Establishing companies in the UAE is one of the greatest ideas that you would like to consider, given the advantages that the UAE has that can advance your business.
In this topic, the impact of this decision on companies, their financial conditions and profits, and the best methods and solutions offered by AHG to establish a successful company will be discussed.
Advantages of establishing companies in UAE
The UAE is a fertile land for establishing companies and brands, as it seeks to provide complete well-being for all residents of the Emirates.
Thus, there are many advantages of Establishing companies in the Emirates, including:
- Quick Setup: You can register your business with the UAE Department of Economic Development in a period not exceeding 90 minutes.
- Diversity of commercial activities: The UAE offers you more than 2,000 different commercial activities that you can choose from.
- 100% Foreign Ownership: Foreign ownership of companies is usually limited to only 49% of the business while the rest goes to a local partner, but in the UAE you can create your own brand with 100% ownership
- Economic situation: The economic situation in the UAE is refreshing, which guarantees you stable work and increased profit.
Establishing a companies in Dubai Steps
AHG provides company formation service in the UAE through an organized process in which all required rules and procedures are followed to avoid all legal problems that may harm the project.
You must be familiar with all the steps of establishing companies in Dubai, including:
Determine the type of work
You can choose between more than 2,000 listed commercial activities that include many different specializations, such as tourism, commercial, industrial, professional, and other projects.
Choose a company name
It is one of the very important elements in the steps to establish companies, as the UAE has set some strict laws for choosing the trade name for companies, and to ensure the registration of your commercial project, the name must adhere to the conditions set, in addition to making sure that the name reflects the nature of your project.
Legal form
Determining the legal form of the company when establishing companies is one of the most important elements because it entails a framework for dealing with profits and losses and organizing resources and assets. You can choose the legal form for your company from several options, including:
- A limited liability company
- Individual Foundation
- civil company
- Branch of a local or foreign company
- Free Zone Company Branch
Submit all documents to the department
You have to obtain all required government approvals, which vary according to the nature and type of your business
your visa
It is the final stage of establishing companies in Dubai, and at this stage, you can also request the presence of family or employees
This process consists of three steps:
- Obtaining a permit to enter the UAE.
- Do a medical examination to ensure your safety
- Taking the Emirates ID and visa
Establishing companies in the free zone
Free zones in the Emirates and Dubai are a great opportunity for investment, given the advantages and facilities they provide to encourage investors who want to start businesses and companies
Each region has its features and laws, so you must first determine the type of business and make sure that it meets the appropriate conditions for the region in which you want to start work.
Advantages of establishing companies in free zones
The UAE gives you several advantages when establishing a company in free zones, including:
- Tax exemption for companies and individuals
- Customs benefits and various incentives for foreign investors
- Enabling the owner to fully dispose of the profits without any decrease
- You can establish a company that is 100% owned by you without a local partner
- Lifting restrictions on cash transactions
- Full exemption from import and export taxes
incorporation procedures
AHG takes steps to establish companies and submits all required documents, including:
- Determine the type of activity to obtain a business license.
- Determine capital requirements.
- Choose a unique name that is not similar to the name of another company.
- Applying for a trade license through the concerned authorities.
- Selection and fit-out of commercial premises and site with specified requirements
- Obtaining the approval of the General Administration on the application form for obtaining the initial approval that fulfils the required data
- Submit a business plan:
- Copy of existing trade license/registration certificate
- Colour copies of the passports of the shareholders of the company and the newly appointed manager or management member of the company
- A signature form for all shareholders of the company and the newly appointed director or management member of the company
- Accurate financial reports of the company’s budget for two years or a reference certificate from the private bank for all shareholders
- No objection letter from the current sponsor (for individuals)
- Title deed for the real estate unit
- letter of intent
- A form with the identification code of the commercial register for the manager/member of the department (submission of the original copy officially authenticated by the notary public)
Establishment registration:
- The application for registration is complete with all the information
- The decision of the company board to appoint a manager for the company/member of management (officially documented by the notary public and approved)
- The Memorandum and Articles of Association of the company (officially authenticated by the notary public and approved)
- Signature form of the manager/member of the administration (officially certified by a notary public)A personal photo of the director/management member with a white background
- Information about the shareholder’s capital
The most famous free zones in the Emirates
- Dubai Airport Free Zone
- Dubai Design District
- Dubai Healthcare City
- Dubai Internet city
- Dubai International Financial Centre
- Knowledge Garden
- Dubai Media City
- Gold and Diamond Complex
- Dubai Multi Commodities Centre
- Dubai Silicon Oasis
- Dubai Production City
- Jebel Ali Free Zone Authority
- Dubai South
- Dubai Media Production City
- Dubai Studio City
Areas of establishing companies in the UAE
There are more than 2,000 diverse fields in which you can invest according to the chosen region and the conditions of work in it, such as:
- energy
- goods
- gold
- Diamond
- technology
- Constructions
- Fast-moving consumer goods
- health care
- Aviation
- Shipping
- education
- media
- Professional services
- financial services
- personal services
- community services
- banks
- Insurance
- Wealth management
- capital markets
- retail stores
- restaurants
- hotels
- Art galleries
- Academic institutes
- tourists
Conditions for establishing companies in the UAE for foreigners
There are a number of conditions stipulated by the Department of Economic Development regarding the establishment of companies for foreigners, including:
- Choose a business name.
- Obtaining the work visa necessary for investment and business establishment
- Receive the trade license and pay the related fees
- Registration in the UAE Chamber of Commerce
- Completion of all required legal documents and procedures within the conditions of establishing companies for foreigners
- Determine an area to establish the company on its land after ensuring that the company’s activity is suitable
- There is a work team present
Choose a business name
A number of conditions must be met:
- To express the nature of the company.
- It does not include any term contrary to public taste
- It does not contain the name of any government agency
- It is not similar to another company name
- It does not contain one of the names of God
Documents required for establishing companies for foreigners
- A personal photo with a white background.
- passport copy
- The original and copy of the company’s Memorandum of Association or the service agent’s contract
- A copy of the company’s incorporation card in Dubai
- Possession of a valid commercial license in the UAE
- Company bank statement
Additional approvals for establishing companies for foreigners in the UAE
You may need some approvals from government agencies according to the type and nature of your activity, such as:
- Ministry of Interior
- Ministry of Justice
- Municipality Department in Dubai
- The Telecommunications Regulatory Authority
- executive board
- The ministry of communications
- Dubai Health Authority
- Supreme Petroleum Council
- Commercial license
AHG is a leading regional auditing and chartered accountancy firm, with presence in the GCC and North Africa. Since 2014, AHG has helped companies operating in the UAE achieve maximum success. We are fully prepared for establishing companies in the United Arab Emirates with a team of trained tax experts to prepare your business for corporate tax in the United Arab Emirates.
The AHG-Dubai Group serves a wide range of clients and multinational corporations. This comes in light of the company’s strategy to focus on two main pillars: geographical expansion in frontier markets and driving a positive societal culture. By combining our strengths and expertise in the region, we provide our clients with best-in-class services tailored to their needs to maximize their investment goals in a rapidly changing environment.
