Conditions for opening a company in the Emirates, the United Arab Emirates is considered one of the preferred destinations for investors from all over the world to establish their companies thanks to the advanced business environment, the facilities provided by the government to investors, in addition to the wide commercial opportunities in various sectors. Because the Emirates is a major commercial center in the region, it offers many incentives to encourage local and international investment, which makes it an ideal place to establish businesses and companies. However, before starting to establish any company in the Emirates, there are some conditions and requirements that investors must adhere to to ensure that the company establishment process is conducted legally and correctly. These conditions include several aspects related to the legal nature of the company, the type of activity it will carry out, and its geographical location, whether in the free zone or on the main lands.

In addition, the UAE authorities require investors to submit a set of legal and official documents that prove the identity of the person or entity wishing to establish the company, and the type of commercial license is determined according to the required activity. In this context, the conditions for opening a company in the Emirates, Itqan Company comes to provide full support to investors in the process of establishing companies in the Emirates, as it provides specialized consultations, helps in accelerating procedures, and ensures full compliance with local legal requirements. In this article, we will highlight the most important conditions required to open a company in the UAE, which include determining the type of company, registration procedures, required licenses, and other details related to the approval of the competent authorities, in order to ensure obtaining a legal commercial license that allows the investor to start his business successfully.

Types of companies that can be established in the UAE

The United Arab Emirates is considered one of the best destinations for establishing businesses thanks to its attractive and flexible investment environment. If you are thinking of starting a business in the UAE, you will have many options to choose the type of company that suits your business activity and goals. Investors can establish a variety of companies in the UAE, whether in free zones or on the main land, depending on the nature of the work they wish to do. In this context, companies are divided into several categories, and each category has its own advantages and requirements.

Types of companies that can be established in the UAE:

Limited Liability Company (LLC): It is one of the most common types of companies in the UAE, as it allows investors to own 100% of the shares if the company operates in free zones. If operating in the mainland, there must be a local partner who owns 51% of the shares.
Joint Stock Companies: This type of company is suitable for investors who want to offer their shares for public subscription, and it requires a minimum capital and may also require compliance with stricter laws and regulations.
Sole Proprietorship: A sole proprietorship can be established where the person is the sole owner of the company, and is responsible for all financial and administrative operations.
Branches: Foreign investors can open branches of their international companies in the UAE. The branches operate under the name of the parent company and must comply with local laws.
Free Zone Company: The UAE has many free zones that allow foreign investors to establish 100% owned companies without the need for a local partner, with tax exemptions and other benefits.
Offshore Company: Offshore companies can be established in the UAE, which are international companies that do not aim to conduct commercial activities within the UAE but enjoy tax benefits and flexible registration.
The choice of company type varies based on the nature of the business and location, and there are multiple options available that allow investors to make the most of the UAE laws that encourage investment and economic growth.

Procedures for establishing a company in the UAE

Establishing a company in the UAE is an important strategic step for both local and international investors, as the country provides a distinguished business environment with advanced infrastructure and laws that support commercial growth. The type of company you wish to establish varies from one region to another within the UAE, as options vary between companies in the mainland, free zones, and offshore companies. Although the procedures vary based on the type of business activity and location, there are basic steps that must be followed to ensure the correct and legal establishment of the company. These procedures include documentation, obtaining the necessary licenses, and completing the necessary legal procedures. In this context, we will review the basic steps for establishing a company in the UAE.

Procedures for establishing a company in the UAE:

Choosing the type of company: Before starting the procedures, you must determine the type of company appropriate for the proposed business activity, whether it is a limited liability company (LLC), a joint stock company, a sole proprietorship, or a company in the free zones.

Choosing the company name: You must choose a trade name that reflects the business activity and complies with local laws. The name must not include prohibited or offensive words.
Preparing the Articles of Association: It is necessary to prepare the Articles of Association of the company, which include details of shareholders, objectives, capital, and legal matters related to the business.
Obtaining commercial licenses: Every new company must obtain the necessary licenses that grant it the right to practice commercial activity in the country. Licenses vary according to the type of activity and location.
Choosing the location of the company: Determine where the company will operate, whether on the mainland or in one of the free zones. This step will also determine the type of licenses and taxes that will apply to the company.
Opening a bank account: After registering the company, investors must open a bank account for the company in one of the approved banks in the UAE.
Obtaining work and residence visas: Employees and investors may need work or residence visas to work and reside in the UAE.
Registration with government departments: Registration must be done with the relevant government bodies such as the Department of Economic Development, Customs, Dubai Municipality, and other local authorities.
Compliance with legal instructions: Investors and companies are required to comply with legal matters such as taxes, environmental regulations, and public health and safety.
By following these procedures, investors can ensure that they set up a company in the UAE efficiently and successfully, while benefiting from the advanced business environment and great investment opportunities.

Documents required to establish a company in the UAE

Establishing a company in Dubai is a strategic step for both local and international investors, as the country provides a flexible and supportive business environment that allows companies to grow and expand in the Middle East and global markets. Regardless of the type of company you wish to establish, whether it is on the mainland, in one of the free zones, or an offshore company, there are basic documents that must be submitted to obtain the required licenses and start business activity. Through these documents, it is ensured that the company complies with the laws and regulations in force in the Emirates. In this article, we will present the necessary documents that investors need to establish their companies in the Emirates.

Documents required to establish a company in the Emirates:

Passport copy: A copy of the passport of each founder or partner in the company must be submitted, making sure that the passport is valid.
Personal photos: Recent personal photos of the founders or partners are required, which are used to issue work or residence visas.
Application form: It is required to fill out the official application form to establish the company, which contains details about the business activity and the founders’ data.
Articles of Association: The articles of association of the company must be prepared, which include details of partners, ownership shares, capital, and the management system.
Company name: Suggestions for the company name must be submitted, which must be in compliance with local laws, and must not include prohibited or offensive names.
Company address: It is necessary to provide an office or commercial headquarters address that is registered with the competent authorities in the UAE.
Business activity report: Some activities require the submission of a business plan or a report explaining the nature of the business activity that will be practiced.
Special permits: In some cases, specialized business activities require additional permits, such as medical or food activities.
Copy of residence visas: If one of the founders or employees needs a residence visa in the UAE, a copy of the visas or proof of residence must be submitted.
Financial documents: Some financial or banking bodies may require the submission of documents proving the founders’ ability to meet the financial requirements or open a commercial bank account.
Approval of the competent authorities: Sometimes, it is necessary to obtain approvals from special government agencies if the company will operate in regulated fields such as insurance or healthcare.
By submitting these documents, investors can expedite the incorporation process and ensure compliance with all laws required to start business in the UAE.

Advantages of the UAE for establishing companies

The United Arab Emirates is one of the most attractive destinations for investors and businessmen around the world, due to the advanced business environment it provides to local and international clients. With flexible tax benefits, various investment incentives, and a variety of free trade zones, the UAE has become a leading economic hub in the Middle East. The UAE government offers many opportunities to support economic growth and facilitate the establishment of companies of all types. These advantages make the UAE the ideal choice for investors looking for economic stability and wide expansion opportunities in the global market.

Advantages of the UAE for establishing companies:

Tax exemptions: The UAE provides a flexible tax system, as it provides tax exemptions for companies, such as exemption from income tax for individuals and companies in many free zones. There are also no taxes on profits or capital for many economic activities.
100% Foreign Ownership: In many free zones, foreign investors can establish and own 100% of their companies without the need for a local partner, providing investors with complete independence in their decision-making.

Ease of Obtaining Work and Residence Visas: The UAE allows investors to easily obtain work and residence visas, which helps attract professionals and skilled workers from all over the world.

Strategic Location: The UAE’s geographical location is located in the heart of the Middle East, making it a major hub for international trade. It is connected to a network of global ports and airports that facilitate access to markets in the Middle East, Asia, and Africa.

Ease of Setting Up Businesses in Free Zones: The UAE offers a range of free zones that are highly flexible in establishing companies, reducing the time and costs associated with starting a business.

Transparent Legal System: The UAE has a legal system that guarantees property rights and protects investors, which enhances confidence in establishing companies and contributes to creating a safe and stable business environment.
Advanced Infrastructure: The UAE offers advanced infrastructure that supports business operations, including ports, airports, and a modern road network, facilitating the movement of goods and people.

Financial and commercial incentives: The UAE government offers many financial and commercial incentives to investors, such as soft loans, grants, and logistical support, which helps startups grow rapidly.

Diversity of business sectors: The UAE offers investment opportunities in various sectors including technology, healthcare, tourism, real estate, and renewable energy, allowing investors to choose the activity that suits their business vision.

Commitment to innovation and digital transformation: The UAE encourages innovation and digitization, which helps companies leverage modern technologies to improve their operations and increase their efficiency.

These advantages make the UAE an ideal destination for establishing businesses, which contributes to enhancing economic growth and attracting foreign direct investment.

Our company’s role in opening a company in the UAE

In conclusion, the UAE is one of the most prominent destinations for establishing businesses, thanks to the stimulating business environment and the great advantages it provides to both local and international investors. Taking into account the necessary legal requirements, any investor can take a significant step towards success by establishing a company in this advanced environment. By adhering to the requirements related to the type of business activity, the geographical location of the company, and the type of appropriate licenses, investors can achieve their ambitions and start their business legally and safely. Itqan is a reliable partner in this field, providing comprehensive legal and technical consultations that contribute to facilitating procedures and ensuring full compliance with all local regulations. From providing advice on the best options for establishing companies, to assisting in preparing the required documents, Itqan contributes to accelerating the establishment process in a way that ensures investors comply with all laws and regulations. Relying on a team of experts in this field, investors can focus on developing their businesses without worrying about complex procedures or legal challenges. Through this partnership, the process of establishing a company in the UAE becomes easier and smoother, allowing investors to focus on achieving their business goals and growing in a thriving market.

Frequently Asked Questions about Opening a Company in the UAE

What are the types of companies that can be established in the UAE?
Several types of companies can be established in the UAE, such as joint stock companies, limited liability companies, sole proprietorships, and companies with full foreign ownership in free zones.

Does a foreign investor need a local partner to establish a company in the UAE?
This is not required if the company is established in free zones or limited liability companies in some areas, as the foreign investor can fully own the company.

What are the procedures required to establish a company in the UAE?
The basic procedures include choosing the type of company, determining the business activity, submitting the required documents, determining the location of the company, and obtaining the appropriate commercial license.

What are the documents required to establish a company in the UAE?
Documents usually require a valid passport for the investor, a copy of the residence visa (if applicable), proof of address, in addition to the license application form and business activity.

What are the costs associated with establishing a company in the UAE?
The costs vary depending on the type of company and the free or main zone chosen, the costs of licenses, licenses specific to the business activity, as well as the costs of the labor office and consultants.

Are there any tax exemptions for investors in the UAE?

Yes, the UAE offers many tax exemptions in free zones such as exemption from corporate tax on profits for 50 years or more in some cases.