Conditions for opening a company in the UAE, the United Arab Emirates enjoys an attractive business environment that attracts investors from all over the world, as it provides wide investment opportunities and comprehensive support for establishing and developing businesses. The UAE is an ideal destination for those wishing to establish new companies, thanks to its economic stability and growth-stimulating laws, in addition to an advanced infrastructure that includes ports, transportation networks, and world-class technology platforms. However, establishing a company in the UAE requires fulfilling a number of conditions and procedures specified by the relevant authorities, to ensure that businesses comply with local laws and provide their services in a legal and organized manner. Opening a company in the UAE These conditions include choosing the legal structure of the company, accurately defining its commercial activity, and obtaining the required approvals and licenses from the competent authorities.

Investors must also submit the necessary documents to prove identity and credibility of capital, such as passports and certificates of incorporation. In addition, the UAE imposes some financial and regulatory requirements that may differ according to the free zone or emirate in which the investor wishes to establish his company, such as the minimum capital and the requirements for appointing a local sponsor if a location outside the free zones is chosen. Specialized companies such as “Itqan” help investors to overcome these requirements with flexibility and speed, by providing comprehensive consultations and administrative and legal support that helps them understand the procedures and comply with the laws.

Types of companies that can be established in the UAE

The United Arab Emirates is one of the most important investment destinations in the Middle East and the world, as it provides a stable economic environment and advanced infrastructure, in addition to flexible laws and legislation that encourage investment and the establishment of companies. For investors wishing to enter the UAE market, there are various options for establishing companies, which provides flexibility in choosing the most appropriate type according to the nature of the business and the type of commercial activity. Thanks to government support and free zones spread across the UAE, investors have opportunities to establish their companies while enjoying many advantages such as full ownership, tax exemptions and easy registration procedures. Here is a look at the most prominent types of companies that can be established in the UAE.

Limited Liability Company (LLC): It is one of the most common types of companies in the UAE, as partners enjoy legal protection that limits their liability towards the company to the amount of their investments. This type of company requires a local partner of 51%, but some recent amendments may allow full ownership in some sectors.
One-person company: This type is suitable for businessmen and individual investors who wish to establish a company that they fully own without the need for partners, and the person can manage and control the company completely.
Public joint-stock company: This type of company is established for large businesses, such as industrial companies, banks, and insurance companies. The company is allowed to issue shares to the public, and shareholders have limited liability according to the value of their shares.
Private joint-stock company: This type is similar to the public joint-stock company, but it is limited to a limited number of shareholders and its shares are not allowed to be offered to the public. It is a suitable option for family businesses or companies that do not wish to attract public investors.
Foreign companies (branches): Foreign companies can establish branches in the UAE to carry out their activities, as the branch enjoys legal and financial independence. This type is ideal for global companies wishing to expand in the UAE market.
Free zone companies: Free zone companies are one of the most attractive options for foreign investors, as they can own 100% of companies, and these companies benefit from tax exemptions and facilitation in establishment procedures.
Civil companies: Civil companies are suitable for professionals such as doctors, lawyers and engineers, as they are established according to specific requirements, and allow professionals to establish their commercial entities legally. Each type of these companies has its own advantages and requirements, which gives investors the freedom to choose the form that suits the nature of their business and investment goals.

Documents required to establish a company in the UAE

The UAE is an ideal destination for investors looking to establish their companies and benefit from a thriving economic environment and business-friendly laws. To ensure the ease and speed of the establishment process, the UAE authorities have set a set of required documents that ensure that the new company is in line with local regulations and adheres to legal standards. The requirements vary slightly depending on the type of company and the area in which it is established, whether within a free zone or outside it. Preparing the necessary documents completely and accurately will help speed up the registration process and avoid any delays that may result from missing or non-compliant documents. Below are the basic documents required to establish a company in the UAE.

Copies of passports: Clear copies of the passports of all partners and managers involved in establishing the company must be provided, in addition to the residence visa in some cases.
Personal photographs: All partners and managers are required to provide recent personal photographs that are of a certain size and condition, as they are used in licensing files and identity documentation.
Good conduct certificate: Some government departments may require a good conduct certificate (clear criminal record) for investors, especially if the company will operate in specific sectors that require additional verification of partners.
Business plan (if required): In the event of establishing companies in certain sectors, such as technology or financial services, the authorities may require the submission of a business plan that explains the company’s business activity and how it will be implemented.
Memorandum of Association and Articles of Association: The company’s memorandum of association and articles of association are essential documents that include details about the partners, ownership percentages, and the main objectives of the company. This contract must be notarized with the relevant authorities.
Special approvals and permits: Some commercial activities require special approvals and permits from the relevant authorities, such as the health or industrial sector, as these approvals must be obtained before the registration process is completed.
Company headquarters lease contract: A company headquarters lease contract or an office lease contract must be submitted if the company is established outside the free zones, as real addresses for the business are required according to the type of activity.

Submitting the application and completing the forms: The official forms required by the Department of Economic Development or the Free Zone Authority must be filled out and submitted according to the company’s location, and completing these forms accurately is important to ensure the success of the registration process.
Completing these documents is a vital step in the process of establishing a company in the UAE, and helps investors achieve a legal and quick start in the UAE business market.

Tax Benefits of Starting a Business in the UAE

The UAE is one of the countries that attracts investors from all over the world, not only thanks to its strategic location and thriving economy, but also thanks to its unique tax incentives that make it an ideal environment for establishing companies. The UAE provides an attractive tax structure that enables investors to start their businesses without heavy tax burdens, especially in free zones, giving startups and large companies alike the opportunity to grow and expand with the lowest tax cost. Thanks to these advantages, investors can increase their returns and achieve sustainability for their businesses, as the UAE is keen to provide a supportive environment that achieves a balance between encouraging foreign investment and providing tax incentives. Here are the most important tax advantages that investors can benefit from when establishing a company in the UAE.

Exemption from corporate tax: Many companies operating in the UAE, especially in free zones, enjoy a complete exemption from corporate tax for renewable periods of up to 50 years, allowing companies to increase profits without significant tax deductions.
Exemption from personal income tax: The UAE does not impose a tax on the personal income of individuals, whether they are employees or business owners. This makes the UAE an attractive environment for investors and workers looking for a place that does not affect their individual income.
Tax exemptions in free zones: Free zones in the UAE offer comprehensive tax exemptions that include no tax on profits and the repatriation of capital and profits outside the UAE without taxes, which enhances the attractiveness of these areas for foreign companies.
No tax on exports and imports: Some free zones in the UAE provide exemptions from export and import taxes, which contributes to reducing costs for companies dealing in international business activities, and gives them a competitive advantage.
VAT exemptions in certain cases: Although the UAE imposes a 5% VAT, there are some exemptions and privileges related to vital sectors such as health, education and basic commodities, which contribute to reducing operating costs for some companies.

Double Tax Avoidance Agreements: The UAE has signed several international agreements to avoid double taxation with several countries, allowing investors to benefit from tax advantages when transferring their profits to their home countries without paying additional taxes.

Thanks to these multiple tax advantages, the UAE offers a unique environment that supports the establishment and growth of companies from various sectors, making it one of the best investment destinations in the region and the world.

Our company’s role in opening a company in the UAE

The UAE is a fertile environment for economic and investment expansion, as it offers promising opportunities for investors of various nationalities thanks to the facilities it provides in the field of establishing companies. Understanding and meeting the necessary conditions for establishing a new company is a crucial step for any investor wishing to enter the UAE market, as achieving full compliance with local laws contributes to enhancing the confidence and legal and financial stability of the company. This process requires careful attention to legal and regulatory steps, such as determining the business activity and legal structure of the company, submitting the required documents and papers, and paying the relevant fees, all of which help ensure that the business starts smoothly and without future obstacles.

In this context, companies such as “Itqan” come to facilitate the process of establishing companies by providing advisory support and integrated services that save investors time and effort. Cooperating with “Itqan” means access to a team of experts in the legal and economic procedures related to establishing companies, which helps avoid potential challenges and simplify complex procedures. By providing integrated solutions that include obtaining licenses, guidance on the most appropriate structure for the company, and addressing documentation and guarantee requirements if any, “Itqan” ensures a successful and smooth establishment experience for investors wishing to enter the UAE market with confidence and security.

In conclusion, choosing the right partner is an essential step in the journey of establishing a successful company, as cooperation with experienced entities such as “Itqan” can contribute to achieving investment goals faster and more effectively, which helps in overcoming obstacles and providing a strong start in the UAE’s commercial environment. Thus, the investor has taken the first step towards achieving success in a thriving and business-supportive market, which qualifies him to benefit from the available opportunities for growth and prosperity.

Frequently asked questions about opening a company in the UAE

What are the types of companies that can be established in the UAE?
Several types of companies can be established, such as limited liability companies, public joint-stock companies, private joint-stock companies, sole proprietorships, free zone companies, and foreign companies. The type of company varies according to the business activity and the investor’s requirements.

What are the free zones in the UAE, and what are their advantages?
The UAE provides several free zones that provide facilities for foreign investors, where they can own the company 100%, and many of these areas provide tax exemptions, simplified procedures, and advanced infrastructure, which contributes to facilitating business and attracting investors.

What is the cost of opening a company in the UAE?
Costs vary depending on the type of company, the region in which it is established, and the nature of the business activity. Costs include licensing fees, office rental costs, visa issuance fees, and others.

What are the documents required to establish a company in the UAE?
Required documents include passport, personal photos, a certificate of good conduct, articles of association, and in some cases, a business plan, in addition to completing the licensing forms for the business.

Are there any tax benefits for establishing a company in the UAE?
Yes, the UAE offers tax exemptions in some free zones, where investors can enjoy exemption from personal income tax and corporate tax for certain business activities.

How long does it take to issue a company license?
The duration of issuing a license can range from several days to several weeks, depending on the type of business activity, the area in which it is established, and the requirements and procedures that are met.

Does the UAE provide residence visas for investors and their families?
Yes, foreign investors can obtain residence visas for themselves and their families, and the duration of residence varies according to the type of license and investment, and there are special programs such as the golden visa for qualified investors.