The United Arab Emirates (UAE) has gained in popularity as a site for business owners and investors looking to set up shop in the Middle East because of its favorable location, hospitable business environment, and strong economic growth. Creating a business in the United Arab Emirates is covered in this article.
Different Types of Companies in the UAE
Understanding the many company types that can be founded in the UAE is essential before starting the formation process. The most typical types are as follows:
Limited Liability Company (LLC):
This is the most common type of company in the UAE, which requires at least two and a maximum of 50 shareholders. The liability of each shareholder is limited to their share capital.
Free Zone Company (FZC):
An FZC can be established in one of the numerous free zones in the UAE, enabling 100% foreign ownership and providing several benefits, such as zero tax and customs duty exemptions.
Branch of a Foreign Company:
This company type can be set up as a branch of an existing foreign company. The foreign company will be liable for the branch’s obligations, and the branch can engage in business activities in the UAE.
Incorporation Process
It is advised to acquire legal counsel when incorporating a business in the United Arab Emirates to guarantee that all legal criteria are met. Below are the general steps involved in the incorporation process:
- Decide on the business structure and pick an unregistered trade name.
- Apply for a business license and receive preliminary approval from the Department of Economic Development (DED).
- Write the company’s Articles of Association (AOA) and Memorandum of Association (MOA) and have them notarized (AOA).
- Ask the appropriate authorities for the necessary approvals and permits.
- Register the company with the Commercial Register and obtain a Trade License.
- Open a corporate bank account and deposit the minimum capital required.
- Obtain visas for the company’s shareholders and employees.
Read more : 5 Steps to set up business in a Free Zone in the UAE
Why Choose M.A Middle East Legal Consultancy?
M.A Middle East Legal Consultancy is a reputable legal consultancy company in the UAE that offers businesses and individuals wanting to incorporate a company in the UAE professional legal advice and help. M.A Middle East Legal Consultancy can help clients through every step of the incorporation process and guarantee compliance with all legal requirements thanks to years of experience and a team of knowledgeable lawyers.
Even though incorporating a business in the UAE might be a challenging procedure, with the correct advice and support, it can go smoothly. M.A Middle East Legal Consulting can help you every step of the way if you’re thinking about starting a business in the United Arab Emirates. Contact us today to schedule a consultation and learn more about our services.
