Establishing a company in Dubai for foreigners is one of the most attractive investment destinations for investors and everyone who has an idea for an investment project and wants to establish it in a country whose laws provide facilities and achieve the greatest financial benefit for him. The Emirate of Dubai has become one of the most encouraging times for investors, as it contains various elements of successful foreign investment.
Many advantages enjoyed by foreign investors in the Emirate of Dubai and the flexibility of procedures, support, services and facilities. In this article, we discuss these features, in addition to the laws regulating the investment process for foreigners in Dubai. In addition to the steps to extract a commercial registry in Dubai for foreigners and the most important sectors for establishing a company in Dubai for foreigners .
Advantages of establishing a company in Dubai for foreigners
The United Arab Emirates is one of the largest countries in the world in the field of foreign investment. This is what was stated in the economic report of the UAE in 2019, as the report shows the order of foreign direct flow to the UAE as follows in the following points:
- This ensures that the UAE is ranked twenty-seventh in the world as a country capable of attracting foreign investors. The value of foreign investment incoming to the UAE amounted to $10,385 billion in 2018, with a growth difference of 0.3% from 2017, when the investment value at that time amounted to $10,354 billion.
- The UAE leads the first place in the Arab world with a rate of 33.3% of the total foreign investment incoming to the Arab countries in 2018, at a rate of 31.2% billion dollars.
- The UAE leads the second place in West Asia with 355% of the total foreign investment inflows to West Asia and 220% of the total foreign investment inflows to the Middle East and North Africa.
The regulations and laws in the UAE include many advantages for the rapid growth and stability of foreign investments in Dubai. Some of these privileges are:
- Online business establishment
One of the most important services provided by the UAE government to facilitate foreign investors, Where a company can be established in Dubai via the Internet in just 15 minutes, Without the need to visit the state and waste time and effort unnecessarily.
- Complete foreign ownership of companies
The foreign investor has the right to own a 100% stake in most economic and industrial activities. This ownership included about 1000 or more commercial and industrial activities. In accordance with what was stated in the amendments issued by the UAE government to the Companies Law, in accordance with the provisions of Federal Decree-Law No. (26) of 2020.
- Non-expropriation
One of the most important advantages is that there is no type of ownership, as the laws and regulations in the UAE stipulate that ownership should not be expropriated except for the working benefit. This includes satisfactory compensation for the foreign investor.
Sectors for establishing a company in Dubai for foreigners
The economic sectors in Dubai are varied for foreign investments, and the most important of these sectors is that encourage foreign investors to establish companies in Dubai. Next:
- Wholesale and retail trade.
- Real estate activities.
- Financial services and insurance.
- Transformative Industries.
- Mining and quarrying.
The most important countries that invest in the UAE
- Switzerland
- India
- United kingdom
- Austria
- France
- Japan
- Saudi Arabia
- Holland
- Kuwait
Rules for establishing a company in Dubai for foreigners
The United Arab Emirates has issued laws regulating the process of foreign direct investment in the UAE, in accordance with Federal Decree Law No. (19) of 2018, in order to enhance the investment environment and attract foreign investors to the country. In addition to increasing and diversifying production and other important goals to strengthen the various sectors of the state.
The provisions of the Foreign Direct Investment Law shall apply to all foreign investment projects authorized in Dubai and obtaining licenses. This is according to the investment requirements in Dubai such as: The minimum amount of capital and the investment should be in the fields of stimulating research and development.
Activities authorized for foreign investment in the UAE
According to the laws and regulations issued in 2020 regarding foreign economic activities authorized for investment, which include 122 economic activities, as follows:
- Agriculture sector.
- industry sector.
- Services sector.
Unauthorized activities in Dubai
The laws and regulations for establishing a company in Dubai for foreigners do not include some sectors and activities as follows:
- Exploration, exploration and production of petroleum products.
- security and military sectors.
- Banking and financing activities, payment systems and cash handling.
- Hajj and Umrah, labor and employment services.
The legal form of companies in Dubai
- A limited liability company.
- Private joint stock company.
Steps to open a commercial registry in Dubai for foreigners
Establishing a company in Dubai for foreigners includes an important condition, which is that the investor obtains a commercial registry in Dubai for the company, according to the nature of the activity in which he will work. Learn about the steps to open a commercial registry to establish a company in Dubai for foreigners in the following steps:
- Go to the official website of Dubai Economy.
- Enter the service of obtaining a commercial register for foreigners.
- Enter the email and password for your account on the platform.
- Log in by clicking on the register button.
- Add company location details in Dubai and other details.
- Registration of the parties contributing to the company to enter the platform.
- Determine the main and secondary activity of the company.
- Adding all the founding parties to the company and their complete data on the platform.
- Choose the type of commercial license in Dubai for foreigners to obtain, if it is a merchant’s license, an immediate license, or a commercial license.
- Adding all the data of the parties to the license, such as: Managers and service agents.
- Adding the final beneficiary of the economic project.
- Signing the company’s documents through the concerned parties and sending them.
- Pay all fees for obtaining the commercial registration through the available payment methods.
- Receipt of the commercial registration in Dubai and the documents associated with it.
Conditions for obtaining a commercial registration in Dubai for foreigners
The laws and regulations in Dubai provide for some conditions necessary to obtain a commercial registration. As one of the legal documents necessary to establish a company in Dubai for foreigners, These conditions are presented to you in the following points:
- Choosing a trade name that is compatible with the laws and regulations in the country so that:
- It expresses the nature of the activity.
- It does not violate public taste.
- It does not include the name of His Majesty or the names of government agencies.
- Obtaining the initial approval from the concerned government agencies regarding the name and activity.
- Provide a documented contract for the company’s official website from the competent authorities.
- The investor should not possess more than one commercial license and submit the licenses to the competent department.
- The company’s headquarters area should not be less than 200 feet, according to business needs.
- Obtaining approvals from the authorities concerned with the establishment activity in Dubai.
- Pay the trade license fees in Dubai for foreigners according to the type of activity.
An investor planning to establish a company in Dubai for foreigners and looking for help?
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