Each Emirate has its own terms and procedures for company registration, furthermore on the territory of the Emirates there are numerous Free Trade Zones with their own features and peculiarities. The choice of Free Trade Zone and the Emirate may depend on several factors described below:

• Legal status of registered company;
• Objects and scope of your business;
• Essential requirements for location and infrastructure;
• Your potential business partners.

Companies licensing in the UAE

License constitutes principal legal document authorizing the company to operate its business. Licenses for performing any business are issued by administration of free trade zone or municipal government of the Emirate. Depending on the types of business, licenses may be of the following types:

• Production license;
• Trading license;
• Commercial license;
• Professional license.

Organizational and legal status of companies registered in the UAE

The following types of companies are registered in the Emirates:

• Limited Liability Companies;
• Public and private joint stock companies;
• Partnerships and limited partnerships.

In majority of cases foreign companies consider the possibility of registering its subsidiaries and branches in free trade zones of the UAE. This is primarily due to the fact that foreign ownership of 100% interest in legal entities is allowed for free trade zone companies.

In comparison with FTZ, registration of a company at local market is subject to compulsory participation of local partner or sponsor.

Compulsory requirements to be met when incorporating companies in the UAE

One of the principal requirements for incorporation of onshore company entails obtainment of permissions for registration and name reservation of registered company. Subsequently, it is required to execute all documents and to open bank account. Eventually, you shall receive the following documents:

• Appropriate license;
• Certificate of incorporation in official register of the country;
• Memorandum and Articles of Association;
• Registration in Chamber of Commerce – if applicable.

Advantages of registering a company in Free Trade Zones

For foreign investors, registering a company in the UAE, there are following advantages:

• Possibility of incorporating a company with 100 % foreign interest;
• Tax and customs exemptions;
• Simplified registration procedure.

In order to choose right status and structure of incorporated company, you should have some certain knowledge on local laws and business practices. Evaluation of existing opportunities and determination of strategic goals of your business will ensure success of your business and will protect your business and material interests.

Our company offers maximum support in resolving the aforesaid issues. Our specialists have long experience and posses best practice relating to starting or expanding existing businesses. We will prepare all required documentation and will provide you with professional services at all stages. If you have decided to incorporate a company in the UAE you should rely on professionals and get the desired result within the shortest period of time and with complete compliance of all applicable regulations.

• Checked / Updated: 07.25.2022
• Published on: 05.07.2014
• Author: Serge Somdos