Starting a business in Dubai and UAE

MAX TYA BUSINESS CONSULTANCY
www.uae-consultants.com
HOW TO SET UP A CO. IN DUBAI
STEPS%TO%TAKE%AND%THINGS%TO%CONSIDER

PRESENT information
ON%COMPANY%FORMATION%IN%THE%UAE

INTRODUCTION.LET’S%DISCUSS%IN%BRIEF%AVAILABLE%OPTIONS%IN%UAE!

WHAT ATTRACTS BUSINESSES TO DUBAI
BUSINESS%OPPORTUNITIES%PRESENT%IN%DUBAI%AND%UNITED%ARAB%EMIRATES.
United Arab Emirates – a country offering 0% income tax, 0% corporate
tax, an opportunity to own 100% in a company and many other benefits.
But where do major business opportunities in Dubai and UAE lie? First of
all, the thriving food industry and trade in the UAE. EWcommerce provides
many opportunities for new players and may become the best business to
start in Dubai for some companies.
The UAE has a favorable climate for investing in solar technologies, and
the government readily supports the development of this sector. The
world’s biggest concentrated solar power (CSP) plant will be built in
Dubai. Privateaviation sector is currently growing with a fast pace.
And these areonly a few sectors that you can look into.

THINGS YOU WILL NEED TO DO TO SET UP A CO. IN DUBAI
To%be%able%to%start%your%business,%you%will%need%to%complete%the%steps,%outlined%below.
STEP%3
Preparerelevant documents
to proceed with application;%
legalizecorporatedocuments
of mother company for
branch or subsidiary.
STEP%4
Submit documents,%register%a
company,%open%a bank%
account and comply with
postWregistration
requirements.
STEP%2
If%you aim to establish a
company in%a freezone,%
compare all availablefree
zone options and choose the
most suitable one.%
STEP%1
Determine type of company
you require,%suitable business
activity and confirm,%if
additional approvals would be
required.%

Step 1.
CHOOSING%COMPANY%TYPE,%BUSINESS%ACTIVITY%AND%CHECKING%ON%ADDITIONAL%APPROVALS

Choosing Appropriate Company Type
Determine,%if%you%require%a%local%company,%a%free%zone%company%or%an%offshore%company.
OFFSHORE CO.
FREE ZONE CO.
LOCAL CO.
OFFSHORE:
1.%to%conduct%business%in%UAE,
2.%to%rent%an%office%space%in%UAE,
3.%to%apply%for%resident%visas%for%its%employees,
4.%to%apply%for%Tax%Residency%Certificate,
5.%to%receive%funds%from%UAE%companies%or%to%pay%UAE%firms.
FREE%ZONE%CO:
1.%to%lease%an%office%outside%of%the%free%zone%where%company%
is%registered,
2.%to%work%with%and%provide%services%to%individuals%and%
companies%from%other%free%zones%and%local%companies%if%
business%activity%requires%onsite%presence%at%client’s%premises%
outside%of%the%free%zone%where%company%is%registered%(e.g.%
fitWout%services,%engineering%services,%repairing,%installations%
etc.),
3.%to%trade%and%distribute%products%and%goods%outside%of%the%
free%zone%where%the%company%is%registered%(trade%is%allowed%
only%inside%the%free%zone%or%outside%via%a%local%companyW
distributor),
4.%to%take%part%in%governmental%tenders.
LOCAL%CO:
1.%Not%applicable.%
OFFSHORE%CO:
1.%to%conduct%business%activity%outside%UAE%only,
2.%to%hold%bank%accounts%in%UAE%banks,
3.%to%have%up%to%5%business%activities%on%business%license,
4.%to%be%a%shareholder%in%other%companies%in%UAE.
FREE%ZONE%CO:
1.%to%conduct%business%outside%of%the%country,%as%well%as%
work%with%all%companies%within%the%free%zone,%where%
company%is%registered,%and%with%other%UAE%companies,%as%
long%as%services%are%provided%from%the%registered%office%
only%(e.g.%consulting,%webWsites%development,%online%
marketing,%branding%services%and%alike),
2.%to%recruit%staff%and%apply%for%employees’%resident%visas,
3.%to%rent%office%space%in%the%free%zone%where%company%is%
registered,
4.to%apply%for%UAE%Tax%Residency%Certificate.%
LOCAL%CO:
1.%Everything%(N.B.%shall%be%in%line%with%company’s%
business%license).%In%addition,%local%company%can%rent%
an%office%in%any%part%of%the%emirate%and%participate%in%
governmental%tenders.
ALLOWED NOT ALLOWED

Determine Business Activity
Learn%how%to%choose%business%activity%for%your%license
Free%zone%authorities%in%the%UAE%may%provide%their%lists%of%business%activities%available%for%registration.%Business%activities%for%local%company%
setup%can%be%discovered%on%official%webWsite%of%Dubai%Department%of%Economic%Development.
CONTACT
REGISTRATION
AUTHORITY
and obtain a list of allowed
business activities
REVIEW THE LIST
and identify relevant
business
activities
CHOOSE THE
MOST SUITABLE
ACTIVITY
based on the
clarifications
provided to each
activity in the list
NOTE DOWN
ACTIVITY CODE
from the list for future
reference

ADDITIONAL APPROVALS
If%you%plan%to%conduct%one%of%the%following%activities,%additional%approvals%from%relevant%government%bodies%will%be%required
Training%Institutes%and%
Educational%Establishments
Pharmaceutical%and%
medical%products%trading
EDUCATION MEDICINE
Transportation%and%vehicle%
rental%activities%
TRANSPORTATION
Travel%and%tourism%
activities
Banks%and%financial%
institutions%
TOURISM FINANCE
KNOWLEDGE%AND%HUMAN%
DEVELOPMENT%
AUTHORITY
MINISTRY%OF%HEALTH DTCM
Department%of%Tourism%
and%Commerce%Marketing
UAE%CENTRAL%BANK
ROAD%AND%TRANSPORT%
AUTHORITY
Depending on activitytype,%theremay be also approvals required from Dubai Police,%National%Media%Council,%Municipality,%Ministry%of%
Finance%and%Industry,%Community%Development%Authority,%Dubai%Sports%Council,%Dubai%Maritime%City.

Step 2.
WHEN%PLANNING%TO%ESTABLISH%A%COMPANY%IN%A%FREE%ZONE,%COMPARE%AVAILABLE%OPTIONS

OVER 40 FREE ZONES IN UAE
AND%NO%NEED%TO%WORRY%HOW%TO%CHOOSE%THE%RIGHT%ONE%|%HELP%IS%COMING
Time for incorporation in%
every free zone differs.
There are%slight differences in%
documents required for
company formation by
different free zone authorities.
Each%free%zone%has%different%
requirements%with%respect%to%
amount%of%company’s%share%
capital,%depositing%of%share%
capital%into%bank%account%and%
annual%audit.%%
Each emirate in%the UAE%
has%a number of free
zones,%where you can
establish a company.

FACTORS TO COMPARE
There%are%certainly%several%aspects%that%you%should%factor%in,%when%determining%the%right%setWup%option%for%your%
business
INCORPORATION%
COSTS
AUDIT%
REQUIREMENT
SHARE%
CAPITAL
SHARE%CAPITAL
Almost%all%free%zones%in%
Dubai%require%depositing%of%
share%capital%into%bank%
account.%You%may%choose%a%
free%zone,%which%has%no%
requirement%for%
depositing.
INCORPORATION%COSTS
If%you%are%looking%to%
minimize%your%expenses,%
you%should%be%looking%at%a%
free%zone%outside%of%Dubai%
and%Abu%Dhabi.
AUDIT%REQUIREMENT
While%all%free%zones%in%Dubai,%Abu%Dhabi%and%Sharjah%require%annual%submission% of%audited%
accounts,%you%may%opt%for%a%free%zone%in%other%emirates,%where%there%is%no%such%
requirement.%It%will%again%help%you%minimize%your%operational%costs%on%hiring%an%auditing%
firm.
COMPARE%FREE%ZONES

Step 3.
PREPARE%RELEVANT%DOCUMENTS%FOR%SUBMISSION%AND%LEGALIZE%CORPORATE%DOCUMENTS%IF%REQUIRED

Documents Required for Company Formation
List%of%documents%required%for%company%formation%may%vary%from%free%zone%to%free%zone%to%a%certain%extent
Personal/ Corporate Documents
Business Plan
Additional Approvals (NOC)
Office Lease Contract
If%you plan%to conduct any of activities
requiring external approvals,%you will need
to obtainan NOC%from relevant local
authority in%the UAE.
Think through in%advance,%which lease
option you will opt for:%a flexiWdeskor a
standardoffice.%If%you plan%to rent a
standardoffice,%you may start%looking for
a suitable option in%advance.
For%all shareholders,%directors and a manager of
the future company passport copies,%UAE%entry
stamps,%recent utilitybill as%proof of address
will be required.%For%branch or subsidiary:%
legalizes certificate of registration,%MOA,%
certificate of good standing,%certificate of
incumbency.
Investors will need to prepare a business plan%
as%per%business plan%guidelines of the free
zone,%where future company will be
registered.%

STEP%1 DOCUMENTS%ARE%
LEGALIZED
STEP%2 STEP%3
Submit%documents%to%
Embassy%of%United%Arab%
Emirates%in%the%country,%
where%documents%were%
issued,%for%stamping
If%your%plan%is%to%establish%a%branch%of%a%foreign%company%%or%a%subsidiary%in%Dubai%or%UAE
LEGALIZATION PROCEDURE
1. Translate%documents%into%English
2. Notarize%translation
3. Have%documents%stamped%by%all%
relevant%local%authorities%up%to%
Ministry%of%Foreign%Affairs%in%the%
country,%where%documents%were%
issued
Submit%documents%for%
legalization%to%Ministry%of%
Foreign%Affairs%in%the%UAE

Step 4.
PROCESS%OF%COMPANY%FORMATION%|%BANK%ACCOUNT%OPENING%|%POSTWREGISTRATION%REQUIREMENTS

COMPANY FORMATION PROCESS
StepWbyWstep%guide%on%company%formation%procedure
Receive preWapproval from
relevant registrationauthorityto
form your company
RECEIVE PRE-APPROVAL
Prepare and submit
personal/corporate documents
and business plan%for initial
registrationapproval.%
SUBMIT DOCUMENTS
Execute flexiWdesklease
agreement or rent a standard
office.
SIGN LEASE AGREEMENT
Visit registrationauthorityto
execute MOA%andfinalize
company formationprocedure.
SIGN MOA
Receive your license and other
corporate documents.%
RECEIVE LICENSE

Bank Account Opening
You%are%ready%to%apply%for%bank%account%opening%as%soon%as%company%registration%process%is%completed
PREPARE
DOCUMENTS
SIGN
APPLICATION
DEPOSIT FUNDS ACTIVATE CARD
AND ONLINE
BANKING
Once%funds are%deposited,%activate your debit%
card andonline banking.
ACTIVATE CARD AND INTERNET
BANKING
Once%the bank%account is open%and you
receive bank%details,%transfer%minimum%
required balance and activationfee tothe
account (depends on the bank%chosen).
DEPOSIT FUNDS
Sign ban%account application
form and submit prepared
documents.
SIGN APPLICATION FORM
To%applyfor bank%account opening,%prepare
all corporate documents,%company profile,%
CVs of shareholders,%and sometimes,%proof
of address anda bank%statement.
PREPARE DOCUMENTS

Post-Registration Requirements
As%soon%as%company%formation%process%is%completed,%you%shall%comply%with%postWregistration%requirements
APPOINT AUDITORS
If%you%opted%for%a%local%company%or%a%free%zone,%
requiring%annual%submission% of%audited%
accounts,%you%will%need%to%appoint%an%auditing%
firm,%once%your%company%is%registered.
SUBMIT%BANK%STATEMENT
If%you%opted%for%a%free%zone%with%share%capital%
depositing%requirement,%you%will%need%to%
provide%a%bank%statement,%showing%that%
required%share%capital%amount%was%deposited.
ANY%OTHER%REQUIREMENTS
This or that free zonemay have certain
additional requirements.
APPLY FOR COMPANY ESTABLISHMENT CARD
To%be%ably%to%employ%and%apply%for%resident%
visas,%as%well%as%to%avail%from%other%services,%
upon%completion%of%company%formation,%
manager%needs%to%apply%for%company%
establishment%card.
CREATE COMPANY LETTERHEAD DESIGN
Some%free%zones%in%Dubai%require%that%you%
submit%a%copy%of%your%company’s%letterhead%
design,%created%as%per%guidelines%of%the%
authority.
ORDER%COMPANY%STAMP
Some%free%zones%have%a%requirement%to%submit%a%
sample%of%company’s%stamp.%Therefore,%
manager%of%the%company%needs%to%order%a%
company%stamp.

Still Have Questions?
Join our special hour on Friday evening in Periscope, where we address your
questions. Sign up and follow us on facebook, so that you do not miss it.

And Finally About Us
About%your%trusted%partner%in%all%business%related%matters%in%the%United%Arab%Emirates
Clients are%our outmost priority.%
You%can reachus any time of the
day via%the phone,%skype,%
messangers andother
communication means.
We%have answers to all of your
questions.%Our%team helps you
to grow your business and
succeed.
Number 1%business assistance in%
UnitedArab%Emirates.%We%wear
multiple hats,%that’s why we
manage to run your errands
efficientlyandprofessionally.
24/7
25%100%
25%#1
Have you ever heard anything about mobile
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#UAECONSULTANTS
DID YOU ENJOY
PRESENTATION
?
Max%Tya Business%Consultancy
Floor%18,%Creative%Tower,%Fujairah Creative%City
P.%O.%Box%4422,%United%ArabEmirates
T:%+971%52%793%55%54%
T:%+971%55%91 00 176
Max%Tya Business%Consultancy
has now a%REPRESENTATIVE%OFFICE%IN%DUBAI too!%
Contact us for more detailsand our representativewill%be happy%
to meet you in%Dubai.
E:%uae@uaeWconsultants.com
WWW:%%%http://www.uaeWconsultants.com
uaeWconsulting.com

Starting a business in Dubai and UAE

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Starting a business in Dubai and UAE