Establishing a business in the United Arab Emirates involves following a series of important steps to ensure full compliance with local regulations and legal requirements.
Determine the Economic Activity: The foundation of any business starts with identifying the economic activity. Investors must choose the appropriate activity, as this will affect the type of license required, whether commercial, industrial, professional, or otherwise. There are over 2,000 different economic activities to choose from.
Determine the Legal Structure: The legal structure of the company depends on the nature of the activity and business requirements. Options include a partnership company, a limited liability company, a public joint-stock company, and others. The appropriate legal structure must be chosen to ensure full compliance with local laws.
Reserve and Register the Trade Name: After determining the activity and legal structure, a trade name must be reserved and registered to distinguish the company and reflect its nature. This requires meeting specific conditions to ensure the name is accepted by the relevant authorities.
Obtain Preliminary Approval: Preliminary approval indicates that government authorities have no objection to establishing the company. However, this approval does not grant the right to commence actual business activities. Investors must complete the remaining procedures to obtain the license.
Draft the Memorandum of Association and Service Agent Agreement: Depending on the legal structure, drafting and signing the company's Memorandum of Association may be required. In some cases, an agreement with a local service agent may also be necessary.
Choose the Business Location: Every company must have a physical address that complies with regulatory requirements. This usually requires providing a notarized lease agreement for the location.
Obtain Additional Government Approvals: Some economic activities require additional approvals from specialized government entities. Ensure these requirements are met before applying for the final license.
Receive the Commercial License: After completing all required steps and procedures, the applicant can receive the commercial license and start conducting business activities legally.
The UAE's company formation system is characterized by its streamlined and speedy procedures, particularly with the availability of integrated online platforms that allow investors to complete most procedures remotely, significantly facilitating the business setup in the country.
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