Establishing a company in Dubai, procedures and conditions

Establishing a company in Dubai is a strategic and important step for investors and businessmen who seek to benefit from the dynamic economic environment and promising business opportunities in the city. In this comprehensive article, we will discuss together the process of establishing a company in Dubai in cooperation with Itqan Company.

In cooperation with Itqan, we will shed light on the basic steps for establishing a company in Dubai and the required legal and regulatory procedures. We will review the registration requirements, licenses, financial and legal conditions that must be adhered to. Itqan Company will provide specialized support and advice to investors, such as determining the appropriate type of company and helping to prepare the necessary documents and submit them to the competent authorities.

We will also discuss the benefits and facilities offered by setting up a company in Dubai, such as tax deductions, access to regional and global markets, and advanced infrastructure. We will also review the legal and regulatory systems that govern business in Dubai, including property laws, contracts and intellectual property rights.

The article will also discuss additional services provided by Itqan, such as banking and accounting services, human resources management, assistance in opening bank accounts and securing business licenses. The company will provide ongoing support and assistance to your company to achieve success and growth.

In short, this article will be a comprehensive reference for investors and businessmen who wish to establish a company in Dubai in cooperation with Itqan Company. The article will provide the necessary information and practical guidance for investors to make informed decisions and achieve success in establishing their company in Dubai.

Establishing a company in Dubai, procedures and conditions

Establishing a company in Dubai

Establishing a company in Dubai requires following several steps. Here’s an overview of the basic steps:

1. Choosing the type of company: Investors must choose the type of company that suits their needs, whether it is a sole proprietorship, joint-stock company, or partnership.
2. Choosing a company name: You must choose a unique and appropriate name for the company and ensure that it does not conflict with the names of other registered companies.
3. Submitting a registration application: An application must be submitted to register the company with the Department of Economic Development or other relevant authority, depending on the type of company.
4. Identification of shareholders and directors: The identity of shareholders and directors must be identified and the necessary documentation must be provided to confirm their identity.
5. Submitting the required documents: The required documents must be submitted to register the company, such as a copy of the passport for shareholders and directors, and the company’s articles of incorporation.
6. Payment of fees: Investors must pay the prescribed fees to register the company and obtain the necessary licenses.
7. Receiving the commercial license: After completing the procedures and paying the fees, a commercial license will be issued to the company.
8. Opening a bank account: The company must open a bank account in a local bank to facilitate financial operations.
9. Compliance with local legislation: The company must comply with all local regulations and legislation related to business, taxes, etc.

Types of companies that I can establish in Dubai

You can establish a variety of types of companies in Dubai, these types include:

• Joint stock company: It is a company whose ownership is divided into tradable shares among shareholders.
• Limited Liability Company: This company provides protection for shareholders’ assets, as they are not personally liable for debts and obligations.
• Sole Proprietorship: This company is managed and owned by only one person, and this person is fully responsible for debts and obligations.
• Subsidiary company: It is considered a branch of an original company located outside or inside Dubai, subject to the laws of the emirate and bearing the name of the parent company.
• Company in the free zone: These companies were established within the free zones in Dubai, and enjoy distinctive tax and regulatory facilities.
• Company in a specialized free zone: established in a free zone designated for a specific activity, such as a technology free zone or an industrial free zone.
• Private Joint Stock Company: Formed by a limited number of shareholders who know each other and work together in a specific activity.
• Collective Company: Managed by two or more people who share profits and losses according to a specified ratio.
• Closed joint stock company: It freezes the trading of shares and restricts their ownership to a limited number of shareholders.

What licenses do I need to establish a company in Dubai

The licenses you need to establish a company in Dubai depend on the type of business activity you intend to engage in. These are some common licenses you may need:

1. Business license: Every business activity needs a license from the competent authority, such as the Department of Economic Development in Dubai.
2. Building and construction license: If you plan to build an office, factory or warehouse, you may need a building and construction license from Dubai Municipality.
3. Environment, Health and Safety License: You may need a license from the competent authorities to ensure that your business activities comply with environmental, health and safety standards.
4. Advertising and Publicity License: If you intend to conduct advertising or promotional campaigns, you may need a license from the competent authorities.
5. Work License: If you intend to employ employees, you will need a work license from the Dubai Labor Department.
6. Land Use License: If you intend to use a specific place for commercial purposes, you may need a license from the relevant authorities.
7. Licensing of financial authorities: If you work in the field of financial services such as insurance or investment, you may need a special license from the relevant financial authorities.
8. Professional Activities License: If you work in professional fields such as medicine, engineering, or law, you may need a special license to practice your activity.

Taxes applied to companies in Dubai

In Dubai, companies are subject to a specific tax regime in accordance with the emirate’s legislation and applicable tax procedures. Below is an overview of the taxes that may be applicable to companies in Dubai:

• Value Added Tax (VAT): VAT was imposed in the UAE starting from January 2018, and the standard rate of tax is 5%. Businesses must register for VAT if their annual revenues reach the certain threshold required for registration.
• Corporate Tax: Currently, the UAE does not impose corporate tax on income or profits. However, some sectors such as banks and oil companies are subject to special taxes.
• Government fees and charges: There may be other government fees and charges applied to companies in Dubai, such as licensing fees, registration fees, transaction fees, etc. These fees vary depending on the type of business activity and local laws.
• Indirect taxes: In addition, there are indirect taxes such as cigarette and tobacco tax, car fees, environmental fees, and fines.
• Real estate fees: If the company owns real estate in Dubai, it may be required to pay real estate fees on an annual basis.

Conditions for establishing a company in Dubai

Legislation that must be adhered to when establishing a company in Dubai

When establishing a company in Dubai, you must adhere to a range of local legislation and laws to ensure legal compliance and business integrity. Here is an overview of some of the legislation that must be adhered to:

1. Federal Company Law: The Federal Company Law regulates the establishment and operation of companies in the UAE, including the conditions required for company incorporation, the rights and duties of shareholders and directors, and the laws related to accounting and financial reporting.
2. Local laws of Dubai: You must adhere to local laws and legislation in the Emirate of Dubai, which may differ in terms of legislative and procedural requirements for establishing a company.
3. Business licenses: You must obtain a license from the local authorities to practice the commercial activity concerned with your company, and ensure that the activity is compatible with local regulations and legislation.
4. Tax laws: You must adhere to the tax laws in force in the UAE , including registering the company for value-added tax if the company faces this obligation.
5. Contracts and Agreements: All contracts and agreements related to the company must be documented in accordance with local laws and to ensure the integrity of the interests and rights of all parties.
6. Labor Laws: Local labor laws must be adhered to regarding employee rights, financial and procedural duties for hiring employees and terminating contracts.
7. Intellectual Property Protection: The company’s intellectual property, trademarks, patents, copyrights, and trade secrets must be protected in accordance with local laws.
8. Commitment to financial reports: Commitment must be made to submit periodic financial and accounting reports in accordance with recognized local and international standards.

Advantages of establishing a company in Dubai

Establishing a company in Dubai can provide many advantages and benefits, including:

• Thriving Business Environment: Dubai has a thriving and diverse business environment, which provides various opportunities for growth and expansion in various sectors.
• Strategic Location: Dubai is strategically located in close proximity to emerging markets in the MENA region, making it an ideal hub for global trade.
• Advanced Infrastructure: Dubai has advanced infrastructure and excellent facilities, facilitating transportation, communication and logistics operations.
• Ease of incorporation: The procedures for establishing companies in Dubai are relatively simple and quick, which facilitates the process of starting a business.
• Government Facilities: The government in Dubai offers a range of facilities to companies, including tax exemptions and easy licensing procedures.
• Political and Economic Stability: Dubai has a stable political and economic environment, providing a safe and conducive environment for business.
• Cultural Diversity: Dubai’s population is culturally and linguistically diverse, which facilitates communication with clients and partners of different nationalities and cultures.
• Strong Local Market: Dubai has a strong and diverse local market, which provides growth and expansion opportunities for new companies.
• Free zones: Dubai provides a group of free zones that provide tax facilities and exemptions for companies.
• Modern Facilities: Dubai has a range of modern buildings and facilities that meet the needs of international companies.

At the conclusion of this comprehensive article, we conclude that establishing a company in Dubai in cooperation with Itqan Company is an exciting opportunity for investors seeking to benefit from the dynamic business environment and promising business opportunities in the city. Itqan works as a strategic partner that provides support and specialized advice in the process of establishing companies, which contributes to facilitating legal and regulatory procedures and providing the necessary guidance.

Establishing a company in Dubai opens doors to many opportunities and benefits, including tax deductions, access to local, regional and global markets, and advanced infrastructure. Dubai also provides a diverse and advanced business environment, which helps companies achieve success and growth.

Relying on Itqan’s experience and extensive knowledge of the local market, investors can benefit from its banking, accounting, human resources management services and assistance in securing commercial licenses. The company provides continuous support to companies to achieve success and continuity.

Therefore, establishing a company in Dubai in cooperation with Itqan Company represents a real opportunity for ambitious investors. Benefiting from the thriving economic environment and specialized support provided by Itqan helps achieve success and growth in the business market in Dubai.

The most frequently asked questions about establishing a company in Dubai