The United Arab Emirates is one of the most prominent global destinations for establishing companies and investments, as it provides a favorable and encouraging economic environment for entrepreneurs and investors from all over the world. The UAE is at the forefront of countries that offer multiple competitive advantages, making it an attractive destination for businesses of all types and sizes.

This great attraction is due to a number of key factors, including advanced infrastructure, tax exemptions, and the strategic location linking the East and West, in addition to continued government support to stimulate the business sector. Flexible and modern legislation also plays a major role in facilitating the process of establishing companies, whether local, foreign, or even in free zones.

In this article, we will review in detail the types of companies possible in the Emirates, in addition to the requirements for establishing them, the necessary legal procedures, and the many benefits that investors can gain from choosing the Emirates as the headquarters for their business. We will endeavor to provide a comprehensive guide that helps you understand all aspects associated with establishing a company in the UAE , to ensure that you make informed and considered decisions.

What are the costs of establishing a company in the UAE?

Types of companies in the UAE

The UAE is characterized by a flexible and attractive business environment for investors from all over the world, making it a preferred destination for establishing various types of companies in the UAE . Companies in the UAE can be divided into three main types: local companies, foreign companies, and free companies.

• Local companies

Local companies are those that are established in accordance with the local laws and regulations of the UAE. This type of company requires the presence of a citizen or Gulf partner who owns no less than 51% of the company’s shares. Local companies include a variety of commercial, industrial and service activities, and can operate in the local market without significant restrictions. Local businesses have easy access to business opportunities and government tenders.

• Foreign companies

Foreign companies are those that are established by foreign investors without the need for a national or Gulf partner. Foreign companies can operate in the UAE by establishing a branch, representative office, or limited liability company. This type of company requires compliance with the laws and regulations that regulate the work of foreign companies in the country, and allows them to benefit from the growing and diverse UAE market.

• Free companies

Free companies are those that operate in free zones spread across the various emirates of the country. Free zones are characterized by offering a range of incentives and facilities to investors, such as tax exemptions and 100% foreign ownership. Free enterprises allow investors to work in a flexible environment that encourages innovation and growth, and provides them with advanced infrastructure and high-quality logistical services. Free zones are an ideal destination for companies that want to take advantage of the UAE’s strategic location as a commercial center linking global markets.

Requirements for establishing a company in the UAE

The process of establishing a company in the United Arab Emirates requires familiarity with many legal and administrative procedures and requirements. These requirements can be divided into three main sections: required documents, fees and costs, and legal procedures.

Required documents

Those wishing to establish a company in the Emirates must submit a set of necessary documents that guarantee the validity and accuracy of the information provided. These documents include:

1. Copy of passport: A valid copy of passport must be submitted to all partners and shareholders.
2. Personal photos: Recent personal photos of all partners.
3. Business Plan: A detailed document that explains the business plan, goals, and future strategies of the company.
4. Articles of Association: A contract that clarifies the organizational structure of the company and the shareholding percentage of each partner.
5. No objection certificate: If one of the partners works for another entity within the Emirates, a no objection certificate from the current employer must be submitted.

Fees and costs

The fees and costs associated with setting up a company in the UAE vary based on the type of company and the region in which it will be established. Basic fees include:

1. Registration fees: Registration fees vary depending on the type of company and the free or local zone in which you will register.
2. Commercial license fees: The company’s commercial activity license, which is renewed annually.
3. Office rental fees: Depends on the size and location of the office chosen for the company’s work.
4. Service fees: such as legal and accounting consultation fees that may be necessary during the incorporation process.

Legal procedures

The process of establishing a company in the UAE requires following a series of legal procedures to ensure full compliance with local laws and regulations. These procedures include:

1. Choosing the type of company: You must select the appropriate type of company, whether it is local, foreign, or free.
2. Trade name registration: Registering the company’s chosen trade name with the competent authorities.
3. Obtaining the necessary approvals: from the competent government authorities such as the Department of Economic Development and other regulatory authorities.
4. Opening a bank account: Opening a bank account in the name of the company to manage financial transactions.
5. Submitting documents: Submit all required documents to the relevant authorities and complete the registration procedures.

These are essential steps for setting up a company in the UAE, and require careful guidance to ensure full compliance with all legal and administrative requirements. Hiring experts in this field can help facilitate the process and ensure its successful completion.

What are the costs of establishing a company in the UAE?

The costs of establishing a company in the UAE include several basic elements, which can be summarized as follows:

1. Registration and licensing fees: These include the fees required to register the company and obtain the necessary licenses from government agencies.
2. Office or Space Rental: Incorporation requires securing an office or commercial space, which includes rent and utility costs.
3. Documentation and translation costs: These include the costs associated with document authentication and translation into the required language.
4. Legal and administrative consulting fees: You may need to engage consulting services to facilitate the incorporation process and ensure compliance with local laws.
5. Bank account opening costs: Includes fees associated with opening a company bank account.
6. Recruitment costs: include expenses for hiring employees, health insurance procedures, and accommodations.
7. Insurance: Companies may need to pay for business-specific or risk insurance.
8. Other services fees: include any additional services the company may need, such as marketing, design, or financial consulting services.

Benefits of establishing a company in the UAE

The United Arab Emirates is one of the most attractive destinations for foreign investments, thanks to the favorable investment environment it provides. Establishing a company in the UAE offers many benefits that make it a preferred choice for entrepreneurs and investors from all over the world. In this section, we will review some of the key benefits of setting up a company in the UAE.

• Tax exemptions

One of the most notable benefits that investors can enjoy in the UAE is tax exemptions. The UAE government offers an attractive tax system that includes tax exemptions for companies operating in many sectors. This means that companies can retain a larger portion of their profits, enhancing their ability to grow and expand. In addition, the UAE does not impose income tax on individuals, making it a conducive environment to live and work.

• Advanced infrastructure

The UAE is characterized by an advanced infrastructure that is among the best in the world. The country provides an integrated network of roads, ports and airports that greatly facilitate the movement of goods and people. The UAE also provides advanced communications services and high-speed Internet networks, which contribute to facilitating daily business operations. In addition, there are commercial and industrial free zones equipped with all the facilities and services that companies need to achieve their success.

• Strategic location

The UAE enjoys a strategic location that makes it a gateway to access large and diverse markets in the Middle East, Asia, Africa and Europe. The UAE is located at the crossroads of global trade, making it easy for companies to reach more than 2 billion consumers within a few hours. This distinctive geographical location enhances opportunities for growth and commercial expansion for companies and makes it an important logistics center on a global level.

In short, establishing a company in the UAE provides many benefits that include tax exemptions, advanced infrastructure, and a distinguished strategic location. These factors make the UAE an attractive destination for investors seeking growth and success in a stable and prosperous economic environment.

In conclusion, the UAE is one of the world’s leading destinations for establishing businesses, thanks to its attractive investment environment and unique advantages. Whether you are looking to establish a local or foreign company, or within the free zones, you will find in the Emirates everything you need to achieve your commercial success. By providing advanced infrastructure, attractive tax exemptions, and a strategic location linking global markets, the UAE ensures an ideal environment for business growth and prosperity.

The steps and procedures required to establish a company may seem complicated at first, but they become clear and smooth with proper guidance and information. It is essential to observe all legal requirements and submit the required documents to ensure the process is facilitated quickly and efficiently.

In short, establishing a company in the UAE is not just a step towards achieving profitability, but rather a long-term investment in a bright and prosperous future. We call on all entrepreneurs and investors to take advantage of the many opportunities offered by the UAE, and to participate in building a diverse and strong economy that enhances the country’s position as a global center for business and trade.

The most important frequently asked questions about establishing a company in the UAE