COMPANY FORMATION IN UAE Connect Zone

     Whether you decide to start a Mainland Company Formation in Dubai or a Company Formation in Abu Dhabi, you need to know the procedure to carry it out.

     The steps to start Company Formation in the UAE are the following:

Define a Business Activity

     The Business Activity is the basis when choosing the type of license and the legal form, enterprises can have more than one activity at a time and can choose from more than 2,000 activities to carry out in the United Arab Emirates.

Choose the Legal Form

     The legal form will depend, above all, on the requirements of the company. This aspect is the basis for identifying the laws and regulations applicable to your company in the United Arab Emirates.

     The legal forms available for a Company Formation in the UAE are the following:

• Private Joint Stock Company (PrJSC)
• Public Joint Stock Company (PjSC)
• General Partnership
• Limited Partnership
• Limited Liability Company (LLC)
• Local Company Branch
• Foreign Company Branch
• Civil Company
• GCC Company Branch
• Holding Companies
• Sole Establishment
• And lastly, Free Zone Company Branch

Important to realize: Each legal form must coincide with the activity of your business.

Trade Name

     The Trade Name is what distinguishes one company from another, it also reflects the essence and form of the business. An investor can apply for the Trade Name at the Department of Economic Development of each Emirate, through the mobile application or its website.

     The aspects that you must take into account when choosing your Trade Name are the following:

• At the end of the name, the acronym of the business structure (legal form of the Company) must be placed. For example, LLC, PjSC, EST, PrJSC.
• It must not include foul language and may not violate the moral values ​​of the United Arab Emirates.
• May not contain names of religious deities or government authorities.
• Lastly, the name cannot be previously registered by another company and cannot bear any resemblance to any well-known organization.

     During the application process, the DED will give you a voucher that you will use later as a reference when paying.

     Also, you should know that the DED is the entity in charge of registering the name. However, the Ministry of Economy is in charge of registering the trademark.

Initial Approval

     Firstly, obtaining the initial approval means that the government of the United Arab Emirates does not present any objection for your company to establish itself in its territory. It also allows entrepreneurs to advance in the process of their Company Formation in the UAE, however, they still do not have the authorization to practice the Business Activity.

     Some activities require additional approval from government entities related to that activity before obtaining initial approval.

     In addition to this, foreign investors must obtain the approval of the General Directorate of Residency and Foreigners Affair before applying for initial approval.

MoA and LSA

     Depending on the legal form of the Company Formation in the UAE, a Memorandum of Association (MoA) or a Local Service Agent (LSA) is required.

     The MoA is a requirement for the following legal forms:

• Limited Liability Company (LLC)
• Limited Partnership
• Private Joint Stock Company (PrJSC)
• Public Joint Stock Company (PJSC)

Define a Location

     All companies in the United Arab Emirates must have a physical address in order to operate legally.

     The location of the company must meet the requirements defined by the Department of Economic Development of the respective Emirate, as well as receive the approval of the local municipalities.

     The Warehouse and office rental agreement must be delivered together with the other documents. Some Emirates require investors to certify these agreements.

     In the case of Dubai, Ejari is the entity in charge of certifying the agreements.

Additional Government Approvals

     In some cases, you will need the approval of government entities that govern certain productive activities.

     Some of the government entities and the activities they govern are the following:

• Ministry of Interior: Driving schools, fire equipment, used-car dealers, safety and alarms systems, used auto parts and also general transport.
• Ministry of Justice: Legal consultancy and Legal activities
• Local Municipal Department: Architectural and engineering affairs
• Telecommunications and Digital Government Regulatory Authority (TDRA): Activities related to telecommunications.
• Executive Council: General Services, car clubs, ship and maritime agencies, and also charter trading.
• Ministry of Economy: Insurance consultancy and Insurance activities.
• Local Health Departments: Activities related to the health sector.
• Supreme Petroleum Council: Offshore and Onshore gas and offshore and onshore oil drilling operations.

Get your Business License

     After performing all the steps mentioned above, entrepreneurs can search for their respective licenses through the service centers or their websites.

• Initial Approval receipt and all required documents.
• Copy of the lease contract duly certified by the Real Estate Regulatory Agency (RERA)
• Memorandum of Association duly certified (for all types of companies)
• Additional approval of other government entities related to productive activities.
• Local Service Contract duly certified (for companies and civil establishments that are 100% owned by Non-GCC Nationals.

Starting a Business in a Free Zone

     Whether you decide to start the process of a Company Formation in IFZA or a Company Formation in Sharjah Media City Free Zone (or in some other Free Zone), you need to take into account the following steps:

Define the legal entity

     The first thing you should think about is the legal entity of your company, you can choose between the following two types:

• Free Zone Establishment (FZE)
• Free Zone Limited Liability Company (FEZ LLC) or Free Zone Company (FZ Co.)

     The difference between these two legal entities is based on the number of shareholders and whether the shareholder is a natural or legal person.

Important to realize: Not all Free Zones register both legal entities, you must check in advance with the Free Zone authorities preferably what type of company they can register.

Choose a Trade Name

     Once you have chosen the legal entity of your Company Formation in the UAE, you must now choose a Trade name.

     In most cases, it is recommended that you check with the relevant Free Zone authorities or the Department of Economic Development which names are allowed and whether the intended name has already been registered by another company.

     In essence, the requirements of the DED concerning Trade Names are the following:

• You cannot attack the moral values ​​and public order of the United Arab Emirates.
• At the end of the name contain the abbreviated legal form of the Company. For example, DMCC, LLC, FZE)
• May not be previously registered by another company.
• May not contain names of any government authority or religion.

      The type of license for which you are going to apply will depend on the productive activity to which your company is dedicated.

     The activities that you can do in some of the Free Zones are the following:

• Music Videos
• Script Writing
• Gaming Development
• Illustration
• Radio Content Production
• Educational Content Material
• TV Production
• Print Content Production
• Animation
• Corporate Film Production
• Web Design and Development
• Public Relations
• Marketing and Communications
• Software Development
• Composing and songwriting

      Note: This is only a list of the most common activities, if you want to see all the available activities you can go directly to the nearest DED service center, or you can see it through its website.

Select an office space  

     In a Free Zone, you can rent or buy an office space, the requirements will depend on the number of employees and the productive activity of your company.

Approval, Registration, and License

     Companies established in a Free Zone must follow the regulations of the respective Free Zone. To receive the necessary approvals, you must submit a series of documents.

     These documents may vary depending on the type of company, the type of productive activity, and the requirements of the Free Zone authority.

     Below is a detailed guide with all the steps and documents required for the different approvals:

Initial approval:

     Firstly, to get the initial approval you must submit the following documents.

• Completed application form
• Colored Passports copies of the shareholders and the director for the new Company (in case you are forming a new company)
• Business Plan
• Copy of the Registration Certificate and of the existing Trade License (if you already have an established company, please note that this only applies to local companies)
• Signature of the shareholders of the company and the manager of the new company.
• Audited financial reports valid for two years for the corporate entity or personal bank reference of the individual shareholder.
• Letter of intent
• No Objection Letter from the current local agent (for individuals)
• Unit title deed
• Registry Identification Code Form (RIC) for the director of the company (original and certified)

     Important to realize: Those who work as Freelancers must submit fewer documents:

• CV
• Bank Reference Letter
• Application for registration
• Registry Identification Code Form (RIC) (Original and duly certified)

Registration

     After receiving initial approval, you will need to pay the registration fee and license fees.

     The cost of your license will depend on the type of license you need.

     The documents to register are the following:

• Completed application registration
• Board Resolution appointing manager (Attested and Notarized)
• Articles and Memorandum of Association (Attested and Notarized)
• Passport-size photo of the Director of the company (must be against a white background)
• Share capital information
• Power of Attorney given to the director of the company (Attested and Notarized)

Visa process and Licensing

     At this point, the corresponding authorities will be in charge of preparing the lease agreements. After you have gone through the entire process, the Department of Economic Development will give you the license. Lastly, but not least, after all this process, the Visa application process will start.