Why Set Up a Company in UAE?
In the last few decades, UAE has become a hub for international trade. Lifestyle, corporate structuring and talent bank has made UAE corporate business hub and meeting point of the north & west. Start-ups and young entrepreneurs find it easy to start a company in UAE. The local governments support along with minimal bureaucracy as against to other areas, has made UAE a very desirable location for business formation.
Process of Company Formation in UAE
UAE offers three different types of business structures to an organisation to conduct business in this area:
On-Shore or Mainland: This type of corporate structure requires a UAE National/ Emirati to act as a local sponsor or local service agent for the companies to do business locally as well globally from UAE. There are several types of On-Shore businesses that can be incorporated.
Off-Shore: In an offshore company, expatriates own 100% of the business. It is used as an asset, international trade, property or holding companies for other firms inside or outside the UAE. This structure is suitable for international businesses who wish to operate from outside of UAE.
Free-Zone: In Free Zone companies as well expatriates can own 100% of the firm and work inside UAE without the need to have a local sponsor or local service agent. Free Zone designed for International Business; however, the business can be conducted within the UAE with some restrictions.
The other types of structures or entities for company formation are LLC, Branch and representative office, professional firms, shareholding companies and Joint venture.
The company formation or registration procedures are different in the case of the business structures and their legal form. However following are the step by step process that one can follow as a guideline:
- Select a company name to apply for its registration to DED (Department of Economic Development)
- Draft an application for approval and legalization from authorities.
- Choose a commercial place to conduct business activities.
- Arrange the required documents, legalized certificates, draft legal application and apply for final approval
- After collection of trade license, apply for investor visa and ID.
- To start your business activities in UAE, open bank account and collect the final documents from DED including the certificate of incorporation.
Benefits of setting up a company in UAE
UAE is an ideal location international business due to its environment of activities, support, and efficiency in offering service. Following are some of its benefits:
- Free enterprise system for company formation
- Talented workforce and relatively easy recruitment procedures.
- Top Class telecommunication system will be available in company Setup in Dubai.
- Highly developed transportation facilities after Dubai Company Setup.
- Host for top international exhibition and conference.
- Elegant residential accommodations and commercial structures.
- Sophisticated financial and services sector.