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UAE laws for investors

١٣ مارس UAE laws for investors

Of course, invest in Dubai. Dubai is a distinctive emirate in terms of many things that make it the best choice for investment in terms of location and also attracting many tourists and investors who are very interested in knowing the conditions for establishing a company in the free zone located there, and also the UAE Investment Authority through the laws set by the Emirates supports investment in Dubai in particular and investment in Jebel Ali located in Dubai, as the Emirate of Dubai is also distinguished by its strong infrastructure that allows you to establish a company in Dubai and with the help of the Investment Authority in Dubai you obtain privileges such as tax exemption. Not only that, but you can reside and invest in Dubai by establishing a company in Dubai or establishing a company in Jebel Ali .

Laws and regulations for investors in the UAE:

There is a federal law in force in seven of the Emirates, which replaces the “local” laws in each Emirate. In addition, there are many free zones in each Emirate, each with its own laws and legislation that may differ from the laws of the United Arab Emirates in general. The conditions for establishing a company in Dubai itself also differ from the conditions for establishing a company in the free zone and from one free zone to another, with many elements being shared, as they were formulated to facilitate the practice of business for foreign investors. For example, the Dubai International Financial Centre (DIFC), English law was used as the prevailing law to facilitate these activities.

The importance of investment law and regulations in the UAE?

Investment laws provide many advantages that help in knowing how to invest in Dubai by providing all sources of attraction for foreign and Arab investors as well as local investors. The importance of investment laws is due to several important points that it provides in different ways to support the economy, which are:

  • Investment laws support ownership rights for foreign investors.
  • The project is fully supported by investment companies in the UAE in some sectors of the economy.
  • Investment regulations and laws allow the founder of the company to own 100 percent of it, which contributes to solving many of the problems facing investors that cause disruption to the company’s balance due to the lack of an ownership law.
  • Asset ownership in companies at the end of 2019 reached 49 percent.

The new investment laws apply to strategic sectors only so far until further details emerge.

Activities permitted under the UAE Investment Law:

For free zone companies, you must obtain a commercial license for each activity your company will practice, such as trade, consulting, etc., and you are allowed to participate in the capital or own shares. As for offshore companies, they are allowed to practice many activities in one company.

The activities prohibited by the Investment Authority for foreign companies are:

  • Finance
  • Flying
  • Media
  • Precious metals
  • Oil and Gas

While there are activities authorized by the Investment Authority, which are:

  • Management and business consulting.
  • General trade.
  • Holding companies and holding shares in other companies in the UAE or abroad.
  • Trade (of all kinds)
  • Freehold property.
  • Auditing, accounting and reporting.

Conditions for establishing a company in the UAE Gulf:

To know the conditions for establishing a company in the Gulf in general or establishing a company in the free zone in particular, there are some stages that you go through, including:

  • Choosing the activity: This is the first step to establishing a company in the free zone, as you start by knowing what the appropriate activity is, and this will be determined by the place where you will establish a company in Dubai from all economic, professional, commercial, and industrial fields.
  • Commercial registration: This is the second step and is primarily related to the conditions for establishing a company in the Gulf, which is what distinguishes one company from another. There are some conditions for obtaining the approval of the Department of Economic Development for the trade name, which are:
  • The trade name you choose must not violate public taste and must not contain inappropriate phrases or words.
  • The legal form of the company must be linked to the trade name.
  • The company name must not be registered by another company.
  • Also, the trade name should reflect the product or activity it offers.
  • The trade name must be free of the word “Allah” or “Lord” or any of the beautiful names of God.
  • The trade name must not include any names of government institutions or political slogans.
  • Obtaining initial approval: This is the next step after determining the activity, commercial registration, and choosing the name of the activity. Before initial approval for foreigners, the approval of the General Administration of Residency and Foreigners Affairs must be obtained.
  • Choosing a business location: All companies in the UAE must have a fixed address in the UAE and in Dubai you will be required to provide a lease contract certified by the Dubai Real Estate Regulatory Authority and you can add a license to your activity.
  • Obtaining approvals from the entities concerned with the facility: such as legal consultations, insurance activities, and transportation.
  • Obtaining a commercial license in Dubai: To obtain a commercial license in Dubai, there are several steps to obtain it, which are:
  1. Payment of commercial license fees.
  2. Collect all the documents you have completed in the previous stages and submit them to the Department of Economic Development.
  3. An urgent application can be submitted to obtain an immediate license and pay the fees for it.

Establishing a company in the free zone

Arab investment in the free zones in the United Arab Emirates is the opportunity that many Arab and foreign investors and pioneers in the field are waiting for who want to establish a company in the free zone that is their own, without the need to communicate with a local sponsor. The Investment Authority determines the conditions for establishing a company in the Gulf in cooperation with the Gulf Cooperation Council, and this type of company has been designated to serve the idea of ​​foreign and Arab investment, as it encourages investors to establish their own companies here in the Emirates, as this system is characterized by ease and also low establishment costs. There are some important steps for obtaining a license and determining its costs, including:

  • Commercial license: It includes all types of commercial activities.
  • Industrial license: includes all types of industrial and manufacturing activities.
  • Tourism license: It includes companies working in hospitality and tourism.
  • Professional license: It includes all types of professional and craft activities.

The costs of establishing a company in the Emirates are:

  • Paying the price of the land or the pre-specified site for building the company on which it is to be established or paying its rental value.
  • Payment of commercial registration fees.
  • Payment of fees to the investment agencies concerned with the project.
  • Pay all bank dues in case of taking loans to operate the business in its free zone.
  • Determine the value of profits and conduct a complete feasibility study for the project and know the average profit rates in order to reach the best results and determine the margin of taxes and financial dues to the state.
  • Pay the cost of a commercial license in the Dubai Free Zone.
  • Pay the value of the instant license in Dubai if the place of investment is in Dubai.
  • You must adhere to everything that has been introduced by the UAE legal authority and apply all fees that the state may impose, such as customs duties on products that you may import, noting that there is significant support for products imported from the Gulf Cooperation Council countries based on the laws shared between them.

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