Ways to establish a company in Dubai for foreigners

With the development of Dubai’s economy and its attraction of international companies, Dubai has become a preferred destination for foreigners wishing to establish their companies in the Middle East. Opening a company in Dubai represents an exciting opportunity for investment and growth, which requires knowledge of the procedures, steps, and methods for establishing a company in Dubai for foreigners necessary for this.

In this article, we will take a look at ways to establish a company in Dubai for foreigners, with a focus on cooperation with Itqan as a reliable consulting partner. We will explore the main steps and important guidelines that foreigners must follow to achieve the success of their business venture in this vibrant city.

By exploring how Itqan can contribute to the process of establishing companies in Dubai, we will reveal the opportunities and challenges that foreign investors may face, and how they can be overcome thanks to the experience and distinguished services provided by this company.

Let’s explore together how foreigners can benefit from Dubai’s distinguished business environment and realize their dreams of establishing successful and prosperous companies in cooperation with Itqan.

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Investing in Dubai

Investing in Dubai is of great importance, as Dubai is considered the center of investment in the Emirates and is also a commercial and attractive area for investment in general and for locals in particular. Because Dubai represents one of the largest economies in the Middle East, it has become a beacon for everyone who wants to invest in it. There are several reasons that make investment Dubai is of great importance, and for these reasons:

Tax exemption : This is primarily one of the important reasons that any investor is looking for, as there is no such thing as a tax, as the UAE does not impose any taxes on establishing a company in Dubai for foreigners, as companies are completely exempt from any 100 percent tax entitlement for a period of up to 100%. Initially, it lasts up to five years, and may extend to the company being exempt from taxes for life.
Infrastructure strength : Dubai is considered one of the strongest cities in the Arab world and even in the Middle East in terms of the strength of its infrastructure, which makes it one of the best cities that attract investment, as it pumps a lot of huge capital in order to enhance the strength of its infrastructure and establish many projects. In Dubai in order to attract investors, the state has allocated approximately 230 billion dirhams to improve the infrastructure, including road networks and buildings.
Diversity of business facilities : Countries provide you with many business facilities that encourage investment in Dubai. This depends on the type of activity that you want to establish and also on the capital that you specify to establish a company in Dubai for foreigners. There are several aspects to this diversity, which include many luxurious and equipped business centers and also centers It is distinguished for shopping and many high-rise towers fully equipped for business. It is also distinguished by the diversity of industrial areas, as there are approximately ten free zones present in Dubai with a variety of activities between energy, media, information technology, and multiple logistical sectors.

Ways to establish a company in Dubai for foreigners

There are several ways foreigners can follow to establish a company in Dubai. Among these methods:

Establishing a sole proprietorship: Foreigners can establish a sole proprietorship in Dubai, where they will be the sole shareholders and ultimate administrators of the company.
Partnership with an Emirati citizen: Foreigners can cooperate with an Emirati citizen through partnership in establishing a company. The UAE national must be a minimum 51% partner in the company and has specific rights and responsibilities in accordance with local laws.
Establishing a company in a free zone: Foreigners can establish a company in one of the free zones in Dubai, such as the Dubai Investment Zone or the Dubai Technology and Media Free Zone (DITA), as these zones provide an easy investment environment and flexibility in legislation.
Establishing a company in the industrial zone: Foreigners can establish a company in the designated industrial zones in Dubai, giving them the opportunity to benefit from the infrastructure and services available in those areas.
Investing in an existing company: Foreigners can buy a share or invest in an existing company in Dubai, allowing them to enter the local market more quickly and exploit available opportunities.

Costs of establishing a company in the UAE

The costs of establishing a company in the Emirates depend on many factors. It is a variable calculation process according to the activity that you will choose and want to invest in, and also through the location. This is also due to the requirements of the place in which you decide to establish your company. The location plays an important role in determining the costs of establishing a company in the Emirates. Also, the area of land on which the company will be established, as free zones, for example, differ in their prices from other areas, and also the costs of establishing a company in Dubai for foreigners differ in their cost from establishing a company in Sharjah. There are several consumable items that determine the costs of establishing a company in the Emirates, which are:

The price of the land on which the company will be established or the rental amount for the area that you will choose for the project.
Pay the permanent license or instant license fees in Dubai.
Payment of commercial registration fees.
Monitor and create a company-specific study to determine the average capital and expenses that the company will need in the establishment stage
Paying all government dues in the procedures for establishing a limited company.
Also pay all new residence fees and any additional fees that may arise according to UAE law.

Legal requirements for establishing a company in Dubai

Establishing a company in Dubai requires adherence to some basic legal requirements, which may vary slightly depending on the type of company and business activity chosen. Here are a few common legal requirements:

Choose the company type: You must select the appropriate company type for the chosen business activity, such as sole proprietorship, joint stock company, partnership, limited liability company, etc.
Determine legal names: You must choose a legal name for the company and ensure that it is not similar to the names of other companies in the market.
Determine the location of the company: A valid legal address must be provided to be used as the company’s headquarters, whether it is an office or commercial space.
Determining investment capital: The investment capital necessary to establish the company must be determined, which varies according to the type of company and its activity.
Preparing legal documents: The necessary legal documents must be prepared to register the company, such as the articles of association, internal contracts, and incorporation documents.
Collecting licenses and permits: Some commercial activities may require obtaining special licenses or permits from the relevant government agencies.
Government agencies directives: You must comply with the directives of the competent government agencies and adhere to local legislation and regulations.
Tax Registration: You must register with the Federal Tax Authority to obtain a tax identification number and comply with local tax laws.

Advantages of establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners provides many advantages and opportunities, including:

Advanced investment environment: Dubai has an advanced and stable investment environment, which facilitates the process of establishing and operating companies efficiently and smoothly.
Strategic location: Dubai is located in the heart of the Middle East, making it a major connection point for global trade and a center for international business.
Advanced infrastructure: Dubai features advanced infrastructure and excellent facilities, including Dubai International Airport and Jebel Ali Port, facilitating transportation and distribution operations for companies.
Friendly tax policy: Dubai provides a favorable tax environment, as the emirate does not impose taxes on personal income and corporate capital, along with no value-added tax on most goods and services.
Political and economic stability: Dubai enjoys political and economic stability, adopts open policies for investment and encourages innovation and development.
Cultural and linguistic diversity: Dubai is a multicultural and multilingual destination, which facilitates communication and dealing with business partners from different countries.
Flexibility in laws and legislation: Dubai has flexible laws and simplified commercial legislation, which facilitates conducting business and creates a favorable environment for companies.

In short, the process of setting up a company in Dubai for foreigners requires a comprehensive understanding of the legal and regulatory procedures and guidelines. In cooperation with Itqan, foreigners can benefit from local experience and knowledge to facilitate the incorporation process and ensure compliance with all legal and administrative requirements.

Providing clear explanations and guidance on the required and expected steps, in addition to providing technical and advisory support during all stages of the process, helps achieve the success and sustainability of the company in the growing Dubai market.

Ultimately, the real value lies in fruitful partnerships, and Itqan Company’s cooperation with foreigners in establishing companies in Dubai represents a prominent example of this type of strategic partnerships.

If the UAE and Dubai offer an ideal environment for investment and business establishment, then the partnership with Itqan makes this journey smoother and more successful, which enhances economic development and contributes to achieving future goals with confidence and sustainability.