company setup in UAE

As the United Arab Emirates grows as a strong country, more foreign investors and entrepreneurs from several countries desire to start their company setup in UAE and receive the benefits and support they need to grow and thrive in the country. And before start setting up yours, it is essential to follow some steps and tips.

In this article, you will find a detailed guide that shows you every step you must follow in order to start your company setup in UAE, and besides, you will learn about the benefits you will be able to receive during your company setup and the services you can request to make your business more efficient in time. Let’s observe:

1. Why you should set up your business in the UAE?

2. What types of companies are allowed in the country?

3. The required documents to set up a company in the UAE.

4. Types of licenses you can apply for to complete your company’s formation.

5. How the business setup process is done.

6. How can Connectfz help you complete your company set up in the UAE?

1. Why you should set up your business in the UAE?

Since the UAE is becoming a popular business place among many businesspeople from all around the world, it would be useful for you to know the reasons why it happens and why you should consider starting your own company setup in UAE. This information will help you decide which one is the best choice for you.

Among the most outstanding reasons why you should set up your company in the UAE, you will find the following ones:

  • The growing economy in the country is the most favorable environment for any investor and entrepreneur to establish a business and achieve success easily. During the last 40 years, there has been a growing open economy in the country with high per capita income and high annual trade surplus, which allowed companies from all around the world to establish themselves in the UAE. Due to the strong economy that is in the country, the UAE has become a wealthy place that provides investors and entrepreneurs with financial solutions to make their businesses thrive without failure.
  • The country’s government and legal framework work in order to drive the economy through foreign investments, helping foreign businesspeople who are willing to start their company setup in UAE. Legal procedures tend to be time-consuming and tiresome processes, but in the UAE, these procedures are fast-tracked and flexible enough to avoid tedious processes, such as licensing and registration procedures, which do not require too much time or paperwork.
  • The UAE government also ensures world-class infrastructure and amenities for foreign investors and entrepreneurs, allowing them to run their companies with ease. Among these elements, you will be able to find warehousing, office space, business parks, transportation, connectivity, utilities, and many other resources.
  • According to the type of company that you want to set up, you will discover the tax exemption advantage. It is essential to learn the UAE’s tax laws and categories that the country offers to foreign companies, being the most popular category related to the free zone company’s features. If you set up a free zone company in the UAE, you will obtain 100% tax exemptions; 0% corporate and income tax. Most free zones include this tax exemption as a benefit for those who desire to start setting up their business, like the Dubai Free Zone, Sharjah Airport International Free Zone, and many others.
  • Another important feature that makes the UAE a beneficial country for doing business is the business ownership it grants to its investors. In the case of free zone companies, investors and entrepreneurs obtain 100% of business ownership. In other cases, like LLC companies (Limited Liability Company), the foreign business investment only obtains 49% of business ownership share, and on the other hand, the local partner obtains 51%.
  • The country counts on a strategic location between three continents (Asia, Europe, and Africa), providing easy access to the GCC and the Middle East market. This makes the UAE a key country for doing business successfully.

Here you can learn how to open a company in a free zone in the UAE.

2. What types of companies are allowed in the country?

company setup in UAE

According to the location in which you desire to establish your company, you can choose the most suitable type of company formation in Dubai and UAE for you. There are several types of companies allowed in the country, and among the ones that you will find more frequently are these:

  • Limited Liability Company (LLC): it is one of the most common types of company formation in the country, in which there are at least 2 shareholders and a maximum of 50. These shareholders become liable and profit and loss are divided between parties equally. LLC companies are known for conducting professional businesses and the banking sector, but also they are known for being able to conduct any industrial or commercial business activity in the jurisdiction.
  • Free Zone Company: this company formation structure is established geographically in certain areas that were built for these types of companies, which are known as free zones. This company model comprises from 2 to 5 stakeholders and the free zone location provides exclusive benefits, such as incentives and pro trading policies that make these locations very popular among foreign businesspeople. The most outstanding benefits that free zone companies can obtain are 100% foreign ownership, 100% repatriation of capital and profits, and no corporate and income taxes.
  • Offshore Company: this is a legal entity that is allowed to operate outside its registered jurisdiction or the location of its ownership. For this type of company, some benefits can be offered, including access to a business-friendly legal system and a more flexible regulatory regime, better access to global funding, tax neutrality on international earnings, a gateway for international market expansion, and many more.

2.1. Available free zones in which you can set up a free zone company.

If you have chosen a free zone as the perfect location for you to start your company setup in UAE, you will have to examine carefully the available free zones for you and select the most suitable one according to the type of business you desire to develop in the UAE. There are currently 45 available free zones, including the following ones:

  • International Free Zone Authority (IFZA).
  • Dubai International Financial Centre (DIFC).
  • Jebel Ali Free Zone (JAFZA).
  • Dubai Silicone Oasis Authority (DSOA).
  • Dubai Airport Free Zone (DAFZA).
  • Dubai Media City Free Zone (DMC).

Also you can learn how free zone companies can do business in Dubai Mainland.

3. The required documents to set up a company in the UAE.

Since documents are essential to start your company setup in UAE, you must be aware of them and which ones you need to achieve your goal and run your business in the country. Just like the company formation process and cost, some documents could vary depending on the nature of your company and its business activities. However, you can start by gathering these general documents:

  • Passports copies of your partners and business managers.
  • Duly filled application license form.
  • Notarized and attested MOA (Memorandum of Association) and AOA (Articles of Association).
  • The original bank reference letters.
  • A copy of your business plan.
  • Non-disclosure agreement.
  • Employee contracts and offer letters.
  • The license of your partner’s existing company (if applicable).
  • Will (testament) protection of assets.

These documents are crucial for young businesses and allow them to protect their investment. Some other documents might be required when setting up your company, and being in touch with professional advisors can help you obtain the information you need.

Here you can learn about some reasons why it would be a good choice to establish your company in a UAE free zone.

4. Types of licenses you can apply for to complete your company’s formation.

Types of licenses you can apply for to complete your company’s formation

Among the required documents to develop and run a business in the UAE legally, you will need to obtain a business license that suits your type of business. You can select the ones that your business requires and apply for them. Some of the types of licenses you might need to get are these:

  • General Trading License: with this license, your company will be allowed to trade any type of products and goods.
  • Commercial / Trading License: your company will be able to perform industrial, commercial, and consulting activities due to a time-limited authorization that this license provides.
  • Industrial License: with this license, your firm will be able to import raw material, manufacturing, and exporting finished products.
  • Service License: certain companies (like business consultancy firms, law firms, accounting firms, and many more) will be able to offer their services by having this license.
  • Professional License: this license allows 100% ownership for foreign investors and entrepreneurs, and makes them be able to obtain the advantage of a sole proprietorship.
  • Warehousing License: investors can avail of warehousing facilities with this license on lease for distribution, packaging, and storage of goods.
  • Manufacturing License: by having this license, your company will be allowed to manufacture goods and products.

5. How the business setup process is done.

In order to complete your company setup in UAE, you must follow this step-to-step guide to ensure a successful establishment. And it would be also good to remember that some steps could vary according to the type of company that you desire to establish, just like the UAE company formation cost could vary too. These are the steps to set up a company in the country:

  • Determine your business activities, select the location in which you want to establish your business, and create a suitable name for your company. Take into consideration that there are rules you must follow regarding the name of a company.
  • Apply for a business license that suits your company’s profile and activities. Without a license, your company will not be able to perform its business activities and, therefore, you will not be able to run your business properly. Be sure to get a License Notification too once all necessary documents are acquired.
  • Open a corporate bank account and apply for visa documents. You are free to choose between a local and an international bank to open your account. As for the visas, you can submit the required documents to process your application. You can also request visas for your relatives and workers if it is needed.

Keep in mind that some types of companies will require a local partner, therefore, be sure to learn more about sponsors in Dubai and UAE for companies.

6. How can Connectfz help you complete your company set up in the UAE?

Completing the company formation process will probably require professional support, and even more, if you are looking forward to completing it in a short time. Having Connectfz by your side as your business partner will help you speed up this process and set up your company successfully without wasting time or money.

You will learn some professional tips and some traps that we recommend you to avoid when forming your business in the UAE, and besides, you will be able to request our services to boost your business during and after its formation, such as HR consultancy services, staff outsourcing services, and more.

Our experienced team members will guide you throughout your journey as an investor in the UAE and help you settle in the country instantly, achieving your business goals in a matter of time thanks to our high-quality services. If you need more information, feel free to contact us at any time.

Would you like to contact Connectfz to know more about the company set up in the United Arab Emirates? If you have any question do not hesitate to call us on +97143316688 or email us at info@connectfz.ae, and you will talk to one of our representatives that will gladly answer all of your questions.