Establishing a Company in Dubai for Foreigners When it comes to establishing a company in Dubai for foreigners, Dubai stands out as one of the best global business destinations thanks to its thriving economic environment and the facilities it provides to foreign investors. Establishing a company in Dubai represents a very meaningful strategic move given the vast opportunities the city offers for growth and expansion. In cooperation with Itqan Company, foreign investors can take full advantage of the experience and support provided by this consultant at all stages of establishing and operating the company.

Dubai is distinguished by its modern and advanced legislation that allows foreigners to own and manage their companies 100% without the need for a local partner, which enhances the freedom to make decisions and control the business. It also allows foreign companies to access a vibrant international market through advanced infrastructure and a strategic geographical location. In addition, Dubai offers attractive tax facilities that include significant exemptions on personal and corporate taxes for extended periods, making it an ideal destination for international business.

The process of establishing a company in Dubai requires compliance with a set of legal procedures and requirements, including submitting personal documents, preparing business plans, and obtaining the necessary approvals from the competent authorities. Itqan is a strategic partner for investors, providing specialized advisory advice and support at every step of the process, ensuring that the investment experience in Dubai is successful and fruitful.

Establishing a company in Dubai for foreigners

Types of companies that can be established for foreigners in Dubai

Dubai, as one of the most prominent economic destinations in the world, provides an advanced and diverse investment environment that attracts foreign investors from all over the world. Establishing a company in Dubai is an important strategic choice for foreigners who want to benefit from growth and expansion opportunities at the local and global levels. This gives them access to a vibrant international market and an economic environment characterized by stability and appropriate legislation. Types of companies that can be established for foreigners in Dubai

• Sole Proprietorship: This company is suitable for individuals who want to work alone without the need for partners. The owner bears full responsibility for the company and his property.
• Joint Stock Company: This company allows foreigners to form a company with other partners, where responsibility and profits are divided among the shareholders according to their shares in the company.
• Partnership: Allows a group of people to form a partnership to conduct business activities together. The partnership is determined according to the agreement concluded between the partners and each partner’s shares in profits and losses.
• Free Zone Company: It is considered one of the most popular options among foreign investors, as free zones in Dubai provide a distinct investment environment that allows foreigners to own and manage their companies 100% without the need for a local partner.
• Branch of a Foreign Company: Foreign companies are allowed to open branches in Dubai to practice commercial activities, while adhering to some local laws and regulations.

These types provide various options for foreigners wishing to establish companies in Dubai, and each type requires different procedures in terms of registration, licenses and responsibilities. These companies benefit from the advanced infrastructure and distinctive tax and economic facilities that Dubai provides, making it an ideal destination for international business and investment.

Basic steps to establish a company for foreigners in Dubai

Dubai is one of the most prominent global cities that attracts foreign investors thanks to its advanced business environment and the facilities it provides to foreign companies. Establishing a company in Dubai represents an important strategic step that allows investors to benefit from economic growth opportunities and access new markets on a global level. Basic steps to establish a company for foreigners in Dubai

• Choosing the type of company: Investors must determine the type of company they wish to establish, whether it is a sole proprietorship, a joint-stock company, a partnership, or a company in a free zone.
• Choosing a business activity: Investors must determine the proposed company activity, while adhering to the local laws and regulations that regulate this activity.
• Choosing a company name: An appropriate name for the company must be chosen that complies with local regulations and reflects the nature of the proposed business.
• Determine the financial contribution: The size of the financial contribution required to establish and operate the company must be determined in accordance with the requirements of local laws.
• Preparing the necessary documents: including personal documents of shareholders, business plans, shareholding agreements (if any), and any additional documents required depending on the type of company.
• Submitting a registration application: You must submit an official application to register the company with the competent government authorities, and pay the required fees.
• Obtaining licenses and approvals: After submitting the application, the documents and information provided are studied, and the necessary licenses and approvals are issued by the competent authorities.
• Opening a bank account: Investors are required to open a local bank account for the company to manage financial and business operations efficiently.
• Completing the legal procedures: Investors must complete all legal procedures related to establishing the company, including obtaining work and residence permits if necessary.

Establishing a company for foreigners in Dubai requires full compliance with local laws and administrative procedures, and the steps and requirements can vary based on the type of company and the activity it offers. It is important to retain legal counsel or a specialized consulting firm to ensure full compliance and success in this process.

Costs of establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners requires consideration of a range of different costs and factors that may affect the project budget. Here’s an overview of the main costs associated with setting up a company in Dubai for foreigners, without going into specific numbers:

 Licensing and registration fees
Licensing and registration fees are among the most important costs you will incur when establishing a company in Dubai. These fees include obtaining the necessary licenses from the competent government agencies, such as the Department of Economic Development or the authorities supervising free zones.

 Employment office and visa costs
To benefit from employment services and provide visas to workers, you need to contract with an employment services office or conduct employment procedures yourself. This may require additional costs including work visas and residency.

Rental and Equipment Costs
Most types of companies in Dubai require renting an office or commercial space. You will need to select a suitable location for your office and allocate a budget for office equipment, which includes furniture, electronics, and office equipment.

 Legal and accounting fees
Legal costs include preparing and drafting the legal documents necessary to establish the company, such as the articles of incorporation and the company’s bylaws. In addition, you may need accounting services to ensure compliance with financial regulations and VAT, if applicable.

Banking fees
When setting up a company in Dubai, you may need to open a company bank account. Potential fees include account opening costs and ongoing banking services such as account management and money transfers.

 Insurance costs
Insurance is an important component of protecting a company from potential risks. Costs may include asset insurance, liability insurance, and workers’ insurance.

 Marketing and advertising expenses
To attract customers and compete in the market, a budget must be allocated for marketing and advertising. This includes designing and developing marketing materials, advertising campaigns, and brand promotion.

 Government and administrative fees
Other costs may include fees charged by government agencies for various services, such as renewing licenses, certifications, and submitting administrative reports.

 Additional incorporation costs
These costs include any additional expenses that may arise during the incorporation process, such as special consulting, training, and any additional services you may need to achieve your business goals.

Establishing a company in Dubai for foreigners requires careful financial planning and a comprehensive understanding of the costs associated with each stage of establishment.

Tax and economic advantages for establishing companies in Dubai 

Documents required to establish a company in Dubai for foreigners

To establish a company in Dubai as a foreign investor, the process usually requires a set of basic documents that must be submitted according to the type of company and region you choose. Here is a list of the main documents you may need:

• Passport: The investor’s passport must be valid.
• Residence Permit: Some companies may require investors to prove valid residency in their country.
• Business license or licence: depends on the type of company and the scheduled activity.
• Contribution or partnership agreement (if any): If there is a partnership with other investors.
• Business Plan: A breakdown of the company’s goals and future financial plans.
• Financial certificates: Some companies may require proof of financial ability through bank certificates or bank letters.
• Other legal documents: such as powers of attorney and permits necessary to establish the company.
• Administrative and organizational plans: such as the company’s organizational structure and management plans.
• Necessary address: The address of the company office that must be specified in Dubai.

Tax and economic advantages for establishing companies in Dubai

Dubai is one of the most attractive global cities for investors thanks to its advanced business environment and the economic facilities it provides to companies. Investors who decide to establish companies in Dubai enjoy a range of tax and economic advantages that make it an ideal destination for international business and investment. Tax and economic advantages for establishing companies in Dubai

• No personal and corporate income tax: Dubai is a zone free of income taxes for individuals and companies, which enhances the city’s attractiveness for investors seeking financial profits without the burden of traditional taxes.
• Tax exemptions on capital and profits: Companies in Dubai can benefit from significant tax exemptions on capital and profits, which contributes to increasing financial returns for investors and promoting business growth.
• No Value Added Tax (VAT): To date, no Value Added Tax (VAT) is charged in Dubai, which reduces operational costs for companies and helps achieve international competitiveness.
• Ease of transferring profits and capital: Companies can easily transfer their profits and capital without major restrictions, making it easier to manage money and finance growth and expansion.
• Advanced infrastructure and strategic location: Dubai provides advanced infrastructure that includes transportation, communications and financial services, which contributes to facilitating business and providing services efficiently.
• Flexibility in commercial laws: Dubai has flexible commercial laws that allow ease of conducting business and commercial transactions, which helps in accelerating companies’ operations and achieving strategic goals.

To sum up, establishing a company in Dubai provides a wide range of economic and tax opportunities that contribute to attracting investors and promoting long-term business growth. By consulting a specialized company or legal advisor, investors can make the most of these opportunities and achieve success in the booming Dubai market.

The role of our company in establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners represents a thoughtful strategic investment that gives investors the opportunity to benefit from an advanced business environment and unique investment facilities. In cooperation with Itqan Company, foreign investors can rely on specialized advisory support at every stage of establishing and operating the company, ensuring full compliance with local laws and obtaining the best results.

During the company establishment process, a partner like Itqan plays a vital role in facilitating communication with government agencies and assisting in submitting the necessary documents, including the necessary incorporation contracts and licenses. It also helps the company prepare strategic and financial plans that ensure long-term business success.

Foreign companies in Dubai enjoy many advantages, including the possibility of full ownership and access to a global market through advanced infrastructure and supportive business legislation. In addition, Dubai provides a multicultural and diverse work environment, which contributes to attracting global human talent and promoting innovation and growth.

In conclusion, establishing a company in Dubai for foreigners is a fruitful strategic option that opens the doors of opportunities for economic growth and expansion on a global level. Thanks to the full support of Itqan, investors can achieve their goals efficiently and successfully in this dynamic and growing market.

Frequently asked questions about establishing a company in Dubai for foreigners