Establishing a company in Dubai for Gulf citizens

Opening a commercial register in Dubai for Saudis

١١ مارس Establishing a company in Dubai for Gulf citizens

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Establishing a company in Dubai for Gulf nationals is a strategic step to take advantage of the emirate’s thriving investment environment. Dubai is known as a global business and trade hub, offering advanced infrastructure, flexible legal procedures, and numerous investment incentives, making it an ideal destination for Gulf businessmen seeking to expand their businesses or start new ventures.

Establishing a company in Dubai for Gulf nationals allows investors to benefit from numerous advantages, such as tax exemptions, full ownership in several free zones, and easy access to regional and global markets. Furthermore, Dubai’s economic legislation is clear and flexible, making it easy to start and run a business without bureaucratic complications.

In this article, we will detail the steps and procedures for establishing a company in Dubai for Gulf nationals, the necessary legal requirements, the best areas for investment, and the key advantages that make Dubai the ideal choice for Gulf businessmen seeking sustainable success in the business world.

Establishing a company in Dubai for Gulf citizens

Table of Contents

Legal Requirements for Establishing a Company in Dubai for Gulf Nationals

Gulf investors enjoy easy legal procedures when establishing a company in Dubai, as they are allowed full ownership without the need for a local partner. However, there are legal requirements that must be adhered to to ensure the company is registered in accordance with applicable UAE laws.

1. Determine the Type of Business Activity
The nature of the business activity must be determined, as the activity category affects the type of trade license required. Available activities include:

Commercial activities.
Industrial activities.
Professional activities.
Tourism activities.
2. Choose the Legal Form of the Company
Gulf investors must determine the legal entity for their company. Options include:

Limited Liability Company (LLC) – the most common for commercial businesses.

Sole Proprietorship – wholly owned by one person.

Branch of a Gulf Company – if the investor owns a company in their home country and wants to open a branch in Dubai.

Sole Proprietorship – suitable for professional and consulting activities.
3. Reserve a Trade Name
The company must choose a unique trade name that complies with Dubai’s trade name laws, avoiding any prohibited names or names similar to other company names.

4. Obtain Initial Approval
A request for initial approval must be submitted to the relevant government authorities to complete the incorporation procedures. This is legal confirmation that the company can be established according to the chosen activity.

5. Prepare the Articles of Association
The company’s articles of association must be drafted and signed by all partners, and then authenticated by the relevant authorities, such as the Department of Economic Development.

6. Choose a Business Location
A notarized lease contract for the company’s headquarters must be provided. The location must comply with Dubai Municipality requirements and be registered through the Ejari system.

7. Apply for a Trade License
After fulfilling all the previous requirements, the application for a trade license must be submitted to the Dubai Department of Economic Development or the selected free zone authority, and the required fees must be paid.

8. Register the Company with the Chamber of Commerce
The company must be registered with the Dubai Chamber of Commerce and Industry to obtain a commercial registration certificate, which is used in various commercial transactions.

9. Obtaining a Tax Number (if applicable)
If the business activity requires tax registration, the company must be registered with the Federal Tax Authority to obtain a Tax Attribution (VAT) number.

10. Obtaining Visas and Work Permits
If employing employees, applications for residence visas and work permits must be submitted to the Ministry of Human Resources and Emiratisation.

Documents Required for Registering a Company in Dubai for Gulf Nationals

Gulf investors enjoy numerous privileges when establishing a company in Dubai, as they can fully own the company without the need for a local partner. However, there are a set of basic documents that must be submitted to complete the registration process, including:

A copy of the passport of the company owner and all partners, if any.
A copy of the national ID card issued by the Gulf investor’s country of origin.
Proof of residence within the UAE or in a Gulf country.
A copy of the residency page if the investor is a UAE resident.
A recent personal photo with a white background of the company owner or partners.
A preliminary business plan outlining the nature of the business activity and the company’s objectives.
A company’s articles of association specifying the names of the partners and the percentage of ownership, if the company is a partnership.
A lease contract for the company’s headquarters, certified by the competent authorities, if a physical office is required.
Preliminary approval from the competent authorities for the business activity.
Additional permits if the activity requires special approvals from specific government agencies.

Types of Licenses Available to Gulf Nationals in Dubai

Dubai offers a variety of business licenses that allow Gulf investors to easily establish their businesses, while benefiting from the privileges available to Gulf citizens, such as full ownership and simplified incorporation procedures. The following are the most important types of licenses available:

1. Commercial License
This license is intended for commercial activities, including distribution, import, and export, including:

Retail and wholesale trade.
Import and export of goods.
Selling products within or outside the UAE.
Establishing stores and shopping centers.
2. Industrial License
This license is granted to companies wishing to manufacture, produce, or assemble, including:

Food and pharmaceutical industries.
Production of electronic and electrical products.
Various factories and laboratories.
Recycling and packaging.
3. Professional License
This license is intended for those engaged in freelance professions, consulting, and services, such as:

Administrative and financial consulting.
Legal and accounting services.
Engineering and interior design.
Health and medical services.
4. Tourism License
Granted to companies operating in the tourism sector, including:

Organizing tours.
Managing hotels and resorts.
Travel and visa agencies.
Tour guide services.
5. E-commerce License
Designated for online businesses, such as:

Online stores.
Digital marketing services.
Selling via social media platforms.
6. Freelance License
Available to freelancers working in fields such as:

Graphic design and programming.
Media and art production.
Writing and translation.
Personal and professional consulting.
7. Startup License
Helps entrepreneurs establish their startups flexibly. It is suitable for technological innovations and startups that require low funding and investment.

8. Agricultural License
Designated for agricultural projects, such as:

Agricultural production and smart farms.
Fish farming.
Livestock and poultry farming.

Expected Costs of Establishing a Company in Dubai for Gulf Nationals

Establishing a company in Dubai for Gulf Nationals is an attractive option due to its many advantages, such as tax exemptions and ease of procedures. Company establishment costs vary based on several factors, including the type of business activity, location (mainland or free zone), and company size.

Factors Affecting Costs
Type of Business License: The cost of a business license varies depending on the activity, whether commercial, industrial, or service-related.
Location: Establishing a company in the mainland differs in cost from establishing it in a free zone, as some free zones offer favorable economic packages.
Number of Partners and Shareholders: The fee varies based on the number of investors in the company.
Office Rental Costs: Some free zones allow virtual offices, while the mainland requires a physical office.
Government Fees: These include registration fees, government approvals, and business permits.
Additional Costs: These include sponsorship and residency services, bank account opening, and health insurance.

Establishing a company in Dubai is an ideal choice for Gulf nationals, given the emirate’s attractive and integrated investment environment. Starting a business in Dubai offers Gulf investors a unique opportunity to benefit from government facilities, tax exemptions, and legislation that supports business growth. Furthermore, Dubai provides a unique competitive environment that enhances the success of projects, whether small, medium, or large enterprises.

With increasing investment opportunities across various sectors, establishing a company in Dubai for Gulf nationals has become easier than ever, especially with specialized offices providing support and advice to facilitate the registration process and legal procedures. Choosing Dubai as a business location is not limited to its economic advantages; it also includes its high quality of life, advanced infrastructure, and strategic location that connects East and West.

In conclusion, Dubai is the ideal choice for any Gulf businessperson looking to succeed in a flexible and supportive investment environment. If you are considering establishing a company in Dubai for Gulf nationals, this is the ideal opportunity to take the first step towards a promising future in one of the most prosperous cities in the world.