The diverse market, favourable tax policies, and business-friendly environment attract foreign investors for setting up a business in the United Arab Emirates (UAE). As the Middle East economy grows, the UAE government is implementing several measures to make way for aspiring entrepreneurs who wish to start a business in the UAE.
Are you also looking to start a business in the UAE? If yes, then this article will help you learn about various aspects of UAE business setup.
Different Jurisdictions for Business Setup in the UAE
There are three jurisdictions where you can choose to set up a business in UAE. Let us have a look at them:
UAE Mainland | UAE Free Zone | UAE Offshore |
The Department of Economic Development (DED) governs the mainland, which refers to areas outside free zones. | Separate authorities govern the UAE free zones, which are regions designated as special economic zones. | The UAE offshore is a legal jurisdiction within which companies are registered but will not be operational. |
Licenses to Avail for a Business Setup in the UAE
It is necessary to obtain the appropriate license in order to start a business in the UAE. There are three primary licenses which cater to different industries in the UAE. Let us look at them:
- Commercial License: This license is ideal for businesses involved in trading activities. Import-export, logistics, and real estate are some industries for which you can obtain a commercial license in the UAE.
- Industrial License: This license must be acquired if the business is involved in manufacturing, processing, industrial research, product assembly, or production of goods. To obtain the license, your company must meet specific standards such as environmental standards, production facilities, and worker safety regulations.
- Professional License: All service-oriented enterprises and individuals must obtain this license. Sole proprietors or civil company owners can start their businesses by having a professional license.
Process of Business Setup in the UAE
You have to go through specific steps to start the company formation in the UAE. These steps are:
Finalise the Business Activity
Choose a business activity to conduct in the UAE. This step is crucial because the entire business setup process depends on the chosen business activity. Business activities fall into categories such as occupational, commercial, agricultural, tourism, and others.
Select the Jurisdiction
Select the appropriate jurisdiction where you wish to set up your business. You can choose from the UAE mainland, free zones, or offshore. Every jurisdiction provides various advantages. So, check with a business advisor like BSW before finalising the jurisdiction.
Select the Business Entity
In the next step, you have to select the appropriate business entity. There are numerous ones, including sole proprietorships, general partnerships, limited liability companies, and branch offices.
Register Trade Name
Select a name for your business. The name must be unique and comply with the UAE trade name regulations. You have to register the finalised trade name on the Department of Economic Development website by applying in person or through the online portal.
Documentation
You must submit the necessary documents, like the Memorandum of Association (MoA) and Articles of Association (AoA), to the authorities based on your chosen legal business structure.
Obtain the Business License
Pay the requisite fee to obtain the license to conduct business activities in the country. Additionally, obtaining approvals from various authorities is necessary to secure the legal document. Pay the requisite registration fee and obtain a business license in the UAE.
Required Documents for Business Setup in UAE
You must submit the following documents to the governing authorities to set up business in the UAE.
- Duly filled application form
- Passport copies of the shareholders
- Bank reference letter
- Memorandum/Articles of Association
- Duly attested copy of lease contract
- Approvals from other government entities
Note: The registration process and documentation will vary depending on the chosen jurisdiction and the business activity.
Benefits of Setting Up a Business in the UAE
There are certain benefits to setting up a business in the UAE. Some of them are:
- 100% foreign ownership is allowed in most cases.
- There are no restrictions on profit repatriation.
- The country has advanced infrastructure offering ease of conducting business.
- The corporate tax rate is 9%, which is lower than that of other countries.
- Easy access to the global market.
- The import duties are low or non-existent.
- Availability of cheap and skilled labour.
Availing BSW Assistance
Business Setup Worldwide offers expert business consulting services in the UAE, designed to support foreign investors and international companies in establishing a strong presence in the region. With in-depth knowledge of the local market and extensive technical expertise, we ensure a cost-effective and time-efficient business setup process. From company formation and document submission to bank account opening, we handle every step with precision and care. Whatever your business needs, we are here to assist. Contact us today to experience the best services for your business setup journey. Let us help you turn your vision into reality.
