Establishing companies in the UAE is considered an exciting and exciting process for many investors and businessmen around the world. The UAE is a leading environment for business, as it enjoys easy and convenient legislation and procedures for establishing and managing companies. The UAE is characterized by political and economic stability and advanced infrastructure, and is a gateway to accessing regional and global markets.

The UAE offers many options for establishing companies, from local companies that require a local partner, to joint-stock companies that allow a certain percentage of foreign ownership. In addition, the UAE provides free zones and special commercial zones that provide a stimulating environment for business and offer benefits such as customs and tax facilities and full ownership by foreigners.

Government agencies in the Emirates work to simplify procedures, facilitate licensing and registration, and provide electronic services that facilitate the establishment and management process. The government also seeks to strengthen the business sector and provide support and encouragement to investors through initiatives such as innovation, technological development, and financing.

Procedures for establishing companies in the Emirates

There are several procedures for establishing companies in the Emirates when you start thinking about obtaining the establishment of a company in the Emirates, which are represented in the following points:

• Choose the type of company: Determine the type of company you want to establish, such as a local company, joint-stock company, free company, or others, based on your needs and business requirements.
• Choosing a name: Select a name for the company and ensure its availability and compliance with local laws and legislation. You may need to consult the Companies Regulatory and Approval Authority in the emirate to verify the availability of the name.
• Determine the business activity: Determine the desired company activity in which you will work. There may be special restrictions or licenses related to some businesses, so check the specific requirements for your business.
• Choosing partners and shareholders: If you intend to establish a local company or joint stock company, identify the partners or shareholders who will participate in the company and determine their shareholdings.
• Preparing the required documents: Prepare the necessary documents to establish the company, such as the required contracts, agreements, powers of attorney, and certificates. You may also need to have some documents translated into Arabic and notarized.
• Submit a registration application: Submit an application for registration with the local trade department or the competent authority concerned. All required documents must be submitted and the prescribed fees must be paid for registration.
• Obtaining licenses: Obtained the necessary licenses to conduct business activity, such as a building license, health license, or environmental license, as needed.
• Opening a bank account: Anyone who wishes to establish a company in the UAE must open a bank account in the name of the company for the purposes of financial and operational transactions.

Types of companies in the UAE

There are several types of companies that can be established in the UAE, which we have explained in several points, as follows:

• Local Company: It is considered the most common form of company in the UAE. A limited liability company requires local partners who own an equity stake, and the financial liability of the partners is determined according to their shares in the company.
• Public Joint Stock Company: This company requires a large registered capital and has the ability to raise capital from the public through the public issuance of shares. Shares can be tradable on the financial market.
• Closed joint-stock company: A public joint-stock company is similar in structure, but the shares are not publicly traded on the financial market. Shareholders and financial responsibilities are determined in accordance with the company’s bylaws.
• Free Company: Companies in free zones enjoy independent laws and regulations that differ from the general laws of the state. Free zones provide flexibility in foreign ownership, tax exemptions, and customs facilities, making them attractive for foreign investment.
• Sole Proprietorship: Allows one person to establish and operate the company without other partners. A sole proprietor is responsible for all debts and financial obligations of the business.
• Foreign Company: Allows foreign companies to open branches or subsidiaries in the Emirates. These companies are subject to local laws and legislation and require the necessary licenses from the relevant authorities.

Advantages of establishing companies in the Emirates

There are many advantages of establishing companies in the Emirates , in terms of several points, which we will learn about through the following lines:

1. Strategic location: The UAE has a distinguished strategic location in the heart of the Middle East, which provides opportunities to access regional and global markets easily. The advanced infrastructure and advanced logistics facilities also enhance business growth.
2. Investment Licenses: The UAE provides a legal and regulatory system that allows foreign investment and company establishment. There are free zones and special economic zones that provide various facilities for foreign companies, such as 100% foreign ownership, tax exemptions, and customs facilities.
3. Strength of the economy: The UAE is considered one of the largest economies in the region, and is witnessing sustainable and stable growth. The UAE provides an encouraging and stable business environment with an active consumer market and the presence of many international companies.
4. Foreign ownership: In many sectors and free zones, the UAE allows foreigners to own a 100% stake in companies, which provides an opportunity for foreign investors to fully control their businesses and make independent decisions.
5. Advanced infrastructure: The UAE has an advanced infrastructure and modern facilities, including ports, airports, road networks, and communications, which supports transportation and trade operations and facilitates products’ access to markets.
6. Political and security stability: The UAE enjoys excellent political security and stability, which gives investors confidence in the business environment and contributes to the success of companies established in the country.
7. Government cooperation: The UAE government works to encourage investment, facilitate establishment, and provide support to companies, whether through legal facilities or development programs and initiatives.

These are some of the advantages that can be taken advantage of when establishing companies in the Emirates. It is recommended to communicate with Itqan Company’s specialist experts to obtain the most detailed and specific information about the special features when wishing to establish your company in it in accordance with the legislation and regulations in force in the Emirates.

Licenses for establishing companies in the UAE

In the UAE, the process of establishing companies requires obtaining the necessary licenses and permits. There are several types of licenses and permits that may be required, including:

• Commercial activity license: A commercial activity license must be obtained from the competent authorities. The type of license is determined based on the company’s activity, such as general trade, industry, professional services, hospitality, construction, shipping and transportation, and others.
• Ownership and incorporation permit: Establishing a company requires obtaining an ownership and incorporation permit from the relevant authorities, such as the Department of Economic Development in each emirate.
• Work Permit: Companies need a work permit for foreign employees working in them. The application for the use of foreign labor and work visas is submitted to the Ministry of Human Resources and Emiratisation.
• Place license: A license must be obtained for the place where the company will be located, whether it is an office, factory, or store. This requires submitting an application to the relevant authorities and complying with specified standards and conditions.
• Special Permits: Some special activities may require additional permits, such as food and health permits, building permits, transportation permits, and others, depending on the nature of the activity and legal and regulatory requirements.

In conclusion of this article, it can be said that establishing companies in the United Arab Emirates represents an exciting and rewarding opportunity for those wishing to enter the global business market. The UAE has a developed and diverse business environment, and provides many opportunities and advantages for investors and business owners.

The UAE is a leading business destination in the region, characterized by political and economic stability, regulated legislation, and advanced infrastructure. The UAE also provides multiple commercial free zones, such as the Dubai Free Zone and the Abu Dhabi Free Zone, which provide tax and customs facilities and privileges that attract investors and contribute to accelerating business growth.

The most frequently asked questions about establishing companies in the Emirates