Establishing a company in Dubai for Saudis

١٣ يونيو Establishing a company in Dubai for Saudis

١٣ يونيو POSTED AT
Arabic
itqanadmin

Learn how to establish a company in Dubai for Saudis, because Dubai is considered one of the most prominent investment destinations in the world, as it offers a distinguished business environment and broad opportunities for establishing companies. For Saudi investors, Dubai represents an ideal starting point for expansion and innovation, thanks to advanced infrastructure, a flexible legal system, and great economic diversification. Establishing a company in Dubai offers tremendous opportunities for growth, thanks to the facilities provided by government agencies and the private sector. In this article, we will review the basic steps and opportunities available to Saudis wishing to establish their companies in Dubai, in addition to the facilities and services provided by the competent authorities to ensure the success of commercial projects. We will review a number of details about establishing a company in Dubai for Saudis .

Establishing a company in Dubai for Saudis

جدول المحتوى

How to establish a company in Dubai for Saudis

Establishing a company in Dubai for Saudis requires following several basic steps to ensure a smooth and efficient process. Here are the main steps:

Determine the type of company and its commercial activity : Before starting the incorporation process, you must determine the type of company (such as a limited liability company, joint stock company, or a branch of a foreign company) and the commercial activity that it will undertake.
Choosing a company location : You can choose between free zones or commercial zones. Free zones offer benefits such as tax breaks and 100% ownership, while commercial zones provide access to the local market.
Preparing the necessary documents : Incorporation requires collecting the necessary documents such as a passport, residence visa, proof of residence address, and a copy of the agreement signed with the local partner if necessary.
Submitting a company registration application : The registration application must be submitted to the Department of Economic Development in Dubai or the relevant authority in the free zone you have chosen. The application includes submitting the required documents, choosing the company name, and specifying the business activity.
Obtaining approvals and licenses : After submitting the application, you will obtain the necessary approvals from government agencies. Special licenses may also be required depending on the type of activity.
Opening a bank account for the company : After obtaining the license, a bank account must be opened in the name of the company in one of the approved banks in Dubai.
Insurance and employee registration procedures : You can complete health and social insurance procedures for your employees, and register them with the relevant government agencies.
Registration in the Chamber of Commerce : The company must be registered with the Dubai Chamber of Commerce to obtain membership and associated privileges.
Completion of legal procedures : Ensure that all legal procedures are completed and ensure that the company complies with local standards.

By following these steps, Saudis can seamlessly establish their companies in Dubai and enjoy the investment opportunities this global city offers.

Types of companies that Saudis can establish in Dubai

Here’s a table showing the types of companies Saudis can establish in Dubai, with details on ownership and location requirements:

Type of Company	the description	Property	the site
Limited Liability Company (LLC)	A company consisting of two or more partners, and the shareholders are responsible for the company’s debts to the same extent as their shares.	49% for foreigners, 51% for locals in non-free zones	They can be established in non-free trade zones
Private joint stock company	A company can be owned by a limited number of shareholders, and its shares are not tradable in the public market.	49% for foreigners, 51% for locals in non-free zones	They can be established in non-free trade zones
Branch company	A branch of a foreign company that is under the ownership of the parent company and operates under the same name as the parent company.	100% for foreigners, but the parent company must be foreign	It can be established in non-free trade zones and free zones
Sole proprietorship	A company wholly owned by one person, and the owner’s liability is unlimited.	It can be entirely owned by foreigners in free zones	It can be established in non-free trade zones and free zones
Free zones company	A company operating in a free zone, entirely owned by foreigners. It provides benefits such as tax breaks and sole proprietorship protection.	100% for foreigners	It can be established in any of the free zones in Dubai

Each type of company has its own licensing and registration requirements, and Saudis can choose the type that best suits their business goals and investment strategy.

Procedures for establishing a company in Dubai for Saudis

Submitting all required papers and documents to the competent authorities, which is the Department of Economic Development.
Pay the fees for obtaining the commercial license within thirty days from the date of submitting the application for the license.
Registering the company in the UAE Chamber of Commerce and obtaining membership.
Opening a commercial register for the company after receiving the commercial license.
Provide all information regarding the company’s capital in the commercial registry.
The validity of the commercial license begins from the day the payment authorization is issued.
There is one payment authorization for all procedures related to obtaining a commercial license.

Advantages of establishing a company in Dubai for Saudis

Establishing a company in Dubai offers many advantages for Saudis, making it an attractive destination for investment. Here are the most prominent features:

Full foreign ownership : In free zones, Saudis can own 100% of a company’s shares without the need for a local partner, providing full control of the business.
Tax exemptions : Dubai offers tax exemptions on profits and added tax (VAT) in free zones, which reduces operational costs.
Advanced infrastructure : Dubai is characterized by a modern infrastructure that includes transportation, communications, and technology, which contributes to facilitating business management.
Ease of procedures : Dubai simplifies incorporation and licensing procedures, making the process of establishing a company faster and more effective compared to some other countries.
Free trade environment : Dubai provides an open and competitive trade environment, providing opportunities for expansion and growth in new markets.
Access to Global Markets : Dubai’s strategic location as a bridge between East and West provides easy access to global markets, enhancing international business opportunities.
Ease of transferring funds : An advanced and easy banking system allows for transferring and investing funds, which enhances the company’s financial liquidity.
Intellectual Property Protection : Dubai provides advanced laws to protect intellectual property rights, ensuring the security of innovations and patents.
Government support : The Dubai government provides significant support to investors, including legal and administrative advice and guidance.
Benefit from trade treaties : Dubai adheres to a number of international trade treaties that provide additional trade benefits to investors.

In short, establishing a company in Dubai allows Saudis to benefit from a dynamic investment environment, tax advantages, and advanced infrastructure to support the success of their business ventures.

Conditions for establishing a company in Dubai for Saudis

Establishing a company in Dubai for Saudis requires meeting a set of conditions and procedures. Here are the most important conditions to take into consideration:

Choosing the type of company : Determine the type of legal entity you wish to establish, such as a limited liability company (LLC), a joint stock company, a branch of a foreign company, or a company in a free zone.
Determine the commercial activity : The commercial activity that the company will undertake must be determined, as this entails the type of license required and the necessary permits.
Providing personal documents : Personal documents such as a valid passport, residence visa, and proof of address (usually a utility bill or rental contract) are required.
Appointing a manager or agents : A general manager must be appointed for the company, and this manager can be a shareholder or a specific person.
Choosing a company name : You must choose a company name that complies with local laws, and not repeat it or use it for unauthorized purposes.
Submitting a registration application : Submit a registration application to the Department of Economic Development in Dubai or the relevant authority in the free zone you have chosen, along with submitting the required documents such as the articles of incorporation, commercial certificates, and any other documents.
Compliance with Local Laws : Must comply with all local licensing and tax laws and regulations.
Opening a bank account : Opening a bank account in the name of the company in one of the approved banks in Dubai.
Insurance procedures : Insurance of employees and property, if the company will employ workers.
Registration procedures in the Chamber of Commerce : Register the company in the Dubai Chamber of Commerce to obtain membership and associated privileges.
Registration in the value-added tax (VAT) system : If the company’s activity is subject to value-added tax, it must register in the VAT system and obtain a tax registration number. By following these terms and procedures, you can establish a company in Dubai legally and effectively.

Types of companies that Saudis can…

Tips for establishing a company in Dubai for Saudis

Here are some important tips for establishing a company in Dubai for Saudis to ensure the success of the process and achieve business goals:

Comprehensive research before establishing : Conduct a market study and comprehensive analysis of the sector you wish to enter. Understanding the local market and competition requirements will help you determine an effective business strategy.
Choosing the appropriate type of company : Determine the type of company that suits your business goals, whether it is a limited liability company (LLC), a joint stock company, a branch of a foreign company, or a company in a free zone. This will affect company ownership, costs and taxes.
Consult a legal advisor : Go to a legal advisor or lawyer specialized in corporate laws in Dubai who can provide you with the necessary advice about licenses and legal procedures, ensuring your compliance with all laws and regulations.
Choose the company’s location carefully : If you plan to establish a company in a free zone, choose the area that suits your business activity and provides the benefits you need. If you are in a commercial area, make sure you choose a location that meets the needs of your target market.
Prepare documents accurately : Make sure to prepare all required documents accurately and in the required language (usually in English and Arabic), such as passport, residence visa, proof of address, and articles of incorporation.
Opening a bank account early : Opening a bank account in the company’s name in one of the approved banks in Dubai early can speed up the establishment procedures and facilitate the management of financial affairs.
Tax and Licensing Compliance : Ensure compliance with all local tax laws and licensing requirements, including registering with the Value Added Tax (VAT) system if your business is subject to it.
Providing appropriate insurance : Company and property insurance, as well as employee health insurance, are essential to protect the business and ensure its continuity.
Good financial planning : developing a solid financial plan that includes determining the initial costs and expected operational costs to ensure the company’s stability and continuity.
Build a Network : Leveraging business and local networks, such as joining chambers of commerce and participating in industry events, can help build beneficial business relationships and expand your customer base. By following these tips, you can successfully establish a company in Dubai and achieve your business goals effectively.

In conclusion, establishing a company in Dubai for Saudis represents an important strategic step towards achieving success and growth in a global and prosperous business environment. Dubai provides an advanced investment environment that supports innovation and expansion, with the possibility of full ownership of the company in free zones, which enhances full control of the business and allows maximum benefit from commercial opportunities. By adhering to the required conditions and procedures, Saudis can benefit from the many benefits that Dubai offers, such as tax exemptions, advanced infrastructure, and government support. Dubai is an ideal starting point for success in global markets, making it a preferred destination for investment and business establishment.