Many investors and professionals spend a lot of time and money trying to make their businesses grow, but if you are an investor too and you don’t want to spend too much time or money on it, you can efficiently set up a company in the UAE, specifically on the free zones.
Here we will show you how to set up a company in the UAE and what kind of benefits you will get once you start making your dreamed business come true. However, it is about not only getting benefits, but also knowledge and the required services to help you settle in. Let’s observe:
- Why set up your company in the UAE?
- What do you need to start setting up your company in the UAE?
- How to get a License Notification?
- What is Visa Processing and Stamping about?
- What documents will you need to set up your company in the UAE?
1. Why set up your company in the UAE?
Setting up your company in the UAE is the decision you can make and we will tell you the reasons. The UAE is known for being an economically developed zone that offers many benefits and advantages to its clients, new investors, and entrepreneurs, such as flexible government norms, a world-class infrastructure, favorable business environment, efficient quality services, and more.
1.1. Reasons to start your business in the UAE
- As a growing, diversified market, the UAE has a high global demand for imports and exports, and wide opportunities for suppliers.
- In the UAE, there are countless favorable conditions for doing business, and it ranked the country as one of the most beneficial business environments in the GCC region.
- The UAE has global connectivity and easy access to more than 90 airlines and 170 shipping lines.
- The UAE possesses a strategic geographic location in a resource-rich region.
- Commerce and businesses in this country are based on free trade barriers, which means no quotas or exchange control.
- As for taxes, there are no personal, capital, or corporate income taxes, and you can get 100% repatriation of capital and profits. There are no currency restrictions either.
- In this country, you will find world-class infrastructure and amenities in terms of business parks, warehousing, office spaces, connectivity, transportation, utilities, and more.
- There is health insurance for all UAE residents, and there are well-known universities around the country.
2. What do you need to start setting up your company in the UAE?
We’ll show you here a step-by-step guide to successfully set up your company in the UAE:
2.1. Choose your business activity.
You have to decide what will your company be about in order to set it up in a free zone in the UAE. Keep in mind that each free zone has a determined kind of business, as you can see in Dubai Healthcare City, which has companies related to the medical category. If your company will be about import and export, choosing a free zone near airports and ports will be very convenient.
2.2. Choose your company’s name.
Before giving a name to your company, you have to make sure it will not contain offensive content. There are strict naming conventions in the UAE you must follow. If the company will be named after a person, it has to be after an important member of the company (don’t use initials nor abbreviations, only full name).
2.3. Prepare your incorporation paperwork and get a License Notification.
You will have to complete an application for your selected company name and activity, which you will obtain along with copies of shareholders’ passports to the pertinent government authorities. With a business set-up advisor, you will complete this step rapidly and easily. Right after processing the incorporation paperwork, the government will provide you with your license notification.
2.4. Open a bank account.
With all the documentation you have gathered so far, you will now be able to open a corporate bank account. You can choose a local or an international bank, or you can also ask your business set-up partner to help you arrange meetings and to evaluate the most appropriate option.
2.5. Process your visa.
You can apply for your own visa or for staff and dependants if you so desire, but we recommend you seek expert advice first. The visa processing lies in five main steps: entry permit, status adjustment, medical fitness test, Emirates ID registration, and finally, visa stamping.
3. Types of companies
Once all the paperwork is done, the next step will be to get a license notification, which depends on the type of company you are setting up. Remember to choose the one that suits you better according to your business activity and zone your company will be set up in. Here is a list of different companies available for you to incorporate:
3.1. Types of companies available
- Limited Liability Company (LLC): it is like this when the owner of the company is not personally liable for the company’s debts or liabilities.
- Professional License Company (no limited liability): only able to conduct business in the specific area of expertise of the license owner.
- Free Zone Company: may trade only within the specified free zone and elsewhere in the world.
- Offshore Company: only able to trade outside of the UAE.
4. What free zones are available to set up your company in?
There are 45 free zones currently available, but the most recommended ones are in the city if Dubai. Some of these free zones are:
- Dubai Media City (DMC).
- Dubai Healthcare City (DHCC).
- Dubai Multi Commodities Centre (DMCC).
- Dubai International Financial Center (DIFC).
- Dubai Airport Free Zone (DAFZA).
- Dubai Silicon Oasis Authority (DSOA).
However, Dubai is not the only perfect place to set up your company in the UAE, because you can also discover other efficient cities such as Abu Dhabi, Sharjah, Jebel Ali, Fujairah, and more. Therefore, other good options could be the Ras Al Khaimah Economic Zone (RAKEZ), Jebel Ali Free Zone (JAFZA), and RAK International Corporate Centre (RAK ICC).