Establishing a business in UAE is easier over the years due to strong government support, friendly company laws, e-governance, an efficient banking system, and a robust business ecosystem.
UAE has become the top choice for foreign investors to set up their companies 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 Establishing a Business in UAE?
The Free Zone is the most popular option for establishing a business in UAE. There are 45+ 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 than a mainland Company in UAE. It is due to the easy documentation and limited steps to open the free zone company.
Steps involved in Establishing a Business in UAE Free Zones?
Once you shortlist the Free Zone to establish a business in UAE the first step is to reserve a tradename for your company. Following are the 9 steps to start a business in UAE.
1. Reserve the Trade Name
There is a provision to shortlist and select one based on availability. The company name will appear on all marketing materials, trade licenses, and other communications relating to the company, so this step is very important.
Hence, choosing the right tradename for your company helps in creating branding for your company.
2. Choose the Business Activity
In order to establish a successful company, entrepreneurs must choose the right business activity aligned with the intended services.
Continuing business operations and avoiding fines require aligning daily operations with the chosen business activities under the trade license.
3. Choose the Company Structure
The next important aspect of establishing a business in the UAE 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.
Some industries, such as software development and marketing consultancy, benefit from a shared office space because most meetings are held on-site and work is managed online.
5. Submit the documents
Establishing a business in a UAE Free Zone requires very little 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.
7. Get the Business License
Following the submission of the documents and the payment of the fee, 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 in the most hassle-free way and establish your business in UAE easily.
8. Apply for UAE Residence Visa
As soon as an investor obtains a business license, they can apply for a UAE residence visa, hire employees, appoint a board member, sponsor family members, and more.
UAE Residence Visa enables the investor to live in UAE and enjoy the stay here and educate the children in top schools/universities. They can also apply for a driving license, personal bank account, purchase freehold property, health insurance, and more.
9. Apply for Corporate Bank Account
Once the residence visa is stamped and company documents are ready, the entrepreneur can apply for the opening of 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 attractive banking solutions to boost their business. So, global investors choose UAE for establishing their companies and growing their business.
To open a corporate bank account in UAE, one must follow strict compliance and Know-Your-Customer norms.
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.
Contact: Aurion Business Consultants