Duway consult

Company set up in UAE

1.Legal structure selection in UAE

Before proceeding with company registration in the United Arab Emirates (UAE), it is important to thoroughly analyze the various legal structures available under local law. Each provides unique opportunities and requirements, supporting different types of businesses. Let's break it down in more detail:
  • Free Zone Company:
Benefits: Exemption from income and personal income taxes.
100% foreign owner of the company.
Full repatriation of profits and capital.
Limitations: Restriction on location of business outside the Free Zone.
Requirement to rent office space within the zone.
  • Mainland Company:
Benefits: Access to a broad local market and government contracts.
Ability to choose a business location anywhere in the country.
Limitations: Obligation to have a local sponsor (local partner) with minimum ownership.
Some industry restrictions, depending on the type of business.
  • Offshore Company:
Advantages: High level of privacy and protection of personal data.
No need for actual presence in the UAE.
Optimization of tax liabilities.
Limitations: Restrictions on conducting business in the UAE (except for investments).
No right to own real estate in the country.
The choice of the appropriate legal structure depends on the business area, development strategy and individual preferences of the entrepreneur. It is recommended to consult with legal experts and business consultants to make an informed decision that suits the objectives and needs of your business.

2.Preparation of documents and applications for UAE.

This stage involves a comprehensive preparation of the necessary documents, including the completion of the application form, which play a crucial role in the successful incorporation of a company in the United Arab Emirates (UAE). Let's look at each aspect in more detail:
  • Constituent Documents:
Founders' Passports: Providing copies of passports of all company founders with clear and legible details.
Founders' Visas: Copies of the founders' visas if they already have a visa to stay in the UAE.
  • Business Plan:
Business Description: A detailed description of the scope of the company, including the types of products or services to be provided.
Projected Financials: Development of projected financials for future periods, including expected sales, expenses and profits.
  • Office Space Lease Agreement:
Economic Zone Selection: Selecting an economic zone and entering into a lease agreement for office space within the selected zone.
Note: In some cases, leasing office space is required for company incorporation.
  • Letters of Recommendation:
From Banks and Business Partners: Providing letters of recommendation from banks or business partners confirming the financial stability and reputation of the company.
  • Registration Application:
Complete Information Statement: Completion of a complete and accurate information statement, providing all necessary information about the company, its founders and intended activities.
Each document must be provided according to the requirements of the specific economic zone and type of company. Careful and correct preparation of all documents is key at this stage, as failure to meet the requirements may lead to delays and difficulties in the company registration process in the UAE. It is advisable to seek the assistance of professional consultants and lawyers specializing in UAE business registration to ensure the successful completion of this stage.

3.Opening a bank account in the UAE

Opening a bank account for your company in the United Arab Emirates (UAE) is a key step after successful incorporation. This process requires careful adherence to the rules and submission of the necessary documents. Let's take a look at the details of this step:
  • Document preparation:
Company incorporation documents: Submission of original company incorporation documents such as articles of association and license.
Passports of founders and managers: Copies of passports of all founders and managers of the company.
Office Lease Agreement: Submission of office lease agreement confirming the location of the company.
  • Bank visit:
Personal presence: Some banks may require personal presence of the founders or company representatives to sign documents.
Plan of action: A bank visit should be arranged in advance and preparations should be made to provide additional data.
  • Choosing a bank:
Comparison of terms and conditions: There are many banks in the UAE and each provides different services and requirements. Comparing and selecting a bank is important to meet the company's needs.
  • Obtaining a banking license:
License Needed: In some cases, obtaining a banking license is required to open an account.
Note: Opening an account without a license may be available at some banks.
  • Bank Compliance:
Bank formalities: Providing all required documents and agreeing to the bank's requirements.
Note: Some banks may require additional documents depending on the nature of the business.

4.Visa and employee registration in the UAE

After completing the process of company registration in the United Arab Emirates (UAE), it is necessary to ensure the legal employment of foreign employees, which includes the process of obtaining work visas. This step also includes compliance with labor laws and economic zone requirements:
  • Issuance of Work Visas:
Types of Visas: The different types of visas include work visas that meet the requirements of foreign employees and the policies of the zone of incorporation.
Employment Contracts: Preparing employment contracts that clearly define working conditions, responsibilities and rights of employees.
  • Compliance with labor law regulations:
UAE Labor Laws: Compliance with UAE labor law regulations including deadlines, termination rules and working hours requirements.
Determining Salary Standards: Determining whether the salaries of expatriate employees are in compliance with established standards.
  • Signing of Labor Contracts:
Approving the terms of employment contracts: Negotiating employment contracts with foreign employees, including details of duties, remuneration and terms of employment.
  • Compliance with labor law regulations:
Insurance and health care: Ensuring insurance and health care for foreign employees as required by labor laws.
  • Registration with local authorities:
Employee Registration: Filing necessary documents and registering employees with local authorities as required by law.
  • Inspection Preparation:
Preparation for audits: Thorough preparation for possible inspections and audits by local authorities and labor inspections.
Implementing proper visa registration and complying with labor regulations ensures legal transparency and seamless operation of the business in the UAE. It is recommended to consult with legal experts specializing in UAE labor laws to avoid potential complications and ensure compliance.
Conclusion
Setting up a business company in the United Arab Emirates is a strategic and multi-pronged process that requires careful planning and a professional approach. Thank you for your attention to our article. We hope that the information provided will be helpful to you in the process of registering a company in the UAE. Should you have any further questions or require additional advice, do not hesitate to contact our experts for further support. Success to you in your entrepreneurial journey in the United Arab Emirates!