Establishing a company in Dubai is an attractive strategic step for Gulf investors, as Dubai is considered one of the most prominent commercial and economic centers in the Arab world. The emirate provides an ideal business environment characterized by flexibility, low taxes, and advanced infrastructure, making it a preferred destination for business owners from various Gulf countries. In this article, we will discuss the basic steps and conditions that Gulf citizens need to know to start establishing a company in Dubai for Gulf citizens , starting from choosing the appropriate business activity and determining the legal entity of the company, all the way to fulfilling the legal requirements and registering with the relevant government departments.

 

Steps to establish a company in Dubai for Gulf citizens

Establishing a company in Dubai for Gulf nationals requires following a set of basic steps that ensure compliance with local laws and facilitate the process of establishing a business. Here are the main steps to establish a company in Dubai:

1. Choosing the type of business activity: The first step is to determine the type of business activity you wish to engage in. The activity must be compatible with the permitted activities in Dubai, and can include trade, industry, services, or professional activities.
2. Determine the legal entity of the company: Depending on the type of business activity, the legal form of the company must be determined, such as a limited liability company (LLC), a branch of a Gulf company, or a free zone company.
3. Choosing a trade name: A trade name must be chosen that complies with Dubai laws and reflects the type of business activity. The trade name must be registered with the Department of Economic Development.
4. Obtaining initial approvals: After determining the legal entity and trade name, initial approvals must be obtained from the competent authorities to practice the commercial activity.
5. Preparing the Articles of Association: Establishing a company in Dubai requires preparing an Articles of Association that defines the terms and conditions of the partnership between the owners or partners, and it must be documented with the relevant authorities.
6. Determine the company’s location: A suitable location for the company within Dubai must be chosen and a lease contract or ownership document for the site must be submitted. A location can be chosen within the free zones or within the city.
7. Submitting the required documents: Submitting all required documents, such as passports, lease contracts, and incorporation documents to the relevant authorities, such as the Department of Economic Development or the Free Zone Authority.
8. Obtaining a commercial license: After submitting all documents and paying the required fees, a commercial license is issued that allows you to start doing business.
9. Registration in the Chamber of Commerce: After obtaining the trade license, the company must be registered in the Dubai Chamber of Commerce and Industry to obtain the Chamber’s membership.
10. Opening a bank account: Finally, a bank account must be opened for the company in one of the approved banks in Dubai to facilitate financial transactions.

By following these steps, Gulf investors can establish their companies in Dubai legally and effectively, and benefit from the great opportunities offered by the emirate.

Conditions for establishing a company in Dubai for Gulf citizens

The requirements for establishing a company in Dubai for Gulf nationals include a set of legal and regulatory requirements that ensure compliance with local laws. The following are the basic requirements:

1. GCC Nationality: The company founders must be GCC nationals to benefit from the privileges granted to them in Dubai.
2. Selecting the business activity: The business activity that the company wishes to practice must be specified, and this activity must be one of the permitted activities in Dubai. Some activities may require additional approvals from the competent authorities.
3. Choosing a legal entity: Investors must determine the legal entity of the company, such as a limited liability company (LLC) or a sole proprietorship. This choice depends on the nature of the business and the number of partners.
4. Determination of capital: Some types of companies require a minimum capital, which must be determined according to the type of activity and the legal form of the company.
5. Business Location: The company must have a physical address in Dubai. This location can be in the city or in one of the free zones, and a lease contract or ownership document for the location is required.
6. Submitting legal documents: A set of legal documents such as passports, personal photos, and company articles of association must be submitted. Some activities may require additional documents such as experience certificates or special licenses.
7. Obtaining a trade license: A trade license must be obtained from the Dubai Department of Economic Development or the selected free zone authority. This requires payment of the necessary fees and submission of all required documents.
8. Registration in the Chamber of Commerce: After obtaining the trade license, the company must be registered in the Dubai Chamber of Commerce and Industry to obtain the Chamber’s membership.
9. Opening a bank account: Finally, a bank account must be opened for the company in one of the approved banks in Dubai to facilitate the company’s financial operations.

The availability of these conditions ensures that a company is established in Dubai in a legal and smooth manner, allowing Gulf investors to benefit from the emirate’s thriving business environment.

Advantages of establishing a company in Dubai for Gulf nationals

Establishing a company in Dubai offers many advantages to Gulf investors, making the emirate a preferred destination for businesses. Among the most prominent advantages are:

• No Taxes: Dubai offers a favourable tax environment, with no taxes on personal income or corporate profits, except for some specific sectors such as oil and banking.
• Full ownership: Gulf nationals can own 100% of the company within Dubai, without the need for a local partner, giving them complete control over their business.
• Global Business Environment: Dubai is a global business hub connecting Asian, African and European markets, making it easier for Gulf companies to access new markets.
• Procedural facilitation: Dubai provides advanced e-government services, which facilitates the process of establishing companies and completing transactions quickly and efficiently.
• Advanced infrastructure: The emirate has a world-class infrastructure including modern airports and ports, which enhances the ease of transportation, shipping and international trade.
• Economic and political stability: Dubai is characterized by its economic and political stability, which makes it a safe and reliable environment for long-term investment.
• Freedom to transfer funds: Gulf investors can freely transfer profits and funds without restrictions, which enhances the attractiveness of investing in Dubai.
• Cultural Diversity: Dubai has a diverse global community, providing a rich environment for communication and interaction with different cultures and ideas, and opening up new business opportunities.
• Availability of free zones: Dubai offers many free zones that provide additional benefits such as customs exemptions and special trade facilities.
• Education and Health Services: Dubai offers a high level of education and health services, making it an attractive destination for families to live and work in.

These features combine a flexible economic environment with advanced infrastructure, making Dubai an ideal choice for Gulf investors looking to establish successful and thriving companies.

Cost Factors of Company Formation in Dubai for Gulf Nationals

The cost of establishing a company in Dubai for Gulf nationals depends on a set of factors that affect the final total expenses. The most prominent of these factors are:

1. Legal entity type: Costs vary depending on the type of legal entity chosen for the company, such as a limited liability company (LLC), a sole proprietorship, or a branch of a Gulf company. LLCs typically require higher fees due to their legal complexities.
2. Location: The costs of setting up a company vary depending on the location, whether it is within the city or in one of the free zones. Free zones offer benefits such as customs exemptions, but registration and rental fees may be higher.
3. Capital: Some businesses require a minimum registered capital, which can impact the overall cost. Businesses with larger capital may require additional registration fees.
4. Licenses: The type of business activity determines the licenses required, the cost of which may vary depending on the nature of the activity. Some activities require additional approvals from regulatory authorities, which increases costs.
5. Government fees: There are government fees related to issuing a trade license, registering the company, and notarizing contracts and documents. These fees vary depending on the type and size of the company.
6. Rental Costs: The company must rent an office or workspace in Dubai. Rental costs vary greatly depending on the location and the size of the space required.
7. Legal Consultations: You may require legal consulting services to ensure full compliance with local laws, which constitutes an additional part of the costs.
8. Administrative costs: Administrative costs include preparing and drafting contracts, trade name registration fees, and documentation costs.
9. Bank account opening costs: Some banks charge fees for opening bank accounts for companies, and these costs may vary from one bank to another.
10. Insurance: In some cases, the company’s activity may require certain insurances such as accident insurance or employee insurance, which increases costs.

These factors combined affect the final cost of establishing a company in Dubai, so careful financial planning and choosing the right options are essential to ensure a successful establishment at the lowest possible cost.

Itqan Company Services in Establishing a Company in Dubai

Itqan offers a comprehensive range of services dedicated to company formation in Dubai , making it easier for Gulf investors to enter the Dubai market and benefit from the available investment opportunities. Itqan’s services include:

1. Legal and Commercial Consultations: Itqan provides specialized consultations that help Gulf investors choose the appropriate legal entity for their business activity, and ensure full compliance with local laws and regulations.
2. Company establishment procedures: Itqan manages all the procedures necessary to establish a company, starting from choosing a trade name, through obtaining approvals and licenses, and ending with registering the company with the relevant government authorities.
3. Document preparation and documentation: Itqan undertakes the preparation and documentation of all required documents, including incorporation and partnership contracts, to ensure that the process runs smoothly and without complications.
4. Providing a work location: Itqan helps in identifying suitable locations for the company, whether within the city or in the free zones, while providing support in obtaining and documenting lease contracts.
5. Banking Services: Itqan provides assistance in opening corporate bank accounts in Dubai, ensuring easy financial transactions and bank transfers.
6. Renewal of licenses and permits: “Itqan” provides follow-up and renewal services for commercial licenses and the necessary permits, to ensure business continuity without interruption.
7. Post-establishment support: Itqan’s role is not limited to the establishment phase only, but rather it continues to provide support to companies through consulting and administrative services that ensure the success and sustainability of businesses in the long term.

By choosing “Itqan”, Gulf investors can establish their companies in Dubai with confidence and peace of mind, while benefiting from the expertise of a specialized team that knows the details of the market and legal procedures in detail.

In conclusion, establishing a company in Dubai for Gulf nationals is a promising investment opportunity that opens wide doors for growth and success in a thriving and advanced business environment. Dubai offers many advantages that attract investors, starting with world-class infrastructure, tax and procedural facilities, and economic and political stability. Despite the costs and legal requirements, the potential returns and opportunities available make Dubai an ideal destination for achieving business ambitions. By taking advantage of these factors, Gulf investors can build a prosperous future for their companies in the heart of one of the most dynamic business centers in the world.

Frequently asked questions about establishing a company in Dubai