Introduction:
Incorporating a company in the United Arab Emirates (UAE) involves several steps and considerations. The UAE is known for its business-friendly environment, tax benefits, and strategic location, attracting many entrepreneurs and investors.
Steps for Incorporating a Company in UAE:
- Determine the type of company: The UAE offers various types of business entities, including mainland companies (LLCs), free zone companies, branch offices, Partnership offices and offshore companies. Each type has its own advantages and restrictions, so you need to choose the one that aligns with your business objectives. This would be heavily dependent on the nature of your business that you wish to engage in. Some examples include commercial trade, consultancy services, ecommerce, manufacturing, etc.
- Determine the Legal Structure of your Corporate Entity- There are various types of legal structures that can be opted by businesses depending on their needs. Free Zones and Mainland offer different types of structures based on the laws and regulations the company must adhere to such as LLC, FZ LLC, FZ Co., Holding Company, Public/Private Joint Stock company, etc.
- Registration of Trade Name: Select a unique and appropriate name for company, adhering to the naming guidelines and get it approved from the Department of Economic Development (DED) either via its website or smart application or in person. Ensure that the name is not already registered by another company. You shall receive a Trade Name Reservation Certificate
- Apply for Initial Approval –A business shall have to obtain a ‘no objection’ from the UAE Government with respect to the business activities they are planning on engaging in. It allows the investors to set up its business and get a license issued from the authorities. It must be noted that that such ‘no objection’ is in no way a permission for commencement of business.
- Drafting of MOA or LSA (For mainland companies): In some cases, depending on the type of company you may need a local service agent agreement (in case of a Sole Proprietorship) or Memorandum of Association (in case of LLC, public/private shareholding company or a civil company).
- Identify business space and location- The company premises and location must be in compliance with the requirements from the DED (for mainland companies), zoning policies and regulations of local municipalities.
A free zone authority issues rental contract to companies set up in Free Zones. - Apply for Additional Governments Approval (For mainland companies)- In certain cases additional approvals may be required from requisite government entities for certain business activities.
- Prepare and submit legal documents: Prepare the necessary legal documents, including the Memorandum of Association (MOA) or Articles of Association (AOA), which outline the company’s structure, ownership, activities, and other essential details.
- Obtain necessary licenses: Apply for the required licenses and permits from the relevant authorities. The type of licenses will vary depending on the nature of the business activities. There are three types of licenses issued by the UAE:
- Commercial License- For corporate entities engaged in trading activities;
- Industrial License- Issued to corporate entities engaged in manufacturing activities;
- Professional License– Companies acting as service providers, professionals, craftsmen and artisans
- Registration and Payment of fees: Pay the requisite amount of fees ad obtain the license form the relevant authorities.
- Register your company with the Chamber of Commerce and Industry (For mainland companies only): Register your company in the same emirate in which it has been incorporated
For more information: https://www.moec.gov.ae/en/establishing-companies
Documents required:
- For Free Zone Companies
- Completed Application form for Registration.
- Notarised and Attested Board Resolution for appointing Manager/Director
- Notarised and Attested Power of Attorney (PoA) given to Manager/Director
- Notarised and Attested Memorandum of Association or Articles of Association
- Notarised and Attested Specimen Signature Manager/Director
- Passport size photos the Manager/Director
- Share Capital Information to be disclosed along with supporting documents.
- For UAE Mainland Companies
- Receipt of initial approval and copies of all previously submitted documents;
- Copy of lease contract which has been duly attested;
- Memorandum of Association, Article of association and other relevant documents required for company incorporation;
- Governments Approvals so required for the business.
How can we help?
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FAQs
- What are the main types of business entities available for incorporation in the UAE?
The UAE offers various types of business entities, including mainland companies (LLCs), free zone companies, branch offices, partnership offices, and offshore companies. Each type has its own advantages and restrictions, catering to different business objectives and industries.
- What are the key benefits of incorporating a business in the UAE?
The UAE provides a business-friendly environment with tax benefits, strategic location, access to global markets, state-of-the-art infrastructure, and a stable economy. Other benefits include 100% foreign ownership in free zones, absence of personal and corporate income taxes in most free zones, and the ability to repatriate profits and capital.
- What is the difference between mainland and free zone company formation?
Mainland companies allow for conducting business within the UAE local market, but they require a local sponsor or service agent. Free zone companies provide 100% foreign ownership, are geographically restricted to specific free zone areas, and offer benefits such as tax exemptions and simplified licensing procedures.
- What are the steps involved in incorporating a business in the UAE?
The steps generally include determining the type of company, registering the trade name, obtaining initial approval, drafting legal agreements (for mainland companies), identifying business space and location, obtaining necessary licenses, submitting legal documents, and registering with the Chamber of Commerce and Industry (for mainland companies).
- What licenses are required to operate a business in the UAE?
The type of licenses needed depend on the nature of the business activities. The UAE issues three main types of licenses: commercial licenses for trading activities, industrial licenses for manufacturing activities, and professional licenses for service providers, professionals, craftsmen, and artisans.
- What documents are typically required for company incorporation in the UAE?
The specific documents may vary depending on the type of company, but generally, you will need documents such as completed application forms, board resolutions, power of attorney, memorandum/articles of association, specimen signature of manager/director, passport-size photos, lease contracts, and relevant government approvals.
