Incorporation of Company in UAE

Also, the UAE offers a convenient and stable banking system, modern business environment, opportunities for obtaining residency visas for investors, and fast and easy company registration process. Moreover, the UAE cooperates with major jurisdictions. All these factors make it possible to conduct business effectively. Therefore, most investors are looking for business opportunities in the UAE.

Our team provide a comprehensive range of services, including company incorporation in the UAE, setting up ready-made firms, legal advice, consultation and tax analysis in accordance with the local legislation and free-zone legislation, visa assistance, bank account opening services, and preparation of accounting and tax reports for both legal entities and individuals.

Process of company incorporation in UAE is in most cases fully remote and easy to go. However, as in the most jurisdictions, UAE has its’ specific and unique points and particularities that are rises from the local multi-level legislation.

From our long-term practice of interaction with local service providers and government bodies, main challenges may arise from the specifics of local legislation and during the different official procedures. In fact, Islamic law applies in the UAE for all the local companies (mainland companies), while free-zone companies operate on the basis of a combination of English and Islamic law. Moreover, each free-zone authority issued local (internal) legislation that applies to the local free-zone companies in the way that will not conflict with local Government legislation. So, in case of such combination of regulations some difficulties and misunderstandings could arise. Our highly experienced professionals in this field of UAE’s legal system and interaction with government authorities will help you with minimizing difficulties and avoid mistakes and risks.

Mainland companies can conduct only licensed activities specified in their license both within the UAE and in free zones. Mainland are registered by the Department of Economic Development (DED) of the selected Emirate, which also issues a UAE business license. These companies are required to have an office (the minimum option being a Flexi desk). The number of employees must be proportional to the office space occupied. 100% foreign ownership is possible if the company does not engage in strategically important industries and activities. Additionally, founders, employees, and their family members can obtain visas through the company.

The following organizational and legal forms are most often used to create mainland companies in the UAE:

1. Sole proprietorships;
2. Limited liability company (LLC);
3. Branch of a foreign company;
4. Branch of a company registered in the FEZ.

Onshore companies can conduct the activities specified in their license within the free economic zones (FEZ) of the UAE or outside the United Arab Emirates. Their offices must be located exclusively within an FEZ, with some zones offering space in business centers. 100% expatriate ownership is allowed. Onshore companies can ensure visas for founders, employees, and their family members. However, the number of employees must align with the office space occupied.

Offshore companies can engage in any activity not subject to special regulation exclusively outside the UAE. Their owners can be foreigners or foreign legal entities (100% foreign ownership is allowed). Offshore companies are not eligible for resident visas and are not required to have an office in the UAE. They are also exempt from audits and reporting requirements. The use of nominee directors is permitted for these companies.

Mostly after the company incorporation following documents will be issued:

• Certificate of Registration indicating the registration number, date, type of license, details of the shareholder, and the company’s share capital;
• License for the declared type of activity (valid for 1 year);
• Office lease agreement (valid for 1 year);
• Share Certificate; Articles of Association and the Memorandum of Association.

To incorporate a company in the UAE, you need to follow these steps:

At this stage, the company name has to be checked through a special authorized service. It is recommended to submit 3-4 different names for verification, as not all of them may be available. The company name must not be identical to or similar to existing names. Some words could be prohibited, and Latin alphabet symbols are allowed. Also, there could be special requirements for some exact words. For example, you could not register a company with words «Medical», «Health», «Clinic» in the company name and proceed with activity that will not be connected with medicine. Special words like this could be connected also with other spheres of business. This rule is just to avoid misunderstanding from the side of counterparts of your company. Even on the stage of company name reservation it will be better to proceed with the assistance of specialists that know such pitfalls.

After verification, the appropriate available name can be reserved till the completion of the registration process. Here is important to mention, the company name reservation requires the payment of government fee.

Main point in the process of business license selection is to take into account, that UAE company could operate only those types of activities that are allowed in accordance with exact company license. All free-zone authorities as well as local government have lists of existing business licenses. Basic types of licenses are service, trading and industrial. So, here is important to select suitable free-zone and license for your company activity.

The following packages of documents are required for company registration:

After preparing all the documents and paying the state fee, the company registration application is submitted online through the official portal. In fact, after application submission there could be a few day lag as the authority specialists need to check all the technical details of your company and business activity. After the check the company will be registered and local authority will issue the following basic list of documents:

• Certificate of registration indicating the number and date of registration, type of license, information about the shareholder and share capital of the company;
• License for the declared type of activity of the company (license is issued for a period of 1 year);
• Office lease agreement (for a period of 1 year);
• Certificate of shares;
• Articles of Association and founding agreement.

In the UAE, there are no public company registries with information about shareholders and directors. Company data is available only upon request from a local court, and the shareholder and director registry is not accessible to third-party.

• Expertise in UAE business regulation and highly-experienced consultants

ITA has in-depth knowledge and experience in the field of business protection in the United Arab Emirates. Our team of consultants has extensive experience in various industries, which allows us to provide our clients with valuable advice and support.

• Variety of services

We offer a full range of services, including:

• Customized effective solutions and sophisticated customer support

We understand that every business is unique, and therefore we offer solutions specifically tailored to your needs. We are ready to provide reliable and sophisticated support for all our clients, regardless of their needs and complexity of tasks.

*The listed price does not include the state fees.