Publication date: 28.07.2024
Lawyer
Registering a company in the UAE: a step-by-step guide
In today's globalized world, more and more entrepreneurs are paying attention to the possibilities of doing business abroad. The United Arab Emirates (UAE) has become one of the most attractive destinations for company registration due to its favorable tax climate and strategic location. In this article, we will look at the process of registering a company in the UAE and provide useful tips for the successful start of your business.
Advantages of company registration in the UAE
Before starting the registration process, it is worth considering the main advantages of doing business in the UAE:
- Low tax burden
- Strategic location between Europe, Asia and Africa
- Developed infrastructure and modern technologies
- Political stability and economic growth
- The possibility of 100% foreign ownership of the company in certain zones
A legal analysis of the situation shows that these factors make the UAE an attractive place for entrepreneurs from all over the world.
Types of companies in the UAE
There are several types of companies that can be registered by foreign investors in the UAE. Legal analysis of documents will help you choose the most suitable form for your business:
- Limited Liability Company (LLC)
- Branch of a foreign company
- Representation
- Company in a free economic zone (FZE/FZC)
Consulting a lawyer will help you understand the specifics of each type and choose the best option.
Steps to register a company in the UAE
The process of registering a company in the UAE may seem complicated, but with the right approach and legal support, it becomes quite feasible. Here are the main steps you need to go through:
- Choosing a company name and checking its availability
- Preparation and submission of necessary documents
- Obtaining prior approval from relevant authorities
- Lease of office space
- Obtaining an activity license
- Opening a bank account
A legal opinion at each stage will help to avoid mistakes and speed up the registration process.
Necessary documents for registration
Verification of documents by a lawyer is critical for successful registration. Here is a list of the main documents you will need:
- Completed application for company registration
- Copies of passports of founders and shareholders
- Business plan of the company
- Lease agreement for office premises
- Documents confirming financial capacity
Document analysis by a professional lawyer will help avoid delays in the registration process.
Client case: successful registration of an IT company in Dubai
We were recently approached by a client who planned to open an IT company in Dubai. After conducting a legal analysis of the situation, we recommended registering the company in the free economic zone of Dubai Internet City. Thanks to the lawyer's legal opinion and professional support at every stage, the registration process was completed in 3 weeks. The company is now successfully operating and expanding its business in the Middle East.
The most common problems when registering a company in the UAE
In the process of registering a company in the UAE, entrepreneurs may face certain difficulties. Here are some of the most common problems and ways to solve them with the help of a lawyer:
- Difficulties with choosing the optimal organizational and legal form
- Delays in obtaining necessary permits and licenses
- Difficulties with opening a bank account
- Misunderstandings with local partners or sponsors
A written consultation and legal opinion will help to avoid these problems or solve them effectively.
Recommendations for successful registration and doing business in the UAE
For successful registration and further business in the UAE, you should follow the following recommendations:
- Carefully study the laws of the UAE and the peculiarities of doing business in the country
- Enlist the support of an experienced lawyer or consultant
- Be prepared for cultural differences and peculiarities of business etiquette
- Develop a clear business plan and company development strategy
- Regularly conduct a legal analysis of your company's documents and activities
Features of taxation in the UAE
One of the key factors attracting entrepreneurs to the UAE is the favorable tax system. Legal analysis of the situation shows that there is no income tax in the UAE for most types of activities, with the exception of oil companies and branches of foreign banks. However, it is worth considering the following aspects:
- Value added tax (VAT) in the amount of 5%
- Customs duties on the import of goods
- Municipal taxes on the lease of commercial real estate
A lawyer's consultation will help you understand the specifics of taxation and optimize your company's tax burden.
Requirements for authorized capital
When registering a company in the UAE, it is important to consider the minimum authorized capital requirements. A legal analysis of the situation shows that these requirements may differ depending on the type of company and registration area:
- For companies in free economic zones, the minimum authorized capital can be from 10,000 to 1,000,000 dirhams
- For companies in the UAE mainland, the requirements may be higher
A lawyer's consultation will help you determine the optimal amount of authorized capital for your company.
The role of a local sponsor
When registering a company in the UAE mainland (outside the free economic zones), foreign investors must have a local sponsor or partner who will own 51% of the company's shares. A lawyer's legal opinion will help you properly structure your relationship with a local partner and protect your interests.
Document analysis and a legal opinion of a lawyer will help you avoid potential risks and provide a solid foundation for your business in the UAE.
Registering a company in the UAE opens up wide opportunities for business development at the international level. Although the process may seem complicated, with the right approach and professional legal support, you can successfully register your company and start operating in this promising country.
For detailed consultation and professional assistance in registering a company in the UAE, we recommend contacting the CONSULTANT legal marketplace. Here you will find qualified lawyers and attorneys who specialize in international business law and have experience working in the UAE. A lawyer online or an online attorney is always ready to provide you with the necessary support and ensure the successful start of your business in the UAE.
