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Requirements for establishing a company in the Emirates

المدة الزمنية لإنشاء شركة بالمناطق الحرة في دبي

٢١ مايو Requirements for establishing a company in the Emirates

What are the requirements for establishing a company in the Emirates? The United Arab Emirates is an ideal destination for business and investment, as it provides an advanced economic environment and a favorable climate for establishing companies. Establishing a company in the Emirates requires a thorough knowledge of the legal and procedural requirements, which vary depending on the type of company and the free zone or mainland that is chosen. These requirements usually include obtaining a trade license, determining the legal form of the company, in addition to submitting the necessary documents such as passports, lease contracts, and others. In this article, we will review in detail the basic requirements for establishing a company in the Emirates , which helps investors and entrepreneurs understand the steps necessary to start their businesses successfully.

Requirements

Requirements for establishing a company in the Emirates

Establishing a company in the UAE requires following a set of legal and procedural requirements, which can vary depending on the type of company and location. Below are the basic requirements for establishing a company in the UAE:

  1. Depending on whether it is a limited liability company (LLC), a sole proprietorship, or a branch of a foreign company.
  2. The business activity that the company will be conducting must be specified, as this affects the type of license required.
  3. The trade name chosen must comply with local laws and must not be previously used.
  4. Submit an application for a commercial license from the Department of Economic Development or the competent authority in the free zone.
  5. Open a bank account in the company’s name to deposit the required capital, which may vary depending on the type of company.
  6. Official registration of the company and obtaining the commercial register.
  7. Some activities may require additional licenses, such as health or environmental licenses.
  8. If the company is subject to tax, it must register with the Federal Tax Authority.
  9. The company must be registered with the local Chamber of Commerce.
  10. These steps require careful planning and a good understanding of local laws. It is best to work with a legal advisor or a specialized service company such as Atqan to ensure compliance with all legal and procedural requirements.

Documents required to establish a company in the Emirates

Establishing a company in the UAE requires submitting a set of basic documents, which vary slightly depending on the type of company and the region (mainland or free zones). Here is a list of the documents generally required:

1. Personal documents:

  • Copy of passport : for founders and directors.
  • Personal photos : For founders and directors, usually passport size photos.

2. Legal documents:

  • Articles of Association : A document that includes details about the company, such as name, activity, and capital.
  • Company registration application form : Submitted to the competent authorities.
  • A copy of the partnership agreement : if the company consists of partners.

3. Office documents:

  • Lease contract : for the company’s office or headquarters, preferably notarized.
  • Certificate of ownership : If the office is owned.

4. Licensing and activity:

  • Specify the business activity : This requires providing details about the activity, which helps in determining the type of license required.
  • Commercial License Application : Includes information about the type of company and activity.

5. Financial documents:

  • Capital Statement : Shows the invested capital.
  • Proof of the source of funds : such as a bank statement or other documents proving the source of the funds.

6. Additional documents (depending on the type of company):

  • Experience certificates : may be required for some activities.
  • Additional licenses : for some activities such as medical or educational.

7. Tax registration:

  • Tax Registration Form : If the company is subject to tax.

It is advisable to work with a legal advisor or a specialized service company to facilitate the incorporation process and ensure that all documents are submitted correctly.

Advantages of establishing a company in the Emirates

Establishing a company in the UAE comes with a set of advantages that make it a preferred destination for investors and businessmen. Here are some of the most prominent of these advantages:

  • Conducive business environment: The UAE provides a business environment that encourages innovation and growth, with an advanced infrastructure that facilitates business operations.
  • Tax Exemptions: Most free zones offer full tax exemptions for a specified period, which helps reduce operational costs.
  • Ease of procedures: Facilitating the administrative procedures for establishing companies, as many steps can be completed online.
  • Intellectual Property Rights Protection: The UAE offers a strong legal system that protects intellectual property rights, providing security for investors.
  • Market Diversity: The UAE is an important trading hub, allowing access to new markets in the Middle East, Asia and Africa.
  • Availability of a qualified workforce: The UAE has a diverse and qualified workforce of different nationalities, which facilitates the recruitment of talent.
  • Multiple incorporation options: The UAE offers a variety of options for incorporating companies, including free zones and limited liability companies.
  • Ease of transferring profits: Investors can transfer profits to their countries without restrictions, which enhances the attractiveness of the investment.
  • Political and economic stability: The UAE enjoys political and economic stability, which increases investor confidence.
  • Strategic partnership opportunities: The UAE offers opportunities for collaboration with local and international companies, which enhances the potential for growth and expansion.
    These positives contribute to making the UAE an ideal choice for establishing companies, attracting investors from all over the world.

Requirements

Conditions for establishing a company in the Emirates

Establishing a company in the UAE requires compliance with a number of legal and procedural requirements. These requirements may vary slightly depending on the type of company (such as limited liability companies, sole proprietorships, or companies in free zones). Here are the basic requirements for establishing a company in the UAE:

  • The legal form of the company must be specified (such as a limited liability company, a joint stock company, or a branch of a foreign company).
  • You must choose a trade name that complies with local laws and that has not been used before.
  • The commercial license must be obtained from the competent authorities, such as the Department of Economic Development or the responsible authority in the free zone.
  • Submit all necessary documents, such as copies of passports, personal photos, and the lease contract for the company’s headquarters.
  • The business activity that the company will carry out must be specified, as this requires providing detailed information to the relevant authorities.
  • Open a bank account in the company’s name to deposit the required capital, which depends on the type of company.
  • A manager or legal representative of the company must be appointed, and documents proving his qualifications must be submitted.
  • The required initial capital must be determined, which may vary depending on the type of company.
  • Register the company in the commercial register to obtain the final license.
  • Register the company with the Federal Tax Authority if it is subject to tax.
  • For some activities, the company may require additional licenses (such as health or educational activities).
  • These are the basic requirements for company formation procedures in the UAE, and it is important to work with a legal advisor or a specialized services company to ensure compliance with all legal requirements.

How long does it take to set up a company in the UAE?

Establishing a company in Dubai , UAE takes time and effort, but the process is generally fast compared to many other countries. Typically, company establishment procedures take between one and four weeks, depending on several factors. First, the type of company you want to establish, whether it is a limited liability company, a branch of a foreign company, or a company in a free zone. The procedures for obtaining a commercial license are the primary step, and require identifying the business activity and choosing the appropriate trade name, which takes some time. Next, the required documents must be submitted, such as copies of passports, personal photos, and an office lease contract. In case of additional documents, this can increase the establishment period. Also, the timing may be affected by the approval of various government agencies. However, in the event of working with a legal advisor or a specialized service company such as “Atqan”, this process can be significantly accelerated, as they can manage the documents and approvals more efficiently. In general, the UAE is considered one of the countries that provides a favorable business environment that facilitates the establishment process, making it an ideal destination for investors and businessmen.

In conclusion, establishing a company in the UAE is a strategic and smart move for investors and businessmen from all over the world. With a dynamic economic environment, supportive legal systems, and diverse opportunities available, investors can achieve remarkable success and sustainable growth. By understanding the necessary requirements and procedures, business founders can overcome challenges and achieve their business goals. Therefore, it is advisable to work with reliable advisors to ensure smooth incorporation and compliance with all laws. Investing in the UAE is not just a business move, it is an investment in the future, as the country is an ideal platform for innovation and growth.

Frequently asked questions about establishing a company in the Emirates