Costs of setting up a company in Dubai, opening a company in Dubai is a strategic option for many ambitious investors, whether from within the Emirates or from outside, due to the economic advantages the city offers as a global destination. Dubai is an attractive business environment thanks to its advanced infrastructure, organized legal environment, and great government facilities. But before making the decision to invest in Dubai, investors must understand the costs associated with setting up a company there, which is an essential step in the planning process.

The costs of setting up a company in Dubai vary depending on several factors, including the type of business activity, the chosen location whether in the free zones or on the mainland, and the size of the targeted company. Obtaining a trade license from the relevant authorities is the first necessary step, and the costs of this license vary depending on the nature of the business and the business activity. In addition, the investor must take into account the cost of renting an office or commercial space, which may also vary depending on the location and size required. In addition, the costs of opening bank accounts and registering the company with the relevant authorities are an essential part of the process.

Government fees can be a significant portion of the initial costs of establishing a company, including registration fees and special approvals, if any. The costs of any advisory and legal services that an investor may require must also be taken into account to ensure that the process runs smoothly and legally. To facilitate this complex process, Etqan offers comprehensive services to investors to help them overcome challenges and achieve success in Dubai’s economic environment, saving time and effort and ensuring compliance with all required procedures.

Basic steps to establish a company in Dubai

Establishing a company in Dubai is a strategic step for many investors and businessmen looking to enter a fast-growing global market. Dubai boasts a modern infrastructure and investment-friendly laws, making it a prime destination for setting up businesses across a range of sectors. In addition, the city offers a number of economic incentives, including free zones that provide investors with tax benefits and flexibility in establishing and managing their companies. To establish a company in Dubai, it is necessary to follow a set of important steps to ensure compliance with local laws and organize the business legally and appropriately.

Basic steps to establish a company in Dubai :

• Determine the business activity: The first step is to determine the type of business activity the company intends to engage in, as the UAE authorities define different business activities. The activity must comply with local laws.
• Choosing a legal form for your company: Choosing a legal form depends on the company structure, number of partners, and ownership. Options include limited liability companies (LLCs), branches, foreign companies, and more.
• Choosing a trade name: A trade name must be chosen that complies with the terms and laws specified by the Department of Economic Development (DED), and the name must not be used by other companies and does not conflict with the values ​​of society.
• Obtaining initial approvals: After determining the activity, legal form and trade name, you must apply for initial approvals from the relevant authorities.
• Preparing the Articles of Association: For some types of companies, such as LLCs, the Articles of Association must be prepared and notarized by the partners or investors. In the case of foreign branches, the parent company documents are submitted.
• Choosing an office location: Companies in Dubai must rent an office or commercial space. According to Dubai laws, a lease agreement attested by the local authorities must be provided.
• Obtaining a commercial license: Once you have completed the previous steps, you can apply for a commercial license from the Department of Economic Development. The commercial license is issued based on the type of activity chosen.
• Opening a bank account: The new company must open a business bank account in one of the local banks in Dubai.
• Obtaining work visas: If the company requires employees, work visas must be obtained for them. The number of visas available depends on the size and activity of the company.
• Registration with other government agencies: Some commercial activities require registration with other agencies such as the Chamber of Commerce or departments specializing in the activity.

By following these basic steps, you can legally and appropriately establish a company in Dubai to take advantage of the great investment opportunities the city offers.

Documents required to establish a company in Dubai

Setting up a company in Dubai is a vital and fruitful step for many entrepreneurs and investors seeking to benefit from the city’s thriving economic environment. Thanks to its flexible legislation and competitive advantages, Dubai has become an ideal destination for establishing companies in various sectors. However, before starting the incorporation process, it is important to ensure that the required documents are ready to ensure that the process runs smoothly and in accordance with local laws. The required documents vary depending on the type of company and location (whether in a free zone or on the mainland), but there is a basic set of documents that must be available.

Documents required to establish a company in Dubai :

• Copies of Passports of Partners and Shareholders: Clear and recent copies of passports of all partners and shareholders of the company must be submitted, as this is the basic document in registering identity.
• Copy of National ID (for residents): If one of the partners or shareholders is a resident of the UAE, a copy of the UAE National ID must be submitted.
• Recent Personal Photograph: A recent personal photograph is required for each partner or shareholder, as per the required government standards.
• Certified Lease Contract: A certified lease contract for the office or commercial space that the company will occupy must be submitted. This contract must be certified by the relevant government authorities such as Dubai Municipality.
• Business Plan (in some cases): For some businesses, a detailed business plan outlining the company’s goals and strategies may be required. This is especially true for businesses that require special approvals.
• Articles of Association and Memorandum of Association: Articles of association are required for limited liability companies (LLCs) and other companies with multiple partnerships. The articles should include details about the distribution of shares among the partners and management rights.
• Special government approvals: Some business activities require special approvals from relevant government agencies such as the Ministry of Economy or the Department of Tourism and Commerce Marketing, depending on the type of activity.
• Copy of the commercial license (in case of branches): If the new company is a branch of an existing company, a copy of the commercial license of the parent company must be submitted, in addition to papers proving the registration of the parent company.
• Authorization of Local Agent (in case of foreign companies): For foreign companies wishing to open a branch in Dubai, it may be required to appoint a local agent and submit an official attested authorization.
• No Objection Certificate (for residents): If a partner or shareholder is already working in the UAE and wishes to set up a new company, they may be required to provide a No Objection Certificate (NOC) from their current employer.

By submitting these necessary documents, investors can begin the process of establishing their company in Dubai, giving them the opportunity to enter a global commercial market and benefit from the region’s continued economic growth.

Our company’s role in establishing a company in Dubai

In conclusion to the costs of setting up a company in Dubai , it is important to emphasize that the costs are not just financial figures but a long-term investment that can yield significant returns for investors. Costs vary depending on the type of company, the chosen location whether within the free zones or on the mainland, as well as the business activities the company wishes to pursue. However, the great flexibility that Dubai offers to investors makes it a leading investment destination in the world.

Dubai offers advanced infrastructure and government support for small, medium and large enterprises alike, making it easy to set up businesses and providing a business environment that encourages growth. In addition, Dubai’s free zones offer multiple financial and tax benefits, which help reduce the financial burden on new businesses. It is also important for investors to consider the costs of trade licenses and rents, as well as company registration costs and other government fees.

To get the most out of your investment, it is best to work with a company that specializes in providing consulting and business services such as Itqan, which has extensive experience in helping investors overcome financial and legal challenges. Itqan offers a comprehensive package of services that include financial, legal, and administrative consulting, which facilitates the process of establishing a company and ensures compliance with all legal regulations in Dubai. Moreover, working with Itqan can reduce unnecessary costs and save time and effort, allowing investors to focus on developing their business.

Ultimately, setting up a business in Dubai is a unique investment opportunity, and with careful planning and cost consideration, it can be the key to business success in one of the most dynamic and innovative cities in the world.

Frequently asked questions about setting up a company in Dubai