What are the benefits of registering a company in UAE

What are the benefits of registering a company in UAE and how to register company there

The United Arab Emirates (UAE) is one of the most attractive destinations for foreign investors and entrepreneurs who want to start or expand their businesses in the Middle East. The UAE offers many benefits and advantages for setting up a company, such as:

- A stable and diversified economy that ranks 17th in the world in the Global Competitiveness Index and second in the Arab World, with sectors such as oil and gas, transport, aviation, tourism, trade, and finance driving its growth;

- A liberal and business-friendly environment that allows 100% foreign ownership of companies in certain free zones, provides tax exemptions and incentives, simplifies financial reporting and auditing, and imposes no exchange controls or restrictions on repatriation of capital and profits;

- A strategic location that connects Asia, Africa, and Europe, and serves as a gateway to access regional markets with over 2 billion consumers;

- A world-class infrastructure that includes modern airports, ports, roads, railways, telecommunications, and utilities;

- A skilled and diverse workforce that comprises of nationals and expatriates from over 200 countries, with a high level of education and proficiency in English and Arabic;

- A high quality of life that offers a safe and secure environment, a cosmopolitan culture, a rich heritage, and a range of leisure and entertainment options.

How to register a company in UAE

The process of registering a company in UAE depends on the type of business activity, the legal form of the company, and the location of the company. There are three main types of locations where a company can be registered in UAE: mainland, free zone, or offshore.

Mainland: A mainland company is a company that operates within the UAE market and outside the free zones. A mainland company requires a local sponsor or partner who holds at least 51% of the shares, while the foreign investor can own up to 49%. A mainland company can choose from six types of licenses: industrial, commercial, crafts, tourism, agricultural, or professional. A mainland company must register its trade name with the Department of Economic Development (DED) in each emirate and obtain approvals from the relevant authorities for its business activity.

Free zone: A free zone company is a company that operates within a designated area that offers special benefits and incentives for foreign investors. A free zone company can enjoy 100% foreign ownership, tax exemptions for up to 50 years, no import or export duties, and assistance with labor recruitment and other support services. A free zone company can choose from more than 2,000 business activities across various sectors. A free zone company must register its trade name with the respective free zone authority and obtain a license for its business activity.

Offshore: An offshore company is a company that operates outside the UAE and does not have a physical presence or conduct any business activity within the UAE. An offshore company can enjoy 100% foreign ownership, tax exemptions on international income, no auditing requirements, and a high level of confidentiality. An offshore company can only engage in certain business activities such as investment holding, international trading, consulting services, or intellectual property management. An offshore company must register its trade name with an offshore registry agent authorized by the relevant free zone authority.

The steps involved in registering a company in UAE vary depending on the type of location, but generally include:

- Choosing a trade name that is related to the business activity and does not violate any laws or regulations;

- Choosing a legal form that suits the business requirements and complies with the laws and regulations;

- Choosing a business activity that matches the trade name and the legal form;

- Preparing the required documents such as passport copies, visa copies, bank statements, business plan, memorandum and articles of association, etc.;

- Submitting the application and paying the fees to the relevant authority;

- Obtaining the license and other approvals from the relevant authority;

- Opening a bank account for the company;

- Hiring staff and obtaining visas for them if needed.

The time required to register a company in UAE depends on the type of location, but generally ranges from 15 minutes for an online business to several weeks for a mainland or free zone business.

Conclusion

Registering a company in UAE can be a rewarding decision for foreign investors and entrepreneurs who want to tap into the opportunities and benefits offered by this dynamic and diverse market. However, it is important to understand the legal and regulatory framework of each location and choose the one that best suits your business needs and goals.