Conditions and Processes for Establishing a Company in Dubai

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Conditions and Processes for Establishing a Company in Dubai

The United Arab Emirates is a hierarchical society and a Muslim country, so the local business culture is multi-layered. Most companies in the United Arab Emirates have vertical hierarchies, with older, more experienced employees occupying the top positions in the company. Despite being a conservative country, the United Arab Emirates aims to be receptive to and encourage foreign investors. As of 2017, it was estimated that there were 131,000 registered businesses in the United Arab Emirates, most of which were foreign-owned.

According to the World Bank's Ease of Doing Business Index report, the United Arab Emirates ranked 16th in the world in 2020. However, this report was terminated in 2021 and there is no updated data for 2024. However, it is stated that the country is still among the easiest countries to start a business in the Middle East and North Africa region in terms of ease of doing business. The United Arab Emirates has an ease of doing business score of 80.9 out of 100 and maintains its leading position in this area.

Dubai is the most preferred emirate to establish a company in the United Arab Emirates. Dubai, which was chosen as the second best city in the world to establish a business according to the HSBC global survey, stands out with its good business environment, first-class infrastructure and good work-life balance. The most important advantages of establishing a company in Dubai are; it is easy to establish a business, foreign investors are encouraged and in some cases, the company is exempt from taxes.

Can Foreign Citizens Establish a Company in Dubai?

Yes, Foreign citizens can establish a company in Dubai.

What are the Company Formation Options in Dubai?

Company formation options in Dubai for foreign nationals are listed below.

• Opening a company in the mainland
• Establishing a free zone business
• Establishing a company branch

How to Open a Company in Dubai Mainland?

Opening a company in Dubai mainland is advantageous because there is no need for a sponsor or local service agent to register the company, foreign founders can own the entire company in many types of companies, and investors can actively reach out to a multicultural audience.

The types of companies that can be opened in Dubai mainland are limited company and professional company.

To establish a company in Dubai mainland, one must choose one of the more than 2000 commercial activities listed by the Department of Economic Development (DED), such as agriculture, hospitality, manufacturing, determine the region where the company will be established, decide on the legal entity of the company, determine the name of the company, obtain a mainland trade license, choose office space and apply for a visa.

What is a Dubai Limited Company?

Dubai limited company is a type of company that can be established in the fields of trade, business and industrial activities. Dubai limited company can be established with a minimum of 2 and a maximum of 50 partners.

In order to establish a limited company in Dubai; the company must be introduced to the Department of Economic Development, the Company Establishment Agreement must be prepared and notarized, the company documents and the business license application form must be sent to the Department of Economic Development and registered with the Dubai Trade Registry.

What is Dubai Professional Company?

Dubai professional company; It is a type of company that can be established by 2 or more people, gives the founders the advantage of owning the entire company, and can be opened by talented professionals in fields such as consultancy, law, accounting, and medicine.

When setting up a professional company in Dubai, if all partners are citizens of other countries, a Local Service Agent (LSA) is required to support the company license. The role of the Dubai professional company Local Service Agent is to support relations with ministries such as the Ministry of Immigration, the Ministry of Economic Development and the Ministry of Labor.

To establish a professional company in Dubai; it is necessary to find a company name that is consistent and proportionate with the company's commercial activity, introduce the company to the Economic Development Department, sign a Civil License Agreement, make a Service Agreement with a Local Service Vehicle, send the company documents to the Economic Development Department and register with the Dubai Trade Registry.

How to Set Up a Free Zone Company in Dubai?

A free zone business in Dubai is a type of company where the entrepreneur is exempt from VAT. The operating expenses of a free zone company in Dubai are minimal for the entrepreneurs and all payments for the use of office space, facilities and utilities are paid annually in advance.

Setting up a free zone business in Dubai is preferred due to tax exemption, exemption from filing audit report, 100% profit transfer facility, easy transfer of ownership and availability of international quality warehouses.

To establish a free zone business in Dubai; it is necessary to determine the legal entity, determine the company name, apply for a business license, choose an office space, get pre-approval, register the business and get its license.

How to Set Up a Company Branch in Dubai?

A company branch includes places and sales stores where commercial activities are carried out on their own, although they are affiliated with a commercial enterprise.

Setting up a corporate branch in Dubai is preferred by individuals who want to actively expand in the Dubai market. Branches enable large organizations to streamline their business operations in new markets and enable the investor to test market conditions and audience response before investing in a large growth plan.

To establish a company in Dubai; a National Service Representative (NSA) must be appointed, the representative must register a trade name for the company, apply and obtain a company license. After obtaining a company license in Dubai, the applicant must open an office, apply for a residence visa and open a corporate bank account.

Can I Establish an Online Company in Dubai?

It is possible to establish a company online in Dubai.

To set up an online company in Dubai, investors need to register with the Basher platform, which allows them to set up their business in Dubai within 15 minutes through a unified online platform.

Basher is an application that is affiliated with federal and local government agencies that provide commercial licensing services.

To obtain a business license when setting up a company online through Basher, the same standard fees defined by the relevant Departments of Economic Development (DED) and other local and federal bodies regarding business licenses must be paid via credit card or eDirham. When setting up a company online, all foreign investors must have a valid UAE ID, a valid UAE Pass account and a UAE Pass digital signature if setting up a Limited Company.

Within 60 days after obtaining the commercial license, the investor must change his visa status to an investor visa and submit a lease agreement to the Department of Economic Development within one year.

How Long Does It Take to Form a Company in Dubai?

In Dubai, the process of establishing a company takes an average of 4-5 working days and the registration of the established company takes an average of 7 working days.

How Much Does It Cost to Start a Business in Dubai?

The cost of setting up a business in Dubai on the mainland is at least AED 23,000, while the cost of setting up a free zone business is AED 50,000 per company and AED 10,000 per shareholder.

The average cost of setting up a company branch in Dubai is 25,000 AED.

What are the advantages of establishing a company in Dubai?

The advantages of establishing a company in Dubai are listed below.

• Ease of business setup
• Opportunity to employ foreign workers
• Most types of companies are exempt from taxes
• Dubai has an advantageous geographical location
• Dubai has a world-class infrastructure
• The visa application process is easy
• State support for foreign investors

Frequently Asked Questions

The most frequently asked questions and answers to our center by people who want to establish a company in Dubai are shared below.

What is the Taxation System for Companies in Dubai?

The company taxation system in Dubai is advantageous for foreign investors.

Regardless of the type of company established in Dubai, foreign investors are not taxed on income, but since Dubai has a double taxation agreement with Turkey, Turkish citizens who establish a company in Dubai must pay income tax to Turkey.

Among companies established in Dubai, only foreign oil companies and branches of foreign banks are subject to VAT of up to 55%.

Companies established in Dubai are subject to consumption tax if they import, produce or stock consumer goods.

What are the Biggest Companies in Dubai?

The largest Dubai companies are listed below.

• Emirates
• Emaar Real Estate
• DP World
• Dubai Islamic Bank
• Mashreq
• Dubai Insurance Co.
• Dubai Investments PJSC
• Dubai Islamic Insurance & Reinsurance Co.
• Dubai National Insurance & Reinsurance Ltd.
• Dubai Refreshments Co.

What are the Turkish Companies in Dubai?

Turkish companies in Dubai are listed below.

• Folkart
• Rehman Traders
• Faran Investment
• Money Matters LLC
• Picasso Express Restaurant LLC
• Global Vision Co. for marketing
• Al Sabbah Trading and Importing EST

What Visa Should I Get to Start a Business in Dubai?

To set up a business in Dubai, a Dubai business visa must be obtained.

People who will start a business in Dubai can apply for a Dubai business visa themselves without needing a sponsor in Dubai.

Is it possible to establish a company and settle in Dubai?

Yes, it is possible to settle in Dubai by establishing a company.

Since the United Arab Emirates grants residence permits through investment, it is possible to settle in Dubai by establishing a company .

Where to Get Consulting Services to Start a Business in Dubai?

Consultancy services for setting up a business in Dubai can be received.