Business Setup in UAE

You must select the appropriate jurisdiction before beginning the process of setting up your business in the United Arab Emirates. The UAE has the following three categories of jurisdiction:

A region of the United Arab Emirates is referred to as a mainland jurisdiction. Onshore companies are businesses that operate in this jurisdiction. They are unhindered in their ability to operate both domestically and abroad.

An economic region under the control of a particular regulatory body known as the Free Zone Authority is referred to as a freezone jurisdiction. Businesses situated outside the zone are exempt from the authority’s regulations. Numerous advantages are available to businesses, such as tax exemption, foreign ownership, and simple incorporation.

Companies that are headquartered outside of the United Arab Emirates are referred to as offshore companies and are subject to offshore jurisdiction. Low tax rates, minimal government regulations for establishing an offshore business, and international expansion are just a few of the advantages that entrepreneurs enjoy.

The UAE government welcomes the formation of various types of business entities. Let’s examine them.

One person owns, controls, and runs a sole proprietorship, a particular kind of business. The business’s profit or loss is entirely their responsibility.

An organization that has its headquarters in one of the GCC nations—Saudi Arabia, the United Arab Emirates, or Qatar—is said to have a branch. The branch is run by the same management that looks after the parent company and goes by the same name.

An organization created as a partnership between two or more people that provides services to the Dubai public is known as a civil company. Professionals in specific fields, such as law, marketing, accounting, and medicine, are examples of these partners.

One kind of business structure designed to provide its shareholders with limited liability is a limited liability company. A minimum of two and a maximum of fifty shareholders are needed. Because a shareholder’s liability is restricted to the number of shares they own in the company, this structure differs from others.

Simply put, a branch office is an extension of a company that is set up differently than the main office. Despite not being a distinct legal entity, it conducts business differently from the parent company.

Legal entities known as holding companies possess the assets or shares of other businesses, also referred to as subsidiaries. They don’t carry out direct commercial operations like production, sales, or service provision.

One kind of business structure that allows for public trading is a public joint stock company, which allocates capital into equal shares.

It is an organization that functions as a division of the parent business. It emphasizes, among other things, marketing, market research, and brand promotion. To create such an entity, you cannot conduct transactions that generate income.

A form of business structure known as a private joint stock company divides the company’s capital into shares of equal value. The public is not able to subscribe to them.

Let’s examine the various license types that are available for establishing a business in the United Arab Emirates.

A commercial license is issued to businesses that engage in trading, importing, and exporting goods and services within the UAE.

You can apply for and obtain an industrial license if your business is involved in manufacturing.iii) A license for professionals

Individuals or sole proprietorships can obtain a professional license to provide services based on their creative or intellectual abilities.

The Department of Tourism and Commerce Marketing (DTCM) issues a tourism license for businesses or individuals that engage in tourism-related activities.

The process of business setup in UAE is different based on the jurisdiction where you set up your company. Listed below are the steps for setting up a business in UAE mainland and its freezones

Note: For entrepreneurs like you, the UAE government provides an online application mode. To launch a profitable company in the United Arab Emirates, use the Basher platform.

You need to submit the following documents for company registration in UAE –

• Deed of title.
• business strategy.
• A letter of intent.
• resolution of the board.
• A power of attorney.
• information about the share capital.
• Association Articles (AoA).
• Association Memorandum (MoA).
• passport-sized pictures of the director or manager.
• the appointed manager’s and shareholders’ signatures.
• A copy of the current registration certificate or trade license.
• copies of the manager’s and shareholders’ passports.
• The designated manager’s Registry Identification Code Form (RIC).
• A bank’s certificate of reference or two years’ worth of audited financial reports.

The following services are available to business owners like you who decide to use Commitbiz to launch their enterprise.

• Pro Services.
• Financial Services.
• Services Related To Taxes.
• Establishing A Company.
• Document Preparation.
• Processing Of Licenses And Visas.
• Services Related To Intellectual Property.

Are you prepared to begin your business endeavors in the United Arab Emirates? We’ve got your back. Reach out to our team to avail of top-quality services and get proper guidance regarding the licensing process, documentation, legal requirements, and steps of business setup, among other things.