How to Open a Company in Dubai

How to Open a Company in Dubai
29 November 2023

In the rapidly expanding business world, establishing a company in strategically important regions like Dubai has become a crucial element of international expansion. In this article, we will outline the key steps and strategies that will help you successfully open a company in Dubai, ensuring impressive growth for your business.

Why Dubai?

Dubai is a magnet for entrepreneurs due to its strategic geography, economic stability, and innovative infrastructure. Our company aims to share deep insights into why Dubai is an excellent location for your business.

Step 1: Market Research Preparation

Before venturing into business in Dubai, thorough market research is essential. Identify demand, study competition, and pinpoint the key characteristics of your target audience.

Step 2: Types of Companies

  • Mainland Company

A mainland company in Dubai is a business registered and operating in the main part of the emirate, outside free economic zones. A crucial aspect of mainland companies is their close connection to the local market and broader opportunities for customer attraction. They must comply with UAE legislation and typically require a local sponsor.

  • Free Zone Company

A company in a free economic zone provides entrepreneurs with a higher degree of autonomy and privileges. It is exempt from certain restrictions applicable in the mainland. More flexible ownership rules and a tax-free profit policy for a specific period make this option attractive to international businesspersons.

  • International Business Company (Offshore)

An international offshore company in Dubai offers unique tax benefits and confidentiality. It can operate beyond the UAE, facilitating global operations. It is important to note strict standards and requirements for opening and managing an offshore company, including compliance with international transparency and financial reporting standards.

How to Open a Company in Dubai

Key Considerations in Choosing

The choice between a mainland company, a free zone company, and an international offshore company depends on your business goals, strategy, and territorial needs. Our experts will help you determine the optimal option and provide support at every stage of creating and developing your business in Dubai.

How to Establish a Company in Dubai

Before registering a company in this state, you need to take the following steps:

  • Choose the appropriate type of company: Determine the best option considering your goals and requirements.
  • Define types of business activities: Decide on the types of business your company will conduct.
  • Approve the company name with the Department of Economic Development: Coordinate the chosen name with the relevant authority.
  • Identify a free economic zone for residency: Select a suitable free zone if it aligns with your plans.
  • Prepare and legalize documents: Gather necessary documents and legalize them according to requirements.
  • Submit the registration application: Submit the registration application, providing the complete document package.

Document requirements depend on the company type, the number of shareholders, and their status. Typically, you need to provide:

  • Business plan.
  • Copies of passports of the owner and shareholders.
  • Specimens of signatures of the director and shareholders.
  • Company founding documents.
  • Financial statements for the last 2 years for legal entities.

All documentation must be legalized, including translation into Arabic and notarization. The documents are then submitted to the Embassy of the Emirates and the UAE Ministry of Foreign Affairs.

After submitting the documents, follow these steps:

  • Obtain activity licenses.
  • Process residency visas for owners, co-owners, and employees.
  • Obtain the company immigration card.

Once you've opened a bank account, leased an office, and obtained the necessary permits, you are ready to commence legal operations in Dubai.