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Conditions for opening a company in the Emirates

٢٠ ديسمبر Conditions for opening a company in the Emirates

Conditions for opening a company in the Emirates, the United Arab Emirates is one of the most prominent investment destinations in the Middle East and the world thanks to the distinguished business environment it offers, and the various opportunities that encourage the start of companies in various sectors. By providing strong incentives to investors and facilitating legal procedures, the Emirates has become the ideal place for individuals and companies wishing to expand locally and internationally. However, there are a set of conditions and requirements that investors must follow to ensure that they start their business legally and smoothly. These conditions may vary based on the type of business and the geographical location in which the company will be established, whether in free zones or on the main lands in the Emirates. These conditions range from legal procedures for registering the company, the necessary licenses to operate, and even financial obligations. By cooperating with Itqan Company, investors can obtain specialized advice and comprehensive support throughout the establishment process, the conditions for establishing a company in the Emirates, which contributes to accelerating and facilitating procedures, and avoiding any complications they may face. Itqan provides professional services to guide investors on what is most appropriate for them, whether in choosing the type of company or in better understanding the strategies related to taxes, fees and required licenses. With a team specialized in this field, Itqan helps facilitate the establishment process from the beginning until obtaining all the necessary permits to operate in the UAE. If you are thinking of establishing your company in the UAE, good knowledge of the conditions and requirements is an essential step to ensure the success of your project and achieve your business goals in this environment full of opportunities.

Types of companies that can be established in the UAE
The United Arab Emirates is one of the most attractive destinations for investors from all over the world, thanks to its stable economic environment and the facilities provided for establishing companies. The UAE provides a wide range of options for foreign and local investors to establish companies in various economic sectors. The type of company that can be established depends on several factors such as business activity, geographical location (free zones or main land), and the number of partners. Through these diverse options, investors can choose the most suitable for them based on their business requirements and future growth strategies.

Types of companies that can be established in the UAE:

Limited Liability Company (LLC): This is one of the most common types of companies in the UAE. These companies usually require a local partner who owns 51% of the shares, while the foreign investor owns 49%. This company is ideal for investors who want to enter the local market and benefit from legal protection and property rights.
Wholly foreign-owned companies in free zones: In the UAE, there are many free zones that allow foreigners to establish wholly owned companies without the need for a local partner. Companies in free zones are characterized by easy procedures, tax exemptions, and flexibility in commercial dealings with international markets.
Sole Proprietorship: Some free zones allow the establishment of sole proprietorships where the foreign investor owns all the shares of the company. These companies provide great flexibility in terms of management and quick decision-making.
Branch of a foreign company: Foreign companies can open branches in the UAE. The branch is considered an extension of the parent company and can practice the same business activities, but it requires the approval of local authorities to implement it.
Companies in the main areas (land areas): These companies include limited liability companies that are established outside the free zones. This type of company requires a local partner who owns 51% of the shares. These companies are suitable for those seeking to expand into the various markets of the Emirates.
Wholly Foreign Owned Companies in Dubai: Dubai offers opportunities for foreign investors to fully own companies in certain sectors under special laws, providing a flexible business environment for investors.

Documents required to establish a company in the UAE
The United Arab Emirates is one of the preferred destinations for investors from all over the world to establish their companies, thanks to its advanced economic environment and the opportunities available in various sectors. To establish a company in the UAE, investors must provide a set of necessary documents according to the type of business activity and location (whether in free zones or onshore areas). The requirements vary slightly between different categories, but there are basic documents that everyone must provide to ensure that the establishment process runs smoothly. The UAE government provides a flexible regulatory environment that facilitates the process of establishing companies, which contributes to attracting foreign and local investments.

Documents required to establish a company in the UAE:

Valid passport: You are required to provide a valid passport for the investors and partners concerned in the company. The passport must contain blank pages to allow the submission of work and residence visas.

Recent personal photos: The authorities usually require a recent personal photo for investors and partners in order to process them in official documents and submit them in applications.

Business plan: The business plan is one of the basic documents that must be submitted when establishing a company. The plan includes details of the business activity, objectives, target market, and proposed strategies to ensure success and continuity.
Proof of address: Investors must provide proof of address whether in the UAE or abroad. An attached utility bill such as an electricity or water bill may be required to confirm the address.
Approval of relevant authorities (if required): Some business activities may require special approvals from relevant government agencies such as the Ministry of Economy, the Health Authority or any other regulatory body depending on the type of business activity.
Lease or location agreement: If you will be operating in an onshore or non-free zone area, it will be necessary to provide a lease agreement for the office or location where your company will be headquartered.
Commercial registration: The commercial registration is issued after completing all legal procedures related to the establishment of the company. The commercial registration will serve as an official document confirming the establishment of the company in the UAE.
Business activity permit: In some cases, an official permit is required to permit the business activity to be carried out, which is important in ensuring that the activity is in compliance with local laws.
Incorporation application form: This form is submitted to the relevant government agencies to register the company and determine its type, and is usually submitted after preparing all other documents.
Licenses for regulated activities: Some business activities such as banks, financial institutions, insurance companies, etc. may require additional licenses or special approvals from regulatory authorities.
By providing these documents, investors can start the necessary procedures to establish their companies in the UAE in a legal and smooth manner.

Key Benefits of Setting Up a Company in Dubai
Dubai is one of the most prominent investment destinations in the world, providing an advanced and flexible business environment for both local and foreign investors. Dubai has many advantages that make it an ideal destination for setting up a company in Dubai, whether in the free zones or in the local market. Thanks to its strategic location, advanced infrastructure, business-friendly laws, and tax exemptions, Dubai has become a global hub for commercial and investment activities. In this context, investors can benefit from the many benefits that Dubai offers when setting up a company in Dubai, which helps them enhance their business growth and expand their activities internationally.

Key Benefits of Setting Up a Business in Dubai:

Tax Exemptions: One of the most prominent benefits that investors get when setting up their company in Dubai is the tax exemptions granted in many free zones. Dubai does not impose taxes on personal income or corporate profits in most commercial activities, which helps companies achieve greater profits.
100% Foreign Ownership: In many free zones in Dubai, foreign investors can own their companies 100% without the need for a local partner. This feature allows investors to maintain full control over their companies.
Easy Access to Global Markets: Thanks to Dubai’s strategic location between the East and the West, setting up a company in Dubai allows investors to easily access the markets of Asia, Europe, and Africa. Dubai’s transportation and logistics network also contributes to facilitating the movement of global trade.
Advanced Regulatory Environment: Dubai provides a flexible regulatory environment that contributes to facilitating the procedures for setting up companies. Dubai also continuously seeks to improve and develop commercial systems and laws to make them more compatible with international standards.
Advanced infrastructure: Dubai offers a modern infrastructure, including seaports, international airports, and a modern road network, which facilitates the movement of goods and people and reduces transportation and distribution costs.
Financing and investment opportunities: Dubai provides a supportive environment for financing and investment, where investors can access financing through local and international banks or through government-backed financing programs. Dubai also attracts many investors who want to finance start-ups.
Government incentives: The Dubai government offers many incentives to companies that establish their businesses in free zones or specific specializations, including tax incentives, customs exemptions, and support for research and innovation.
The presence of an international business community: Dubai brings together companies from all over the world in one environment, which provides investors with opportunities to cooperate and partner with global companies in many fields.

Finally, establishing a company in Dubai provides investors with many benefits that make this city an ideal destination for growth and expansion in the global market.

Our company\’s role in opening a company in the UAE
In conclusion, the conditions for opening a company in the UAE are a legal and administrative process that requires careful preparation and a deep understanding of local legislation, in order to achieve success in a flexible business environment with promising opportunities. The conditions vary depending on the type of business activity and the area in which it will be established, whether in free zones or in major areas. Investors must meet several requirements, including obtaining the appropriate license, choosing the most appropriate legal form for the company, adhering to the financial conditions and licenses for the activity, and providing the necessary documents such as a passport, personal photos, and a business plan. In addition, investors must consider the costs associated with establishing companies, from registration fees and taxes, and also verifying the residency requirements for employees. Cooperating with consulting companies such as Itqan can facilitate these procedures and provide investors with local expertise and strategic guidance that enable them to establish their businesses smoothly. The UAE provides a stimulating business environment that makes it an ideal destination for investors from all over the world, but it is necessary to be fully aware of the legal conditions and requirements to ensure that any obstacles that may face the project are avoided. By adhering to these conditions and taking advantage of the appropriate legal advice, investors can build successful businesses that achieve their economic goals in a developed and diverse market.

Frequently asked questions about opening a company in the UAE
What types of companies can be established in the UAE?
Many types of companies can be established in the UAE, such as limited liability companies (LLCs), companies wholly owned by foreigners in free zones, sole proprietorships, and branches of foreign companies. The type of company depends on the business activity and location.

Can foreigners open companies in the UAE?
Yes, foreigners can open companies in the UAE, especially in free zones that allow them to own 100% of the company’s shares without the need for a local partner.

What are the documents required to establish a company in the UAE?
Basic documents include: a valid passport, personal photos, proof of address, a business plan, and an application form for establishment. Approvals from some government agencies may also be required if the business activity requires it.

Can a single investor establish a company in the UAE?
Yes, a single investor can establish a company in the UAE, especially in free zones or sole proprietorships that do not require partners.

Are there any taxes on companies in the UAE?
The UAE offers an attractive tax environment, with extensive tax exemptions in most free zones. However, some activities such as banks and oil companies are taxed.

What are the costs of setting up a company in the UAE?
Costs vary depending on the type of company and location. Costs include government fees, legal consultation costs, attorney fees, and licensing fees.