UAE Business Setup

UAE Business Setup

There are several factors to consider when setting up a free zone business in the UAE. These factors include location, price, type of business, flexi-desk or office options, auditing, accounting and share capital requirements among others. We guide you through it step-by-step, heading in the right direction, saving you money, time and finally making the entire experience of business setup as stress-free as possible.

Company Formation

There are 3 options to register a business in the UAE. We are ready to assist you in choosing your company’s presence in the UAE.

Free Zones

Mainland

Offshore

How to set up a business in the UAE

Over the past decades company formation in the UAE was not an easy task. Nowadays the company setup is both simple and fast, with strong incentives, particularly in the form of the free zones in the UAE. Though you may open a business onshore or offshore in the UAE, it is quite popular among foreign businessmen to set up a business in a free zone. The government offers 0% corporation and personal taxes, 100% company ownership, 100% repatriation of capital and profits and no currency restrictions.
Traditionally, setting up a business in the UAE requires the entrepreneurs to undertake the following procedure incorporating technical, administrative and financial aspects.

Choose your business activity

A business’s nature affects which free zones it can or should operate in. A free zone that primarily permits certain businesses such as media, medicine or transport is often a good idea, regardless of the restrictions. You should also consider the transportation links. Your business will probably benefit greatly from free zones located near airports or ports if it relies heavily on imports and exports.

Choose your company name

Identify a company name that adheres to UAE naming conventions before you commit. It is forbidden to use names in offensive language, as well as names that refer to Allah, Him, or to any other religious, sectarian, or political group, such as the FBI or Mafia. If you are naming your business after a person, it must be their full name and not an initial or abbreviation.

Finalise all incorporation paperwork

As part of your application, you are required to provide a copy of shareholders’ passports along with your company name and activity. In some free zones, you will need more documentation, such as a business plan or a Non-Objection Certificate (NOC), which you can obtain from your current sponsor. Paperwork is perhaps the most taxing of all these steps, however, if it is handled properly. Our business setup consultants in Dubai can assist with the paperwork and advise you accordingly.

Receive your licence notification

Upon processing your application, the government will issue you your company licence. Our business consultant in Dubai will notify our clients when their documents are ready for pickup.

Process your visa

Several free zones allow you to apply for staff, dependents as well as for your own visa. The exact number will depend on which free zone you choose to set up your business in. The entry permit process includes 4 simple steps: status adjustment, medical fitness test, Emirates ID registration, and visa stamping.

Process Your Business Immigration Card

In case you choose a visa trade licence package, the next step will be to apply for your immigration card through the immigration authority.

Open a bank account

The final step will be to open your corporate bank account. A number of local and global banks operate in the UAE, including Emirates NBD, Abu Dhabi Commercial Bank, the Commercial Bank of Dubai, among others. Along with our business setup services, we can also organize a meeting with the financial institutions to select the best option for your business.

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Simplified Setup Solution

We break down the complicated business setup process into 4 straightforward steps.

Fill in the Form: As a first step you just fill in the form with the requested information.
Submit Documents: We provide you with the list of documents required for submission.
Make the Payment: After submitting the required documents, the next step is payment.
Get Your Licence: Congratulations! Your licence is ready to start up your business!

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Solve Queries Yourself

When should one register a company on the mainland?

If the customer has a business plan with lots of customers and operations on the mainland, in that case registering the company there is highly recommended.
In order to rent or buy an office or shop within mainland geographical areas, the company must be registered on the mainland. A restaurant can be opened in Karama, Business Bay, Sheikh Zayed Road, Al Barsha, Dubai Marina, Motor City or any of these mainland locations, but the company must also be registered as a mainland company.
The company must be registered as a mainland company if the customer chooses an activity of business that is only approved by government authorities as a mainland activity. For instance, a real estate brokerage company (RERA), a customs clearance agent (CUSTOM), or a tourism activity (DTCM). After the mainland company is registered, it can open a branch company in the free zone.
If the customer plans to import goods and store them in a warehouse on the mainland, the trading company must also be registered on the mainland.
The Government will more than likely participate in a government tender related to the customer’s activities if the customer is registered in an Emirate where the tender is announced to take place.

Multi-user software to cover workflow, from management. Multi-user software to cover

What are the conditions under which a company should register in a free zone?

Free zones are the best places to register a trading company if a customer wants to import goods and store them in a warehouse in a free zone and then re-export them out of the UAE.
Free zones are the best choice for customers who are looking to open manufacturing units and export the products out of UAE or sell them on the mainland through distributors.
Free zones are the best option for customers who wish to conduct commercial activity and own 100% of their business. However, he/she cannot conduct operations directly on the mainland.
A special note: Free zone companies cannot directly operate on the mainland.

What is the legal jurisdiction for any company to operate its business?

A registered company may conduct its business under the jurisdiction of an authority under which it is registered. Therefore, a real estate brokerage company registered with DED Dubai cannot handle brokerage business for Abu Dhabi or Ajman properties, and a transportation company registered with RTA Dubai cannot do business with Abu Dhabi or Ras Al Khaimah. To register a branch company or to appoint a registered agent having its license in that particular jurisdiction, an approval, a permit, or a trade license must be obtained from local authorities.

What business plan should an offshore company be formed under?

An offshore company should be formed in case business activity is going to be conducted entirely outside the UAE.
To own shares, real estate, trademarks or any other asset outside or inside UAE for structuring purposes.
Visas for residence are not permitted under offshore companies. An offshore company cannot even rent an office in the UAE.

What is the registration authority for mainland companies?

United Arab Emirates consists of 7 emirates, including Abu Dhabi, Dubai, Sharjah, Ajman, Umm al Quwain, Ras al Khaimah and Fujairah. Each emirate has its own Department of Economic Development (DED). Companies based in the Mainland are registered with the DED of an Emirate where the customer seeks to start a business.

What is the registration authority for free zone companies?

UAE has several free zones. Each free zone has its own advantages. Free zones are governed by their own governing authorities which are responsible for registering licenses.

How do offshore companies register with the Government?

In the UAE offshore companies can be registered in 3 jurisdictions. A JAFZA offshore company is registered with the JAFZA offshore authority, which is part of the JAFZA free zone. The RAKEZ offshore company is registered with the RAKEZ offshore authority, which is part of the RAKEZ free zone. The Ajman offshore company is registered with the Ajman offshore authority, which is part of the free zone in Ajman.

Do mainland, free zone, and offshore companies have any particular shareholding restrictions?

A mainland company must be incorporated as a commercial LLC (Limited Liability Company) with UAE nationals owning 51% of the shares. As an internal agreement supported by two witnesses, the customer will still have 51% ownership by a UAE national with fixed annual fees regardless of its share in profit, loss, asset or liability.
An expat, on the other hand, can own 100% of a professional company on mainland. In this case UAE nationals will act as service agents for the company without ownership equity.
In a free zone company foreign investors can own 100% of the shares regardless of the nature of the business.
An expat can own 100% of the shares in an offshore company regardless of its nature.