The UAE is a preferred destination for establishing foreign companies, due to its dynamic investment environment and legal and legislative facilities that keep pace with the aspirations of global investors. Establishing foreign companies in the UAE provides international investors with a strategic gateway to the Middle East and Asian markets, thanks to its distinguished geographical location, in addition to the advanced infrastructure and diversified economy that enhances opportunities for growth and prosperity.

The UAE plays a pivotal role in attracting foreign investment by offering a number of incentives, such as tax exemptions, full foreign ownership in many free zones, and flexible and fast business setup services. The UAE’s commercial laws and regulations are also among the most advanced in the region, providing a legal environment that protects investors’ rights and encourages long-term investments.

The UAE offers multiple options for setting up foreign companies, whether through free zones that offer benefits such as full foreign ownership and no restrictions on remittances, or through establishing branches of international companies or entering into partnerships with local investors. This flexibility enables companies to choose the structure that best suits the nature of their business and strategic needs.

Moreover, the UAE enjoys a high level of political and economic stability, which enhances investor confidence and contributes to creating a favorable environment for business. Thanks to these factors, the UAE has become a regional hub for business and trade, making it a prime destination for foreign companies looking to expand and grow in new markets.

In this article, we will review the different aspects of company formation in the UAE , including the different types of companies, the procedures required, and the benefits that investors can reap from this promising market.

 

Establishing foreign companies in the Emirates

In the UAE, foreign individuals and companies can establish foreign companies in various legal forms. Here are some of the most common forms of companies that can be established for foreigners in the UAE:

1. Limited Company: Foreigners can establish a limited company in the UAE, and this company requires a local partner with a minimum share of 51% of the capital. This can be the Dubai Department of Foreign Trade and Operations (DED) or the Federal Authority for Identity and Citizenship (ICA) in the UAE.
2. Free Zone Company: Free zone companies are a popular option for foreign companies, as the UAE provides many free zones that allow foreign companies to easily establish and operate their businesses while providing some tax and customs benefits.
3. Local Mainland Company: Allows foreigners to establish companies operating in the local market, with a local partner of a certain percentage according to local laws.
4. Offshore Company: These companies allow business to be conducted outside the UAE, and are a popular choice for international companies looking for ease of incorporation and management.
5. Branch of a Foreign Company: Foreign companies can establish a branch in the UAE to represent their business activities in the region.

Documents required to establish a foreign company in the UAE

In general, to establish a company in the UAE, the documents required may vary depending on the type of company and the area in which you intend to establish the company (free zone or local market, for example). Here is a general list of documents that may be required to establish a foreign company in the UAE:

1. Company License Application Form: Includes information about the type of company and its proposed activities.
2. Copy of foreign shareholders’ passport: Copies of foreign shareholders’ passports may be requested.
3. Memorandum of Association (MOA): Documenting the terms and objectives of the company’s establishment.
4. Permission from relevant government bodies: Permission from certain government bodies may be required depending on the type of company.
5. Financial Statements: You may request financial statements that demonstrate the company’s financial ability to invest and operate.
6. Lease agreement for office or headquarters: Company formation may require the submission of a lease agreement for the office or headquarters of the company.
7. List of partners and managers: A list of the partners and managers involved in the management of the company must be provided.
8. Feasibility Study Reports: In some cases, government authorities may require feasibility study reports to submit the company’s operational plans.

Fees associated with establishing a foreign company in the UAE

Establishing a foreign company in the UAE requires paying a set of fees associated with the various stages and legal procedures. Although these fees vary based on the type of company, its location, and the nature of its activity, they usually include some of the following basic aspects:

• Company Registration Fees: These fees include the cost of registering the company with the local authorities or in the selected free zone. These fees vary depending on the type of company and where it will be registered.
• Licensing fees: These include the fees required to obtain a trade license that allows a company to operate in the UAE. The amount of these fees varies depending on the company’s business activity and scope.
• Legal Document Fees: These include the costs of preparing and authenticating legal documents such as the articles of incorporation, bylaws, and other legal contracts necessary to establish the company.
• Rental Fees: If the company requires a physical office, the fees also include the costs of renting an office or workspace within the free zone or at another location within the UAE.
• Visa and Residence Fees: Fees for obtaining residence visas for investors and employees working for the company, including visa application fees and related residence fees.
• Government service fees: These include fees for various government services such as issuing licenses, special permits, municipal services and other services required to establish and operate the company.
• Local Agency Fees (if required): In some cases, company formation requires a local service agent, who may charge additional fees for providing their services.
• Annual Renewal Fees: After the company is established, an annual fee must be paid to renew commercial licenses and residencies, in addition to any other fees to maintain the legal status of the company.

At the end of this article on establishing companies in the UAE , it is clear that the UAE is an ideal environment for international companies seeking to expand into global markets thanks to its advanced infrastructure, flexible laws, and competitive advantages. The UAE is distinguished by its strategic location between the East and the West, making it a global commercial center that facilitates access to markets in Asia, Europe, and Africa.

Establishing a foreign company in the UAE gives investors the opportunity to benefit from many facilities, such as full ownership of the company in free zones, exemption from taxes on profits in many cases, as well as obtaining long-term residency visas for investors and their family members. These factors, along with political and economic stability, make the UAE an attractive destination for foreign investment.

Although the procedures for establishing a foreign company may require compliance with some legal conditions and requirements, the government support and advisory services available help facilitate this process. It is essential for foreign investors to plan well and understand all the legal and administrative aspects related to establishing their companies to ensure success and take maximum advantage of the opportunities available in the UAE market.

The most important frequently asked questions about establishing foreign companies in the Emirates