Chamber of Commerce registration fees: After issuing the trade license, the company must be registered with the Dubai Chamber of Commerce and Industry, which requires paying registration fees. These fees vary based on the type and size of the company.
8. Costs of opening a bank account: Opening a business bank account in Dubai requires paying some fees related to setting up the account and initial banking services. These fees vary based on the bank and account type chosen.
9. Insurance fees: Some commercial activities require obtaining certain insurances, such as fire or health insurance for employees. Insurance costs depend on the type and size of the business.
10. Other fees: There may be additional fees that include printing costs, office equipment, and initial advertising and marketing costs to establish the brand.
Documents required to establish a company in Dubai
Establishing a company in Dubai requires submitting a set of documents to the relevant authorities to ensure compliance with local laws and regulations. The documents required vary based on the type of business activity and the legal form of the company, whether it is a limited liability company (LLC), a branch of a foreign company, or a representative office. Below is a list of basic documents needed to establish a company in Dubai:
1. Copy of passport
Clear copies of passports must be provided for all partners or shareholders in the company. Copies must be signed by individuals and contain clear details.
2. Personal photo:
It is required to submit a recent personal photo of each partner or shareholder, which conforms to the standards of official photos.
3. Copy of residence visa
If either partner is a resident of the UAE, a copy of his or her residence visa must be submitted.
4. No Objection Certificate (NOC)
If one of the partners works in another company within the Emirates, a No Objection Certificate from the current employer may be required.
5. Articles of Association:
The company’s Articles of Association must be prepared, which specifies the details of the partners, the percentage of ownership, and the basic provisions for operating the company. The contract must be notarized by a notary.
6. Partnership Agreement
If there are multiple partners, a partnership agreement must be prepared that specifies the rights and obligations of each partner. This document guarantees the organization of the relationship between the partners.
7. Choosing a trade name:
An application must be submitted to choose and register the company’s trade name. The name must be unique, not used by another company, and must comply with local regulations.
8. Department of Economic Development (DED) approval:
Submit an application to obtain initial approvals from the Department of Economic Development. These approvals are necessary to conduct business.
9. Site Lease
A notarized lease must be submitted for the office or commercial location that will be used as a point of operation for the company.
10. Activity license
Depending on the type of commercial activity, obtaining an activity license from the competent authority such as the Department of Economic Development or the relevant authority in the free zone may be required.
11. Bank documents
For some activities, a bank certificate proving that the required capital has been deposited in a local bank account may be required.
12. Registration fees:
Provide receipts for payment of fees related to the registration process and issuance of the commercial license.
13. Additional documents
Some activities may require additional documents such as experience certificates or professional qualifications.
In conclusion of this article, we can conclude that setting up a company in Dubai for foreigners represents an important and exciting strategic step. Dubai has a strong reputation as a global economic hub, providing free zones and a business environment that attracts entrepreneurs and investors from around the world. By benefiting from soft investment laws and distinctive tax facilities, Dubai provides broad opportunities for success in several different economic sectors.
When investors plan to establish their company in Dubai, they find themselves faced with transparent and simplified incorporation procedures, supported by specialized consulting services and government support. In addition, Dubai offers advanced infrastructure and a strategic geographical location that facilitates efficient access to regional and global markets.
Frequently asked questions about establishing a company in Dubai for foreigners
What types of companies can foreigners establish in Dubai?
Foreigners can establish limited liability companies (LLC), branches of foreign companies, representative offices, and companies in free zones.
Can foreigners own 100% of the company in Dubai?
Yes, foreigners can own 100% of the company in the free zones and some specific activities outside the free zones after the laws are amended.
How long does it take to establish a company in Dubai?
Establishing a company usually takes from a few days to several weeks, depending on the type of activity and the legal form of the company.
Should foreigners get a local partner?
No, in free zones foreigners can establish a company without a local partner. Outside the free zones, some activities may require a local partner.
Is it possible to establish a company in Dubai without a physical presence in the Emirates?
Yes, a company can be established in free zones without the need for a physical presence, but opening a bank account and other procedures may require the presence of the owner in the Emirates.
