The local companies in UAE are the universal tool for business owners who are interested in being presented in the country legally and reliably.
This form of activity is perfect for those who set out to gain a foothold in the local market and discover new prospects for this jurisdiction. Such companies get access to the maximum support from the state. The advantages are so numerous that this form is a top-notch solution nowadays.
There are numerous peculiarities of registration, and thorough knowledge of the laws of each emirate and local traditions is in the first place. That’s why the best choice for guaranteed registration is the help of professionals.
What are the legal forms to be registered as local companies in UAE?
It’s easy to get confused among all the variable organizational and legal forms of companies available in the country. Let’s have a closer look at them below:
- Limited Liability Company, LLC. Its specific feature is that each member is liable following the share he owns.
- Professional local company. Its specific feature is that foreign participants can own 100% of the company’s shares.
- Individual Entrepreneurship (Sole Establishment (SE))
- Branch office of an existing foreign company.
- Public Joint Stock Company (PB)
- Private Joint Stock Company (PV)
- Professional Community (Civil Business).
The Benefits of Local Company in UAE
The advantages of making such a choice are numerous. Let’s have a look at the list of main among them:
- The foreigner can get 100% ownership opportunity;
- 100% repatriation of capital and profits opportunity;
- An option to provide services not only in the domestic market of the UAE but also abroad;
- There is no need to involve intermediaries for cooperation with end consumers;
- The presence of local partners in some cases is not obligatory;
- Business can be controlled by the owner from any part of the UAE;
- Currency can be used freely;
- There are no strict rules as to the location of the business office, so it can be located anywhere in the emirate;
- Easy opening of a corporate bank account;
- Opened governmental and commercial tenders;
- No restrictions for operations with real estate in any UAE emirate;
- An option to freeze a business for up to 3 years while maintaining the obtained licenses;
- There are no territorial restrictions for export and re-export through any UAE port;
- Single tax for conducting activities and customs space of the Gulf countries;
- Loyal immigration policy for foreign employees;
- Double taxation agreements with more than 60 countries.
N.B.! The rule about no corporate tax until 05/31/2023 is not active anymore, so nowadays, it’s 9%.
How to Open Local(Mainland) Company in UAE?
Even those who already have excellent business experience would have challenges with maintaining a new company in a new country. There are numerous important steps, each of which has to be done.
- Specify the type of the company’s activity
The sphere where the company would operate must be clear from the very beginning, as all the future steps of the registration procedure would depend on this. There are numerous aspects to take care of, such as an analysis of supply and demand, the presence of competitors, and other features. The license is specific for all types of activities, so it’s given to the company based on the choice of approximately 2,100 types. They are divided into different groups and classes to choose from.
- Specify the structure of the company
The business owner has to choose the structure from the very beginning. It can be presented as an individual enterprise or a limited liability company. The governmental policy was created for the maximum comfort of people. That’s why it is super flexible to make it attractive to investors. If you want to build a successful business, please contact the Polaris team, and we will find the best match for your request.
- Select a title
First of all, you need to choose three name options. The same simple rule applies here as throughout the world: the company’s name should be clear and understandable, but taking into account local specifics. So, the name should not touch upon religious themes or other provocative aspects. To give a name to the onshore company, it’s important to analyze all the existing restrictions, as there is a requirement for approval from the relevant UAE ministry. The choice of the best option can be made in cooperation with specialists who know all the peculiarities of the process.
- Apply for DED pre-approval(given by the Department of Economic Development)
To make the process easy and smooth, it’s highly recommended to ask for the help of professionals who know all the hidden nuances and can find the best way to solve the problem for any company.
- MOA&LSA preparation
All the provided information is taken into account by DED. The organization prepares MOA and/or LSA for the future registration procedure. Of course, numerous nuances can be a big problem for people who have never faced the question of registration before. That’s why the smartest solution is to apply for professional help. Polaris is a team of professionals who know how to solve any problem and find the best approach for fast and convenient registration for any type of business. The reviews of those who have already become our clients speak louder than words.
- Select a location
The location of the company is always important. It must be chosen strategically taking into consideration numerous nuances to attract as many customers as possible. The lease agreement – Ejari, is one of the most essential steps in the registration of the company. It can be taken through rental or purchasing of real estate objects. There are no restrictions for the choice of location, but it must be within the chosen emirate.
It’s highly important to find the right place to attract customers. Wise choice of business location is a key to success and high income.
- Obtain additional permits
The legal norms of the UAE are closely related to Sharia law. There are significant variations in the company’s registration depending on the chosen jurisdiction. Some types of activities must be available permits from government agencies.
- Obtain a license
All the points indicated above are of equal importance. When all the steps are carried out, it’s possible to obtain a license to conduct business at service centers of economic departments or use the website.
The license must correspond to the type of the chosen activity. The process of licensing is a complex task, carried out both by the government of the country and by each Emirate separately.
Some categories of companies require approval to open from the relevant Ministry. For example, the Ministry of Industry can obtain permission for manufacturing enterprises, the Central Bank of the Emirates can obtain permission for financial institutions, and the Ministry of Health permission for medical and pharmaceutical companies.
It must be renewed annually. In addition to the basic package of documents, the annual audit report may be required depending on the chosen jurisdiction. The company must also maintain financial statements that allow it to assess its real financial position, the volume of assets, and liabilities.
- Obtain an immigration card
An immigration card is a key step for its holder to apply for an investor visa. Each owner of a local company in Dubai has to personally obtain a card for his company by visiting the Dubai Immigration Office at Al Manara Center. The process includes making the payment and signing certain papers to immediately receive the company’s immigration card.
The cost of immigration cards for local companies has to be paid separately at the immigration office. In case the whole process is carried out by the professionals, they will take into account every small detail, so the owners of the company don’t have to worry about anything
- Obtain a visa
Obtaining a visa is a separate procedure with its characteristics. The investor gets the UAE resident visa for three years. For the next three-year period, there is an opportunity for extension for an unlimited number of times.
Each territory has its nuances for obtaining such a visa. Some areas impose additional requirements for obtaining health insurance. In others, they ask for a deposit in the amount of the employee’s salary for several months. In some places, investor visas are not provided, and you need to get a job officially. In some free zones, it is necessary to periodically present a rental agreement and receipts for utility bills to confirm the fact of permanent residence in the country. The investors are required to pay annual renewal fees for the public company through which the UAE visas were purchased and come to UAE every 180 days. The UAE visa can be renewed without any demands for the absence or presence of business activity. To make the process of getting a visa simple, contact here. An attentive individual approach is a key factor for the success of maintaining business in a foreign country. That’s why it’s highly important to have support from professionals who know all the peculiarities of local legislative basics.
- Open a bank account
Our company’s specialists are ready to carry out all the tasks connected with opening a bank account.
The procedure for opening a bank account is probably familiar to any businessman, like the back of his hand. Therefore, when opening a company in the UAE, many try to open an account in a local bank on their own, and because of this, they incur losses – and all because opening an account in the UAE has its subtleties and nuances. The fact is that, as in any other country, not every bank will be equally effective for different types of investments. Based on this, without knowing the local specifics, it will be extremely difficult for you to navigate the situation and choose the bank you need.
A team of professionals would help to develop an optimal plan to fulfill all the client’s goals and needs.
To sum up
All said above proves that it’s not an easy task to open a company in UAE. A lot of aspects must be taken into consideration to make the process smooth, bringing guaranteed results. Every case must be analyzed separately after careful analysis of its characteristics.
There is no universal instruction on relocating or starting your own business in the UAE. The best solution for those who value their time and money would be to contact a consulting company. It’s the easiest way to optimize expenses and avoid unnecessary complications and delays. An experienced intermediary knows how to develop an optimal scheme for creating and promoting a business that fully meets the client’s goals and needs.
The defining moment in this process will be the choice of the type of business activity. The professional team of Polaris will provide comprehensive support in the process of opening a business in the UAE. We have worked in this sphere for many years, solving complicated cases for our clients to open up the world of successful business in the UAE for them.
Our experienced specialists will provide all the necessary analytical information, talk about the successful strategies, and solve all legal and documentary issues.