Establishing a company in the UAE is an important and fruitful investment step, as it provides an opportunity for companies to expand and achieve success in the active and thriving business market in the region. However, establishing a company in the UAE requires compliance with a set of legal terms and requirements.

Itqan is the ideal partner for establishing companies in the UAE, providing specialized legal support and advice to companies wishing to invest in the UAE. Itqan works with startups and large corporations alike, and provides its services to various economic sectors.

The main requirements for establishing a company in the UAE include obtaining a company license from the relevant government authorities, and determining the type of company to be established, such as a limited liability company (LLC) or a public joint stock company (PJSC). The proposed business activity must also be determined and local legal regulations and laws must be adhered to.

In addition, the company must prepare the necessary documents, such as the company’s articles of association and data of shareholders, members and managers. The documents must be in compliance with local laws and submitted to the competent authorities for final approval.

Briefly, Establishing a company in the Emirates Compliance with a set of legal terms and requirements is required. Itqan provides specialized legal support and advice to companies wishing to establish their company in the UAE. As a trusted partner, Itqan helps facilitate and expedite the process of company formation and the necessary legal compliance.

Basic steps to establish a company in the Emirates

Establishing a company in the Emirates It is considered an important step for companies wishing to benefit from the thriving economic environment in the region. With the UAE developing as a major investment destination, establishing a company in the UAE requires compliance with a set of legal conditions and procedures. In this context, we will review the basic steps for establishing a company in the UAE:

• Specify the type of company: Limited Liability Company (LLC): This is the most common type of company in the UAE and requires capital contribution from shareholders.
• Public Joint Stock Company (PJSC): This type of IPO is suitable for large companies that want to go public and raise capital.
• Choosing a company name: The name chosen must comply with local laws and regulations, and it must be ensured that it is not duplicated with the names of other registered companies.
• Identifying contributing partners: The shareholders in the company and the financial contribution of each partner must be identified.
• Prepare the required documents: The required incorporation documents and official documents, such as the company’s articles of incorporation and personal documents of the shareholders, must be prepared.
• Submission of documents and registration: Documents must be submitted to the relevant authorities for review and approval, and then the company must be registered and a VAT identification number obtained.
• Obtaining licenses and permits: The necessary licenses and permits to practice the commercial activity must be obtained from the competent government authorities in the emirate.
• Compliance with laws and regulations: You must comply with local laws and regulations regarding labor, taxes, consumer protection and intellectual property. It is advisable to work with a specialized consulting firm to assist you in the process of establishing the company and ensuring legal compliance.

Types of companies that can be established in the UAE

The UAE is a major destination for business and investment in the Middle East, with an advanced business environment and flexible legislation that encourages the establishment of companies. In this context, we will review the types of companies that can be established in the UAE:

Limited Liability Company (LLC):

• This type of company is the most common in the UAE.
• Its establishment requires capital contribution from shareholders.
• The contribution shares, financial rights and duties of each shareholder are determined.

Public Joint Stock Company (PJSC):

• This type of IPO is suitable for large companies that want to go public and raise capital.
• You need a specific capital stake and you need to comply with the requirements of the Securities and Commodities Authority.

Subsidiary:

• These companies were founded by a mother company to expand into the local market.
• You need a permit from the relevant government authorities and compliance with laws and regulations.

Free Zone Company:

• Established in the designated free zones in the UAE.
• It enjoys privileges and incentives such as fully insured foreign investment and no customs duties.

Public LLC:

• Similar to a limited liability company except that it has the status of a public joint stock company.
• Public joint stock companies are eligible for public subscription and offering shares on the market.

Sole Proprietorship:

• It is based on the establishment of a single person who is solely responsible for the business and financial obligations.

Companies must comply with local laws, regulations and legislation specific to each type of company, which vary depending on the emirate the company is located in. It is best to work with a legal advisor or consulting firm to get the necessary guidance before establishing any type of company.
Establishing a company in the Emirates Compliance with many legal procedures and conditions is required. The UAE offers a thriving investment environment and modern legislation that attracts many global companies and investors.

Documents required to establish a company in the Emirates

Establishing a company in the Emirates It requires compliance with many legal procedures and conditions. The UAE provides a thriving investment environment and modern legislation that attracts many global companies and investors. In this context, we will review the basic documents required to establish a company in the UAE:

• Copy of shareholder’s passport: A copy of the passports of the major shareholders of the company must be submitted.
• License application form: The company establishment license application form must be completed and signed.
• Company Articles of Association Model: The company’s articles of association must be prepared in Arabic and English and signed by the shareholders.
• Business Activity Permit Form: The company’s activity must be specified and the required business activity permit form must be filled out.
• Financial Certificate Form: The company’s financial certificate form must be submitted and signed by the shareholders.
• Executive Director Appointment Form: The company’s CEO appointment form must be signed.
• Proof of address: Contributors must provide proof of personal address, such as a water or electricity bill or lease agreement.
• Copy of the parent company’s certificate if the company is a subsidiary: If the company is affiliated with a parent company, a copy of the parent company’s certificate must be submitted.
• Financial report: May require submission of a financial report to the company or shareholders.
• Power of attorney form: If someone else will be handling the incorporation procedures on behalf of the shareholders, a power of attorney form must be signed.

The documents required for each type of company should be checked and may vary depending on the emirate the company is located in. It is best to work with Itqan Company to get the necessary guidance and ensure that all the required documents are completed.

Tax procedures for foreign investors in the UAE

The UAE is one of the world’s most prominent investment destinations, offering a thriving business environment and favorable tax legislation. However, foreign investors must comply with the tax procedures set by the relevant government authorities. In this context, we will review the basic tax procedures that foreign investors must take in the UAE:

• VAT Registration: Foreign investors whose total annual revenue exceeds the specified threshold for VAT registration must register with the Federal Tax Authority and pay the tax due.
• Register for real estate tax: If a foreign investor owns real estate in the UAE, he may be required to register for real estate tax and pay the tax due.
• Obligation to submit tax reports: Foreign investors must submit periodic tax reports to the Federal Tax Authority and adhere to the specified deadlines.
• Compliance with international tax rules: Foreign investors must comply with international tax rules and exchange required financial information with the relevant tax authorities.
• Tax Consulting: Foreign investors are advised to work with a professional tax advisor to obtain specialized tax advice and ensure full compliance with specific tax laws.

It is advisable to contact the Federal Tax Authority or a specialized tax consultancy office to obtain more detailed information about tax procedures for foreign investors in the UAE.

Challenges Foreign Investors May Face When Setting Up a Company in the UAE