Opening a company in Dubai for foreigners

Opening a company in Dubai for foreigners is one of the matters that the UAE is most interested in; Because Dubai is characterized by a geographical location that attracts investors from all countries, so if you are looking for a place to establish a company for your project, or want to expand your project, we recommend Dubai for you, and in this article we will learn about the most important ways and steps to Establishing a company in Dubai for foreigners, in addition to all the conditions you need as a foreign investor.



Investing in Dubai

In 2021, The National News published an article about the volume of foreign investments in Dubai, and announced that Dubai attracted about 4 billion and 300 thousand dirhams in the first months of the year, while the National Economic Register of the UAE, NER, announced in the same year that the number of foreign companies In Dubai, it reached 3,209 companies, and 763 of them were branches of foreign companies based outside Dubai.

All statistics indicate that opening a company in Dubai for foreigners is one of the best investments that you may make. In the following paragraphs, we will learn about the main methods and steps for opening a company in Dubai for foreigners.


Advantages of establishing a company in Dubai for foreigners:

The UAE offers many advantages to foreign investors, the most important of which are 100% tax exemptions on exports and imports to and from the UAE, and enjoying many facilities in the procedures and processes of owning a special license to run the company’s management within Dubai.

Establishing a company in Dubai for foreigners is considered one of the best cities in which you can guarantee the success of your project, and because it is the basis of investments, it enjoys many services that support and complement a project. In the following paragraphs, learn what are the ways Establishing companies in Dubai.


Ways to establish a company in Dubai for foreigners:

Establishing a company in Dubai is not considered a difficult matter in terms of steps and procedures, as the UAE has been lax in procedures, which is considered an attractive factor in addition to other elements, because the most important thing that distinguishes any country is the ease of procedures and laws, especially with foreign investors.


Here are the most important ways to open a company in Dubai for foreigners:


Among the services provided by the UAE to investors is the Basher service for establishing companies online.

Basher is an electronic platform integrated with the relevant government institutions. You can use it by filling out a form, which takes about 15 minutes, and you can pay the fees via Visa.


Contracting with a company:

Usually, the investor who wants to establish a company is not always present in Dubai, so it is difficult to follow the workflow and extract the papers. Therefore, contracting with a company specialized in establishing companies in the Emirates helps you complete the papers with all credibility. For example, HIM establishes the company. In just 3 days, which is considered one of the easiest ways to achieve your goal of creating a successful company.

But in the beginning, you must provide HIM with your contact information, your budget, and your business activity. We will provide you with the instructions and documents required of you and the costs to establish your project in Dubai. Upon agreement on all terms, HIM begins the registration process and completes all procedures smoothly. HIM is the best choice if you are looking for a successful and profitable investment in Dubai.

UAE law stipulates some conditions for foreign investors, in order to protect their rights legally, as well as protect the right of the state. Here are the most important conditions for establishing a company for foreigners in the Emirates.


What are the conditions for opening a company in Dubai for foreigners?

Protecting the rights of investors is considered one of the elements that attract investors to any country, so the UAE works to protect the rights of investors, and provide a safe space and work environment for them, by setting clear and specific conditions for opening a company in the Emirates for all investors.

There are activities that foreigners are allowed to practice that have been set by the Emirates Investment Authority for opening a company in Dubai for foreigners:

  • Trading and real estate ownership activities.
  • Providing consultations to companies in the Emirates.
  • Air transport.


As for the activities that a foreign investor is not allowed to practice if he wishes to establish a company in Dubai:

  • Any special field of mining or mining investment, including: oil, gold or mineral exploration.
  • Establishing advertising agencies, or a special activity providing consultations to them, or managing them as a foreign investor.
  • As a foreign investor in the UAE, he is not authorized to own or establish any activity related to the aviation field, or to buy or trade in the shares of UAE airline companies.

In addition to specifying the activities permitted for a foreign investor, the Emirates Investment Authority limits the presence of a partner who holds Emirati citizenship except for accounting, legal, and pharmaceutical activities.

It was necessary to learn about the conditions and activities that you can engage in as a foreign investor, opening a company in Dubai, before learning about the steps, and now we will learn about the most important steps for opening a company in Dubai for foreigners.


Steps to establish a company in Dubai for foreigners:

Opening a company in Dubai for foreigners goes through several steps, but all of them are easy, and if you are not located in the UAE, the UAE allows you to contract with a company to establish companies in Dubai, and for this company to By completing all procedures on your behalf.


Establishing a company in Dubai goes through the following steps:

1. Determine the type of economic activity of the company

The UAE provides more than 2,000 activities and 6 types of licenses, the most famous of which are commercial licenses. It is worth noting that one license can include more than one economic activity.

2. Determine the legal form of the company

If you want to open a company in Dubai, you must determine the legal form of your company, as there are 13 types of companies in Dubai, and from this step is that the legal form is what determines the regulations and laws that your company will be subject to later by the UAE.

  1. Simple recommendation company.
  2. Solidarity Company.
  3. Public joint stock company.
  4. Limited Liability Company.
  5. Private joint stock company.
  6. Commercial Representative Office.
  7. A branch of a local company.
  8. Civil works company.
  9. A branch of a Gulf company.
  10. Branch of a free zone company.
  11. Individual enterprise.
  12. Branch of a foreign company.
  13. Holding Company.


3. Choosing and registering a trade name

The trade name is the name that distinguishes your company from other companies, and it is considered one of the most important services for establishing companies in the Emirates or abroad, and registering it means protecting your company from falling into legal problems.

One of the most important conditions that must be met in the trade name is that it be related to the type of license and compatible with the economic activity of your company, and that it does not contain inappropriate words or the name of His Majesty or government agencies.


4. Obtain initial approval

Obtaining initial approval means that the UAE government has no objection to establishing facilities on its territory, and the investor can proceed to the next stage of obtaining the license.

However, foreign investors must obtain general approval from the Ministry of Residency and Foreigners Affairs before obtaining initial approval. There are also some activities that require the investor to obtain approval from another government agency before initial approval, such as:

  •   All activities related to legal matters.
  •   Activities related to security agencies.
  •   Activities related to the Securities and Commodities Authority.


5. Drawing up the articles of incorporation and the local service agent agreement

Depending on the legal form of the company, it may be necessary to draft and sign an incorporation contract. In some cases, it may also be necessary to conclude a local service agent agreement. The incorporation contract is concluded if the legal form of the company is as follows:

  • Civil works company.
  • A limited liability company.
  • One person company.
  • Limited partnership company.
  • Solidarity Company.
  • Public joint stock company.
  • Private joint stock company.

The foreign investor must also document agreements and contracts in any Emirati court or notary office.


6. Choose the company’s location

The UAE government requires a physical headquarters within the UAE and a physical address for the organization, and on-site facilities, buildings and spaces must meet special requirements stipulated by the Ministry of Economic Development of the emirate in which the economic activity is located.

In addition, investors must submit rental contracts for offices and warehouses, and some emirates require the registration of these contracts, and contracts can be registered in Dubai through Ejari offices.


7. Obtaining additional licenses

Sometimes the investor must obtain additional approvals and special licenses from the federal government of the United Arab Emirates or from the local government of the emirate in which his economic activity is located.


8. Obtaining the license

After completing all the previous steps, the final step comes in the ways to open a company in Dubai for foreigners. The investor can now obtain the final commercial license for his economic activity through the service provision centers affiliated with the economic activity departments, and the electronic platforms for private management services, and in the following paragraphs we will mention the most important licenses required. To open a company in Dubai for foreigners.


The cost of opening a commercial register in Dubai for foreigners

The costof opening a new commercial registry in Dubai changes continuously depending on several factors, the most important of which is the specific company area, according to the investor’s choices, and also according to the location that is chosen. In order to open and establish a company there, you must also know that there are many free zones that provide many different services and features to investors, in addition to that the prices of projects and companies in them are suitable for everyone.

The costsof opening a commercial register in Dubaifor foreigners are mainly limited to several expenses that we will learn about through the following points:

  • The total costs required to obtain a commercial license through which to start conducting business.
  • In addition to the total costs necessary to purchase the company’s site or the new office from which work will be started through this site, either through renting or purchasing it.
  • The costs necessary to purchase the requirements and needs of the new company, such as furniture and decorations specific to this company.
  • There are also the costs necessary to obtain many work permits for sponsored employees, such as visas and documents required for the company.
  • In order to open a commercial register in Dubai for foreigners, all costs necessary to establish and establish the company must be paid, as it must be known that the costs of establishing industrial companies are significantly higher than the costs of establishing investment, professional, or commercial companies.
  • As well as the costs necessary to open a new account for the company, and this account must be in the name of the current company.
  • Finally, the total costs of obtaining the commercial license must be paid as soon as possible.


Licenses required to establish a company in the UAE

There are several different licenses available in the Emirates that new investors need to carry out their projects, and we will mention those licenses to you below:

  • Commercial license: It is a commercial license for companies operating in general trade or specialized commercial activities, and the commercial license in Dubai is the most important document you need to establish your company.
  • Industrial license: An industrial license for practicing industrial activities and companies operating in production and manufacturing.
  • Tourism licenses: These licenses are for companies that provide services related to tourism and hospitality in the UAE.

Can a foreigner open a commercial register in the Emirates?

Yes, a foreign investor can open a commercial register. HIM Company for Establishing Companies in Dubai helps you open a commercial register for your company with ease. During it, it also provides foreign investors with distinguished services in facilitating procedures, even if the investor is not present in the Emirates. In the following paragraph, we will explain the advantages of investing in Dubai.



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