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Company Incorporation in UAE

The Process and Requirements Of Company Incorporation in UAE

The process of incorporation in Dubai is simple, which helps foreign investors establish their businesses in the flourishing economy of Dubai. Due to Dubai’s strategic position and beneficial conditions, it has become a global attraction for investors to start their businesses.

The UAE government also provides an empowering legal framework that promotes company incorporation and development. 

Dubai company incorporation allows investors to benefit from its prosperous economy and profitable market. To start this procedure, the investors need to take simple steps, which will be discussed further down.

Certificate of Incorporation in Dubai

The Certificate of Incorporation UAE is a government-authorized document that announces the company’s incorporation in Dubai. The DED or Free Zone authority provides this document according to the company’s jurisdiction. This document is proof of the company’s legal incorporation in Dubai.  

The certificate of company incorporation has crucial details, including

  • Official company name and registration number
  • Registered company address
  • Date of incorporation
  • Type of company and nature of permitted trade activities
  • Authorized shares and details of shareholders and executives
  • Company’s operational duration
  • Signature and stamps of the local authorities.

Steps for Company Incorporation in UAE

To start this procedure, the investors need to take simple steps, which will be discussed further. 

Select Business Activities

The first step of company incorporation in the UAE is to select the activities the company will pursue from a list offered by the Dubai Department of Economic Development (DED). These activities will decide the license type and its cost. 

Choose a Name and Legal Setup for Your Company

Next, choose a unique name for your company. Avoid using plagiarized, repulsive, or religious names. Then, apply for registration of the name with the authorities. Finally, select where you want to set up your company, whether in the free zones or on the mainland.

License Application Submission

Submit your Business License application based on your business’s setup, i.e., free zones or mainland. This procedure is finalized in a week or so.

Approval of Visa

After getting your company license, get your visa approval. You can also get employees.

Visa for your workers and your family. However, the amount of visas a person can get depends upon the nature of the business and the company’s location.

Bank Account Opening

To manage the company’s financial resources, you need to open a corporate account in Dubai. Numerous regional or international banks in the UAE can be selected.

Submit Required Documents

Submit required documents and shareholder information to the Department of Economic Development (DED) or corresponding authorities in UAE. 

Select a Legal Business Setup for Company Incorporation in UAE

There are three main choices of business setup in the UAE: free zones, mainland, and offshore. Each setup comes with its own features and business frameworks. 

Free Zone Company

A free zone is one of the best options for company incorporation for foreigners in the UAE. It offers an extensive scope of trade endeavors for investors to establish their companies.

Companies registered in the free zone get a number of corporate benefits, like exemption from tax, 100% profit ownership, and full ownership rights. The minimal charge for registering a free zone company in the UAE is AED 13,900. 

Mainland Company

The formation of a company on the Mainland of Dubai is an effortless process. These companies have permission to participate in all local market domains aside from the ones specified for government departments.

The cost of company registration in the UAE is from AED 25,000 to AED 29,000, although additional permissions are required from designated officials. 

Offshore Company

An offshore company in the UAE is a corporate body that deals with foreign trade. These companies’ business activities are beyond the boundaries of the UAE’s marketplace. Offshore company holders get plenty of advantages, like tax deductions, profit sharing, and international ownership.

How to get a Certificate of Incorporation in UAE

Following are the steps to get a certificate of company incorporation in the UAE

Select Company Name

The first step in getting a certificate of incorporation in the UAE is selecting an exclusive name for your company. The name should not be copied from any other company and should comply with UAE regulations. When applying for registration, you can check for available names on the list provided on the Department of Economic Development’s website.

Select Business Activities

The next important step is for the company to select its business activities. This step is necessary because in certain areas, only specified activities are allowed, or they may need certain approvals. The companies can select from over two thousand trade activities, and not picking proper business activities can result in heavy fines.

Select Company Setup and Jurisdiction

The company must select the setup it wants to create, either a professional company or a branch office. Then, it must determine the company jurisdiction, i.e., free zone or mainland. It’s essential to pick the jurisdiction suitable for the company’s trade activities.

Get Primary Approval

Submit essential documentation to get primary approvals from the Department of Economic Development or other authorities. This approval can vary according to your company’s trade activities and jurisdiction.

Rent a Workplace 

Rent a workplace for your company where you can conduct business in the UAE. Make sure that it fulfills the conditions enforced by the system. 

Get a Trade License

 After getting initial approval, apply for a Trade License for your company. This license can be obtained from the free zone authority or the DED. To get a license, you need to submit documents like the company’s MOA, lease agreement, and business name registry. 

Submit Registration Fee

After getting all the necessary approvals, submit the corresponding fees to get the certificate of incorporation.

 Get the Certificate of Incorporation

After the verification of all documents by the relative authorities and the submission of fees, you will be issued the certificate of incorporation. This certificate will formally confirm the formation of your company. 

Open a Corporate Bank Account

Last but not least, opening a corporate bank account in the UAE is an important step for your company’s trade business and financial management.

Final Words!

To sum up, company incorporation in UAE is an easy procedure that attracts sponsors and investors from all over the world. The main ingredients for successful company incorporation are selecting the appropriate business setup and jurisdiction, choosing the right name, and completing the necessary documents.

FAQs

A certificate of incorporation in Dubai is a crucial official document that evidences a company’s establishment in the allowed zone. In contrast, a trade license permits a company to engage in particular trade activities within Dubai.

The cost of company incorporation in Dubai is around AED 6,000. However, the cost is different based on your company’s trading activities, corporate sector, and trading license.

Some basic documents required are mentioned below:

  • Application document
  • Photocopies of passports of investors and company heads
  • Two photographs
  • Assets details

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