How to Setup a Company in UAE – A Step by Step Guide for Investors!

Undoubtedly, UAE has the best marketplace for established businesses and budding entrepreneurs. The country offers equivalent access to all foreign investors and makes the law flexible for investors and entrepreneurs to start their businesses in the UAE.

Setting up a company in the UAE is easy and smooth because of the provisions and flexibility offered by the authorities and government. Investors can set up a company in the UAE at different locations, including Free Zone and Mainland. Investors are required to choose a local partner to start a business, and it gets challenging for foreign investors because they are not ready to choose a local partner to set up a business in the UAE as per local law.

So, below is the brief on How to Setup a Company in UAE in adherence to the local law.

Free Zone Business Setup in the UAE

Company setup in Free Zone in UAE has become a popular choice for all foreign investors because it offers them easy access to different resources, including tax benefits and other assistance to set up a company in the Free Zone UAE.

In the Free Zones, the investors and entrepreneurs get 100% ownership, making it a big hit for all the investors. Free Zone is a special economic area where investors can enjoy specialized trade conditions and tax fee status. They can export or import goods without paying customs fees as the Free Zones have developed at the locations like airports, seaports, and other such locations to help enhance trading opportunities. Free Zones are developed in different locations, with each zone open for specific business activities.

How to Setup a Company in UAE Free Zone?

  • Type of Company – Before starting a company in UAE Free Zone, entrepreneurs and investors have to decide the type of business that they want to operate and choose the right Free Zone because each zone has different requirements that must be fulfilled.
  • Trade Name – The second important factor is the trade name. After choosing the zone and business type, investors need to choose a name for trading. They need to remember that the trade name used by a business is registered with proper certification and in adherence to local law.
  • Business License – After choosing a trading name, investors must register it with authorities and apply for a business license. Authorities issue different types of business licenses for different zones to carry out business activities. Ensure to apply for the right business license for smooth activities.
  • Office Space – Once you secure the business license to trade in UAE Free Zone, it is time to find the best office space. Investors can purchase or rent a space across any Free Zone to set up a company and start business operations.
  • Approvals & License – The final step is to get approvals from authorities before securing the license. After getting clearance and approvals from different authorities, investors can start trading. The entire process is simple and takes on 2-4 weeks.
  • However, the process of setup up a company in UAE can be simplified by having the right consultants beside you. Even investors from Russia can get the best assistance and consultants from Russian-speaking lawyers in Dubai. They can help you with the partnership agreement in UAE, NDA, AML/CFA, and Privacy Policy and even assist you in drafting and follow-up of contracts before signing.

    How to Setup a Company in UAE Mainland?

    Setting up a company in Mainland UAE requires steps, approvals, and procedures from the economic department and other government authorities. Below is the step-by-step guide on How to Setup a Company in UAEMainland to simplify the process.

  • Identifying Business Activity – Business activity is the fundamental step for choosing the legal type and form of license, whether industrial, commercial, or professional. There are six types of licenses, including professional, commercial, industrial, tourism, occupational, and agricultural. Businesses or investors can have more than one business activity.
  • Selecting Legal Form – The business legal form depends on the business's needs. The business forms are the fundamentals for recognizing the local regulations and laws. In the UAE, investors can choose one of the following legal forms, general partnership, limited partnership, LLC, PJSC, PrJSC, Civil Company, GCC Company Branch, Local Company Branch, Free Zone Company Branch, Foreign Company Branch, Holding Companies, and Sole Establishment. Ensure that the legal form is chosen in adherence to business activity.
  • Registering Trade Name – Trade name differentiates one business from others and reflects the nature and type of business. Investors can apply for a trading name via the economic department in the UAE. The economic department will register the trade name with the Ministry of Economy, and it gets registered. During the process, investors will receive a payment voucher for reference.
  • Initial Approval – The initial approval means the local law has no objection to a business establishing or trading in the UAE. It gives a green signal to investors to proceed in setting up their businesses. But, it doesn’t allow them to practice or run a business activity. The initial approval is obtained from the General Directorate of Residency and Foreigner’s Affairs. Depending upon the business activity, investors need to seek approvals from other government entities, including the Ministry of Interior, Ministry of Justice, Local Municipal Department, TDRA, Executive Council, Ministry of Economy, and Local Health Departments.
  • MOA & LSA – A signed Memorandum or Association or Local Service Agreement of your business is needed based on the legal form of your business. The MOA is needed for the following business legal forms: Limited Partnership, Public Joint Stock Company, Limited Liability Company, and Private Joint Stock Company. The certified law firms, notary public, and courts are authorized to prepare and attest MOA and other agreements.
  • Documentation for Company Setup in the UAE

    Documentation is the most important part of How to Setup a Company in UAEin the Free Zone and Mainland. The documentation process includes lots of paperwork and attestation. If you are a foreign investor, you need to get approval from Gulf Corporation Council or Arab Embassy to set up a company in the UAE. However, Russian investors don’t have to worry as they can seek help from Russian-speaking lawyers in Dubai and prepare all documentation for faster approvals. They take care of partnership agreement in the UAE, NDA, AML/CFA, and Privacy Policy and even aids in drafting and follow-up of contracts before signing the documents.

  • Application License Form
  • Business Card
  • Business Plan Outlay
  • Memorandum of Association or Articles of Association
  • The investors must follow all these procedures to set up a UAE company successfully. The step-by-step guide on How to Setup a Company in UAE will simplify the process for investors interested in setting up a company in the UAE

    If you still believe setting up a company in the UAE is complicated and challenging, having someone beside you who specializes in the field is better. You will find both English and Russian-speaking lawyers in Dubai. They can help you set up a company in both Free Zone and Mainland locations, sign partnership agreements in the UAE, handle the NDA, AML/CFA, and Privacy Policy, and draft and follow up on the contracts before signing. So, get in touch with the expert today.