Incorporating a business in the UAE involves several steps, including choosing the right business activity, selecting the appropriate jurisdiction, choosing a legal structure, and obtaining initial approval. The UAE offers a diverse range of business activities, from trading and manufacturing to services and consulting. Each activity falls under specific regulations, so it's crucial to choose one that aligns with your goals.
The UAE has several jurisdictions where businesses can incorporate their business, such as mainland, free zones, offshore, and offshore. Free zones provide 100% foreign ownership, tax exemptions, and full repatriation of profits. Offshore is ideal for international business activities outside the UAE.
Choosing the right legal structure is critical for your business operations. Common legal structures include sole proprietorship, limited liability company (LLC), free zone company, and branch office. Reserve your trade name and comply with UAE's naming conventions.
Obtaining initial approval from relevant authorities confirms that the UAE government has no objections to your business activity and chosen legal structure. The required documents typically include a completed application form, passport copies of shareholders and managers, proposed trade name, business plan, and drafted and notarized Memorandum of Association (MOA). Lease office space is mandatory for mainland and free zone companies, and license applications should be submitted after obtaining initial approval and secured office space.
Once you have obtained initial approval and secured office space, submit your license application, which includes an initial approval certificate, notarized MOA, lease agreement, passport copies of shareholders and managers, and additional approvals if applicable. Obtain your business license, which can be Commercial, Industrial, or Professional License, and register for VAT (if applicable) with the Federal Tax Authority (FTA). Open a corporate bank account with your business license and hire employees.
