Company Formation In UAE

How to start company formation in UAE?

Company setup in the UAE is fast and simple as far as one knows the basic company setup rules in the UAE. Dubai is always been a better place for company formation in the UAE. Company setup in the UAE is fast and simple as far as one knows the basic company setup rules in the UAE and this is probably true at any time in the past couple of decades or so, but right now the signs are more promising. There will be hardly any week goes without the announcement or delivery of another ambitious project. The UAE’s growth projections suggest that it is jumping in the right direction now.

Company Formation in Dubai UAE
Company Formation in Dubai UAE

As per the IMF, the UAE is expected to lead economic growth in the Arabian Gulf, a significant increase by 2.4%, ahead of the region’s biggest economy of Saudi Arabia, which is forecast to grow at 0.45%. The above figures, along with impressive growth in the recent years, have attracted an increasing number of business investors to the country. If you’re planning to join Dubai’s business community, the good thing is that company formation process in Dubai is a relatively simple and speedy with major tax incentives, especially in the form of the UAE’s free zones.

The company setup process involves some of the basic main steps and which can be completed within a week time as long as you follows the procedure carefully.

However, one should consider the important factors like, type of business, the company ownership, share capital, selecting company name, office and staff requirements, before starting the formalities related to business setup

Benefits of UAE free zones

Alternatively, there are some other options available as to the type of business you can set up in the UAE, onshore or offshore. But no doubt UAE free zones are quiet popular with foreign entrepreneurs and with good reason.

Some of the few attractive incentives they offer are 0% corporation and personal tax, 100% company ownership, 100% repatriation of capital and profits. No currency restrictions and 100% import and export tax exemption.

Tax benefits are one of the top reasons to attract business investors in the United Arab Emirates.

Since the administrative and financial aspects of company setup in Dubai can seem difficult to deal with.

By following some simple steps with the right support, it is far more speedy and affordable than you might think. We have supported many companies establish themselves in different free zones. Mainly the process can be break down into the following seven steps.

1. Selecting Your Business Activity

To get 100% ownership of the company without any need of local sponsor, you must select a license and location in one of the many free zones in the UAE.

This is one of the most important step to select the business activity from the UAE’s free zones where you are going to set-up business.

For instance, each free zone in the UAE allows certain types of business activity, such as IT, media, medical or transport, and apart from the restrictions, it often makes sense to set up company in close proximity to the same sector.

One should look at easy access and transport links too. If your main business relies on import and export, you should probably select a free zone situated near an airport or sea-port.

The exact decision can be taken later in the preparation process. But establishing the right business activity will certainly help you to eliminate some hassles early on.

However, there is no need to worry about your business, as it is always possible to have multiple business activities under one trade license.

2. Selecting Your Company Name

The name of the company should reflect the nature of the business. However, in case of a branch of a company, there are some rules to follow to get trade name approval.

The UAE has some strict company name reservation, so before you choose a company name, make sure it is as per the norms. All the names with offensive language should not be there.

Moreover, company names should not refer to Allah, or any other religion in the world, or any political groups, such as Congress and in case you wish to choose a business name after a person, that person must be a shareholder or owner of the company and their full name must be used.

A business set-up expert will be able to give you complete details and verse on all the naming conventions.

We can help you save a lot of time and effort by running your proposed name past them to check whether it is available. And if it doesn’t we can help you come up with something that is similar and available.

3. To Finalize All Incorporation Documents

You will need to complete and sign an application for your selected company name and activity, to be given along with copies of company shareholder’ passports to the relevant free zone authorities.

Some of the UAE free zones will need some extra documents, such as a business plan/business summary or Non-Objection Certificate (NOC) – a letter from a current sponsor confirming that you can set up your own company in the UAE.

With the help of an expert, perhaps the most difficult of all these steps, can be sorted out with an ease. Your company set-up manger can advise you on the documents required and provide complete support to get them all.

4. Select Your Office

There are multiple options available as far as selecting a office space as per requirement. From flexi-desk office space to customised executive office, one can choose office as per the business requirements. You can select office as per your budget, size and location.

5. Receive Your License Notification

This is one of the easiest step of all. Once your application has been approved, the free zone will then issue your company license. At Easy Setup, we immediately inform our clients when their documents are ready and deliver them free of cost.

6. Open A Corporate Bank Account

Once you receive complete company license documents, you will have all the documentation you need to open your corporate bank account.

The UAE is home to many banks, both local and international, including Emirates NBD, First Abu Dhabi Bank and the Commercial Bank of Dubai, along with global banks, such as HSBC and Citi Bank.

You may either directly approach the bank of your choice or ask your business set-up partner to arrange meetings with the most preferred bank’s representative to streamline the process.

7. Investor Visa Process

And so to the final step of company formation in Dubai and the UAE. As well as applying for your own visa, most free zones allow you to submit in applications for staff and dependants.

The number of visas you can submit will depend on which free zone you choose to set up your company. So, if you are looking to obtain visas for your wife, kids, maid or driver, it is better to seek expert advice to ensure the availability, if it is possible to do so in your chosen free zone, and secondly, that both you and anyone you are hoping to sponsor for a visa meet all eligibility criteria.

Assuming this all checks out, the entire visa process is made up of four simple steps. Entry permit, visa status adjustment, medical fitness test, then Emirates ID registration and visa stamping on the passport.

Once all above seven steps are complete, you can start doing your business in your selected UAE free zone.

Make It Easy With A Business Setup Partner

Company formation process in Dubai is not only easy, all because of supportive conditions of the free zones. But along with the right expert support; the company setup process can be completed in just a week.

Its important to note that each step can throw up some complications that could derail the inexperienced person, and that’s where a business set-up expert like us may require.

The local business setup knowledge goes a long way. We can guide you through all seven steps, as well as liaising with UAE government authorities on your behalf along the way and fixing potential problems before they arise.


The United Arab Emirates is one of the major business destinations for various sectors as it is strategically located in the centre of Asia and beside Europe. UAE’s business friendly environment always motivates entrepreneurs to invest in creative business ideas.

Moreover, there are low operations over-head cost including huge tax benefits as well as complete capital repatriation. Such a financial freedom is very rare in most developed business environments. Therefore, business investors from around the world find many opportunities and potential in the UAE’s market.

Where To Do Company Formation In UAE?

You can setup your company in the mainland or in any of the cost-effective free zone. Local sponsor is must for mainland business setup in the UAE. He will act as a shareholder or a local agent in case of a sole proprietorship.

For a free zone company setup, you don’t need a local sponsor and you will be 100% owner of the company. However, you will be able to operate within the geographical area of the free zone or outside of the UAE.

What Are The Different Types Of Company Structure In The UAE?
You need to consider different types of company structures before starting a company in the UAE. There are several company structures available as per the category of entrepreneurs. These are:

Free Zone Company/Free Zone Enterprise
Mainland Business/Onshore Company
Professional License/Consultancy License
Branch Office/Representative office
Offshore company

The company setup cost in the UAE mainly depends on three basic factors like business activity, number of visas needs and the size of office required and secondly the business setup cost is different from free zone to free zone as there are about 49 free zones in the UAE.

The cheapest free zone license can be obtained with as low as AED 8,500 only. Company formation in the UAE will take some time without proper documentation and basic business setup rules.

With an expert business setup consultant, you can setup your company license within 3 to 4 days.

However, some business activities need certification, attestation and external government approval which can prolong the company formation process

Finally, for more details on how to do company formation in UAE for your new business, we can have a quick chat right away!

Company Formation in Mainland
Free Zone Company Setup
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