Setting up a business within a UAE Free Zone involves a streamlined process, encompassing three fundamental stages: acquiring your business license, obtaining a UAE Residence Visa, and establishing a corporate bank account. A well-organized approach allows for a comprehensive business setup within a span of 1 to 4 weeks.
Each enterprise operating within a UAE Free Zone is mandated to procure a business license, commonly referred to as a trade license. These licenses hold a validity of one year from the issuance date and necessitate annual renewal.
Certain UAE Free Zones may necessitate a specified minimum paid-up share capital during the Free Zone company’s formation, with the exact sum contingent upon the distinctive requirements of each particular Free Zone.
To facilitate your readiness for the company registration process, we offer an overview of the primary steps involved in establishing a business within one of the premier UAE Free Zones – DMCC.
Step 1
Choose a License Category and Business Undertaking
Distinct regulations apply within each Free Zone concerning the permissible count of activities permissible under a single license. However, a fundamental principle shared across all Free Zones is the separation of commercial activities from service-based endeavors within a singular license. Consequently, trading-related pursuits are confined to a Trading/Commercial License, while service provisioning or consultancy falls under a Service License. Should your intentions involve manufacturing or production, an Industrial License is imperative.
Step 2
Select a Free Zone
Each UAE Free Zone encompasses its unique roster of permissible activities tailored to the specific zone. Moreover, the array of accessible facilities and visa allocations can diverge across different Free Zones. Consequently, seeking expert guidance during this phase is strongly advised to pinpoint the optimal Free Zone that aligns with your business objectives.
Step 3
Opt for a Business Framework
The business framework can adopt various forms, including: an Independent New Company with individual shareholder(s), a Subsidiary Company (featuring corporate shareholder(s)), a Joint Venture Company (entailing a blend of individual and corporate stakeholders), or the establishment of a Branch affiliated with either a local or foreign enterprise. It’s essential to note that specific business activities may exclusively be permissible for Branch Companies. Thus, it’s prudent to verify this aspect with your chosen Free Zone.
Step 4
Choose a Trade Name & Compile Documentation
Arrange a roster of potential company names, ranking them in order of preference (a minimum of three suggested names is typically requisite). Additionally, assemble the compilation of necessary documents mandated by the designated Free Zone. When initiating a new company formation, the customary document roster encompasses essentials such as passport, visa, and Emirates ID (if applicable), along with a No Objection Certificate (NOC) for UAE Residents (in select Free Zones), substantiation of residential address, and a comprehensive professional Curriculum Vitae (CV). It’s worth noting that the set of prerequisites for registering Branch companies exhibits notable distinctions.
Step 5
Apply for Initial Approval
The preliminary approval typically encompasses the green light for your company name, the selected business activity or activities, and the proposed corporate structure.
Step 6
Legal Agreements for Company Establishment
Upon securing preliminary approval, it is necessary to schedule an in-person meeting (or a virtual conference) with a representative from the chosen Free Zone. In certain instances, this step can be bypassed by conferring a Power of Attorney to your designated representative and submitting notarized documentation. During the meeting, verification of shareholders’ or Ultimate Beneficial Owners’ (UBOs) identities through passport confirmation will occur. Additionally, the session will encompass the signing of essential documents, including Articles of Association (AOA), Board Resolutions, and a Specimen Signature Form.
Step 7
Select company location
To advance toward the conclusive licensing phase, it is imperative to secure a commercial property for your enterprise situated within your chosen Free Zone. Once you pinpoint an apt option, the ensuing steps entail finalizing a Tenancy Contract (spanning at least one year) and acquiring the Ejari Certificate. Both of these documents are essential for submission to the Free Zone. Consequently, your license will be granted with the address specified in your Tenancy Contract
Step 8
Obtain Business License
Upon the completion of signing registration documents, securing all requisite approvals, and settling all pertinent payments, your business license will be issued in conjunction with accompanying corporate documentation.
