9 Steps to Follow for an Entrepreneur to Establish a Business in UAE

Establishing a business in UAE is become easier over the years due to strong government support towards business, friendly business laws, e-governance, efficient banking system, robust business ecosystem, etc.

UAE has become the top choice for foreign investors to set up their company in the region and expand their business networks. The absence of corporate and income tax, ease of doing business, and affordable company formation options are driving entrepreneurs to this country.

Why Free Zone is an Ideal Choice for Company Setup?

The Free Zone is the most popular option for setting up a company in UAE. There are 40+ Free Zones in UAE offering various attractive company formation packages.

It is a relatively easy process to set up a company in the Free Zone as the documentation and steps involved are limited when compared to opening a mainland/LLC Company.

Steps involved in setting up a Free Zone Company in UAE

Once you shortlist the Free Zone the first step is to reserve a tradename for your company.

1. Reserve the Trade Name

There is a provision to shortlist and select one based on availability. It is an important step as the name would be used in signboards, letterheads, all marketing communications, in trade license, and any communication relating to the company.

Hence, choosing the right tradename for your company helps in creating branding for your company.

2. Choose the Business Activity

Entrepreneurs must choose the right business activity for setting up a company that is in line with the intended services to be delivered.

The daily business operations must be aligned with the chosen business activities under the trade license to continue operations and avoid any fines.

3. Choose the Company Structure

The next important aspect of setting up a company is choosing the right company structure. In Free Zones the most common company structure is the Free Zone Establishment (Single Shareholder) and Free Zone Company (More than 2 Shareholders).

Few Free Zones in UAE have the FZ-LLC (Limited Liability Company) company structure. The minimum capital requirement for the FZ-LLC depends on the chosen business activity.

4. Choose the Office Space

Having the ideal office space depending on the selected business activity is essential. Certain businesses require frequent meetings with the client and having a large furnished office space is a mandatory requirement.

Whereas few sectors like software programming, marketing consultancy, etc., a shared office or desk space is ideal as most meetings happen on-site and the work is managed via online systems.

5. Submit the documents

To register a company in UAE Free Zones there is very limited paperwork. The investor has to submit the passport copy, photograph, and duly filled application form to start the company registration process.

The first step is to get the tradename reserved, so 3 names for the company must be submitted for the company trade name approval.

6. Make the Fee Payment

Depending on the chosen Free Zone, office space, and business license the fee for the company registration must be paid to the respective Free Zones.

Aurion is the Registered Agent for all major Free Zones in UAE. Reach out to our team to know more about the competitive Free Zone company setup offers.

7. Get the Business License

Once the documents are submitted and the Fee payment is processed, the Free Zone Authorities will assess the application and issue the business license accordingly.

Some business licenses in sectors like healthcare, real estate, food and beverages, education, etc., require special approvals before issuing the trade license.

Aurion’s Business Consultants will assist you in getting the approvals the most hassle-free way and registers your company in UAE easily.

8. Apply for UAE Residence Visa

Once the business license is issued to the investor, they can apply for a UAE residence visa and sponsor employees, appoint a company director, sponsor family members, and more.

UAE Residence Visa enables the investor to live in UAE and enjoy the stay here, educate the children in top schools/university, apply for driving license, personal bank account, purchase freehold property, health insurance, and more.

9. Apply for Corporate Bank Account

Once the residence visa is stamped in the investor’s passport and company documents are ready, the entrepreneur can apply for opening a corporate bank account in the UAE.

UAE has a well-connected network of local and international banks facilitating the companies in the region to transact and utilize the attractive banking solutions to boost their business.

The Banks in UAE has strict compliance and Know-Your-Customer norms to be followed to open a corporate bank account.

However, companies registered with the top UAE Free Zones will have a heads up here as Banks will be confident enough about the transactions and projected fund flows.

To know more about opening a Free Zone company in UAE, connect with our team of Business Consultants right away!

Contact: Aurion Business Consultants