Establishing commercial companies

١٨ مايو Establishing commercial companies

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Learn about the steps for establishing commercial companies in Dubai because the United Arab Emirates has become one of the richest Arab countries, especially recently, after the discovery of oil and relied on its economy to attract many people to invest their money in it, as the new projects established are expected to achieve In the United Arab Emirates, profit rates are very high, as the United Arab Emirates is a country with a large number of foreigners and visitors, and this is in addition to its distinguished location, the stability of the political situation and the presence of excellent infrastructure. This has led to a lot to invest money in. However, to start a new business or project in the UAE, it is necessary to open a business and we will provide the main conditions for opening a company in the UAE. In this article, we will review the establishment of commercial companies in Dubai .

Establishing commercial companies in Dubai

Establishing commercial companies in Dubai

Establishing a company in Dubai can be an important strategic step to achieve success in a thriving global market. Itqan Company provides comprehensive support to entrepreneurs and investors in this field, which facilitates the establishment process and saves a great deal of time and effort. Itqan Company begins by providing specialized consultations to understand the appropriate type of company according to your business activity, whether it is a limited liability company or a company in a free zone. After determining the appropriate type, Itqan carries out registration procedures and submits the necessary applications to obtain commercial licenses from the relevant authorities in Dubai, including the Department of Economic Development.

In addition, Itqan provides its services in obtaining the necessary approvals from various government agencies, such as the Ministry of Economy, and facilitating dealing with office leasing requirements and legal contracts. The company also helps its clients open company bank accounts and provides advice on legal procedures and issuing visas. With its extensive experience in the local market and administrative procedures, Itqan ensures that your company establishment process is smooth and efficient, allowing you to focus on developing your business and growing in the dynamic Dubai market.

Types of companies in Dubai

Here is a table showing the different types of companies in Dubai:

Type	the description	Requirements
Limited Liability Company (LLC)	A company that separates personal liability from commercial liability. Its ownership can be shared between foreigners and citizens.	A local Emirati partner owns 51% of the shares, a commercial office, and a license from the Department of Economic Development.
Private joint stock company	A company can be owned by a specific group of individuals or entities, and is more flexible in managing the business.	It needs significant capital and registration on the Dubai Financial Market if it is looking to list in the future.
Public joint stock company	A company listed on the stock market and able to raise capital from the public.	Complying with capital market requirements, disclosing financial data periodically, and preparing regular reports.
Sole proprietorship	Wholly owned by one person, it has flexibility in management but its owner bears all risks.	License from the Department of Economic Development, commercial office, compliance with local laws and regulations.
A company in a free zone	A company established in one of the free zones in Dubai, and enjoys benefits such as tax exemptions and full ownership by foreigners.	Register in the selected free zone, commercial office, and adhere to the free zone policies.
Branch of a foreign company	An office of an international company, providing the same services as the parent company but following local laws.	Registering the branch with the Department of Economic Development, meeting local licensing requirements, and a financial report from the parent company.
Limited liability company in the free zone	A special type of free zone company, combining the flexibility of limited liability companies with tax advantages.	Registration in the free zone, owning 100% of the shares, commercial office, adherence to free zone policies.

Each type of company offers different benefits and is subject to its own legal and procedural requirements, so it is important to choose the most appropriate type based on your business goals and circumstances.

Conditions for opening a company in the Emirates

To open a company in the UAE, you need to follow a set of basic conditions and procedures. Here are the most important conditions:

Choose the type of company : Select the type of company you wish to establish, whether it is a limited liability company (LLC), a public or private joint stock company, an individual company, or a company in a free zone.
Choose a business : Choose the business activity your company will undertake. You need to specify the activity carefully as this affects the type of license you need.
Registration with the Department of Economic Development : You must register and obtain a business license from the Department of Economic Development (DED) in the emirate of your choice.
Obtaining approval from the competent authorities : You may need special approvals from other government agencies based on the type of business activity, such as the Ministry of Health or the Ministry of Education.
Renting an office or workplace : You must have an official office or workplace address in the Emirates. You can rent an office or rent space in one of the free zones.
Submitting the required documents : You will need to submit a set of documents including:
- Passports for owners and investors.
- Licenses or approvals for business activity.
- Lease contract for the company office.
- A certificate of approval from the bank (to prove capital).
Opening a bank account for the company : You need to open a bank account in the name of the company to facilitate financial operations.
Using a local sponsor (if needed) : If you are opening a company outside the free zones, you may need a local sponsor (Emirati partner) who owns a percentage of the company.
Appointing a manager or legal representative : Appointing a manager or legal representative responsible for managing the company.
Register with the Chamber of Commerce : Register your company with the local Chamber of Commerce for membership.
Obtaining work and residency permits : Make sure to obtain the necessary work permits and visas for employees.

Requirements vary slightly depending on the emirate and type of company, so it is best to consult Itqan’s company incorporation specialists for precise guidance.

Establishing commercial companies in Dubai

Establishing business companies in Dubai is of great importance for several reasons:

Strategic location : Dubai is considered a major commercial center linking the markets of the Middle East, Asia and Africa. Its strategic location makes it an ideal starting point for expansion into new markets.
Stimulating business environment : Dubai provides a modern and advanced business environment, with advanced infrastructure that includes ports, airports and logistics facilities. This enhances the efficiency of business operations and makes them smoother.
Tax exemptions : Dubai offers many free zones that provide complete tax exemptions on profits and distributions, which contributes to reducing operational costs and increasing profitability.
Full foreign ownership : In many free zones, foreigners can own 100% of the company without the need for a local partner, providing more complete control of the business.
Ease of procedures : Dubai is characterized by a government system that supports businessmen, as it provides easy and quick procedures for establishing companies compared to many other countries.
Multiple investment opportunities : Dubai is considered a center for investments in various sectors such as technology, real estate, tourism, and financial services, which provides broad opportunities for investors.
Advanced legal legislation : Dubai is characterized by modern and transparent legal legislation that supports investors’ rights and helps in resolving disputes effectively.
Attracting talent : Dubai provides an attractive environment for international talent thanks to its high quality of life, which helps companies attract distinguished talent.
Facilitating international trade : Thanks to international trade agreements and advanced ports, Dubai provides logistical trade facilities that make it an important connection point between global markets.

Establishing a company in Dubai can be an important strategic step for business success, as the city provides an ideal business environment that supports growth and expansion in the international market.

Investing in Dubai

Tips to start investing in the Emirates

To start investing in the UAE successfully, the following tips can be useful:

Understanding the local market : Study the local market and learn about economic trends and areas of high demand. Understanding market needs can help you make informed investment decisions.
Choosing the appropriate region : The UAE has free zones and non-free zones. Select the region that suits your business type in terms of facilities, taxes, and fees.
Learn about the regulations and laws : Make sure you understand all the laws and regulations related to investment and trade in the UAE. You may seek legal counsel to ensure you comply with all requirements.
Consult local experts : Collaborating with local advisors can have a significant impact on the success of your investment. They can advise on challenges and opportunities in the local market.
Good financial planning : Make sure to prepare a clear financial plan, including cost estimates and expected returns. You should have a contingency plan in case any surprises occur.
Pay attention to licensing and registration : Make sure to obtain all necessary licenses and permits. A professional counselor can help you speed up this process.
Building a strong network of relationships : Develop a network of professional relationships in the UAE. Participating in business and social events can open new doors and help you build useful relationships.
Innovate and adapt : Be prepared to adapt your strategy based on changes in the market and customer needs. Innovation can help you stand out from competitors. By following these tips, you can enhance the chances of your investment in the UAE being successful and achieving your investment goals.

In conclusion, Dubai is an ideal starting point for any investor seeking to establish a business in a dynamic and thriving environment. Thanks to its strategic location, advanced infrastructure, and policies that support entrepreneurship, Dubai provides tremendous opportunities for growth and success. By offering tax exemptions, enabling full foreign ownership, and simplifying incorporation procedures, Dubai contributes to facilitating companies’ entry into the market and enhancing their competitiveness. Investing in Dubai is not just a business move, but rather an investment in an environment that supports innovation and opens the doors to success wide. Therefore, if you are looking for a place that combines lucrative investment opportunities with extensive growth potential, Dubai is the perfect choice to realize your business ambitions.