Register Company In UAE 2024: Easy Steps You Need to Know

The UAE has become a preferred investment destination for big businesses and entrepreneurs alike because of its extraordinary ease of doing business and remarkable investor friendly policies. The government of the UAE deserves credit for transforming this desert state into a global economic powerhouse with robust economic foundations. In this blog post we will take you past the steps you need to go through when setting up a company in the UAE. We’ll look at registering companies in Dubai, Abu Dhabi and Sharjah. 

Register Company in UAE: DUBAI

Out of all the Emirates, Dubai attracts the most foreign companies and entrepreneurs yearly. Countless business opportunities, conducive policies and a world-class standard of living; set up your company in the second largest economy in the Arab world using the following steps:

CHOOSE YOUR BUSINESS ACTIVITY

The first and foremost step is to decide what activities your company or business will undertake in and outside the UAE. The DED website comprehensively lists the thousands of activities and licenses that can be undertaken after you register company in UAE. 

DETERMINE THE COMPANY STRUCTURE

The next step will be to decide what sort of company structure suits your business the most. Entrepreneurs can choose from among Mainland and Free Zone companies when deciding to register a company in UAE. Each has its own advantages and disadvantages, however the main flex of a Free Zone used to be 100% foreign ownership. Policy changes have now allowed various categories of Mainland companies to be totally foreign owned, which has been a ground-breaking development for foreign investors in Dubai. Free Zone Companies have their own privileges and mostly suit companies that do not have a customer base in the UAE. 

MAINLAND COMPANIES:

The preferable choice for businesses that aim to cater to customers both in the UAE market and abroad, on-shore companies are registered with the Department of Economic Development (DED). Some features include:

• You must rent/lease office space. The number of visas your company qualifies for is determined by the quantity of space you occupy via your office. Virtual offices are not permitted for mainland companies. Minimum requirement is 200 square feet.
• Various exemptions from corporate taxes.
• 100% foreign ownership.
• Target customers both in the UAE and abroad.
• No minimum capital investment requirement. You decide the scale of your company.
• Ability to bid for government contracts.
• 5% VAT. 

FREE ZONE COMPANIES:

A Free Zone is basically an area with its own economic jurisdiction with regulations that do not apply to businesses outside the zone. These special economic zones offer tax benefits to incentivize investment and stimulate economic growth. There are over 40 Free Zones in the UAE all with their own specific policies, so it is important as an entrepreneur to complete thorough due diligence when deciding which zone suits your requirements the best. Some general characteristics of a free zone company are:

• Zero corporate or income tax
• Zero VAT
• Unlimited profit repatriation and fund mobility TO and FROM the UAE
• Possible exemption from customs duties
• 100% ownership
• No office requirement
• Restrictions on the types of activities you can undertake. 

CHOOSE YOUR COMPANY NAME

Once a potential business owner has decided which company structure suits their company, the next step is coming up with a name. There are certain guidelines prescribed by the Dubai Department of Economic Development that must be adhered to when naming your company. The name should not violate any trademarks or copyrights and should reflect the nature of your business.

Conduct a name availability search to confirm its availability at this link.

PREPARE LEGAL DOCUMENTS

After you have completed the steps outlined above, it is now time to start gatkhering the paperwork that the DED requires. We have listed some basic documents that you will require, however this may vary with your trade type.

1. Passport copies of shareholders and sponsors.
2. No-objection certificates (NOCs) from existing sponsors (if applicable).
3. Proposed company name.
4. Memorandum of Association (MOA) outlining business activities and shareholding structure.
5. Lease agreement for a physical office space in Dubai.
6. EJARI registration certificate
7. External departments approval
8. Dubai Chamber of Commerce and Industry Registration

These documents will be submitted to the DED after completion and due diligence, who will then proceed to process an initial approval. 

OBTAIN AN OFFICE SPACE

To complete the steps required to register a company in UAE, we now move to acquiring an office space. One can choose from a variety of options including buying, leasing or renting a suitable space. It is fairly easy to find all sizes of spaces across Dubai when you register company in UAE. Property Finder websites may prove to be very effective in this search. It is important to note that the size of an office space determines the quantity and types of visas your company will be eligible for.

RECEIVE YOUR BUSINESS LICENSE

Once all legal documents have been successfully scrutinized by the DED, they will issue you a business license, after which you will have the green-light to pursue your listed business activities via your newly registered company in Dubai.

KEEP YOUR FINANCES IN ORDER AT ALL TIMES

Once you are in the game, it is important to stay on top of taxes and finances at all times. Although this can be done internally, it is recommended to open a corporate bank account and register for taxes through an agent to keep things running smoothly. Further documentation may include labor and immigration cards/visas, VAT registration and some additional approvals according to your industry type. 

And that’s it. Once you’ve gone through all these steps, you are now eligible to benefit from the plethora of economic opportunities that the amazing Dubai offers. We hope your venture in one of the most dynamic business landscapes in the world paves the way to success and prosperity for your company. 

REGISTER COMPANY IN UAE: SHARJAH

Sharjah is one of the fastest growing economies in the UAE. It’s access to the Persian Gulf, proximity to Dubai and Ajman, and investment in world class infrastructure has made it a preferred investment and business destination for companies and businessmen around the world. Known as an industrial and manufacturing hub, 80% of the UAE’s manufacturing is estimated to take place in Sharjah. We have listed the steps to becoming a company owner in Sharjah below.

DETERMINE YOUR COMPANY TYPE

There are 4 general categories under which a new company can be registered in Sharjah:

1. Limited Liability Company (LLC)
2. Branch Office of an established foreign parent company
3. Joint Stock Companies (similar to public companies with shares listed in a stock exchange)
4. Sharjah Free Trade Zone company

The only way to have 100% ownership of your Sharjah company is via a Free Trade Zone company. If this is not a priority then the most preferred form is an LLC. Finding and negotiating with a local sponsor for 51% of company shares can appear challenging, but there are various agencies and professionals that can help with this. Profit sharing ratio is also negotiable between partners.

DETERMINE A COMPANY NAME

Selecting a unique business name that resounds with your target audience, and check if it is available with the Sharjah Department of Economic Development (SEDD). 

REGISTER YOUR COMPANY AND APPLY FOR RESPECTIVE LICENSE

A new company can be registered in person or online with the Sharjah Department of Economic Development. After this it is time to choose from among 4 of the respective licenses available in Sharjah:

1. Ecommerce license
2. Service license
3. Commercial license
4. General trading license

It is imperative to choose the correct license when applying. Failure to do so may lead to heavy penalties and loss of credibility in the marketplace. 

MUNICIPALITY APPROVAL

Following the receipt of a trade license, the Sharjah Municipality must grant approval to the prospective new company.

MEMORANDUM OF ASSOCIATION

To be drafted by the applicant, and notified in the relevant notary.

LEGAL DOCUMENTS REQUIRED

• Application form for company registration
• Business card of a designated contact person
• Business plan
• Notarized and attested Memorandum of Association
• Passport copies of owners and managers
• Lease agreement
• Board resolution of foreign parent company (where applicable)
• Feasibility report of potential business

FURTHER INFORMATION

Sharjah requires most businesses to acquire an office space to successfully register company in UAE (Sharjah). This may not be applicable for some trade types like Ecommerce. 

It is important to keep a close eye on tax exemptions and requirements, which is why we recommend hiring the services of an expert consultant. 

Furthermore, UAE companies law requires all registered businesses to hold an Annual General Meeting (AGM) within four months of the end of every financial year. 

COST

The cost register a company in UAE (Sharjah) is determined by various factors such as trade type, office space, visa fees and other expenses. It can cost anywhere between AED 500 to AED 30,000 or more. 

REGISTER A COMPANY IN UAE: ABU DHABI

The capital of the UAE and the largest emirate in terms of area, Abu Dhabi provides a very business friendly environment for companies looking to expand, and for new investors. The government of the UAE works hard to promote their capital as an investor friendly state with tremendous potential for exponential economic growth. The possibility to own 100% of a mainland company just like Dubai has opened up new worlds of opportunity for foreign business owners. 

Let’s take a look at the steps to owning your own company in Abu Dhabi.

DETERMINE YOUR BUSINESS CATEGORY

There are six types of business licenses that one can apply for when they register a company in the UAE (Abu Dhabi):

1. Industrial
2. Tourism
3. Professional
4. Agricultural
5. Commercial
6. Occupational

DETERMINE YOUR COMPANY TYPE

Similar to the information listed about Dubai and Sharjah, it is important to complete in-depth research about which legal structure suits your line of work the best. This is one of the most important decisions the potential owner/s must make when setting up a new organization. You can choose from among:

• General partnership
• Limited partnership
• Limited liability company
• Free zone company
• Foreign company branch
• Public joint stock company
• Private joint stock company
• Sole establishment

CHOOSE A COMPANY NAME

A trade name must be determined and registered with the Abu Dhabi Department of Economic Development (ADDED). Note that ADDED only reserves trade names, while trademarks are an entirely different subject dealth with by the Ministry of Economy. 

After a company has obtained a trade name, they are provided with a preliminary approval for their business. 

MEMORANDUM OF ASSOCIATION & LOCAL SERVICE AGENT AGREEMENT (LSA)

Apart from providing a duly attested and notified Memorandum of Association, companies which are owned by non GCC residents must have a Local Service Agent (LSA) onboard. The agreement between the company and its LSA is ratified by a court or notary. 

OBTAIN AN OFFICE SPACE

Just like Dubai and Sharjah, companies must buy, rent or lease a suitable office space to complete the register company in UAE (Abu Dhabi) process. 

COLLECT YOUR BUSINESS LICENSE

The final business license may be collected from a service center, or online, after all the above steps are complete.

There are various permissions and licenses that have to be obtained from different ministries depending on a company’s specific line of work. These may include the ministries of Interior, Economy, Justice, Petroleum, Telecommunications, Local Government and some others. All the required permissions are pre requisites to receive the final business license so your company can get to work in the UAE. 

This step by step guide to register a company in UAE aims to make relocation, expansion or launch of your endeavor seamless and easy. All in all, the UAE continues to achieve robust year on year economic growth, providing its residents and foreign investors with amazing economic opportunities. The friendly policies, affluent population and extreme ease of doing business have made the UAE a preferred destination for individuals from all over the world. The lack of bureaucratic red-tape is a definite bonus. 

It is especially a favored destination for people from the developing world looking to relocate completely or partially. Easy visa procedures make it very convenient to move yourself and your family, along with your business to the UAE. 

We hope you and your company find all the success and growth you aim to achieve when you register a company in UAE. It is definitely one of the greatest opportunities on offer in the global economy of today.