Establishing a company in Dubai represents an important strategic step for foreigners wishing to enter the booming business market in the UAE. Dubai is known for its dynamic economic environment and business-friendly legislative climate, making it an ideal destination for foreign investors who want lasting and profitable investments. Regarding the cost of setting up a company in Dubai for foreigners, investors need to be aware of the major expenses related to the process.

This cost includes registering the company, paying government fees, securing a headquarters for the company, as well as legal and financial consulting costs if necessary.

Foreign investors must also consider ongoing monthly costs such as business license fees, rent, labor costs and taxes. All of these factors affect the financial aspect of establishing and operating a company in Dubai, and must be taken into consideration while planning the process.

Although the cost of establishing a company in Dubai for foreigners may be related to establishing the company, the vast investment opportunities and distinguished business environment in Dubai are strong incentives for foreigners to continue investing in this dynamic and diverse market.

The cost of establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners is an important opportunity to invest in one of the fastest growing economies in the world. Foreigners have the right to establish and own 100% companies in Dubai, making it an attractive destination for entrepreneurship and capital investment.

When foreigners decide to set up a company in Dubai, they face many options and procedures. They can choose the appropriate company type according to the type of business and its requirements, such as a limited company, a company in a free zone, or a sole proprietorship. Each of these types of companies comes with its own unique advantages and legal and administrative requirements.

Establishing a company in Dubai provides foreigners with the opportunity to benefit from the dynamic economic environment, which is characterized by political and security stability, flexible legislation, and advanced infrastructure. In addition, the UAE government offers a range of incentives and facilities to foreign investors, facilitating the process of establishing and operating companies.

Establishing a company in Dubai for foreigners requires compliance with local legislation and laws, including obtaining the necessary licenses and permits and compliance with financial and accounting controls. Through good planning and cooperation with local consultants, foreigners can achieve sustainable success in establishing their company in Dubai and optimally exploit the available economic opportunities.

Conditions for establishing a company in Dubai for foreigners

Establishing a company in Dubai for foreigners requires compliance with some special conditions and requirements. Here are some basic conditions:

• Local partner or agent: Foreigners who want to establish a company in Dubai must obtain a local partner (sponsor) or a local agent. The local subscriber or local agent can be a natural person or a local company.
• Minimum capital: Foreign companies must sometimes specify a minimum capital to establish the company, and this varies between types of companies and activities.
• Work license: Establishing a company in Dubai for foreigners requires obtaining a work license from the local authorities, and this license varies depending on the company’s activity and location.
• Legal Requirements: Foreigners must adhere to all local laws and regulations governing the establishment and operation of companies in Dubai, in order to ensure legal compliance and avoid potential problems.
• Necessary documents: Foreigners must submit the necessary documents to the relevant authorities, such as a copy of the passport, a copy of proof of residence, and other required documents.

The cost of establishing a company in Dubai for foreigners

The cost of establishing a company in Dubai for foreigners varies based on several factors, such as the type of company, the activity it carries out, and the location you choose to establish the company (free zone or public sector). Here is an overview of some of the expenses you may encounter while setting up a company in Dubai:

1. Registration and license fees: These fees include registration fees in the commercial registry and fees for obtaining business licenses and other required licenses.
2. Necessary capital: Establishing some types of companies may require a certain amount of capital, and this can be part of the cost.
3. Consultation and legal services costs: You can rely on Itqan Company to assist in the establishment process, as you may need to pay the costs of consultation and legal services.
4. Head Office Costs: If a company needs a head office, it may incur costs for renting the office and associated services.
5. Bank account costs: There can be costs to open a company bank account, in addition to banking service fees.
6. Tax costs: You may need to pay required local taxes for businesses in Dubai, depending on activity and expected income.

It is important to ensure that you have a sufficient budget to cover these costs and contact us. We have experience in establishing companies in Dubai to obtain an accurate estimate of the expected costs. Remember that fees and costs are subject to change based on legal and economic developments.

Documents required to establish a company in Dubai for foreigners

To establish a company in Dubai as a foreigner, you must submit a set of necessary documents to the relevant authorities. Here is a list of basic documents required:

• Passport copy: A certified copy of the passport must be submitted to all foreign shareholders and directors representing the company.
• Copy of proof of residency: Shareholders and directors who have residency in the UAE need to submit a certified copy of their residency card.
• Business Plan: A comprehensive business plan must be submitted that explains the company’s proposed activity, goals and strategies.
• Collective agreement (if there is): If there are multiple shareholders in the company, a collective agreement that defines their rights and obligations may be required.
• Authorization to establish the company: If there is a person who intends to act on behalf of shareholders in the incorporation process, an official authorization must be provided to do so.
• Application form: The application form submitted by the competent government authority must be completed.
• A copy of the letter certified by the bank: A letter certified by the bank must be submitted proving the shareholders’ ability to finance the capital required to establish the company.
• Prior approval form (if necessary): In some cases, prior approval from government or regulatory agencies may be required.

Establishing a company in Dubai for foreigners

 

Foreigners can establish several types of companies in Dubai, and these types include:

1. Sole proprietorship: Foreigners can establish a sole proprietorship in Dubai, where the sole owner is one person.
2. Joint Stock Company: Foreigners can cooperate with local or foreign partners to establish a joint stock company, where the owners are the capital shareholders and profits and losses are divided between them according to their shareholding percentage.
3. Limited Liability Company: Foreigners can establish a limited liability company in Dubai, where shareholders bear liability up to a certain limit equal to the value of their capital contributions.
4. Free Company: Foreigners can establish a free company in the free business zones in Dubai, such as the Jebel Ali area or the Al Qusais area, as these companies enjoy many tax advantages and facilitating legislation.
5. Global Company: Foreigners can establish a global company in Dubai, which is a company that manages its operations outside the UAE and enjoys some tax and regulatory exemptions.
6. Investment Company: Foreigners can establish an investment company in Dubai to invest in various economic sectors, such as real estate, technology, and other industries.

The role of Itqan Company in establishing a company in Dubai for foreigners

Itqan Company is one of the consulting and lawyer companies specialized in the field of business and investment in Dubai and the United Arab Emirates. Itqan Company provides a wide range of services to individuals and foreign companies wishing to establish a company in Dubai. Here are some of the roles that Itqan plays in the process of establishing companies for foreigners in Dubai:

• Providing legal and advisory advice: Itqan provides comprehensive legal advice to foreigners on legal procedures and local legislation related to establishing companies in Dubai, including laws related to foreign investment and corporate regulation.
• Providing support in licenses and permits: Itqan Company provides assistance in obtaining the necessary licenses and permits to establish the company, including business licenses and other required government permits.
• Providing legal management services: Itqan Company helps clients prepare the legal documents necessary to establish the company, such as the incorporation contracts and agreements necessary to organize the company’s work.
• Guidance in choosing the appropriate legal structure: Itqan Company provides advice on the most appropriate legal structure for the company, whether it is a limited company, a company in a free zone, or an individual company, based on the needs and goals of the client.
• Guidance in financial and tax controls: Itqan provides guidance on local and international financial and tax controls related to establishing and operating a company in Dubai, and assists in filing tax reports regularly in accordance with local laws.

Tax benefits for companies established in Dubai for foreigners

Companies established in Dubai enjoy several tax advantages for foreigners, including:

• No corporate income tax: In Dubai, corporate income tax is not levied in most sectors, which means companies can make net profits without paying income taxes.
• Not imposing value-added tax (consumption tax) on some sectors: In the Emirate of Dubai, value-added tax (VAT) is not imposed on some sectors such as pharmacy, education, and healthcare, which means that companies in these sectors do not have to bear this tax.
• No capital gain tax: Dubai does not impose a capital gain tax, which means that companies do not need to pay taxes on profits made from the sale of assets or investments.
• International Tax Agreements: The UAE has signed tax agreements with many countries around the world, and this can provide some tax breaks for international companies operating in Dubai.
• Tax exemptions for free zones: Free business zones in Dubai provide a favorable tax environment, as companies in these zones can benefit from income tax exemptions, direct taxes, and other tax facilities.

In conclusion, the cost of setting up a company in Dubai for foreigners emerges as one of the main factors to consider when considering investment in this wonderful city. Dubai is considered one of the most attractive global destinations for entrepreneurship, and provides advanced infrastructure and a flexible legislative environment, making it a preferred destination for foreign investors.

The costs of establishing a company in Dubai vary depending on several factors, including the type of company, the type of business license required, and the consulting and legal services used. However, the costs can generally be summarized in the costs of government fees, legal advice, administrative services, office rental and staff.

It is worth noting that the cost of establishing a company in Dubai is considered well invested due to the great opportunities that the city provides in multiple fields such as trade, real estate, technology, and financial services. Given the well-developed infrastructure and clear legislation, foreign companies can thrive and grow sustainably in Dubai.

Hence, it can be said with confidence that the cost of setting up a company in Dubai for foreigners reflects a good investment that can lead to sustainable success and multiple growth opportunities in a diverse and dynamic global market.

The most frequently asked questions about establishing a company in Dubai for foreigners