Dubai is one of the most prominent global investment destinations, providing a thriving economic environment and advanced infrastructure that make it an ideal place to establish companies. Dubai is an international business center that attracts investors from all over the world thanks to its strategic location and diverse tax and legislative advantages. Establishing a company in Dubai for foreigners represents a golden opportunity to achieve growth and prosperity, as the emirate seeks to facilitate legal procedures and provide the necessary support to ensure the success of commercial projects. In this article, we will review the basic steps for establishing a company in Dubai , in addition to the benefits and challenges that foreign investors may face in this process.

Establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners requires following specific steps to ensure compliance with local laws and facilitate procedures. Here are the basic steps to establish a company in Dubai for foreigners:

• You must specify the type of company you wish to establish, such as a free zone company, a local company, or an offshore company. Each type has different requirements and procedures.
• Determine the business activity your company will undertake. Approval for the activity must be obtained from the Department of Economic Development or the relevant free zone authority.
• Choose an appropriate business name that complies with local laws. The name must be unique and not conflict with existing brand names.
• Submit a request to obtain initial approvals from the relevant authorities, such as the Department of Economic Development or the Free Zone Authority.
• Preparing the required legal documents such as the company’s articles of association and articles of association. You may need to have these documents authenticated by the competent authorities.
• Determine the location of the office or facility from which the company will operate. This requires obtaining a lease notarized by the local authorities.
• Submit all documents and approvals to the relevant authority to obtain the commercial license. Procedures differ between local companies and free zone companies.
• After obtaining the license, a bank account can be opened for the company in a local bank.
• Registering employees with the Ministry of Human Resources and Emiratisation and obtaining the necessary visas and residency permits for them.
• Ensure compliance with all tax requirements, such as Value Added Tax (VAT) if applicable.
• By following these steps, foreigners can easily establish a company in Dubai and begin conducting their business activities in an environment supportive of growth and prosperity.

Can foreigners obtain full ownership in their company?

Yes, foreigners can obtain full ownership of their company in Dubai, thanks to recent legislation aimed at attracting foreign investment and boosting the local economy. There are two main types of companies that foreigners can wholly own:

Companies in free zones:

Free zones in Dubai allow foreign investors to own 100% of their companies. Companies established in free zones enjoy many advantages, such as full tax exemptions, full freedom to transfer funds, and facilities related to employment and labor recruitment.

Companies in Special Economic Zones (Mainland):

According to recent amendments to the UAE Commercial Companies Law, foreigners can now fully own their companies in many commercial and industrial activities within the Special Economic Zones (Mainland), without the need for a local partner. This requires checking the updated list of permitted activities published by the Dubai Department of Economic Development. These steps contribute to making Dubai an attractive destination for foreign investors and provide them with a business environment conducive to growth and success.

Conditions for establishing a company in Dubai for foreigners

Choosing the legal form of the company in terms of the most common form for foreign companies is the single person company (Sole Establishment) or the Limited Liability Company (Limited Liability Company). In addition to the main steps for establishing a company in Dubai for foreigners:

• Choosing a free zone or special economic zone: The company can be established in one of the free zones in Dubai, such as Jebel Ali or Dubai Multi Commodities. The company can also be established in the Dubai Special Economic Zone (DAFZA).
• Obtaining a commercial license: A commercial license must be obtained from the competent authority in the chosen free zone or special economic zone. Requirements for obtaining a license also vary based on the type of business activity.
• Fulfilling the legal requirements: Submit all required documents such as a copy of the passport and personal photos. Appointing a local Emirati manager for the company (in the case of a one-person company).
• Providing the required capital: The minimum required capital varies depending on the type of activity and the chosen free zone.
• Completing incorporation procedures: Completing incorporation procedures and obtaining the commercial register and necessary licenses.
  To obtain more details and assistance in establishing a company in Dubai, I advise you to contact legal consulting companies specialized in this field.

Cost factors for establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners requires taking into account several factors that affect the total cost. Here are the main factors that affect the cost of setting up a company in Dubai:

Type of Company

• Free Zone Company: Establishment costs vary based on the free zone chosen and the services provided.
• Limited Liability Company (LLC): Includes licensing fees, local partner (if applicable), and registration costs.
• Offshore company: Costs are usually lower, but include an annual registration fee.

License fees

Fees for obtaining a business license vary based on the type of business and region.
Annual commercial license renewal fees.

Required capital

• Some types of companies require a minimum paid-up capital, which must be deposited in the company’s bank account.
• Renting an office or facility in free zones or within the city.
• Costs of equipping and furnishing the office.

Costs of legal proceedings

• Fees for preparing and documenting legal contracts.
• Costs of translation and certification of documents.
• If the company requires a local service agent, such as LLCs, an annual agent fee must be paid.

Visas and work permits

• Fees for obtaining investor and employee visas.
• Medical examination costs and work permit fees.
• Legal and financial consulting fees.
• Fees for services of companies specialized in establishing companies and facilitating procedures (such as Atqan Company).

Taxes

• Although Dubai offers a favorable tax environment, there may be some fees such as Value Added Tax (VAT) if the business is covered by it.
• Office insurance costs and employee health insurance.

Facilities and services:

• Utility costs such as electricity, water, and communications.
• Administrative and office services fees.
• Considering these factors can help estimate the total cost of setting up a company in Dubai, and ensure appropriate financial planning to cover all legal and administrative aspects.

Tips for establishing a company in Dubai for foreigners

Establishing a company in Dubai is an important strategic step and requires good planning and familiarity with local laws and procedures. Here are some important tips for foreigners who want to establish a company in Dubai:

Research and planning:

• Conduct thorough research about the market and industry you intend to enter.
• Develop a clear business plan that includes goals, strategies, and financial analyses.
• Select the appropriate company type for your business, such as a free zone company, limited liability company (LLC), or offshore company.

Using consulting services:

• Use specialized consulting services, such as Atqan, to facilitate the company formation process and avoid legal problems.
• Choose a strategic location that suits your business. Free zones offer multiple benefits such as tax exemptions.
• Ensure compliance with all local laws and regulations. Register with the competent authorities and obtain the necessary licenses.
• Prepare the required legal documents such as the company’s articles of association and articles of association. Make sure to legalize these documents if necessary.

Budget and costs:

• Determine a comprehensive budget to cover all costs associated with establishment and operation. This includes licenses, rents, salaries, and services.
• Open a business bank account at a local bank to facilitate financial operations and capital management.
• Make sure to obtain the necessary visas and residency permits for you and the employees working in the company.

Networks and relationships

• Build relationships with the local business community. Partnerships and networking can help you achieve success and scale your business.
• Invest in marketing and brand building to enhance your market presence. Use digital and traditional marketing strategies to reach your target audience.
• Ensure compliance with all tax requirements, such as Value Added Tax (VAT) if applicable.
  Following these tips can help establish a successful and sustainable company in Dubai, while taking advantage of the thriving investment environment and opportunities available in the emirate.

Types of companies in Dubai

The importance of establishing companies in Dubai for foreigners

Establishing companies in Dubai for foreigners carries great importance and enhances many benefits that make Dubai an ideal destination for global investors. Here are some reasons why it is important for foreigners to establish companies in Dubai:

• Dubai offers an encouraging investment environment characterized by political and economic stability, in addition to laws and legislation that encourage foreign investment.
• Many economic and commercial activities allow full foreign ownership, especially in free zones and special economic zones, providing complete freedom in conducting business.
• Companies in Dubai enjoy attractive tax breaks, including no personal income tax and corporate tax in most cases, which enhances profitability.
• Dubai is strategically located linking Europe, Asia and Africa, making it a global business hub providing easy access to regional and international markets.
• Dubai has an advanced infrastructure that includes international airports and ports, and a modern transportation network, which facilitates logistical and commercial operations.
• Dubai provides many incubators and accelerators that support startups and provide financing, guidance and guidance to entrepreneurs.
• The economy in Dubai is diverse and not only dependent on oil, as it includes multiple economic sectors such as trade, tourism, real estate, and technology.
• Dubai has an effective and advanced legal system that guarantees investors’ rights and provides a transparent and fair business environment.
• Dubai provides a diverse labor market with the availability of skilled workers of different nationalities and backgrounds, which contributes to the growth and development of companies.
• Many financing opportunities are available from local and international banks and financial institutions that support startups, medium and large companies.
• Dubai offers a high level of quality of life with advanced educational and health facilities, and provides a safe and comfortable living environment for investors and their families.
• The government in Dubai provides continuous support to foreign investors through encouraging policies and effective government services that help facilitate the process of establishing and operating companies.

Establishing companies in Dubai for foreigners represents a strategic step towards achieving growth and prosperity in a global business environment. Thanks to its encouraging policies, advanced infrastructure, tax advantages, and strategic location, Dubai has become an ideal destination for investors from all over the world. Government facilities and continuous support enhance the ability of entrepreneurs to establish and manage successful companies. If you are looking for an opportunity to invest in a safe and stable environment that offers huge potential for growth, Dubai represents the perfect choice to realize your business ambitions and achieve sustainable success in a diverse and dynamic global market.

Frequently asked questions about establishing companies in Dubai for foreigners