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5 Basic Steps to Setting up a Company in the UAE

Setting up a business in the UAE is remarkably straightforward and the best option to choose. Moreover, it’s becoming increasingly attractive among entrepreneurs. Setting up your own business has never been easier but we will make you easier by giving the perfect guidance.

With oil prices stabilizing and Expo 2020 in Dubai just a year away, the

economy is firing again and the country’s non-oil sectors are enjoying a 16- month high. These, together with the famous tax and lifestyle benefits, are good reasons for looking to the UAE for your new business venture.

So how do you go about launching a new business in the UAE?

There is plenty of expert help available, but the process effectively breaks down into the following five steps.

1. Choose your business activity

The very first step is to choose your business activity. There are various business sectors thriving in the UAE and the commitment to diversify beyond the oil economy means that any new business that contributes to that strategy will be looked upon favorably. The way the UAE business landscape is arranged, however, could affect your choice of business activity.

Many of the free zones specialize in certain sectors, such as media or healthcare for example, whereas there are more activities available if set up as a mainland business. The activity and the license required will also affect the cost of setting up your business. But you can register multiple activities under one license in UAE.

Know your options on business activities

There are several sectors and zones in UAE, therefore a thorough understanding of the differences between the various free zones and/or operating as a mainland company will help you sift through options early on. Choose the correct location and consider locations with regard to international transport links and the other types of business in the area. It’s always better to locate your company close to others in the same sector.

2. Register your business name

A company always known for its names, so choosing an attractive name is often can be fun. But UAE has some strict conventions in naming, and you must be aware of this before you get carried away. Make sure you know what they are and choose a name that conforms to it.

Competition occurs in all sectors relating to business. Therefore choosing a name for your company is quite challenging. The name should be accurate by following all the rules. It will take time and effort in checking your proposed name. But with a business setup expert, you can save the time and effort who will be able to tell you if it complies before you go to register it.

The naming rules you should know

As we discussed, there are some conventions in naming that should be strictly followed. Using offensive language is forbidden in naming. Any names that refer to or include religious, sectarian, or political groups are strictly forbidden.

If you choose to name your business after a person there are also some rules to obey. The selected person must be a partner or owner of the company and their full name must be used in naming. It is restricted to use initials or abbreviations in setting a business name. Considering all these rules you can go ahead with company naming.

3. Complete your incorporation paperwork

There are some criteria for registration when you come to register your company in the UAE. It is mandatory to complete an application to register your chosen company name and activity, along with copies of shareholders’ passports. Procedures and Requirements vary between the zones you are choosing.

Mainland companies often required to meet certain capital requirements, which must be stated in a Memorandum of Association. Some free zones will require further documentation, such as a business plan or, if you already have a local sponsor, a Non-Objection Certificate (NOC) confirming that you are allowed to set up another business in the UAE.

Checking and submitting your paperwork

For ensuring your company you need to submit the required papers. For that, you must contact the Department of Economic Development of your chosen emirate to register your business activity and trade name. Then submit the required documentation. You can find links to the respective offices on the UAE government website, under Information and Services.

All these procedures take some time and effort and the paperwork can be daunting, it can be dealt with quickly and easily with the help of a business setup adviser.

Finally, you will be issued with your company license once your application has been processed. If you use a business setup adviser, they will notify you when their documents are ready to be collected.

4. Open your business bank account

A bank account is a mandatory thing to be done before trading in the UAE. You can choose any and there is a wide selection of banks including Emirates NBD,

Noor Bank, Emirates Islamic, Mashreq, RAKBANK and Ajman Bank. The one

that’s right for you will depend on your specific requirements.

How to open a UAE business bank account

For opening a bank account in UAE, It generally takes between two to four weeks. Because the bank will want to know your primary business areas, your anticipated volume of currency and total deposits, revenue levels and your main customers and suppliers. If all these are accurate you will able to open a bank account within the mentioned time.

Once your paperwork has been returned from the government you will have all the documentation you need to approach the bank of your choice. Your business setup partner can advise you on the most suitable banks for your company and help to arrange the necessary meetings.

5. Arrange your visas

The final step in your business setup is the arrangement of visas for you, your employees and their dependents. A mainland company can apply for visas without any limit. There is no limit to the number of visas a mainland company can apply for. But whereas for free zone companies, they will meet some restrictions and procedures which vary from one free zone to another.

How to secure visas for yourself and others

If you are looking to obtain visas for a spouse, child or domestic staff, such as a maid or driver, it is advisable to seek expert advice to ensure that this will be possible in your chosen location. A business setup specialist will make sure that all your applicants meet the entry criteria as well.

The application process comprises four simple stages: entry permit, status adjustment, medical fitness test and finally Emirates ID registration and visa stamping.

Ready to do business: WE WILL MAKE IT HAPPEN

After you have completed these five steps, you will be ready to start trading. Compared to other parts of the world, setting up a company in the UAE is very straightforward – ranked 25th in the world in the latest World Bank Ease of Doing Business rankings. With a reputable business setup expert in your corner, you can be ready to make the most of the burgeoning UAE economy. We provide the best professional team in serving clients across UAE.