Starting a company in Dubai is an important strategic step for entrepreneurs and investors from all over the world. With its dynamic business environment and advanced infrastructure, Dubai offers great opportunities for startups to succeed. However, the process of starting a company can seem complicated at first, especially for those who are not experienced in this field. To simplify things, in this article we present to you the steps for starting a company in Dubai, divided into seven main steps. These steps will help you understand the process more clearly and make how to start a company in Dubai a smooth and straightforward step. From choosing the right type of company to obtaining the necessary licenses, we will provide you with a comprehensive guide to ensure the success of your project in one of the most vibrant and advanced cities in the world.

 

 

How to set up a company in Dubai in 7 steps

Establishing a company in Dubai requires following specific steps to ensure the process runs smoothly and efficiently. Here is a simple guide on how to establish a company in Dubai in 7 steps:

1. Determine the type of company and business activity: Determine the type of company you wish to establish (such as a limited liability company, a joint stock company, etc.) and determine the business activity you will undertake. Make sure that the activity is consistent with the activities permitted in the region or free zone you choose.
2. Choosing a location and registering in a free zone or onshore: Decide whether you want to register your company in a free zone or onshore. Free zones offer benefits such as 100% foreign ownership, while onshore areas require a local partner.
3. Choose a business name and obtain approval: Choose a trade name for your company that complies with local laws and regulations. You may need to obtain approval from the Department of Economic Development (DED) or the competent authority in the free zone.
4. Preparing documents and submitting the license application: Prepare all required documents such as passports, agreements, and lease contracts. Submit the license application to the relevant authorities, such as the Department of Economic Development or the administrative authority of the free zone.
5. Open a business bank account: Open a business bank account in the name of your company to manage your business funds. You will need to provide company documents and get confirmation from the bank.
6. Securing an Office or Workspace: Choose a location for your office or workspace based on your company’s needs. Make sure the location meets licensing requirements.
7. Obtaining the final license and registering the company: After completing all the previous steps, obtain the final license from the relevant authorities and register your company in the local commercial registers. Make sure to complete all the legal and administrative procedures necessary to operate the company.
   By following these steps, you can establish your company in Dubai effectively and easily, allowing you to launch your business in the world with confidence.

Documents required to establish a company in Dubai

Establishing a company in Dubai requires submitting a set of necessary documents to ensure that the process runs smoothly and efficiently. Here is a list of the documents required to establish a company in Dubai:

1. Copy of Passport: Valid passport for all partners and directors. Copies must be clear and translated into English if documents are in another language.
2. Personal Photos: Recent personal photos of all partners and directors.
3. Company Establishment Application: The company establishment application form must be filled out and submitted to the Department of Economic Development (DED) or the relevant authority in the free zone.
4. Articles of Association and Memorandum of Association: Drafting the articles of association and memorandum of association of the company, which include details of the partners, the company’s activities and its objectives. You may need to have the contract signed by a notary public.
5. Approval of the relevant authorities: Obtaining prior approval for the trade name and activity from the Department of Economic Development or the administrative body in the free zone.
6. Office or commercial space lease: A lease for the office location or commercial space that the company will use. The lease must be notarized and valid.
7. Power of Attorney (if applicable): If someone else is submitting the application on behalf of the partners, a power of attorney authorizing that person must be provided.
8. Business Plan: Some free zones may require a business plan that outlines the company’s goals, activities and future plans.
9. Proof of capital: Proof of the availability of the capital necessary to establish the company, which may vary depending on the type of company and its activity.
10. Additional Licenses (if applicable): Depending on the type of business, you may need additional licenses from other government agencies such as the Ministry of Health or the Ministry of Commerce.
    Be sure to check the requirements of each region or department, as requirements may vary slightly depending on the type of business and its location.

How long does it take to set up a company in Dubai?

The time required to establish a company in Dubai can vary based on several factors, including the type of company, location, and availability of documents. In general, the approximate time you may need can be divided into:

Planning and selection: 1 to 2 weeks.

Determine the type of company and business activity, choose a trade name, and determine the location of the office or commercial space.
Preparing documents and obtaining initial approvals takes 1 to 3 weeks. Collecting the required documents such as passports, personal photos, and lease contracts, and submitting a request to obtain the necessary approvals from the relevant authorities.

Registration and licensing procedures: 2 to 4 weeks.

Submit the license application to the Department of Economic Development or the relevant authority in the free zone, and receive the final license after reviewing the application and verifying the documents. Opening a bank account and setting up the office takes 1 to 2 weeks. Opening a commercial bank account in the name of the company and setting up the office or commercial space that will be used.
Based on these steps, the process of setting up a company in Dubai can take approximately 4 to 8 weeks. It is important to check any special requirements for the location or business activity to ensure that you are complying with all local regulations.

Itqan Company Services in Establishing Companies in Dubai

Itqan Company offers a comprehensive range of services for company formation in Dubai, helping to facilitate the process and ensure its smooth implementation. Itqan Company’s services in this field include:

1. Providing specialized advice on the best options for establishing companies, whether in free zones or onshore areas, based on the type of business activity and the client’s specific needs.
2. Preparing and submitting all documents required to establish the company, including articles of association, licensing applications, and other legal documents.
3. Providing advice and assistance in selecting and registering the company’s trade name in accordance with local laws.
4. Assistance in finding a suitable office or workspace and providing the necessary leases, whether physical spaces or virtual offices.
5. Providing support and assistance in opening a business bank account in the company’s name, including preparing the necessary documents and dealing with banks.
6. Providing management services for the procedures required to obtain the final license from the relevant government agencies, including the Department of Economic Development or the competent authorities in the free zones.
7. Providing specialized legal advice to ensure the company’s compliance with all local laws and regulations.
8. Assistance with employee recruitment procedures, including obtaining work visas and residence permits.
9. Providing license renewal services and updating business information according to changes or new requirements.
10. Providing administrative and procedural support and services after incorporation to ensure the company continues to operate efficiently.
    By using the services of Itqan Company, you can benefit from their expertise and in-depth knowledge of the local market and legal procedures, which makes the process of establishing a company smoother and more efficient.

Can foreigners establish a company in Dubai?

Yes, foreigners can set up a company in Dubai. There are two main ways to set up a company in Dubai based on your preferences and type of business:

Establishing a company in the free zones :

• Free Zones: Dubai offers several free zones that allow foreigners to fully own their companies without the need for a local partner. These zones offer benefits such as full ownership, tax exemptions, and ease of procedures.
• Types of companies: Includes limited liability companies (LLC), trading companies, consulting companies, etc.
  Establishing a company in the onshore areas:
• Onshore: In onshore areas, a local partner is required to hold 51% of the company’s shares, while foreigners can own the remaining 49%. This type of company provides an opportunity to avoid the restrictions of free zones and can be suitable for some business activities.
  Types of companies: These include limited liability companies (LLCs), joint stock companies, and others.
  In addition, foreigners must comply with all local licensing and registration requirements, provide necessary documents such as passports and passport photos, and sometimes obtain additional approvals depending on the type of business activity.

Providing assistance through consultants or specialized companies such as Itqan Company in establishing businesses can greatly facilitate the process, and ensure that you comply with all applicable regulations and systems.

In conclusion of our article on establishing a company in Dubai , we find that Dubai offers an ideal business environment thanks to its advanced infrastructure, encouraging economic policies, and the great facilities it provides to investors. By following the specific steps and ensuring that all legal documents and requirements are met, investors and startups can achieve success and prosperity in this distinctive global market. Whether you are looking for opportunities in free zones or want to establish a company in the mainland, Dubai offers multiple options that suit all types of businesses. Understanding how to establish your company and adhering to the necessary legal procedures will ensure you have a strong and promising start in one of the most vibrant and advanced cities in the world.