14 Step Business Setup

Business Setup In UAE | 14 Steps From Decision To License & Visa

Business setup in UAE: Differences with West & East, 14 steps to company registration, license, bank account & visas, takes 3 to 4 months

Business setup in UAE: Available are 2,000+ activity licenses and 30+ jurisdictions to choose from. You will be making many decisions before the company registration work can begin.

Please invest 2 minutes of your time to watch the business setup in UAE video below. It spells out how you can benefit. Or if you prefer to read, then feel free to skip the video and go straight to the text below:

 

 

Business setup in UAE: Get a free quote by filling your details in the form on the right and know more about registering your company

Use a step by step process to reach a decision. The number of alternatives and time have taken can be overwhelming.

Also, it is important to remember that company registration in the United Arab Emirates (UAE) is different from how you register on in the West or in Asia. So keep an open mind instead of letting frustration get the better of you.

Business setup in UAE: The important differences are

  • All companies are renewed annually.
  • Typical registration costs for the license starts around US$ 6,000.
  • For Locally registered – outside the free zones – ‘Sponsors’ are paid an annual fee.
  • There are no income or corporate taxes so company registration fees are significant parts of the annual budgets of the 7 Emirates.
  • You must have an office or ‘desk’ to register a company.
  • It takes 4 months to complete the process the first time.
  • Your license and office only make you eligible to apply for a certain number of visas. You still have to apply for them and pay extra.
  • You can employ people from anywhere in the world except for the banned list of 6 or 7 countries which keeps changing.
Business Setup In UAE | 14 Steps From Decision To License & Visa

Varal Team Member

Business setup in UAE: Get a free quote by filling your details in the form on the right and know more about registering your company

Business setup in UAE: The 14 typical steps

1. Write down your objectives in forming the UAE company. This will make it easier to narrow down the type of company, business activity and costs you are likely to incur.

2. Decide on 4 parameters to take your decision forward

  • Type of activities you would like to do in your business. To keep registration costs lower, think of those you want to do immediately not in the next 5 years. you can change your license later.
  • How many visas to do you want to be eligible for? How many employees do you see your company needing in the 1st year?.
  • How much office space are you looking to have?
    • Approximately 10 sq mtrs is required to make your company eligible to apply for 1 visa. So if you need 10 employees, you need about 100 sq mtrs of office space.
    • This is merely a rule of thumb and the requirements vary by jurisdiction.
    • Also, an office is a prerequisite to apply for a Trade [Business] License.
    • All office rentals a for 1 year. So if your business takes off you can move to a bigger office and become eligible for more visas.
  •  Whether you can operate from a Free Zone or whether you must have a Local license depends on the activities you wish to do. Your company registration agent can guide you.
    • In a free zone, you can own 100% of the company. In a Local company, you must have a UAE national as a 51% ‘Sponsor’ [partner on paper] or a ‘Service Agent’.
    • Whether you must be in Dubai or can be anywhere. A Dubai location has many benefits but is also more expensive.

Business setup in UAE: Get a free quote by filling your details in the form on the right and know more about registering your company

3. Once the above decisions are clear in your head, fill in a website form of a UAE business set up consultant or contact at least 3 of them and request a free cost and benefit comparison with multiple alternatives based on your above needs

4. Discuss the alternatives received with each of the 3 registration agents you have shortlisted. You can do this face to face, via a phone call, Skype or email.

5. Choose a company registration agent you feel comfortable with. Of course, their fee is an important criteria for making your decision.

But, remember that if you don’t get an optimum solution that meets your objectives because you hired an agent who doesn’t have full knowledge, the difference of a few thousand dirhams in agent fees can disappear quickly and haunt you for years.

6. Once you select your agent, the type of company and jurisdiction is finalized based on your objectives, bring up your apprehensions so that they can be discussed. Your agent can help in finding ways to remove them

7. Without voicing your apprehensions, it will be difficult to remove them. And you will keep wanting to revisit your decision. Which is OK. But prices and policies change so it is better to have your agent deal with your inner objections and move forward.

8. Ask your agent if there are any other services they offer that could benefit you. Many agents will offer fiduciary services, nominee services, virtual office, bookkeeping, bank account set up help, merchant account set up, investment accounts, visa application, company website domain name and email set up and so on.

Business setup in UAE: Get a free quote by filling your details in the form on the right and know more about registering your company

9. You are now ready to move forward. Ask for a specific quotation for your company package that includes the various services you’ve requested including any special offers that they are offering

10. Ask your agent the advantages and disadvantages of the banks in which he can help you with opening your account. Decide on the bank you feel comfortable with and let your agent know.

11. Make payment via bank transfer, credit card online or at the office of your business set agent, or cash. Find out what is acceptable to your agent. All work normally starts after your payment is made.

12. Send in the basic information form your agent has asked you so that they can prepare registration documents. Various Know Your Client [KYC] documents may also be required, depending on the type of company and jurisdiction you have chosen. Without these, the registration process will get delayed.

13. Check if your business set up agent uses any type of project monitoring tool to monitor your company registration. At any given point in time, he may have 100s of projects ongoing and he needs to keep track of yours.

14. Be clear on how long the registration process takes. Typically from the time you make payment to the time company registration documents are received takes about 45 days. Bank account another 15 days. And visas another 45 days. So be mentally prepared for 3 to 4 months for the registration process completion and plan your life accordingly.

Prepare to visit Dubai if you are also applying for visas or opening a bank account.

Business Setup In UAE | 14 Steps From Decision To License & Visa

Varal Team Member

Business setup in UAE: Get a free quote by filling your details in the form on the right and know more about registering your company

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14 Step Business Setup was last modified: September 29th, 2019 by Manu Raj

Manu Raj

Has a positive attitude towards the job, is friendly and a team player.

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