Establishing a company in Dubai for Saudis is one of the most important investments that Saudis are looking for. This is because Dubai has attractive factors for investment and free zones that are considered a fertile environment for investors. The UAE provides all facilities for Saudis who wish to establish a company in Dubai for Saudis, in the following lines. We will discuss the requirements and steps for establishing a company in Dubai for Saudis.

How to establish a company in Dubai for Saudis

Here are the steps to establish a company in Dubai for Saudis:

1. Market study and activity selection: Conduct a market study in Dubai to understand the opportunities and requirements.
2. Choosing the legal type of company: Choose the appropriate legal structure for your company, whether it is a sole proprietorship or a limited liability company.
3. Choosing and registering a name: Choose an appropriate name for your company and make sure it does not conflict with the names of other businesses in the area. Apply to register the name with the Department of Economic Development (DED).
4. Determine the capital contribution: Determine the capital contribution required to establish the company and submit it to the bank account.
5. Hire a legal advisor: Hire a legal advisor to help you understand local laws and regulations and ensure procedures are carried out correctly.
6. Preparing legal documents: Prepare the legal documents necessary to establish the company, such as the articles of association and articles of association.
7. Submitting an application to the Department of Economic Development: Submit an application to establish the company with the Department of Economic Development (DED), and submit the required documents.

Other steps to establish a company in Dubai

1. Obtaining licenses and licences: Obtain the necessary licenses to practice your business activity, whether in the field of industry or services.
2. Open a bank account: Open a company bank account in a local bank.
3. Residence Visa: Apply for a residence visa for yourself and any employees you plan to employ.
4. Office Establishment: Select a location for the company office and ensure all necessary facilities are available.
5. Compliance with tax obligations: Understand tax obligations and tax estimates and ensure compliance with them.
6. Social Security Registration: Submit an application to register the company in the Social Security system.
7. Chamber of Commerce Registration: Register the company with the local Chamber of Commerce.
8. Getting started: Once all procedures and licenses are met, you can officially start working.

Procedures for establishing a company in Dubai for Saudis

There are many procedures related to establishing a company in Dubai for Saudis, the most prominent of which are the following:

• Submitting all required papers and documents to the competent authorities, which is the Department of Economic Development.
• Pay the fees for obtaining the commercial license within thirty days from the date of submitting the application for the license.
• Registering the company in the UAE Chamber of Commerce and obtaining membership.
• Opening a commercial register for the company after receiving the commercial license.
• Provide all information regarding the company’s capital in the commercial registry.
• The validity of the commercial license begins from the day the payment authorization is issued.
• There is one payment authorization for all procedures related to obtaining a commercial license.

The cost of establishing  a company in Dubai for Saudis

The cost of setting up a company in Dubai for Saudis depends on several factors, including the type of company and services associated with incorporation. Here are some points that can affect the cost:

• Company type: Costs vary depending on the type of company you wish to establish, whether it is a sole proprietorship, a limited liability company, or a joint stock company.
• Economic sector: Some sectors may require additional licenses or additional costs, so these costs must be taken into account as well.
• Incorporation-related services: If you use the services of an incorporation company or consulting firm to assist with the procedures, there may be additional costs.
• License costs: There may be costs to obtain the necessary licenses from the relevant government agencies.
• Core capital: You may have to determine the core capital of the company, which may affect the cost.
• Taxes: Dubai has a favorable tax environment, but there can be some fees and taxes related to business activities.
• Residency and Visas: If you need a residence visa to work for your company, this process may also cost.

Licenses required for Saudi companies in Dubai

Licenses required for Saudi companies in Dubai

To establish a Saudi company in Dubai, you must follow specific procedures and obtain the necessary licenses. This requires cooperation with the relevant authorities and entities in Dubai and the United Arab Emirates in general. Here are some basic licenses that may be required:

1. Business License: You must obtain a license that allows you to practice the specific business activity in Dubai. This license can be obtained from the Dubai Economic Development Department (DED).
2. Office License: You must have an office or work space. An office license can be obtained from DED or a free zone if you choose to establish in one of the free zones.
3. Work Permit: Every employee or partner working in the company needs a work permit. The work permit is obtained from the Ministry of Human Resources and Emiratisation.
4. Value Added Tax (VAT) Registration: If you intend to provide services or sell goods in Dubai, you may need to register for VAT.
5. Registration with the Federal Authority for Identity and Citizenship: to register shareholders and employees in the company.
6. Special permits for special industries: Some industries may need special permits from the relevant authorities, for example, the food or medical industry.
7. Trademark Licensing: If you are using your own trademark, you may need to register it with the Dubai Intellectual Property Department.

Documents required to establish a company in Dubai for Saudis

You need a set of documents to establish a company in Dubai, and these documents may differ based on the type of company and economic activity. However, here is a general list of documents you may need:

1. Application form: An official form containing the details of the proposed company, the type of economic activity, and the signature of the founders.
2. Passports: Copies of passports of all founders and partners.
3. Photos: Recent photos of all founders.
4. Business Plan: A detailed document explaining the business plan, goals, and proposed activities of the company.
5. Certificate of Legal Person: If you intend to appoint a legal representative, a Certificate of Appointment of Legal Person may be required.
6. Partnership Agreement (if the company is a partnership): If there is a partnership, a signed partnership agreement must be provided.
7. Financial Statements: You may need to provide recent financial statements or a future financial plan, as needed.
8. Lease Contract: A copy of the lease contract for the company’s office or commercial space.
9. Founders’ statement: An official statement from the founders confirming the legality of establishing the company.

Tax advantages when establishing a company in Dubai for Saudis

Below are some of the tax benefits that may be available when establishing a company in Dubai for Saudis:

1. No personal income tax: In Dubai, no personal income tax is imposed on individuals, including Saudi businessmen who establish companies there.
2. No corporate tax: Companies in Dubai enjoy no corporate tax on profits, except for some specific sectors such as oil and gas.
3. No capital tax: Dubai does not impose a capital tax, which allows for more flexibility for businessmen.
4. Compliance with tax agreements: Dubai has signed several double taxation avoidance agreements, which improves the position of companies with regard to taxes.
5. No import or export fees: Dubai does not require fees on import or export operations, which facilitates international trade operations.
6. Not imposing value-added tax (VAT): In the UAE, value-added tax is not imposed on most goods and services, which enhances the tax attractiveness of establishing companies.

Tips for establishing a company in Dubai for Saudis

Before thinking about establishing a company in Dubai for Saudis, there are some tips that should be followed if you are thinking about investing in Dubai in order to get the best results from your investment, and they include the following:

• Conducting a feasibility study for investment activity.
• Consult economic specialists in the activity before starting it.
• Do not borrow money to start investment activity.
• Not putting the total capital into the project and keeping part of it.
• Do not expect to make money at the beginning of the business and accept losses.

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

In conclusion, establishing a company in Dubai for Saudis is an exciting and promising opportunity to benefit from investment and business opportunities in the Emirate of Dubai. Dubai has a thriving economic environment and flexible legislation, providing an ideal platform for business success.

Dubai provides modern and advanced infrastructure and innovative government facilities, which facilitates the procedures for establishing and operating companies. In addition, Dubai enjoys political and security stability, which enhances confidence and ensures a favorable investment environment.

Establishing a company in Dubai gives Saudis access to a wide market in the Middle East, North Africa and surrounding regions. Saudi companies can benefit from free trade, cooperate with local and international companies, and invest in promising sectors such as real estate, technology, tourism, financial services, and others.

Frequently asked questions about establishing a company in Dubai for Saudis