Are you looking to set up a company in the UAE? If “yes”, this comprehensive guide will help you out in knowing about the company formation rules. The UAE is the nation of pearls and fishing and has now transformed into a financial powerhouse with varied thriving companies. Furthermore, the country is known for being a strong capital flow. It has liberal tax restrictions, business-friendly taxation, and a stable political system. At present, UAE is one of the strong nations with all the amenities where one can start their business.
If you want to set up a company in the UAE, or any part of the UAE, you must read this article. You will gain knowledge about UAE business culture, Legal structure, and more.
Business culture in the UAE
So, are you excited to start your company in the UAE? That may be a great idea. As the UAE local government is boosting investment and startups in many ways. Therefore, it is a good time to get on board. Business in the UAE is flourishing. Now the government is offering long-term visas for investment.
But before investing in any business, you must know that there are some legal restrictions. The UAE government can impose restrictions on businesses. You can consult business consultants, who will guide you about the country’s rules and regulations.
Legal Structure for Companies in the Emirates
If you are planning to start your business, you must have word with the business consultants regarding the legal structure of businesses in the UAE. As a legal consultant, they will assist you in knowing about some of the legal corporate structures of UAE, like:
1. Sole Proprietorship:
This type of company can be run by an individual. The person is liable and has authority over all the operations and profits. An individual belonging to any nationality can start up a sole proprietorship company. Only GCC and UAE nationals have the right to start commercial or industrial companies.
2. Civil Company
The professionals like accountants, doctors, and lawyers can open civil companies in Dubai. But, an Emirati national must have 51% of the business share.
3. Limited Liability Company ( LLC)
If you are starting a Limited Liability Company, then there must be 2 to 50 shareholders. As each one of the shareholders is accountable for his percentage of shares. According to the holdings, the profit and loss will be divided among the shareholders. Again, a 51% share must be owned by a UAE citizen. Apart from that, LLC having 7+ partners must appoint a board of members with 3 shareholders.
4. Foreign Company Branch
A foreign company can initiate its new branch in the UAE. But, the company must be owned by its parent company. The company has the authority to import goods via a local trading firm.
5. Free Zone Company
Those businesses operating in a Free zone type, must have 2 to 5 stakeholders. As per the UAE company law, great incentives and benefits are waiting for Freezone Company Startups. You must understand that Free Zone companies cannot directly trade their goods in the UAE market, there are some business requirements for such companies. For example, the company name, twofour54 Abu Dhabi, carries on with their business without any capital but, the Dubai Airport Free Zone requires 1,000 AED capital to start their business.
Want to start your career in UAE as a freelancer? Yes, it is surprisingly easy to initiate. What you have to do is – you have to register your details in a Free zone, and attach your CV, notarized Registry Identification Code, and a bank reference. And, you can start with a freelance visa.
Working hard for a new business setup in Dubai! You need to consult a business consultant, they will guide you with the legal procedure.
Want to Register your business in the UAE?
Registration and Licensing in the UAE are done at the same time. If you want to register your start-up or business, you must apply to the UAE local authority or Free Zone. You have to submit the following documents:
- A complete copy of the application form
- Business plan
- Passport copies of all the directors/shareholders
- Specimen signatures of all the directors/shareholders
- Letter of intent
To complete the licensing procedure, you have to submit the following:
- Power of attorney given to the company director/manager
- Board resolution appointing a company director or a manager
- Article and Memorandum of association
- Signature of director/ manager
- Photo of director/manager
- Share capital information
Apart from the above documents, you have to register your company details online with the Federal Tax Authority.
Licenses and permits
For a new business setup in Dubai, you can take your business license from the Department of Economic Development or the UAE local Free zone. Though, certain specialized companies need specialized licenses. For example, If you are starting a manufacturing company, you must take approval from the Ministry of Finance and Industry. For starting a pharmaceutical company, you have to take a license from the UAE Health Ministry.
How can we help you?
Our business consultants team is there to advise you about the options you have for starting your business in the UAE. As the UAE is one of the countries that is income-tax-free, you have the option to start your business in a free zone company or as an onshore. Our work is to help our clients with all the UAE legal laws and procedures. We make them understand the morals of the UAE company. And help them in starting their business in Dubai or any part of the UAE.
Whether you are starting a business as a sole proprietor, LLC, or any, our business consultants will give you time and take in-depth knowledge about your business and give you the best business solution. From visa to license, our business helps you in every stage. So, if you want to set up a company in Dubai, Connect with Business Link and kick off your business in UAE with our team of experts who will give the best assistance.
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