Setting up a mainland company in the United Arab Emirates (UAE)

Setting up a mainland company in the United Arab Emirates (UAE) involves various steps and considerations. Here is a general guide to help you establish a mainland business in the UAE:

Determine the Appropriate Business Activity:

Decide on the type of business activity you want to undertake in the UAE. Different activities may have specific requirements and regulations.

Select a Legal Structure:

Choose the appropriate legal structure for your business. Common options include Limited Liability Company (LLC), Sole Proprietorship, Public Shareholding Company, and more. The choice of legal structure may impact the liability and management of the company.

Register the Trade Name:

Select a unique and suitable trade name for your business and have it approved by the relevant authorities. Ensure the name complies with the UAE's naming guidelines.

Memorandum of Association (MOA) and Local Service Agent:

Draft a Memorandum of Association (MOA) outlining the company's structure, activities, and capital. If required, appoint a local service agent (LSA) or sponsor, who is a UAE national. The LSA is not involved in the company's operations but is required for certain activities.

Obtain Necessary Approvals and Permits:

Depending on your business activity, you may need to obtain specific approvals and permits from the relevant government departments and regulatory bodies. This can include trade licenses, health and safety permits, and more.

Capital Requirements:

Capital requirements vary depending on the business activity and the emirate in which you are registering your business. Some activities require a minimum share capital, while others do not.

Register the Business:

Submit your application to the Department of Economic Development (DED) in the respective emirate where you plan to operate. The DED is the primary authority for business registration in most emirates.

Lease Office Space:

Most business activities in the UAE require you to have a physical office space in the country. Ensure you lease or purchase suitable office premises as per the regulations.

Bank Account Opening:

Open a corporate bank account for your business in a local bank. Each bank may have specific requirements, so research and choose a bank that suits your needs.

Employment Visas:

If you plan to employ foreign staff, you will need to apply for employment visas. Ensure that you comply with the UAE's labor laws and immigration regulations.

Tax Registration:

Register for taxes with the Federal Tax Authority (FTA). The UAE introduced Value Added Tax (VAT) in 2018, and depending on your business activity, you may be subject to corporate tax with effective from 01 June 2023.

Compliance and Reporting:

Be aware of the ongoing compliance and reporting requirements for your business. This includes submitting financial statements, renewing licenses, and adhering to labor and immigration regulations.

It is highly advisable to work with local business setup consultants and legal advisors who are knowledgeable about the specific requirements and regulations in the UAE.

Setting up a mainland company in the UAE can be complex due to the different regulations and requirements across the emirates. Consulting with local experts and authorities is crucial to ensure a smooth and compliant business establishment process.