Procedures for opening a company in Dubai

26 Mar Procedures for opening a company in Dubai

The procedures for opening a company in Dubai are an important strategic step for those wishing to start their business project in the Emirate of Dubai in the United Arab Emirates. Dubai is characterized by strong legislation and a developed business environment, and is considered a global center for business and trade. However, it is important to know the procedures necessary to open a company in Dubai and adhere to them correctly to ensure the success of the project.

The procedures for establishing a company in Dubai include several basic steps. First, the investor must decide what type of company he wants to establish, whether it is a sole proprietorship, limited company or partnership. After that, the investor must choose the company name and ensure its availability and acceptance by the relevant government authorities.

Then, the investor must obtain a license for the company’s commercial activity from the relevant government authorities, by submitting the required documents and adhering to the legal requirements and local legislation appropriate for that activity.

Procedures for opening a company in Dubai

Establishing a company in Dubai

The procedure for establishing a company in Dubai is an attractive strategic option for investors who want to expand their business and exploit business opportunities in regions with special preferences. Dubai is a special economic environment that provides unique advantages and privileges that attract local and international companies.

One of the most important advantages of establishing a company in a free zone is benefiting from the flexible and easy commercial policies and legislation that these areas provide. Thanks to these policies, administrative and organizational procedures are simplified and obstacles that companies may face in traditional business systems are reduced. A wide range of tax, customs and financial incentives are also offered to encourage investment and promote economic growth.

Moreover, Dubai provides advanced infrastructure and modern facilities that meet the needs of different companies. Offices, warehouses, industrial parks, specialized production areas, logistics centers, transportation facilities, and advanced communications are provided, which helps facilitate business operations and achieve efficiency and competitiveness.

Another aspect of establishing a company in a free zone is that companies can benefit from the flexible business rules and high international reputation of these areas. It is considered a center for global trade and attracts many international companies and foreign investors. This provides opportunities for companies to expand into new markets and develop strong international business networks.

However, investors must take some factors into consideration when establishing a company in a free zone. Among the important factors are understanding and complying with the terms and rules of the specific free zone, obtaining the necessary licenses and permits, and determining the company’s legal, financial and labor needs. Establishing a company in the free zone also requires familiarization with local and international standards and laws related to trade and investment.

Types of licenses required to establish a company in Dubai

Establishing a company in Dubai requires  obtaining a number of required licenses and permits. However, the local laws and regulations of the specific free zone must be consulted, as requirements can vary between different emirates depending on local legislation. Here are some common licenses that may be required to set up a company in Dubai:

1. General Commercial License: Allows the company to conduct its commercial activities in Dubai.
2. Professional activity license: Allows individuals practicing liberal professions, such as a doctor or lawyer, to practice their work.
3. E-commerce license: Allows companies to sell goods and services online.
4. International Trade License: Allows companies to engage in international trade from within Dubai.
5. Contracting license: Allows companies to implement building and construction projects.
6. Wholesale and retail trade license: allows companies to sell goods wholesale or retail.
7. Services license: Allows companies to provide services such as consulting or maintenance.
8. Restaurant or café license: Allows restaurants and cafés to serve food and drinks.

Other licenses are for specific activities, and needs can change based on local government laws and regulations. It is important to consult with Itqan expert consultants or a local business analyst to obtain appropriate advice about the licenses required for your potential company.

Procedures for opening a company in Dubai

Procedures for opening a company in Dubai

Here are some general procedures that you need to take to open a company in the Emirate of Dubai in the United Arab Emirates, and you can rely on the experts of Itqan Company who will facilitate for you everything you need in this field. Here are the most important procedures for establishing a company in Dubai:

1. Choosing the type of company: You must select the type of company you want to establish in Dubai, such as a local company, a limited liability company, a general company, or a joint venture company.
2. Company Name: Select a name for your company and ensure that it complies with Dubai’s laws and regulations. The availability of the name must be checked and registered with the competent authorities.
3. Partners and Shareholders: Identify the partners or shareholders in the company and determine their shares in the capital and their responsibilities.
4. Contracts and Agreements: Prepare and sign the contracts and agreements necessary to establish the company, such as partnership contracts or corporate contracts.
5. Business location: Choose a location for the company in Dubai and ensure that the appropriate license is available for the business activity you wish to practice.
6. Licenses and Permits: You may need to obtain different licenses and permits depending on the type of company and business activity you are in. These can include a business license, building license (if you need to erect a building), customs and import/export license (if you work in this field), business license, and others.
7. Subscription to the competent authorities: You may need to subscribe to the local competent authorities, such as the Dubai Chamber of Commerce and other relevant government bodies.
8. Residence visas: You may need residence visas for foreign shareholders and employees you intend to employ in the company.
9. Bank Account: Open a company bank account in one of the recognized banks in Dubai.
10. Registration and final licenses: You may need to submit a registration application and obtain final licenses from the competent authorities in Dubai.

Choosing the right type of company in Dubai

Choosing the appropriate type of company in Dubai depends on several factors, including the goal of establishing the company, the size of the available investment, the desired financial responsibility, and local legal restrictions. Here are the most popular types of companies in Dubai:

1. Sole Proprietorship: Managed and owned by one person, with one financial officer and unlimited liability.
2. Limited Liability Company: consists of partners who share profits and losses, but whose liabilities are somewhat limited.
3. Joint stock company: It is financed through shares owned by shareholders, and financial responsibility is limited to the size of the investment.
4. Free Company: It allows individuals of different nationalities to establish companies within free zones in Dubai, while providing some tax and commercial benefits.
5. Real estate company: used to invest in real estate, and requires special licenses from the relevant authorities.

Choosing the appropriate type requires advice from Itqan specialists, as the chosen type must be in line with the business objectives and personal circumstances of the founders.

The difference between the types of companies in Dubai and in the free zone

Here is a table showing the difference between types of companies in Dubai and companies in free zones:

Please note that this information is based on current laws and regulations and may change as circumstances and legislation change. Therefore, it is always preferable to consult with Itqan Company, which is one of the best companies working in the field of company establishment procedures in Dubai before taking any legal or financial step.

Determine the location and business address of the company in Dubai

Determining the location and business address of your company in Dubai is a crucial step in the company establishment process, as it must comply with local regulations and laws. Here are some tips for choosing a location and business address:

1. Choosing the appropriate area: Determine a commercial area that suits your company’s activity and is suitable for attracting customers and employees.
2. Ensure compliance with local laws: Ensure that the address complies with local regulations and laws regarding opening businesses.
3. Determine the exact address: The address must be clearly specified, including the unit number and street name.
4. Infrastructure search: Checking the availability of basic services such as electricity, water and communications at the specified location.
5. Paying attention to parking: Ensuring that there are parking spaces available for customers and employees.
6. Availability of additional services: The presence of additional services such as restaurants or shops near the site can be an added advantage.
7. Local Consultation: It is beneficial to consult an Itqan Local company for guidance on choosing the appropriate location and business address. By choosing a suitable location and business address, this can be the first step towards building a successful business in Dubai.

At the conclusion of this article, we can emphasize the importance of opening a company in Dubai as one of the most prominent economic and commercial destinations in the world. Dubai provides a vibrant and encouraging business environment for investors, making it an ideal place to start a business. However, the process of opening a company requires a good understanding of local laws and regulations, and adherence to the necessary legal and administrative procedures.

When making the decision to open a company in Dubai, it is important to carefully research and consult with a competent lawyer or legal advisor, to ensure that you make the right decisions and take into account all legal and regulatory aspects related to your business. If the right steps are followed and the laws are adhered to, opening a company in Dubai can be a successful step towards building a thriving business and a promising future in this amazing emirate.

The most important frequently asked questions about the procedures for opening a company in Dubai: