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How to open a company in Dubai, the UAE

How to open a company in Dubai, the UAE

Before taking the decision to open a company in Dubai, one should answer the following questions:

  • What will be the area of activity of a company.
  • Will this activity relate to the UAE.
  • Does the company need real premises – office, warehouse ad etc. If it needs it – where and of what size.
  • Are there any additional necessary requirements – the availability of the port, airport or other infrastructure nearby.
  • Is it necessary to approve and to obtain additional licenses and permissions, or business is of the standard category without the necessity of special licensing.

The company in Dubai can be opened in a variety of forms and, respectively, with the notably different requirements and cost. The choice of the type of a company and place of its registration will depend directly on the parameters, which are mentioned above.

Besides, a company can be opened not only in Dubai, but also in the other Emirates, where its registration may be significantly less cost intensive. In total there are a few dozens of free trade zones in the United Arab Emirates, about a half of which are located in Dubai and the rest are in the other Emirates of the UAE. And each FTZ has its own advantages, procedures of company registration and own tariffs that differ significantly among the different FTZ even within Dubai.

How much will it cost to open a company in Dubai?

It is impossible to answer this question without having clear necessary characteristics. The costs  of a company can vary from 2-3 thousand dollars to several tens of thousands of dollars.

As to the funds, that are necessary directly for the development of a business – fundamentally there are 2 options of calculations with different costs:

First option – Dubai is used only as a place for structuring the already existing business or for creating new processes, but, at the same time, Dubai is used only in the part of a legal structure, and the availability of the physical office or other real elements of business are not stipulated at all or provided for at a minimum size. In this case, the investments for opening a company in Dubai can vary from 2-3 thousand dollars for a basic company and up to 30 thousand dollars for a company with a small real office.

Second option - if you open a real business directly in Dubai – in this case, the level of the cost can fluctuate, depending on your business, from a few hundred thousand dollars and above – depending on the chosen direction. It should be noted distinctly that Dubai is primarily a place for medium and large business, and it is very difficult or almost impossible to start a quite small business in Dubai. The costs of any business, on average, start with at least several hundred thousand dollars. But it applies to the real business in the UAE. If you open a company for structuring an international business, the costs of registration and maintenance of such a company are insignificant in comparison with the advantages you receive.

Where to open a company in Dubai

As it was mentioned above, the choice of the place of incorporation of the company depends on the objectives of the company. In the case of approaching our company you will get a full advice about on how to choose the right place to open a company in Dubai, and also a full support on its registration.

How long does it take to open a company in Dubai?

The time which is required for a company registration in the UAE can take from 2-3 days to one month and possibly longer.

It all depends on the form of a company, on the free trade zone chosen and on the type of a license. For example, for a standard offshore company, the time of registration is 3-4 days, express registration – 48 hours only.

Registration of an onshore company in one of the FTZ, where there are no requirements for deposition of a share capital and no requirement for the availability of a real office, takes 3-4 days, but prior to registration it is required to undergo a security check i.e. check in the immigration department on the absence of offences in the UAE, and such check takes from 1 to 3 weeks.

And if to open a company in Dubai in one of FTZ where the deposit of a share capital and rent of a real office are required – the registration time increases by the time which is required for opening an account and depositing the share capital – at least couple of weeks, and in addition for search and signing the office lease agreement – at least one more week.

Due to the foregoing reasons there is such large variation in the time of registration – from 2-3 days to a month. Besides, this period of time can be even longer, if in order to open a company in Dubai the additional approvals from various ministries are required. For example, to open an institute, the coordination of the program of the institute with the Ministry of Education will be necessary, which may require additional couple of months.

Our company, before starting registration of a company, provides clearly to the client all the steps, timing and costs which are associated with registering your company in Dubai or in any other Emirate of the UAE.

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