How to set up a company in the UAE? The United Arab Emirates is one of the most prominent global destinations for business and investment, providing an ideal business environment that combines government facilities and advanced infrastructure. Setting up a company in the UAE represents an exciting opportunity for businessmen and investors, whether from within the country or from abroad. With a range of free zones that offer tax benefits and trade facilities, investors can achieve their goals quickly and efficiently. The incorporation process includes choosing the right business activity, fulfilling legal requirements, and obtaining the necessary licenses. Consulting firms such as “Atqan” play an important role in facilitating these procedures, making it easier for investors to start their businesses in an environment that encourages innovation and growth.

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ToggleProcedures for establishing companies in the Emirates
Establishing a company in Dubai , UAE requires following several specific steps and procedures. Here are the most important steps required to establish a company in the UAE:
- Determine the type of company: You must determine the type of company you wish to establish, whether it is a limited liability company (LLC), a branch of a foreign company, a free zone company, or a sole proprietorship.
- Select the business activity: Select the business activity you wish to engage in. The activity must comply with the classifications permitted in the UAE.
- Choosing a trade name: Choose a trade name that complies with the laws of the UAE. The name must be unique and not used before.
- Submitting the application: Submit the application for a trade license from the Department of Economic Development (DED) or the competent authority in the free zone, along with the required documents such as passports and a No Objection Certificate (if any).
- Preparing legal documents: Prepare the necessary legal documents, including the articles of association and the company’s bylaws. You can hire a lawyer or consulting firm to help with this.
- Open a bank account: Open a bank account for the company and deposit the minimum capital required according to the type of company.
- Obtaining a commercial license: After completing all procedures and submitting documents, the competent authority will issue the commercial license.
- Company Registration: After obtaining the license, the company must be registered with the Ministry of Human Resources and Emiratisation to obtain a labor card and register employees.
- Tax Registration: If the business is subject to tax, it must be registered with the Federal Tax Authority.
- Securing additional licenses: Depending on the nature of the activity, you may need to obtain additional licenses such as health and safety licenses or municipal licenses.
In short, the process of setting up a company in the UAE can be simple and efficient if the steps are followed carefully, with the help of experts to ensure compliance with all legal requirements.
Business activities that require a local partner
Business activities that require a local partner in the UAE vary depending on the emirate and the applicable laws and regulations. The following are some business activities that require a local partner in some of the UAE emirates:
- Real estate-related activities that require the local partner to own a percentage of real estate assets, such as real estate brokerage and real estate development.
- Activities related to land transportation that require the local partner to own a percentage of the assets related to transportation, such as transportation and delivery companies.
- Activities related to trade that require the local partner to own a percentage of the capital, such as general trading and contracting companies.
- Activities related to health services that require the availability of a local partner for medical services, such as medical clinics and hospitals.
- Activities related to petroleum trade that require the availability of a local partner for petroleum services, such as exploration and drilling companies and maritime transport.
It is advisable to check the requirements for the business activity you wish to practice, and to ensure the laws and regulations related to establishing companies in the emirate in which you wish to establish the company. It is important to note that some emirates allow the establishment of companies without a local partner, and these companies are called “private joint-stock companies established with 100% foreign capital.”
How long does it take to establish a company in the Emirates?
Establishing a company in Dubai , UAE can take varying amounts of time depending on several factors, but on average, it can range from two weeks to a month. Below is a breakdown of some of the factors that affect the incorporation period:
- Company Type: Limited Liability Companies (LLC) may require additional time compared to sole proprietorships or companies in free zones.
- Required Documents: Preparing the required documents completely and without errors will facilitate the acceleration of the process. Any missing or incorrect documents may lead to delays.
- Choosing a Trade Name: The process of approving a trade name may take some time, especially if the desired name is reserved.
- Government Procedures: The speed of procedures at government agencies, such as the Department of Economic Development (DED) or the competent authority in the free zone, plays a major role in determining the duration.
- Hiring a consulting firm: Relying on consulting firms such as Ataqan can make the process easier, as these firms provide the knowledge and expertise needed to quickly navigate the procedures. In general, with good planning and compliance with government requirements, the company formation process can be completed quickly and efficiently.
Company establishment fees in the Emirates
The fees for establishing companies in Dubai, UAE, vary depending on the type of company and the emirate in which you wish to establish the company. The following are examples of some of the fees that may apply:
- Activity permit fees: Activity permit fees vary depending on the type of business activity you wish to practice.
- Company establishment fees: Company establishment fees vary depending on the type of company you wish to establish and the emirate in which you wish to establish the company.
- Licensing fees: Licensing fees vary depending on the type of company and its activity.
- Legal consultation fees: You may need to obtain legal advice sometimes, and the cost of legal advice varies depending on the type of company and the services provided.
Please note that these figures are general estimates and may vary depending on the individual situation of each company and the emirate in which you wish to establish the company. It is important to obtain an accurate estimate of costs and fees from a legal consulting office or a company specializing in establishing companies in the UAE.
Advantages of establishing a company in the Emirates
Establishing a company in Dubai , UAE offers a range of advantages that make it an attractive destination for investors and businessmen. Here are the most prominent advantages:
- Encouraging business environment: The UAE has a developed business environment that facilitates the establishment of companies and provides government support.
- Tax exemptions: Many free zones offer tax exemptions, making it easier to achieve profitability and increase revenues.
- Intellectual Property Protection: The UAE provides strong intellectual property protection, protecting the rights of investors and creators.
- Ease of obtaining licenses: The procedures for obtaining business licenses are quick and efficient compared to many other countries.
- Multiple options for free zones: Investors can choose different free zones according to their business activity, giving them flexibility in choosing the location.
- Access to new markets: The UAE is strategically located to provide access to the Middle East, Asia and Africa markets, enhancing expansion opportunities.
- Diversified economy: The UAE has a diversified economy that includes multiple sectors such as tourism, trade, real estate, and technology, which provides various investment opportunities.
- Advanced infrastructure: The country has an excellent infrastructure that includes modern roads, international airports, and advanced ports that facilitate the movement of goods and people.
- Investment Incentives: The UAE government offers various incentives to investors, including financing facilities and support in growth strategies.
- Advanced Social Life: The UAE offers a comfortable and sophisticated lifestyle, making it a preferred destination for living and working, with high-quality educational and healthcare facilities. Setting up a company in the UAE represents an excellent opportunity to achieve success and growth in a supportive and innovative business environment.
In conclusion, setting up a company in the UAE represents a unique opportunity for investors and entrepreneurs to benefit from the country’s encouraging business environment and advanced infrastructure. With the multiple benefits offered by the country, including tax exemptions, intellectual property protection, and economic diversification, investors can achieve their business goals easily and quickly. Moreover, the presence of consulting firms such as “Ataqan” makes it easier for entrepreneurs to take the necessary steps to establish their businesses successfully. Therefore, investing in the UAE is not just a business move, but an investment in a promising future. With a commitment to good planning and effective execution, new companies can become part of the thriving economic landscape in the UAE, contributing to sustainable growth and development.
Frequently asked questions about establishing a company in the Emirates
Do foreign investors have to have a local partner?
In case of Limited Liability Companies (LLC), a local partner is required. However, in free zones, this is not required.
What are the costs associated with starting a company?
Costs vary depending on the type of company, region, and business activity, and include license fees, registration costs, and consulting fees.
Are there any tax exemptions for companies in the UAE?
Yes, many free zones offer tax exemptions for specific periods, making them attractive to investors.
Are there any restrictions on business activities?
Yes, there are certain activities that require special licenses or are completely prohibited. The permitted activities must be checked before incorporation.