What are the requirements for opening a company in the UAE ? The United Arab Emirates is one of the world’s most prominent investment destinations, offering a developed economic environment and modern infrastructure that supports business growth across various sectors. To establish a company in the UAE, a set of conditions and requirements must be met to ensure compliance with local laws and facilitate business activities. These conditions include choosing the appropriate legal form, determining the business activity, obtaining the necessary licenses, and meeting capital and headquarters requirements. Procedures and requirements vary depending on the type of company and its location, whether within free zones or on the mainland. In this article, we will review in detail the basic requirements for opening a company in the UAE, highlighting the facilities the country provides to support entrepreneurs and investors.

Conditions for opening a company in the UAE

Establishing a company in the UAE requires compliance with a set of legal requirements and procedures aimed at regulating the business environment and ensuring compliance with local laws. These requirements include the following:

1. Determine the business activity: The investor must select the appropriate business activity from among those approved by the relevant authorities, as this affects the type of license required and the procedures required for establishment.
2. Choosing a legal form for your company: Legal forms for businesses in the UAE vary, such as limited liability companies, sole proprietorships, joint-stock companies, and foreign branches. The choice depends on the nature of the business, the number of partners, and the financial structure.
3. Trade name registration : A trade name must be chosen that reflects the nature of the activity, taking into account the rules and restrictions imposed by the Department of Economic Development or the relevant authorities in the free zones.
4. Obtaining approvals and licenses: Some activities require additional approvals from relevant authorities, such as the Ministry of Health or the Securities and Exchange Commission, in addition to the main license issued by the relevant economic authorities.
5. Determining the company’s official headquarters: The company must have a physical headquarters in the UAE, whether on the mainland or within the free zones, and must submit a lease contract certified by the relevant authorities.
6. Meeting capital requirements: Capital requirements vary depending on the type of company and the region in which it is established, as some free zones may impose a minimum capital requirement.
7. Opening a business bank account: The company must open a business bank account in a UAE bank to manage financial transactions and deposit capital, if necessary.
8. Company registration and obtaining a commercial license: After completing all procedures, the company is officially registered and a commercial license is obtained, allowing it to legally operate in the country.

Some requirements and procedures vary depending on the emirate in which the company is established, as well as between free zones and the mainland. To facilitate the incorporation process, you can seek the help of specialized companies such as Atqan, which provide comprehensive consulting and support services to investors.

How to open a company in the UAE

The UAE is one of the most attractive countries for investors, thanks to its stable economic environment and ease of doing business. If you want to establish a company in the UAE, you can follow these steps:

1. Determine the type of business activity: Before starting the procedures, you must determine your company’s business activity from among the approved activities in the country, as this affects the type of license required and the necessary procedures.

2. Choosing a legal form: The appropriate legal form for the company must be chosen, such as a limited liability company, a sole proprietorship, or a public or private joint-stock company.

3. Trade name registration: A trade name must be chosen that reflects the nature of the activity and ensures that it is not duplicated, while adhering to the conditions specified by the Department of Economic Development or the selected free zone authority.

4. Obtaining initial approvals: Some activities require additional approvals from relevant authorities, such as the Ministry of Economy, the Health Authority, or the Telecommunications Regulatory Authority, depending on the nature of the business activity.

5. Determining the company’s headquarters: The company must have a physical address in the UAE, whether within the free zones or on the mainland, and must submit a lease contract certified by the relevant authorities.

6. Preparing the articles of association: The articles of association are prepared and notarized with the relevant authorities, especially if the company is a limited liability company or a joint-stock company.

7. Submitting the application and paying the fees: All required documents must be submitted to the relevant authorities, such as the Department of Economic Development or the Free Zone Authority, and the prescribed fees must be paid to issue the commercial license.

8. Opening a company bank account: After obtaining the license, a commercial bank account must be opened in one of the UAE banks to manage the company’s financial operations.

9. Obtaining additional permits : If the activity requires additional permits, such as import and export licenses or health permits, they must be obtained from the relevant authorities.

10. Commencing business operations: After completing all legal and administrative procedures, you can officially commence your business in the UAE.

Procedures can vary depending on the emirate in which the company is incorporated, as well as between free zones and the mainland. To facilitate the process, specialized companies like Atqan provide integrated services to help investors establish their companies smoothly and in accordance with legal requirements.

Advantages of opening a company in the UAE

The UAE is considered one of the best destinations for investment and business establishment, offering a flexible economic environment and numerous benefits for entrepreneurs and investors. Here are the most prominent features that make the UAE an ideal choice for business establishment:

1. Advanced investment environment: The UAE provides a stable and advanced investment environment, supported by modern economic legislation that protects investor rights and promotes commercial growth.

2. Full foreign ownership: The UAE allows foreign investors to own 100% of their companies, whether in free zones or in many activities on the mainland, without the need for a local partner.

3. Attractive tax exemptions: The UAE offers a flexible tax system, with companies operating in free zones enjoying tax exemptions of up to 50 years, along with no personal income tax.

4. Strategic locations and global markets: The UAE is strategically located between Asia, Europe, and Africa, facilitating trade, export, import, and access to global markets.

5. Ease of procedures and licensing: The government facilitates the process of establishing companies through flexible and quick procedures, whether in free zones or on the mainland, with the ability to complete most transactions electronically.

6. Diversity of free zones: The UAE offers more than 40 specialized free zones, offering investors benefits such as customs exemption, full ownership, and easy transfer of profits.

7. World-class infrastructure: The UAE boasts an advanced infrastructure that includes modern ports, international airports, and a sophisticated road network, facilitating shipping and logistics operations.

8. Banking and financing facilities: The UAE provides various banking facilities to investors, including flexible business accounts and financing loans to facilitate business growth.

9. Safe and stable environment: The UAE is one of the safest and most stable countries in the world, giving investors confidence and peace of mind when establishing their businesses.

10. Diverse investment opportunities: The UAE has a diversified economy that offers investment opportunities in various sectors, such as trade, technology, tourism, real estate, and financial services.

Establishing a company in the UAE offers investors numerous advantages, including ease of procedures, an attractive tax environment, and world-class infrastructure, making it an ideal choice for starting a business and expanding into regional and international markets.

Cost of establishing a company in the UAE

The cost of establishing a company in the UAE depends on several factors that influence the total expenses required to obtain licenses and begin operating a business. The following are the most important factors that determine the cost of establishing a company:

1. Company type and legal form : Establishment costs vary depending on the company’s legal form, such as a limited liability company, a sole proprietorship, or a branch of a foreign company.
2. Location (mainland or free zone): Fees and costs vary between the mainland and free zones, with some free zones offering all-inclusive packages at competitive costs, including licensing and residency visas.

3. Type of business activity: Some activities require additional fees to obtain special permits from the relevant authorities, such as financial, medical, or import and export activities.

4. Business license fees: Business license fees depend on the emirate in which the business is established, and may include trade name registration fees, government approvals, and special licenses.

5. Headquarters or office costs: The company must have an official headquarters, whether it is a physical office or a virtual workspace, and costs vary depending on the location and space required.

6. Visa and Residency Fees: Investors and company employees require residency visas, the costs of which vary depending on the number of visas required and the type of residency.

7. Required capital: Some activities and companies require a minimum capital, which varies depending on the type of company and the location in which it is established.

8. Government and administrative fees: These include company registration fees, legal documentation fees, Chamber of Commerce fees, and any additional costs associated with legal procedures.

9. Additional Services: Some additional costs may include services such as accounting, legal consulting, and marketing, which may be necessary for the company’s growth.

The cost of establishing a company in the UAE varies depending on several factors, such as the type of business, location, and licensing fees. To obtain an accurate estimate, it’s best to consult specialized companies like Atqan, which offer comprehensive company formation solutions at reasonable costs.

Free zones in Dubai

Dubai’s free zones are among the most prominent investment destinations, providing an ideal environment for entrepreneurs and investors seeking to establish their companies with flexibility and ease. These zones boast numerous advantages, such as 100% foreign ownership, tax exemptions, and customs facilitations, making them an attractive option for global companies and startups alike.

Dubai is home to more than 30 free zones specializing in various sectors, such as Jebel Ali Free Zone (JAFZA), a major trade and logistics hub; Dubai International Financial Centre (DIFC), a banking and financial services hub; and Dubai Internet City (DIC), a home to technology and telecommunications companies. These zones provide an integrated business environment with advanced infrastructure, flexible office spaces, and support services for startups.

In addition to legal facilities and easy licensing, Dubai’s free zones allow for the freedom to repatriate profits and impose no currency restrictions, enhancing business efficiency and attracting foreign investors. They also offer fast incorporation procedures, with investors able to obtain their licenses within a few days.

Through Etqan, entrepreneurs can benefit from specialized advice and simplified procedures for establishing their companies in Dubai’s free zones, providing them with an ideal opportunity to grow and expand in a world-class investment environment.

Opening a company in the UAE is a strategic step for investors and entrepreneurs seeking to benefit from a sophisticated investment environment that supports growth and innovation. Thanks to flexible legislation, tax benefits, and available facilities, the UAE offers golden opportunities for starting businesses and expanding into regional and global markets.

Whether you want to establish your company in the mainland or in the free zones, you can benefit from the services provided by specialized companies like Atqan, which provide comprehensive consultations and full support to facilitate procedures and ensure compliance with local laws.

Ultimately, the success of your project in the UAE depends on sound planning, choosing the right legal structure, and taking advantage of the thriving economic environment the country offers to local and international investors.

Frequently asked questions about opening a company in the UAE