Costs of establishing a company in Dubai

Establishing a company in Dubai represents an important strategic step towards entering the active and growing business market in the region. Dubai features advanced infrastructure, leading laws in the Arab world, and a dynamic economic environment, making it a preferred destination for businessmen and investors. In this article, we will explore the world of company formation in Dubai and the costs of setting up a company in Dubai. The Emirate of Dubai is considered one of the most attractive locations for investors looking to build their companies in a dynamic and advanced business environment. Dubai is characterized by political and economic stability, advanced infrastructure, and policies that encourage foreign investment, making it an ideal stop for entrepreneurship.

In this article, we will detail the costs that investors may face during the process of establishing a company in Dubai . We will discuss the fees required for registration and licensing, rental costs, costs associated with legal and accounting consulting, as well as other expenses that must be accounted for during this process.

This article will be a comprehensive guide for investors looking to set up their company in Dubai, as it will provide them with a clear vision of the expected costs and steps needed to successfully start their business in this distinguished investment destination.

Establishing a company in Dubai

Establishing a company in Dubai represents a strategic investment step that attracts investors from all over the world. Dubai is characterized by a dynamic and advanced business environment, and is considered a global center for trade and investment thanks to its encouragement of innovation and provision of support for startups and large institutions alike.

When starting a company in Dubai, investors face many factors to consider. This includes choosing the appropriate company type, such as a limited liability company or a free zone company, and identifying the appropriate business activity that complies with local laws and regulations.

The expected costs of setting up a company in Dubai vary based on several factors, such as the type of company, the amount of capital required, rental costs, and necessary licenses. However, investing in establishing a company in Dubai is considered a smart investment due to the wide opportunities provided by the emirate, which allow companies to grow and expand at the local and global levels.

Steps to establish a company in Dubai

Establishing a company in Dubai is an important investment step that requires good planning and implementation. Dubai offers advanced infrastructure and a dynamic business environment, making it an ideal business destination. In this context, entrepreneurs provide the basic steps for establishing a company in Dubai:

1. Market study and research: Study the local market, identify available business opportunities, and analyze the competition. This helps you determine the line of work you are interested in and understand the market demand.
2. Choosing a company type: Decide whether you want to establish a sole proprietorship, a limited liability company, or a partnership, depending on your business needs and goals.
3. Choose a company name and verify its availability: Select a name for the company and verify its availability for registration. The company name must comply with local laws and regulations.
4. Choosing a location and free zone: Select the free zone in Dubai that suits your company’s activity and business requirements, and rent the necessary space.
5. Identify shareholders and submit personal documents: Identify the company’s shareholders and submit the required personal documents such as passports and identity cards.
6. Determine the business activity and obtain a business license: Submit an application to obtain a business license for the company’s activity at the relevant authorities in the free zone.
7. Submit the necessary documents for registration: Submit the required documents to register the company and obtain the necessary licenses according to the procedures specified in the free zone.
8. Define company structure and responsibilities: Define the company structure and responsibilities for shareholders, directors, and other employees.
9. Creating a bank account: Open a bank account for the company to carry out financial operations and settle business operations.
10. Compliance with tax and legal requirements: Ensure compliance with all local tax and legal laws and legislation related to the establishment and operation of the company.

Costs of establishing a company in Dubai

The costs of establishing a company in Dubai vary greatly depending on the type of company, its commercial activity, and its legal and administrative requirements. Here is an overview of the approximate costs of setting up a company in Dubai:

• Registration and licensing fees: These fees include company registration fees and obtaining the trade license from the relevant authorities in Dubai. These fees vary based on the type of company, its location, and its business activity.
• Capital: In some cases, a company must determine the capital necessary to establish it and achieve its goals. The required capital varies depending on the type of company and business activity.
• Rental costs: Rental costs relate to the location where the company will be located, such as offices or commercial space. Rental price varies based on location and space required.
• Legal and accounting consultation fees: The company may need legal and accounting consultations to ensure compliance with local laws and provide support in the incorporation process, and the cost of these consultations varies based on the service provider and the scope of the business.
• Visa and accommodation costs: These costs include the costs of obtaining work and residence visas for foreign employees if the company intends to employ them.
• Insurance and social security fees: Insurance and social security fees vary based on the size of the company and the type of business.
• Advertising and Marketing Costs: There can be advertising and marketing costs for a company to attract customers and increase brand awareness.
• Annual maintenance fees: These fees include fees for renewing licenses, commercial licenses, and other administrative fees necessary to maintain the company’s activity.

Costs vary depending on the type of company

The costs associated with setting up a company in Dubai vary based on several factors, including the type and size of the company, legal and administrative requirements, and local legislation. Here’s an overview of the costs of setting up some common types of companies:

1. Sole proprietorship: The initial costs of setting up a sole proprietorship are lower than other types, as they usually include registration costs, licensing fees, and rental costs if office space is needed.
2. Limited Liability Company (LLC): Establishing an LLC in Dubai requires relatively higher costs, which include incorporation and registration costs, licensing fees, and establishing the capital required from partners.
3. Subsidiary Company: If the company is a branch of an existing company, you may incur costs for setting up the branch which include registration fees, licensing costs, etc.
4. Company in free zones: Costs in free zones vary according to the policy of each zone, but generally can include establishment and registration fees, rental fees, and additional services provided.

Important papers to establish a company in Dubai

To establish a company in Dubai , there are several important papers and documents that must be prepared and submitted to the relevant authorities. Among these documents:

• Registration Application Form: The company registration application form must be completed and submitted to the relevant local authorities.
• Copy of the founders’ ID card: Registration procedures require submitting a copy of the ID card or passport of the main founders of the company.
• Authorization letter (if there is a commissioner): In the event that there is a commissioner or an attorney handling the incorporation proceedings on behalf of the founders, an authorization letter signed by the commissioner must be submitted.
• Partnership Agreement (if the company is a partnership): If the company is a partnership, a signed partnership agreement must be prepared between all partners.
• Incorporation document and articles of association: The company’s incorporation document and articles of association must be prepared, which contain details of the company’s structure and the rights and obligations of shareholders.
• Address proof certificate: The official address proof certificate must be submitted to the office where the company will be located.
• Necessary business permits and licenses: Some of the company’s commercial activities may require obtaining additional business permits and licenses.
• Power of attorney and authorization forms (depending on the case): In some cases, the company may need powers of attorney and authorization for lawyers, accountants, or other partners.

Our company services in establishing companies in Dubai

Itqan Company provides a comprehensive range of services for establishing companies in Dubai, seeking to facilitate the process and provide the necessary support to investors and businessmen. Among the services provided by Itqan Company for establishing companies in Dubai :

• Company Establishment Consultations: Itqan Company provides specialized consultations to investors on the necessary steps to establish companies in Dubai, including choosing the appropriate type of company, determining the main activity, and exploring appropriate free zones.
• Company registration and licensing: Itqan Company provides support in the processes of registering companies and obtaining the necessary licenses from local authorities, including preparing and submitting the required documents and following up on the procedures until they are completed.
• Providing legal services: “Itqan” company provides various legal services, including preparing contracts and agreements and documenting the legal documents necessary for company establishment operations.
• Human Resources Services: The company provides specialized services in the field of human resources, such as providing visas, preparing labor contracts, and providing support regarding work requirements and local laws.
• Accounting and financial services: Itqan Company provides integrated accounting and financial services that include preparing financial and administrative reports and providing financial consultations to help companies achieve their business goals.

At the conclusion of this article, we find that establishing a company in Dubai represents a strategic and important step for investors seeking success in a dynamic and evolving business environment. Although there are financial and administrative challenges, the vast investment opportunities and favorable economic environment make Dubai an ideal destination for establishing a business.

Company formation costs in Dubai vary based on many factors, including company type, business activity, and legal and administrative requirements. However, investors can plan their budgets well and choose appropriate options to reduce costs and achieve return on investment.

The most frequently asked questions about establishing a company in Dubai