Business Setup in UAE FAQ
Excellent setup will apply for the registration of your Trade Name in the related Department of Economics for the related emirates. The booking will take one day, and it is validated for six months even if you are prepared to start the process of establishing your company.
In most free zones you can have two activities under one license contact our staff, and they will guide for the best options that suit your needs.
Under the single license, you are allowed to manage 10 activities. However, you have to ensure that you engage yourself in the activities that have been labeled in the DED standards.
When you are providing the professional services, you will require the local agent. The Local partner has no interaction with your company or organization, he is only the ambassador of your company who will sign the local agent contract and there is no financial involvement.
On the other hand, the legal partner is required for the commercial activities. He has a share in your organization because he will sign the memorandum and will be responsible for the activities of your organization. Read more
The answer is no as you have 100% ownership in Freezone
If you are planning to start a mainland company that you will have to use a UAE national as your local agent or local sponsor. Click here to know all the information.
The Department of the Economic Development is responsible to issue the trade license of all the three categories. It will depend on the type of your business and the activities that you will be performing. To get the Dubai license for your business you have to ensure that you submit the required and legal documents.
In order to get the trade license you have to submit the following information:
- Enlist the category of your business
- Enlist the type of activities that you will be performing
- Enlist all the activities that fall under your business license and you might consider use them
- Ensure that there are only 10 activities listed
- The nationalities and number of business owners must be included with the legal undertakings
- The conditions and requirements that falls under the license must be included
- Trade Name of the business should be mentioned
- For the initial approval you will have to submit the application to the department
- Once you have the approval register your Trade Name immediately
- Rent the business premises
- The conditional documents to your business must be prepared. It includes certification from authorities, memorandum of association.
If you want the renewal of your commercial license, you will have to submit the DED registered certificate with the approval that you had from the Ministry of Economy and National Media Company. In order to renew the trade license you will have to submit the valid EJARI certificate and your lease contracts.
There are three different types of license that you will need according to your business activities:
- A commercial license will be required if you are engaged in the trading business
- Professional license if you will be providing the professional services
- If you have a manufacturing or industrial business then you must apply for the industrial license
The cost of the business setup varies from free zone to free zone . It also depends on the activity that you have selected. So there can be no 100% estimation on how much you would have to pay but you can consult with Excellent setup staff to know the exact amount and we have written an estimated amount for some activities on our websites.
Yes for the free zone company setup or Main land setup, you must have a proper office to start your business. for the free zone, It can be a small office or smart desk office which much cheaper than the Main land office.
There are three types of activities in UAE free zones known as the commercial, professional and industrial activities.
The activities that require capital like retail, real estate, wholesale, transportation and many others come under the commercial activities. Mining, water, electricity, gas and many other services fall under the industrial activities and social and personal services, health, education and consultants are regarded as the professional activities.
There are different types of business setup categories in UAE. They differ by the terms and conditions, the amount of capital you will have to invest, a number of shareholders required and the incorporation procedure. The seven categories are:
- General partnership company
- Share partnership company
- Limited liability company
- Joint venture company
- Private shareholding company
- Public shareholding company
In the UAE free zones, you will not require extra time to setup the business if you are working with trustworthy consultants. In the free zone, it takes about 3 to 10 days to setup the business. You have to ensure that all the documents are legal and the authorities have attested them. Our experts will provide you the required help. In case you do not have the consultants to provide you the required help, it might take more than a few weeks to setup your business because legal procedures often take time when you do them yourself.
Apart from the kind of business and the requirements, it is important that you be aware of the business companies that you can setup in the free zone area. Here is the list of the type of companies that you can have in the UAE free zones.
- Private free zone company
- Branch of an international company
- Branch of the company already working in Dubai
- Professional services
In the UAE free zones, you can start any business that you prefer. There is no need to have a local sponsor and you are 100% owner of your business. However, you can only operate in the geographical available for the free zone. The advantage is that you will get the trade license that will allow you to supply your products around UAE and export them as well.
The UAE is perfectly located between the biggest markets of the world including Europe, Africa and Asia. It is the perfect destination for entrepreneurs to invest in many kinds of business. The export and import services are exceptional and you will not have to worry about any taxes. The other advantages of working in UAE free zones or mainland include no capital restriction for the majority of activities. There is a perfect financial freedom which allows you to bring the employees from foreign states. There are many business opportunities to setup a free zone company that might be difficut to find in other countries of the world.
Excellent setup do not recommend to bring your local sponsor however if you wish so the relevant government fees must be paid upfront
ownership percentage must be a whole number.
The Initial Name Reservation Certificate will be only valid for six months and must repeatedly be renewed until the trade license is released
Depending on the nationality of the clients they might need Security approvals.
The Security approval requires that the bank statements must demonstrate the capability to conduct business in the UAE.
If the client is currently holding a UAE residence visa, please inform Excellent setup at the time of set up to cause delays in the process, as well as the initial approval, will not be issued.
The name of a company cannot be a country.
The Family names can not be used as a trade name unless it includes the first name of the Owner.
The business activity should be reflected in the trade name as a suffix.
These words cannot be used for company names “international” “Gulf,” and “group” It is subject to Dubai economic department to approval and Company (CO will be accepted) cannot be used.
The Trade names can’t contain more than two letters.
In cases where the company being incorporated is a branch, the initial approval process should first be completed before reserving the trade name.
The Initial Approval Certificate will only be valid for six months from date of approval. However, you have to provide the lease agreement and EJARI certificate within a month (30 days) of the release of Initial approval as delays will affect the ability of the local sponsor to open new companies.
The lease and Ejari certificate need to be registered under the name as approved by DED by the Initial Trade Name Reservation Certificate.
If the shareholder does not hold UAE residency, he/she will have to submit a copy of the most recent entry stamp to the UAE (within six months)
A sole establishment company cannot be a shareholder of or form a subsidiary of its company in the Dubai Department of Economic Development (DED). It will not also be possible for it to form a branch of or a representative office of the parent company
For Professional licenses, there is some sectors or activities that are restricted to ownership of UAE nationals.
There is may be additional fees for additional business activities added to the same license.
Free zone and offshore companies within the UAE may own 49% of a commercial license.