The annual license fee in Dubai TechnoPark is:
- For Trading and Industrial License: AED 5,500 up to 7 products from one group, AED 9,000 for up to 12 products from 2 groups
- For Service License: AED 8,000
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Setting up a company in the UAE is like a paradise for investors and entrepreneurs all over the world. Thanks to the government of UAE, which has paved a business-friendly environment for whoever wishes to do business setup in UAE.
This guide will help you understand all about company formation in the UAE.
Setting up a company in the UAE is directly connected with the growing economy of the UAE. As per the Dubai Chamber of Digital Economy, the UAE’s digital economy is about to hit $140bn by 2031, and the country’s GDP may increase by 20%.
The UAE consists of seven emirates, as listed below;
Emirates |
Jurisdiction |
||
Dubai |
Mainland |
Freezone |
Offshore |
Ras Al Khaimah |
Mainland |
Freezone |
Offshore |
Ajman |
Mainland |
Freezone |
Offshore |
Abu Dhabi |
Mainland |
Freezone |
- |
Sharjah |
Mainland |
Freezone |
- |
Umm-Al-Quwain |
Mainland |
Freezone |
- |
Fujairah |
Mainland |
Freezone |
- |
Except for the following, the UAE Federal Law No. 2 of 2015 on Commercial Companies, as amended, applies to any economic entity that engages in any commercial, financial, industrial, agricultural, real estate, or other types of economic activity on the mainland:
In Dubai, for example, specific Free Zones cater to enterprises in the technology, media, finance, and import/export industries. The following are some of the most popular UAE Free Zones:
A few Free Zones, such as JAFZA and RAKFTZ, allow foreign investors to set up offshore firms that can operate as holding companies within their group structure and cannot conduct business in the UAE (Free Zone or mainland). The appropriate Free Zone's offshore regulatory rules and regulations control offshore companies in the UAE.
If you want to learn more about new tax laws and regulations in the offshore company formation service industry.
UAE offers you seven Emirates with different jurisdictions as listed above. You can choose your preferred jurisdictions as per your business requirement and feasibility. Each jurisdiction has its own advantages and set of laws that need to be adhered to.
After doing adequate research and your business preferences you can start a company in the UAE which can give a kick start to your entrepreneurial journey.
If you wish to start a company in the UAE, this blog will guide you through the necessary information before you invest.
Have a look at the advantages of business setup in the UAE;
Starting a company in the UAE gives you the privilege of holding 100% ownership of your business.
Due to its strategic position, robust financial reserves, significant sovereign wealth funds, and continued government investment, the UAE has tremendous economic stability and a favourable business climate.
In 100 global development indices, UAE is among the top countries in the world due to the presence of doing business in the Emirates.
It has direct aircraft flights to over 250 destinations worldwide and is a prominent participant in international commerce networks, having shipping lines to over 400 places.
Over 40 free zones offer competitive advantages and capabilities that attract long-term investments. In addition, the country enables foreign ownership to be 100 percent.
With the exception of oil firms and international bank branches, it does not levy income tax on people, investors, or corporations.
The UAE promotes private sector growth and competition while also enforcing anti-monopoly laws. It has strong relations with significant regional and international trade groups.
In the UAE, customs charges range from 0% to 5%. In addition, the United Arab Emirates has a 10-year Golden Visa program. The long-term residence program is for investors, company owners, and critical industry experts. Now, you set up a business in Dubai, and now you need a visa. Learn more about visa services in Dubai.
The stages for the company formation in the UAE are as follows:
There are hundreds of possible actions to select from, and you must include all of them on your licence application.
Failure to identify each of your anticipated actions might lead to later problems. You can consult with some business professionals. Such professionals know allowed activities and may recommend those most appropriate for your company.
Now that you've detailed your business operations, it's time to pick a company name. When naming a company in the UAE, a few factors to consider. First, you must follow a set of naming rules that are both stringent and simple to follow. This is another phase where a company setup specialist may assist you.
As mentioned above, there are three types of business jurisdictions in the UAE, mainland, offshore and free zone. Select the appropriate one based on your business requirements.
Learn more about business setup in UAE free zone.
Get the required approvals from the respective government authority and submit all the relevant documents.
You can apply for the mainland trade licence, which varies from the UAE free zone business licence. It depends on the business activities you carry out.
If you open your companies in the UAE mainland, get yourself a local agent, as he or she will be holding 51% of the share of your business.
A UAE visa is another essential need for starting a small business. The application process for your visa and that of your staff are unique yet simple.
If you have a UAE company licence, you can also sensor others. For example, a domestic worker, such as a housekeeper, might be a spouse, parent, or kid.
If you want to know more about vias, learn about visa services in Dubai, for example.
Lastly, open a bank account for your future transactions.
Business setup in the UAE based on the sectors listed below will help you move towards the success of your business. So before investing read and do research on the selected sector to have better understanding.
To start a company in the UAE you need understand the different business entities in the UAE along with their features;
There are two main types of Partnerships. They are,
A branch of the foreign company requires the company to have a UAE national. The branch must conduct the same business activity as its parent company. A branch cannot manufacture, import, or export products to/from the UAE.
A representative office in the UAE is not a business structure in its own right but is a business activity that a branch office can conduct. Its criteria include to market and promote the business of the parent company. It is not authorised to conduct business operations on its own.
The representative office needs to have a local service agent, who should be a UAE national.
The nature of the economic activity determines the legal structure of the firm and the type of licence necessary. There are six types of business licences available for different activities, which are as follows:
Check below for those:
Aside from the above documents, the following documents must be given for an industrial licence:
The emirate government has set the tax structure to benefit the business in several ways.
*All the prices mentioned above are average pricing. Cost can vary depending on the business activity you choose and the jurisdiction you wish to start your company in UAE.
Business Setup Worldwide offers a wide range of services regarding your business setup process in the UAE. Have a look at some of the services provided by our consultancy:
Learn more about company formation services offered by Business Setup Worldwide.
We at Business Setup Worldwide can assist you with the required services regarding your company formation in the UAE.
Contact us for further queries; we’d be glad to help you.
Ajman Media City (AMC) Sharjah Media City free zone (SHAMS) Raz Al Khaimah free zone(RAKEZ) International Free zone Authority, Dubai
Jebel Ali Free Zone Authority (JAFZA) Dubai Multi Commodities Centre(DMCC) International Free Zone Authority (IFZA)
Import and export Healthcare Real estate Information technology E-commerce
427.93 billion in 2022.
No.
The lease period of land in Dubai Techno Park is 15 years, and it is renewable.