How to open a company in Dubai

How to open a company in Dubai is an important strategic step for individuals and companies seeking to take advantage of Dubai’s distinguished location and the business opportunities available in this thriving global city. In cooperation with Itqan Company, the necessary support and guidance is provided to individuals and companies wishing to open a company in Dubai.

This great article aims to explore the methods and procedures for opening a company in Dubai in cooperation with Itqan Company. The article will highlight the required steps and requirements that must be provided to open a company in Dubai, including choosing the appropriate company type, registering the company, obtaining the necessary licenses, opening a bank account, and other basic procedures.

In addition, the article will focus on the role of Itqan Company in providing support and assistance in the process of opening a company in Dubai. The company will showcase its expertise and specialized services in providing the necessary consultations and guidance to individuals and companies at every step of opening a company, from strategic planning to implementing the plan and following up on operations.

In short, this great article includes a comprehensive look at how to open a company in Dubai in cooperation with Itqan Company. It will highlight the necessary steps and requirements and how the company supports clients in this process, giving them the confidence and knowledge necessary to build and develop their business in Dubai in a successful and effective manner.

How to open a company in Dubai

How to open a company in Dubai

Here are general steps to open a company in Dubai:

1. Feasibility study: Conduct a feasibility study to understand the local market and properly analyze the opportunities and challenges you may face in your proposed business.
2. Identify the business activity: Determine the type of business activity you wish to engage in and ensure that it is compliant with local regulations and laws in Dubai.
3. Choosing a company name: Choose an appropriate name for your company, make sure it has not already been used, and follow the procedures required to register it.
4. Determine the company structure: Determine the company structure, including partners, shareholders, and directors, and decide the type of company (sole proprietorship, limited liability company, partnership, etc.).
5. Establishing the company: Register the company with the Department of Commerce and Industry in Dubai, obtain the necessary licenses and permits, and determine the location of the company’s headquarters.
6. Compliance with Laws and Regulations: Ensure compliance with all local and federal laws and regulations in Dubai and the UAE, and consult legal experts if necessary.
7. Open a bank account: Open a bank account for the company to manage financial flows and business transactions, and ensure that the account meets the company’s needs.
8. Tax Registration: Follow the necessary tax procedures and register to obtain a tax identification number and comply with tax assessments.
9. Insurance and additional licenses: Make sure to obtain the appropriate insurance for the company and additional licenses required depending on the type of activity.
10. Marketing and Getting Started: Once the formalities are completed, promote your company and get started.

Types of companies that I can establish in Dubai

You can establish several types of companies in Dubai, some of which include:

1. Limited Liability Company (LLC): This is the most common company and requires financial contribution from partners. Foreign ownership may be limited.
2. Public Joint Stock Company (PJSC): This company is suitable for large companies that intend to go public and trade their shares on the stock exchange.
3. Private Joint Stock Company (PSC): Requires financial contribution from partners but must be of a certain professional nature.
4. Sole Proprietorship: Allows an individual to own and manage the business individually, with limited liability.
5. Sole Establishment: Allows an individual to own and manage the business individually without forming a partnership with anyone else.
6. Free Zone Company: Provides opportunities for companies to invest in various fields while obtaining tax facilities and exemptions.
7. Branch of a Foreign Company: Allows the foreign company to open a branch in Dubai to expand its activity.
8. Multinational Company: Allows companies to establish branches in Dubai and operate across borders.

Costs required to establish a company in Dubai

The costs required to establish a company in Dubai vary based on several factors such as the type of company, business size, and legal and administrative requirements. However, the main costs that may be necessary can be summarized as follows:

1. Registration and license fees: These fees include fees for registering the company and obtaining the necessary licenses from local and government authorities.
2. Real estate space costs: You may need to rent an office or commercial space for the company, and costs vary depending on the location and size of the space.
3. Costs of legal and advisory services: These costs can be related to providing legal advice, preparing legal documents, and assisting with the necessary legal procedures.
4. Initial management and operating costs: These costs include hiring the employees necessary to manage and operate the company, and providing office and technical supplies.
5. Necessary Capital: Some types of companies may require a certain amount of capital to start the business.
6. Initial advertising and marketing costs: These costs can be associated with advertising and marketing the company to potential customers.
7. Advisors and Brokers Fees: There may be fees for advisors or brokers assisting in the company formation process.

Permits required to practice commercial activity in Dubai

The permits required to conduct business activity in Dubai vary based on the type of activity and industry in which the company operates. However, here are some common permits that may be required:

1. Business License: This license is issued by the Department of Commerce and Industry in Dubai, and is considered essential for starting a business.
2. Municipal License: In some cases, a company may need a license from the local municipality to conduct business activity.
3. Construction and operating licenses: If the company manages facilities or engages in construction or engineering services, it may need special licenses from the relevant authorities.
4. Health and Safety Permits: In some industries such as restaurants or food industries, health authorities may require special permits.
5. Environmental permits: If the company operates in industries that may affect the environment, it may need environmental permits from the relevant authorities.
6. Labor and Immigration Permits: If you intend to employ foreign workers, you may need special permits from the Department of Labor and Immigration.
7. Safety and Security Permits: In some industries such as manufacturing or construction, a company may need special permits to ensure the safety of employees and facilities.

Open a company in Dubai

Taxes that companies must pay in Dubai

In Dubai, companies are subject to some local and federal taxes. Here are some taxes that may be required on companies in Dubai:

1. Value Added Tax (VAT): VAT was implemented in the UAE in 2018. The standard rate of VAT is 5% and applies to most goods and services.
2. Corporate Tax: Corporate tax in Dubai is imposed on companies and commercial establishments at a rate of 0% for companies operating in free zones, and at a rate of 10% for companies operating outside free zones.
3. Other local taxes: Other local taxes such as property tax and corporate rental tax may apply depending on local laws.
4. Other government fees: There may be other government fees such as registration, renewal and permit fees that companies must pay to the government.
5. Income Taxes: Income tax is imposed on individuals and companies at different rates depending on personal income or net profits of the company.

Legal and regulatory requirements for opening a company bank account

Opening a company bank account in Dubai requires compliance with certain legal and regulatory requirements. Here are some basic steps and requirements:

• Providing legal documents: These documents usually include the company’s commercial registration certificate, the company’s power of attorney form, and identity documents for key shareholders and directors.
• Providing personal information: People associated with the company must provide personal information such as passport and current address.
• Compliance with bank requirements: Banks may impose additional conditions such as a minimum deposit capital or the presence of a certain type of business activity.
• Submitting the application: The company must submit an official application to open a bank account and sign the required forms.
• Verification procedures: The account opening process may include identity verification procedures for shareholders and directors, in order to confirm the identity of persons associated with the company.
• Signing the agreements and conditions: Once the account is approved to open, company representatives must sign the agreements and conditions related to the account and use of banking services.

At the conclusion of this great article, it can be said that opening a company in Dubai in cooperation with Itqan Company is a strategic step that promises to open the doors of opportunities and achieve success in the thriving business market in Dubai. Itqan Company is a strong and reliable partner for individuals and companies wishing to open a company in this global city.

Through its experience and specialized services, Itqan Company provides comprehensive support in all aspects of the company opening process, from strategic planning to plan implementation and permanent follow-up of operations. The company helps choose the appropriate type of company, register it, obtain the necessary licenses, open a bank account, and provide advice and guidance at every stage of the process.

Thanks to this cooperation, opening a company in Dubai in cooperation with Itqan Company provides the opportunity to benefit from the high competitiveness, advanced infrastructure, and Dubai’s strategic location in the heart of global business. This move will help investors and businessmen achieve their goals and expand their business in the thriving Dubai market.

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