Everything you need when establishing your company in the Emirates

١٦ يونيو Everything you need when establishing your company in the Emirates

١٦ يونيو POSTED AT
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Establishing a company in the UAE is an important step towards achieving success in the dynamic business market. The UAE provides a distinguished business environment thanks to advanced infrastructure, flexible laws, and attractive incentives for investors. However, to make the most of this environment, investors must be aware of all the requirements and steps needed to successfully establish their company. In this article, we will review all the aspects you need to know when establishing a company in the UAE . We will cover basic matters such as choosing the appropriate free zone, determining the type of company, legal and financial procedures, and requirements for obtaining the necessary licenses. We will also discuss practical advice and guidance that will help you facilitate the establishment process and avoid potential obstacles. By understanding these aspects well, you can start your business journey with confidence and make your company a successful starting point in the promising UAE market.

Everything you need when establishing your company in the Emirates

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Everything you need when establishing your company in the Emirates

Establishing a company in the UAE requires following specific steps to ensure compliance with the laws and taking full advantage of the available opportunities. Here’s a comprehensive look at everything you need when establishing your company in the UAE:

1. Choose the company type: Limited Liability Company (LLC), which requires a local partner who owns 51% of the company’s shares. An individual company in that it can be established by one investor, but under certain conditions.
2. Choosing a free zone: Each free zone in the UAE offers different advantages in terms of licenses, costs and services. Choose the area that suits your business and requirements.
3. Choosing a company name: The name must be compatible with local laws and not conflict with previously registered trade names.
4. Prepare the required documents: passport, colored copies, and a personal photo of the founders. The articles of incorporation contain the company’s details, such as name, activity, and address.
5. Submit a license application: Commercial licenses include commercial, industrial, and service activities, and you must obtain an appropriate license for your activity. Commercial registration to register the company’s name and confirm the legality of its activity.
6. Choosing a business location: According to licensing and activity requirements, an office in the free zone or an external office can be chosen.
7. Opening a bank account for the company: You need to open a bank account in the name of the company, and submit the required documents to the bank.
8. Registration with government agencies: Register the company with agencies such as the Department of Economic Development, the Emirates Authority for Standardization and Metrology, and others depending on the activity.
9. Obtaining work and residence visas: After establishing the company, you can request work and residence visas for your employees and founders.
10. Handling Accounting and Taxes: It is essential to set up an effective accounting system and ensure compliance with local tax requirements.
By following these steps and preparing all documents correctly, you can ensure that your company is established in the UAE legally and effectively, allowing you to benefit from the distinguished business climate in the country.

Steps to establish a company in the Emirates

Establishing a company in the UAE requires following specific steps to ensure compliance with local laws and success in the market. Here are the basic steps to establish your company in the UAE:

Determine the type of business activity the company will undertake, which affects the type of license required.
Choose a trade name that is consistent with local laws and is not similar to previously registered trade names.
Choose a free zone that suits your business and budget.
Choose a location that matches your business type and licensing requirements.

Submit an application to obtain the appropriate commercial license for the company’s activity, which requires submitting the necessary documents.
Register the company with the Department of Economic Development or the relevant authority in the free zone, and submit all required documents.
Open a bank account in the name of the company and submit the required documents to the bank.
After establishing the company, you can apply for work and residence visas for your employees and founders.
Register the company with the local tax authority, and ensure compliance with all tax requirements.
Establish an effective accounting system to track financial transactions and comply with legal requirements.

By following these steps, you can establish your company in the UAE in a legal and regulated manner, allowing you to benefit from the thriving business environment in the country.

Conditions for establishing a company in the Emirates

Establishing a company in the UAE requires fulfilling a number of legal and procedural conditions and requirements. Here are the most important conditions to consider:

Choose the company type

Limited Liability Company (LLC): Needs a local partner who owns 51% of the shares.
Sole Proprietorship: It can be established by one investor according to the specified conditions.
Company in a free zone: Provides full ownership by foreigners and does not require a local partner.

Verify business activity

Accurately define the business activity to ensure compliance with the type of license required. The activity must be consistent with classifications recognized by the relevant authorities.

Choosing a company name: The name must be compatible with local laws, not previously registered, and not conflict with religious or moral values.

Documentation requirements

Passport: color copies and photos of the founders and investors.
Residence visas: if the founders or employees are non-citizens.
Articles of Association: It must include all details related to the company, such as name, activity, and shareholders.

Address and location

In free zones: The office or work space must be located.
In non-free areas: There must be an approved lease contract for the work site.

Open a bank account

A bank account must be opened in the company’s name in a local bank and the required documents must be submitted to the bank.
Obtaining the appropriate commercial license from the Department of Economic Development or the relevant authority in the free zone. The license must include all activities prescribed for the company.
If there are foreign employees, an application must be submitted for work and residence visas in accordance with the regulations.
Registration with the local tax authority and compliance with tax requirements. Periodic financial reports must be submitted if the company’s activity is subject to tax.
Establishing an accounting system that complies with legal requirements to ensure transparency and financial compliance.
Comply with all local regulations and laws related to the business, including health and safety, environmental protection, and labor.

Following these conditions will help you establish a company in the UAE legally and effectively, allowing you to take advantage of the opportunities available in the advanced business environment in the country.

Documents required to establish a company in the Emirates

Establishing a company in the UAE requires submitting a set of necessary documents to ensure the successful completion of the registration process. The required documents vary based on the type of company and location (free zone or outside), but generally include the following documents:

1. Founders documents:

Passport: Color copies and copies of passports of the founders and partners.
Emirates ID card: If the founders reside in the Emirates.
Personal photos: A number of personal photos of the founders according to the requirements of the concerned authority.

2. Legal documents:

Articles of Association: A document that includes details about the company, such as name, activity, address, and partners.
Office lease contract: If you are establishing the company outside the free zones, you must submit a lease contract for the location designated for the company.
Legal powers of attorney: If there is a legal representative or agent acting on behalf of the founders.

3. Financial documents:

Bank statement: Proof that the founders or partners have the capital required to establish the company.
Letter from the bank: confirming the opening of a bank account in the company’s name.

4. Documents related to licensing:

License application: An application must be submitted to obtain the appropriate commercial license for the company’s activity.
Trade name approval letter: Confirms that the chosen trade name is available and not previously registered.

5. Other documents according to the type of activity:

Special licenses: For some activities, such as medical or educational activities, you may need additional licenses or approvals from the competent authorities.
Health or environmental licensing: For some activities, special health or environmental permits may be required.

6. Work and residence visas:

Work visa applications: for foreign founders and employees if they will be working in the company.
Residence visa applications: To secure residency for foreign founders and employees.

Submitting all these documents correctly and completely contributes to accelerating the process of establishing the company and complying with legal requirements in the Emirates. Documents may vary depending on the type of company and its location, so it is best to check the specific requirements with the entity you intend to register with.

Commercial licenses for establishing companies in the Emirates

Commercial licenses to establish a company in the Emirates

When establishing a company in the UAE , the appropriate trade license must be obtained based on the type of activity that the company will undertake. Here’s an overview of the different types of business licenses you can get:

1. General commercial license

Description: Allows the practice of general commercial activities such as wholesale and retail. It is best suited for companies that plan to operate in the retail or general trade sector.
Donating body: Department of Economic Development in the emirate of establishment.

2. Industrial license

Description: Designated for companies operating in the field of manufacturing or production. Includes manufacturing, assembly and manufacturing industries.
Donor body: Department of Economic Development or competent industrial authorities.

3. Service license

Description: It allows companies to provide services such as consulting, translation, design, and other professional services.
Donor: Department of Economic Development or professional bodies.

4. Commercial license in free zones

Description: It provides full ownership for foreigners and is allocated for commercial activities in free zones. Includes all commercial activities permitted in the designated free zone.
Donor: The local authority in the free zone of your choice (such as Jebel Ali Free Zone, or Dubai Free Zone).

5. Professional license

Description: Awarded to companies that provide specialized professional services such as law, accounting, or consulting. Typically requires that you have an accredited professional qualification.
Donor body: Department of Economic Development or specialized professional bodies.

6. Tourist licence

Description: It is used to establish companies in the tourism field such as travel agencies, hotels, or tourism and hospitality services.
Donor: Department of Tourism or the body concerned with the tourism sector.

7. Commercial license for warehouses

Description: Specialized in storing and distributing goods and merchandise. Used for companies that need storage space or warehouses.
Donor body: Department of Economic Development or the competent bodies in warehouse management.

8. Transport and logistics license

Description: Issued to companies working in the field of transportation, shipping, and logistics. Includes land, sea, and air transportation companies.
Donor: Department of Transport or bodies concerned with transport.

9. Agricultural license

Description: It concerns companies that work in agriculture or production of agricultural products.
Donor: Ministry of Climate Change and Environment or local agricultural bodies.

Make sure you choose the appropriate business license for your company’s activity and comply with all legal requirements when applying for the license. You may need to provide additional documents or special approvals based on the type of activity and geographic location.

Establishing a company in the UAE represents a golden opportunity for ambitious investors thanks to the advanced business environment and broad economic opportunities. By following the right steps and understanding the terms and requirements, you can lay a strong foundation for your company and benefit from the many benefits that the UAE has to offer. From choosing the right type of company to completing the necessary documents and obtaining licenses, every step is essential to ensuring the success of your project. The UAE is an ideal platform for starting a business thanks to its advanced infrastructure, encouraging tax system, and ease of legal procedures. Knowing the procedures and good planning will enable you to overcome challenges and achieve success. Remember that cooperating with specialized consultants can make the process easier for you and ensure your compliance with all laws and requirements. In short, thanks to the future vision and the UAE’s commitment to enhancing the investment environment, you have the perfect opportunity to establish your company and expand your business. Seize this opportunity with confidence and start your journey of business success in one of the most attractive economic destinations in the world.