Establishing a small company in Dubai

٠٥ فبراير Establishing a small company in Dubai

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When it comes to starting a small business in Dubai, you need to consider several important aspects to ensure a successful start and a prosperous future for your business. Establishing a small business requires good planning and a clear understanding of the business environment in Dubai and the factors that must be considered for the success of the project.

First, you should determine the type of company you want to establish, whether it is a sole proprietorship, a joint stock company, or a limited liability company, according to your goals and business needs. Then comes the stage of studying the market and analyzing the financial aspects, where you must understand the attractiveness of your business idea in the local market and estimate the expected costs and revenues.

The importance of developing an integrated business plan that includes goals, strategies, and practical steps to achieve success cannot be overlooked. You should also consider marketing and promoting your business, whether through social media, traditional advertising or business partnerships.

Establishing small businesses in Dubai also requires dealing with legal and regulatory aspects, such as obtaining the necessary licenses and approvals from relevant authorities, and ensuring compliance with government laws and regulations.

In this article, we will generally discuss the most important aspects to consider when establishing a small business in Dubai, without going into details of the exact procedures, to provide you with a useful overview of how to start this wonderful journey towards entrepreneurship in Dubai.

Establishing a small company in Dubai

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Establishing a small company in Dubai

Establishing a company in Dubai requires following several steps and procedures. Here are basic steps to start a small business in Dubai:

Study the market and develop a practical plan:

Study the Dubai market and the industry you want to enter.
Develop a comprehensive business plan that includes goals, strategy, and expected costs.

Choose the company type:

Decide whether you want to establish a sole proprietorship or a partnership.
Choose the appropriate legal structure, such as a limited liability company (LLC) or sole proprietorship.

Name identification and registration:

Choose a company name and ensure it is available and conforms to local laws.
Register the company with the Dubai Economic Development Department (DED).

Securing approvals and licenses:

Obtain the necessary licenses and approvals from the competent authorities, such as work permits and industrial licenses.

Open bank account:

Open a company bank account in a local bank, and make sure it is used for the company’s financial operations.

Compliance with tax and financial regulations:

Ensure you register with the Dubai Tax and Customs Authority (FTA) and comply with local tax obligations.
Ensure compliance with financial regulations and submit the necessary financial reports.

Head office insurance:

Find a suitable office for the company, whether it is a temporary office or a permanent office, and ensure that all basic services are available in the office.

Recruitment and human resources management:

If needed, hire employees and manage human resources in accordance with local labor legislation.

Company promotion and marketing:

Develop a marketing strategy to promote the company and attract local and international customers.
Use social media and advertising campaigns to market your company.

These steps form a general framework for establishing a small company in Dubai. You should carefully research and consult with Itqan experts to ensure compliance with local legislation and the overall success of the process.

The cost of establishing a small company in Dubai

The cost of establishing a small business in Dubai can vary based on several factors such as the type of company, services required, and the advisory assistance you may need. Here’s an overview of some potential costs:

Licensing and registration fees: These fees vary based on the type of company, location, and planned activities. These fees may range from several thousand to several tens of thousands of UAE dirhams.
Virtual office or business address costs: In some cases, you may need to set up a virtual office or rent a business address to meet registration requirements, and this can be a source of additional costs.
Legal and accounting consultation fees: You may need to consult a lawyer or accountant to assist you with the incorporation and registration process, and this can come at a cost.
Transaction and government services fees: These fees include government services such as document attestation, professional licenses, etc., and can be a source of additional costs.
Insurance and Warranty Costs: You may need to purchase various insurances or provide financial guarantees to obtain certain licenses or to comply with certain laws and regulations.
Initial hiring costs: If you intend to hire employees at the start of the business, hiring costs include employee wages, health insurance costs, and fringe benefits.

Basic papers for establishing a company in Dubai

Establishing a company in Dubai requires following legal procedures and submitting a set of documents. Founders must review the requirements and ensure that they are met correctly to facilitate the process of establishing the company. Here is a list of documents that are usually required:

Registration application form: includes basic information about the company such as the company name, business activity, and contact information.
Copy of the passport of the general manager or legal official: It must be a certified copy of the passport issued by the relevant government.
Official authorization from the parent company: This authorization identifies the authorized person to represent the company in Dubai.
Company incorporation or notarized agreement: This document documents the company’s organizational structure and activities.
Letters of confirmation and authorization from the owner or owners: These letters must be provided to confirm the accuracy of the information and authorize management.
Letters of support and authorization from the company owner: This letter is necessary to confirm the validity of the information and authorize management.
Lease contract for office or business address: A lease contract for an office used as a business address for the company in Dubai must be submitted.
A copy of the operational plan or feasibility study: This is required in some cases to clarify the company’s goals and future plans.

Establishing a company in Dubai requires adherence to legal procedures and submitting the required documents correctly.

The different types of companies that can be established and their advantages

A table showing the different types of companies that you can establish in Dubai and the advantages of each type:

Type of Company	a description	features
Sole proprietorship	It is managed by one person who is responsible for all matters	– Low establishment cost – ease of management – commercial confidentiality of information – speed in making decisions
A limited liability company	Shareholders own shares and are not personally liable	– Shareholders’ liability is limited to the value of the shares they own – Providing legal protection for personal assets – Tax and regulatory advantages for some business activities
Public company	It works in multiple fields and the public can participate in it	– Raising capital by selling shares to the public – Opportunities for expansion and growth – Providing opportunities for investors to participate in profits by purchasing shares

These are some of the common types of companies in Dubai, and each type comes with its own features and details. But you should take into account that there may be additional legal or regulatory requirements that vary depending on the type of company and the nature of its activity.

Establishing a small company in Dubai

Most profitable business activities in Dubai for a small company

There are many business activities that can be profitable for a small business in Dubai, some of which include:

Tourism and Hospitality: The tourism and hospitality sector is one of the most profitable sectors in Dubai due to the continuous growth in the tourism industry and the increasing demand for events and luxury hotels.
Technology and Innovation: Technology and innovation startups can achieve great success in Dubai, as the emirate seeks to strengthen its role as a center for innovation and development of artificial intelligence and modern technologies.
E-commerce: With the increase in the use of the Internet and online shopping, small businesses operating in the field of e-commerce can have great profit opportunities.
Real Estate: Small real estate businesses can make good profits in Dubai, given the rapid growth in the real estate sector and the constant demand for properties.
Professional Services: Providing professional services such as legal consultancy, accounting, and digital marketing can be in high demand from SMEs in Dubai.

The business must be chosen carefully, and a careful feasibility study must be conducted to ensure the company’s success and profitability in the local market.

Licenses required to establish a small company in Dubai

The licenses required to establish small companies in Dubai depend on the type of business activity carried out by the company, and may include the following basic licenses:

Commercial license: This license authorizes the company to practice its commercial activity in Dubai, and the company must obtain it from the relevant authorities such as the Department of Economic Development in Dubai.
Municipal license: Some small businesses may require a municipal license, especially if the business involves food or public health activity.
Commercial advertising permit: The company must obtain a commercial advertising permit from the municipality to display its trademark and trade name in the appropriate place.
Professional permits: Some commercial activities may require professional permits from relevant authorities such as the Ministry of Health or the Civil Aviation Authority if the company operates in specific fields.
Building permit (if necessary): If you plan to establish a business that includes a workplace or warehouse, you may need a building permit from the municipality.

Our company services for establishing a small company in Dubai

Itqan Company offers a wide range of services to help you establish a small business in Dubai. These services usually include:

Business Consulting: Providing comprehensive consultations on the process of establishing a company and the necessary steps for that.
Company Registration: Help you prepare and submit all necessary documents and applications for company registration in Dubai.
Office Arrangements: Providing virtual office solutions or ready-made offices to be used as a company headquarters.
Business Licenses: Helping you obtain the necessary licenses from the relevant authorities in Dubai to legally practice your business.
Accounts and Taxes Management: Providing accounting and tax management services to help organize the company’s financial matters.
Human Resources Services: Help you manage labor and hire the employees needed for the company.
Company Marketing: Providing digital and traditional marketing strategies to help promote the company and increase brand awareness.
Training and development services: Providing training programs to develop employees’ skills and increase work efficiency within the company.

Establishing a small company in Dubai is an important and motivating step for ambitious entrepreneurs who seek to build their projects and achieve success in a dynamic and developed economic environment like Dubai. This step is exciting and full of challenges and opportunities, as establishing a small business requires a lot of care and good planning.

First and foremost, entrepreneurs must define the business idea accurately and clearly, and prepare a comprehensive feasibility study to evaluate the chances of success and sustainability in the market. They should also think about marketing and promotional strategies for the new company to attract potential customers and partners.

The basic aspects that must be taken into consideration are choosing the appropriate legal structure for the company, obtaining the necessary licenses and permits from the relevant authorities, in addition to organizing financial and accounting affairs accurately.

To achieve success, entrepreneurs must have a clear vision of their goals and strategies, be prepared to adapt to changes in the market and make the right decisions at the right time.

In short, establishing a company in Dubai is an exciting challenge that requires courage, determination, and good planning, and when implemented correctly, it can open new horizons for success and advancement in the business world.

The most important frequently asked questions about establishing a small company in Dubai

Can I establish a small business with low capital in Dubai?

Yes, it is possible to establish a small company in Dubai with low capital, as there are various options available to suit different budgets.

What are the different types of companies that I can establish in Dubai?

Sole proprietorships, partnerships, limited liability companies (LLC), public or private joint stock companies, and others can be established.

What are the fees and costs associated with setting up a small business in Dubai?

Costs vary based on the type of company and services required, and include licensing and registration fees, government fees, and legal consultation fees.