Establishing business in the UAE

Source: United Arab Emirates Ministry of Economy

Setting up a Company in the UAE vs Worldwide

• 10 Days – High-income countries, according to the World Bank
• 4 Days – UAE through the Department of Economic Development
• 15 Minutes – UAE through the Basher online platform

Establishing a Company in the UAE Mainland

Applying Online:
The electronic Basher platform is a unified platform that allows establishing your company within 15 minutes. The local and federal government agencies concerned with licensing economic activities in various emirates have been brought together into a unified platform to facilitate doing business.

Steps to Apply

• Occupational;
• Commercial;
• Tourism;
• Agricultural;
• Industrial;
• Professional.

There are more than 2,000 economic activities in the UAE. Economic licenses can include several economic activities. The nature of the company’s activity determines the type of license that will be issued.

Legal forms of business in the UAE:

• Sole establishment;
• Civil company;
• Limited liability company;
• Public joint stock company;
• Private joint stock company;
• Branch of a GCC company;
• Branch of a local company;
• Holding company;
• Representative office of a foreign company.

Important links:
To learn more about the legal forms of companies, please refer to the websites of the UAE’s economic departments in each emirate, and other authorities concerned.

• Abu Dhabi Chamber
• Sharjah Investment and Development Authority (Shurooq)
• Ajman Department of Economic Development
• Dubai Chamber: Starting Own Business
• Ras Al Khaimah Department of Economic Development
• Fujairah Government: Doing Business in Fujairah

Terms and conditions:

1. The trade name must have an abbreviation of the legal structure of the company as its suffix (ex: LLC, PJSC, etc).
2. The trade name must not contain inappropriate words, and should not be offensive to the general public.
3. The trade name must be compatible with the chosen economic activities.
4. The trade name must not contain the names of rulers, government agencies, or the names and logos of government bodies.
5. The trade name must not be registered by any other company.
6. The trade name and trademark must be approved by the Department of Economic Development and the Ministry of Economy.
7. Trade name certificates are subject to renewal.

Useful links:
• Trade Licence Enquiry – Tamm
• Trade Licence Enquiry – Abu Dhabi Government Services
• Search trade name – Department of Economic Development – Abu Dhabi
• Search Trade Name – Dubai Economy
• Issue trade name – Department of Economic Development, Sharjah
• Trade name – Department of Economic Development, Ras Al Khaimah
• Search trade name – Department of Economic Development, Ajman
• Umm Al Quwain Chamber of Commerce
• Licensing department – Fujairah Municipality

Learn about economic activities that require additional approvals:

• Receipt of initial approval and copies of all previously submitted documents;
• Copy of lease contract, duly attested;
• Memorandum/s of Association, as required;
• Approvals from other government entities, as required.

• Federation of UAE Chambers of Commerce & Industry
• Abu Dhabi Chamber of Commerce and Industry
• Dubai Chamber of Commerce and Industry
• Sharjah Chamber of Commerce and Industry
• Ajman Chamber of Commerce and Industry
• RAK Chamber of Commerce & Industry
• UAQ Chamber of Commerce and Industry
• Fujairah Chamber of Commerce and Industry

Establishing a Company in the UAE Free Zones

Steps to Apply

There are 3 legal forms of businesses in UAE free zone:

• Free Zone Limited Liability Company (FZ LLC);
• Free Zone Establishment (FZE);
• Free Zone Company (FZ Co.).

Terms and conditions:

1. The trade name must have abbreviations of the legal structure of the company as suffix (for example LLC);
2. The trade name should not contain inappropriate words and should not be offensive to the general public;
3. The trade name must be compatible with economic activities;
4. The trade name must not contain the names of rulers, government agencies, or the names and logos of external government bodies;
5. The trade name must not be registered by another company;
6. The trade name and trademark must be approved by the Department of Economic Development and the Ministry of Economy, respectively;
7. Trade name certificates are subject to renewal.

Useful links to help you choose brand name:
• Trade Licence Enquiry – Tamm
• Trade Licence Enquiry – Abu Dhabi Government Services
• Search trade name – Department of Economic Development – Abu Dhabi
• Search Trade Name – Dubai Economy
• Issue trade name – Department of Economic Development, Sharjah
• Trade name – Department of Economic Development, Ras Al Khaimah
• Search trade name – Department of Economic Development, Ajman
• Umm Al Quwain Chamber of Commerce
• Licensing department – Fujairah Municipality

Choose a business space for your company:

• Free zones in the UAE give you several options to own or rent an office, or buy land to set up your factory or office building. If you want to obtain an independent/professional license, you can rent an office or register with a virtual office. The office space will depend on the number of employees and the type of commercial activity of your company.
• Office spaces in free zones come either fully equipped or partially furnished, and can be rented or purchased after a commercial license is issued.
• In most cases, it is the free zone authority that issues rental contracts.

Access to public utilities, communications and the internet:
The services and facilities offered vary from one free zone to another. In general, infrastructure at all zones is well developed, with IT support services including telephone and high-speed internet connections.

Company incorporation services and facilities preparation:
Free zone authorities also provide different support services and facilities to help investors and entrepreneurs establish their businesses. Some are:

• Enquiring, reserving and applying for trade names;
• Getting NOC letters or ‘To whom it may concern’ letters;
• Issuing, renewing and cancelling residence visas;
• Investing and funding opportunities;
• Legal advice;
• Furnished/semi-furnished offices;
• Warehouse;
• Telecommunications;
• State-of-the-art IT infrastructure;
• Secretarial services;
• Photocopy and printing services;
• Meeting rooms with AV facilities;
• Labour accommodation;
• Assistance with recruitment;
• Employee and family housing.

Documents commonly required for companies:

• Completed application form;
• Business plan;
• Copy of existing trade license/registration certificate (if applicable);
• Passport copies of the company’s shareholders and appointed manager;
• Registry Identification Code Form (RIC) for appointed manager (original and notarized);
• Specimen signatures of the company’s shareholders and appointed manager;
• Title deeds (if applicable);
• A brief letter clarifying the investment idea and the investor’s plan (Letter of Intent);
• 2 years audited financial reports or certificate of reference from a bank (as required).

Documents commonly required for freelancers/professionals:

• Application for registration;
• Curriculum vitae or profile;
• Reference letter from a bank;
• Registry Identification Form (RIC) for Director (original and notarized document).

• Pay fees and secure company license;
• Fees include company license issuance fee, which depends on the type of license.

Documents most commonly required:

• Completed application form for registration;
• Board Resolution appointing Manager/Director (notarised and attested);
• Power of Attorney given to Manager/Director (notarised and attested);
• Memorandum and Articles of Association (notarised and attested);
• Specimen signature of Manager/Director (notarised and attested);
• Passport-size photos of Manager/Director;
• Share capital information.

Source: Establishing Businesses – Ministry of Economy UAE