Officials in the Emirate of Dubai have been amending and issuing many laws to favor foreign investors, and one of the most important changes is the ability to establish a company in Dubai without a local sponsor. Previously, owning companies in the UAE required the involvement of a UAE national who would hold a 51% share in the company. However, this regulation has been revised with the aim of attracting a larger number of investors. Additionally, you can seek the assistance of Tasyeir Company to establish your company as quickly as possible.
Establishing a company in Dubai without a sponsor
Due to Dubai’s remarkable advantages and significant opportunities for investors, it has become one of the most important economic centers worldwide in recent years.
Moreover, the possibility of establishing a company in Dubai without a sponsor and with foreign ownership has now become easier than ever before.
There is no longer a requirement for a partnership with a UAE national, and you can own the company with 100% ownership without any obstacles, through simple procedures and conditions.
Steps to establish a company in Dubai without a sponsor
To establish a company in Dubai without a sponsor, you need to follow several key steps:
Determine the nature of the economic activity
You must identify the type of activity you wish to engage in to determine the license required for establishing a company in Dubai without a sponsor.
There are over 2,000 economic activities to choose from, and one license can cover multiple activities, including:
- Commercial
- Professional
- Industrial
- Craftsmanship
- Agricultural
- Tourism
Choose the legal form
Each legal form has specific laws and regulations associated with it.
You need to select a specific legal form to determine the governing laws of your company.
The options include:
- Gulf company branch
- Foreign company branch
- Free zone company branch
- Sole proprietorship
- Holding company
- Joint venture
- Simple recommendation company
- Limited liability company
- Private joint-stock company
- Commercial representation office
- Civil works company
- Public joint-stock company
Reserve the commercial name
You should choose a unique commercial name that does not resemble any other company names to avoid confusion.
As well as, the name should be closely related to the company’s activities.
Register the name with the Department of Economic Development.
Obtain preliminary approval
This step is essential but does not grant permission to commence business activities.
It indicates that the government does not object for establishing a company in Dubai without a sponsor.
Prior to obtaining this approval, you need to obtain consent from the General Directorate of Residency and Foreigners Affairs.
Service agent agreement and Memorandum of Association
Some legal forms require the signing of a Memorandum of Association or a service agent agreement.
This applies to the following cases:
- Civil works company.
- Sole proprietorship.
- Joint venture.
- Private joint-stock company.
- Limited liability company.
- Simple recommendation company.
- Public joint-stock company.
Company location
Specify the actual address of establishing a company in Dubai without a sponsor, ensuring that all commercial buildings comply with the requirements set by the Department of Economic Development.
As well as, you will also need to provide the ownership or lease contract.
Obtain additional approvals
Certain activities require exceptional approvals from relevant authorities, including:
- Ministry of Interior:
If your activity involves selling used cars, alarm and protection systems, public transportation, car rental, driving schools, used spare parts, etc.
- Municipality:
If your activity relates to engineering and architecture.
- Ministry of Justice:
For legal activities and consultations.
- Executive Council:
This activities such as shipping agencies, tourism and travel, chartering, aviation leasing, car clubs, general services, etc.
- Telecommunications Regulatory Authority:
For activities related to telecommunications.
- Supreme Council of Petroleum:
This activities related to petroleum fields or drilling wells.
- Ministry of Economy:
This if for insurance consultancy for establishing a company in Dubai without a sponsor.
- Health Authority:
Activities related to healthcare, such as establishing hospitals, etc.
License issuance:
After completing all the preceding steps and paying the required fees, you can collect your license from any center affiliated with the economic departments.
Papers for establishing a company in Dubai without a sponsor
In case of establishing a company in Dubai without a sponsor, you must issue a commercial license from the government.
This license proves that you have obtained final approval, allowing you to extract the license.
To do so, you need to submit the following documents to the relevant authorities:
- Complete the application form for company establishment, ensuring to write the company name in both Arabic and English.
- Provide colored passport-sized photos of the applicant for establishing a company in Dubai without a sponsor.
- As well as, submit a copy of the lease agreement for the company’s headquarters, duly attested.
- Prepare the Articles of Association (if required by the nature of the company’s activities).
- As well as, you provide documentation confirming approval from various government entities (if required by the company’s activities).
- You submit the papers confirming your preliminary approval for the company establishment.
- Present the contract indicating that you have appointed a local agent for the company.
- You pay the application fees within one month of receiving the receipt to avoid cancellation of your application.
Business Activities for establishing a company in Dubai without a sponsor
There are several activities available as determined by the Department of Economic Development.
Once you issue the commercial license, you establishing a company in Dubai without a sponsor by choosing any activity from the following list:
- Restaurant management.
- Exchange and financial services.
- Surveillance services.
- Childcare products and cosmetics.
- Cleaning services.
- Advertising services.
- Plumbing contracting.
- General warehousing.
- Buying and selling household appliances.
- Import and export.
- Plant trading.
- Retail stores.
- General storage services.
Costs of establishing a company in Dubai without a sponsor
One of the important steps before starting a company in Dubai without a sponsor is conducting a feasibility study to calculate all the required costs.
Many people wonder about the cost of establishing a company in Dubai without sponsor.
The costs can generally be summarized as follows:
- The cost of issuing the commercial license, which varies depending on the type of activity.
- As well as, the cost associated with the company’s location, whether purchased or leased, including different decorations and required furniture.
- Work permit fees and employee recruitment costs.
- Depositing the minimum capital required for the company in a bank account designated for this purpose, which is determined based on the type of business activity.
Advantages of establishing a company in Dubai without a sponsor
There are several advantages that any investor gains when establishing a business, which encourages establishing a company in Dubai without a sponsor.
The key advantages include:
- Rapid business development due to the presence of numerous investors from different countries.
- As well as, ease of required procedures.
- Extensive collaboration between the government and investors.
- No taxes imposed on businesses.
- As well as, ability to own companies 100%.
- Regulation of various business activities.
- Stability of the Emirati currency.
One of the notable privileges introduced by the Department of Economic Development is the possibility of establishing a company in Dubai without a sponsor. The UAE offers many facilities and incentives for investors, attracting a significant number of them annually across various sectors. Additionally, companies specializing in company formation play a crucial role in expediting the required procedures.
