How to Setup Business in UAE?
Setting up a business in the UAE is a strategic decision that offers numerous advantages. Learn how to setup a business in UAE with our comprehensive guide. Discover the costs, procedures, and benefits of starting your company in UAE. With its thriving economy, strategic location, and investor-friendly policies, the UAE has become a prime destination for entrepreneurs and businesses worldwide. In this comprehensive guide, we will walk you through the steps to setup a company in the UAE, discuss the associated costs, outline the procedures, and highlight the benefits of choosing the UAE for your business venture.
Why Choose UAE for Company Setup?
Strategic Location
The UAE’s geographical location serves as a gateway between the East and the West, making it an ideal hub for global trade and business operations.
Tax Benefits
The UAE offers a favorable tax regime with no corporate or personal income tax, which significantly enhances profitability.
World-Class Infrastructure
The UAE boasts state-of-the-art infrastructure, including advanced logistics, transportation, and communication networks, providing a conducive environment for business operations.
Diverse Economy
The UAE’s economy is diversified across various sectors such as finance, real estate, tourism, and manufacturing, offering ample opportunities for different types of businesses.
Ease of Doing Business
The UAE government has implemented numerous reforms to streamline business setup processes, making it easier and faster to start a business.
Steps to Setup a Company in UAE
1. Determine the Business Activity
Identifying the nature of your business activity is the first step. The UAE categorizes businesses into various sectors, and each has specific requirements and regulations.
2. Choose the Business Structure
Select an appropriate legal structure for your company. Common options include:
- Limited Liability Company (LLC)
- Free Zone Company
- Branch of a Foreign Company
Know More About Free Zone in UAE
3. Select a Trade Name
Choose a unique trade name for your business that complies with the UAE’s naming conventions and is approved by the Department of Economic Development (DED).
4. Obtain Initial Approval
Submit an application to the DED or relevant Free Zone Authority to obtain initial approval for your business setup.
5. Draft and Notarize Legal Documents
Prepare the necessary legal documents, such as the Memorandum of Association (MOA) and Articles of Association (AOA), and have them notarized.
6. Choose a Business Location
Decide on a suitable location for your business. Options include mainland, free zones, or offshore jurisdictions, each with its own set of advantages.
7. Apply for Business License
Submit the required documents and application to obtain a business license from the relevant authority. The type of license depends on the business activity:
- Commercial License for trading activities
- Professional License for service-oriented businesses
- Industrial License for manufacturing activities
8. Register for VAT
If applicable, register your business for Value Added Tax (VAT) with the Federal Tax Authority (FTA).
9. Open a Corporate Bank Account
Open a corporate bank account with a UAE-based bank to facilitate financial transactions.
10. Obtain Visas
Apply for the necessary visas for yourself and your employees. This includes investor visas, employment visas, and residency permits.
Cost of Company Setup in UAE
UAE Company License Cost
The cost of obtaining a business license in the UAE varies based on the business activity and jurisdiction. For instance:
- Dubai company license: Costs range from AED 10,000 to AED 50,000.
- Ras Al Khaimah license cost: Generally more affordable, with fees starting around AED 5,500.
- Cost of company license in Sharjah: Similar to Ras Al Khaimah, starting from AED 5,750.
Additional Costs
- Office Space: Depending on the location and size, renting office space can range from AED 20,000 to AED 200,000 annually.
- Visa Fees: Each visa application costs between AED 2,500 to AED 7,000.
- Legal and Administrative Fees: These can add up to AED 5,000 to AED 20,000.
Calculate your business setup cost.
Benefits of Setting Up a Business in UAE
1. Strategic Location
The UAE is strategically located at the crossroads of Europe, Asia, and Africa, providing easy access to markets in these regions. Its geographical position makes it an ideal hub for international trade and commerce.
2. Tax Advantages
One of the most significant benefits of setting up a business in the UAE is its favorable tax regime. There is no corporate or personal income tax, which allows businesses to retain more of their profits. Additionally, certain free zones offer complete tax exemptions for a specified period.
3. 100% Foreign Ownership
Many free zones in the UAE allow 100% foreign ownership of businesses, eliminating the need for a local sponsor. This gives investors full control over their operations and profits.
4. World-Class Infrastructure
The UAE boasts world-class infrastructure, including state-of-the-art logistics, transportation, and communication networks. This facilitates efficient business operations and provides a solid foundation for growth.
5. Ease of Doing Business
The UAE government has streamlined business setup processes, making it easier and faster to establish a company. The country consistently ranks high in the World Bank’s Ease of Doing Business index, reflecting its commitment to creating a business-friendly environment.
6. Robust Legal Framework
The UAE offers a strong and transparent legal framework that protects the interests of businesses and investors. This includes well-defined commercial laws, intellectual property rights, and dispute resolution mechanisms.
7. Economic Diversification
The UAE’s economy is diversified across various sectors such as finance, tourism, real estate, manufacturing, and technology. This reduces dependency on oil and provides numerous opportunities for businesses in different industries.
8. Access to a Skilled Workforce
The UAE attracts a highly skilled and diverse workforce from around the world. Businesses have access to a pool of talented professionals with expertise in various fields, which can drive innovation and growth.
9. Quality of Life
The UAE offers a high standard of living, with excellent healthcare, education, and recreational facilities. This makes it an attractive destination for expatriates and their families, ensuring a good quality of life while working and living in the country.
10. Full Repatriation of Profits and Capital
Businesses in the UAE are allowed to repatriate 100% of their profits and capital. This ensures that investors can freely move their earnings back to their home countries without any restrictions.
11. Extensive Free Zone Benefits
Setting up a business in one of the UAE’s many free zones offers additional benefits, such as no import or export duties, simplified company setup procedures, and access to modern office and warehouse facilities.
12. Supportive Government Policies
The UAE government actively supports businesses through various initiatives, incentives, and programs aimed at fostering innovation, entrepreneurship, and economic growth. This includes grants, funding opportunities, and business development support.
Conclusion
Setting up a business in the UAE offers a myriad of benefits, from strategic location and tax advantages to world-class infrastructure and a supportive business environment. Whether you are looking to setup a company in Dubai, Ras Al Khaimah, or Sharjah, understanding the costs, procedures, and benefits is crucial for a successful venture.
How Infibiz Can Help
Infibiz is your trusted partner in navigating the complexities of company setup in UAE. Our team of experts will guide you through every step of the process, from selecting the right business structure to obtaining the necessary licenses and permits. With our comprehensive services and personalized approach, you can focus on growing your business while we handle the administrative details. Contact Infibiz today to start your journey to business success in the UAE.
