Establishing a company in the UAE is an important and exciting investment step. The UAE is a great environment for entrepreneurship, with a strategic location and a thriving economy. However, there are some conditions that must be adhered to toOpening a company in the EmiratesIn this article, we will review some of these basic and important requirements. First and foremost, you must have a local partner (sponsor) to establish a company in the UAE. The role of the local partner is to facilitate the procedures for obtaining the necessary licenses and permits from government agencies. In the case of limited companies or limited liability companies, the local partner must have a share of no less than 51% of the company’s capital. It must also be registered with the relevant government authorities. This requires submitting the necessary documents and basic information for the company, such as the registration form, articles of association, activity licenses, and information about shareholders and directors.

Conditions for opening a company in the Emirates

To open a company in the Emirates United Arab Emirates, there are legal conditions and procedures that differ from one emirate to another and depend on the type of company to be established. However, there are some general conditions that must be adhered to in most cases. Here are some of these basic conditions:

Local Partner

In the UAE, some types of companies require a local partner (sponsor), who is a UAE national who owns a share in the company. In the case of limited partnerships and limited liability companies, the local partner is required to own at least 51% of the capital. A sponsorship agreement is signed between the company and the local partner to regulate the relationship between them and the rights of each party.

Activity Licenses

The appropriate activity license must be obtained for the company. The permitted activity of the company is specified in the license, and the requirements and procedures may vary depending on the type of activity. The necessary documents and information are submitted to the relevant government agencies to obtain the activity license.
The capital required to establish the company must also be determined according to its type and activity. The required capital varies between different companies, and there may be minimum limits for the required capital. Evidence must be provided of the source of the capital invested in the company.

Legal address

A legal address for the company in the relevant emirate must be provided. The address can be in a free zone or in the mainland, and requirements and procedures may vary depending on the location. Some companies may require additional licenses or permits specific to their activities. For example, companies in sectors such as health, education, finance, construction, and hospitality may require additional licenses from the relevant authorities.

Foreign ownership

In some emirates, there are restrictions on foreign ownership of companies in certain economic sectors. The percentage of foreign ownership allowed is determined by local laws and regulations. However, there are free zones in the UAE that allow 100% foreign ownership of companies established there.

Compliance with legal procedures

The specific legal procedures for establishing a company must be adhered to, including submitting the required documents, such as registration forms, contracts, partner information, etc. These documents are submitted to the relevant government agencies and judicial authorities to complete the legal procedures.
These are some of the basic requirements for starting a company in the UAE. Individuals who wish to establish a company should review the local laws and regulations in the emirate they intend to invest in to obtain updated and detailed information on the conditions and procedures for establishing companies. It is also recommended to cooperate with Itqan Company, an expert in establishing companies in the UAE, to ensure full compliance with the legal requirements and necessary procedures.

Are there any tax exemptions for new companies in the UAE?

Yes, in the UAE, the government provides many tax exemptions and incentives to new businesses in order to encourage Investing in the Emirates And to promote economic growth. Among these incentives and exemptions:

Free Zones

Free zones in the UAE offer a number of tax and customs incentives to new businesses. These incentives typically include no corporate and customs taxes on imports and exports, 100% foreign ownership of companies, and no bank transfer fees and commissions.

National Tax Exemptions

The UAE federal government provides certain tax exemptions for companies in certain strategic sectors and specific industries. These exemptions are determined by government laws and regulations and vary from sector to sector. For example, companies in sectors such as renewable energy, technology, and tourism may enjoy specific tax exemptions.

Financial incentives and government grants

In some emirates, the government offers financial incentives and grants to new businesses to support and encourage them. These incentives can include direct financial grants, seed funding, financial support for research and development, and training and qualification.

Government and institutional support

The UAE government and government institutions provide a range of services and support to new businesses. These include business advisory and guidance services, access to business and investor networks, and assistance in securing the necessary licenses and permits.
It should be noted that tax exemptions and incentives vary between emirates and can also vary within each emirate depending on local policies and legislation.

Documents required to open a company in the Emirates

Opening a company in the Emirates A set of official documents are required. The requirements vary slightly depending on the type of company (e.g. limited liability company, joint stock company, branch of a foreign company, etc.) and location (inside or outside the free zones), but in general the required documents include the following:

For companies within the free zones:

1. Company Establishment Application Form: Fill out and submit the company establishment application form available at the competent authority in the free zone.
2. Copies of passports: Provide copies of passports for all partners and managers.
3. personal photos: Passport size photographs of all partners and directors.
4. workplan: Provide a detailed business plan explaining the type of business and the company’s goals.
5. Trade Name: Submit proposed trade names for approval from the competent authority.
6. Memorandum of Understanding and Articles of Association: Submit the Memorandum of Understanding (MoA) and Articles of Association (AoA) of the company.
7. office address: Provide details of the office address within the free zone, sometimes virtual offices can be used.
8. Security approval: Obtaining the necessary security approvals from the competent authorities.
9. Establishment fees: Pay the required establishment fees depending on the free zone and type of activity.
10. Business License: Submit an application for a business license appropriate to the type of business to be carried out.

Additional procedures depending on the type of activity

1. Preliminary statement: Some activities may require an initial permit before a final license is issued.
2. Partner details: If there are legal partners (such as other companies), additional details may be required such as articles of association of the parent company, and official decisions establishing the branch or new company.
   It is always important to check the specific requirements for each type of company and the location where the company will be established, as requirements can vary depending on the specific industry sector or business activity. It is advisable to contact Itqan Company, which includes a number of experts in this field, to obtain an updated and comprehensive list of requirements.

In conclusion, Opening a company in the Emirates It represents an exceptional opportunity for investors and entrepreneurs from all over the world, thanks to the favorable investment environment and flexible economic policies provided by the country. The UAE is characterized by its advanced infrastructure, strategic geographical location, and ease of establishment procedures, making it an attractive destination for businesses in various sectors. In addition, the free zones in the UAE offer multiple advantages, such as full foreign ownership and tax exemptions, which contribute to enhancing the attractiveness of investment. Thanks to these factors, the UAE continues to attract investors looking to take advantage of promising business opportunities and achieve growth and prosperity in a safe and stable environment.

Frequently asked questions about opening a company in the Emirates