Opening a company in Dubai for foreigners

Opening a company in Dubai for foreigners. This option is a strategic step with broad dimensions towards investing in the prosperous emirate of Dubai. Dubai has a strong reputation as an interesting investment destination, attracting investors from all over the world thanks to its vibrant business environment and flexible legislative policies. Dubai’s well-developed and regulated business system provides an ideal environment for foreigners seeking to establish their companies here.

One of the attractive aspects of establishing a company in Dubai for foreigners is the presence of many free zones that provide great flexibility and facilitate administrative procedures. In addition, Dubai offers attractive tax breaks and great facilities for new businesses, making it a preferred destination for international trade.

This article aims to explore the basic steps of opening a company in Dubai for foreigners, including the necessary legal requirements and administrative procedures. We will also address potential challenges and practical tips to facilitate this process and ensure the company’s success in the local and global market.

Opening a company in Dubai for foreigners

Steps to open a company in Dubai for foreigners

There are many steps necessary to open a company in Dubai for foreigners, and the most important of these steps are:

1- Determine the type of investment or project

So, by determining the type of investment and project you want to work with, you can find out what type of license you need, whether it is a professional, commercial or industrial license. These are the things that set out some of the necessary basics, but there are some things to keep in mind when deciding the type of investment, as there are some activities that require additional approval from other government agencies, such as food trading, jewelry trading, some veterinary activities and legal advice. Otherwise, there is a list of 2,100 activities in the Dubai Department of Economic Development that will help you find the activity you want.

2- Ownership

If you are a foreign investor and want to own the company 100%, you must establish your company in one of the free zones, as it is the only one that allows foreigners to own companies completely without the need for a partner or sponsor from the Emirates. There are some specific activities that you can do in the free zone, and there are about 45 free zones in the Emirates, in addition to more zones that will be opened.

If you need to work locally and obtain local licenses, you can obtain a license from the Department of Economic Development

3-Legal structure

It depends on your location and the type of work you do. There are some rules related to the formation of your company. If you want to establish a legal consulting company, you can do so as a subsidiary or as a stand-alone company. A single owner is not allowed to practice this activity.

4-Trade name

It is one of the most important things when working to establish a company. It is an important part of the legal procedures, as the name must indicate the nature of the company’s work, and this is what distinguishes one company from another.

5- Capital share

Sometimes, with some activities, the minimum capital is determined, but in most cases, you do not need this step, and you do not need to pay the minimum capital.

6- Buildings

After all these steps, which are the most important steps, it is necessary to find a suitable place to establish the company, and this place must have water, internet, and means of transportation passing through it, as the geographical location of the places has an important role in influencing the success of the company.

7-The work team

Sometimes, according to some laws of the Ministry of Economic Development, you need to appoint a manager to supervise the work and he will start work as soon as your company is registered, but in some activities you are not allowed to employ anyone, and this is according to the laws of the region in which you work.

The cost of opening a company in Dubai for foreigners

The cost of opening a company in Dubai for foreigners varies based on several factors, including the type of company, location, and services required. Here’s an overview of the factors that determine costs:

1. Registration and license fees: These fees include application fees and company registration fees with the Department of Economic Development (DED) or the chosen free zone.
2. Contract and documentation costs: These include the costs of preparing company contracts and other legal documents required for registration.
3. Consultation and legal services costs: You may need legal advice to help you prepare documents and ensure your compliance with local legislation.
4. Rent and office costs: If you plan to rent an office, you will need to pay rental costs and possibly insurance.
5. Administrative services and daily assistance costs: These costs include the administrative services needed to run the company on a daily basis.
6. Chamber of Commerce and Industry fees: Includes fees related to membership in the local chamber of commerce.
7. Banking services costs: related to opening a bank account for the company and the fees related to this service.
8. Visa and accommodation costs: If you need visas for shareholders or directors, you will have additional costs for this.

Tax advantages of opening companies in Dubai

Opening businesses in Dubai has attractive tax advantages that make it a preferred destination for global businessmen, including Saudi individuals interested in investment. Here are some of the key tax advantages of opening companies in Dubai:

• No personal income tax: In Dubai, there is no personal income tax, which means shareholders and directors can fully benefit from profits without a direct tax deduction.
• No corporate tax: In many free zones in Dubai, companies are exempt from paying corporate tax for up to 50 years, which contributes to enhanced profitability and economic growth.
• Freedom to transfer cash and profit: There are no restrictions on transferring money or profits abroad, which facilitates the effective management of international companies and international investments.
• Strong Governance Agreements: Dubai has a developed judicial system and international agreements that enhance governance and protect investor rights, which increases confidence in the business environment.
• Access to the regional and global market: Thanks to its strategic location, companies in Dubai can easily access regional and global markets, enhancing growth and expansion opportunities.

The best company for establishing companies

Itqan Company stands out as one of the most prominent companies in Dubai specialized in establishing and managing companies. Itqan is distinguished by its long and distinguished experience in this field, as it provides comprehensive services that include company establishment, account management, and legal and tax consultations. The team at Itqan is efficient and professional, and includes local experts who fully understand the legal and regulatory requirements in Dubai, helping clients achieve full compliance and success in their businesses.

Investment opportunities for foreigners in Dubai

Investment opportunities in Dubai are wide and diverse, making it a favorite destination for international investors. Here are some key opportunities:

• Real Estate: Foreigners can invest in residential and commercial properties in Dubai, with the potential to achieve good returns from rentals or sales.
• Financial sector: Opportunities to invest in the financial sector and banks, while providing advanced and innovative financial services to international investors.
• Technology and Innovation: Dubai encourages innovation and modern technology, providing opportunities to invest in startups and new technologies.
• Hospitality and Tourism: With the rise in tourism in Dubai, there are opportunities to invest in hotels, restaurants, and tourism services.
• Trade and Export: Dubai is a major commercial centre, providing investment opportunities in import, export and commodity trade.
• Renewable energy: Investors can benefit from investing in renewable energy projects supported by the Dubai government.
• Education and Health: Opportunities to invest in the educational and health sectors, while providing world-class services.

In conclusion, opening a company for foreigners is a strategic investment step with broad opportunities for success and expansion. Dubai has advanced infrastructure, favorable economic policies, and supportive business legislation, making it an ideal destination for entrepreneurship and achieving success in the global market. By adhering to legal and administrative standards, and consulting local experts, foreign investors can achieve full compliance and achieve business objectives with confidence in this entrepreneurial environment.

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