Steps for setting up a company in United Arab Emirates
- Choosing a company name.
- Determining the company’s activity, which in turn, will determine the type of license required.
- Obtaining the license.
- Opening a bank account to deposit the capital.
- Preparing the visa for residency in UAE.
- Preparing the incorporation contract.
- Obtaining a document to prove the ownership of the property.
License Types in UAE
Allows the investor to do all kinds of commercial operations, and import and export operations.
Considered to be one of the cheapest types of licenses in UAE. It includes some services like designing and printing.
Allows its holder to establish factories and warehouses.
Includes tourist activities only, like establishing hotels and excursions.
Types of companies in UAE
Consist of two or more partners, and all partners are responsible for the company’s obligations and debts. The company must be registered with the commercial registry upon incorporation. There is no minimum capital required.
Limited Partnership Firms
Consist of two types of partners:
- Joint Partners: who manage this company are responsible for its debts.
Limited Partners: they are not responsible for company’s management duties, but participate with their capital, and are obligated to pay a percentage of the debts of the company, depending on their share.
Public Joint Stock Company
The capital is divided into shares of equal value. The capital should not be less than thirty million dirhams. The company’s memorandum of association and the duration of the company must be included in the contract. The number of founders should not be less than five.
Private Joint Stock Company
Consists of two or more people. Its shares are not offered for public subscription, and its capital should not be less than five million dirhams.
Limited Liability Company
The number of partners ranges between two and fifty people. None of them may assign their share to others. At least one or more directors must be appointed. Each person is liable to the extent of the value of his share in the capital of the company, and there is no minimum capital required.
This company participates in founding other companies or owns shares in them and works to manage them and provides the necessary support. The term “Holding Company” is added to all documents issued by the company.