Currency
United Arab Emirates Dirham (AED)
Payroll Frequency
Monthly
Employer Taxes
12.5%
Aadmi streamlines UAE company formation services and makes it simpler and easier. The procedure includes registering a company with the Department of Economic Development (DED) or an applicable Free Zone Authority, selecting the correct structure (sole proprietorship, partnership, or limited liability company), and making sure that there is complete compliance with UAE business rules. The majority of business owners prefer setting up a limited liability company in the UAE because of its credibility, increasing market, and the benefit of 100% foreign ownership in most industries.
With our professional assistance, establishing your company in the UAE is seamless, keeping you compliant while you concentrate on expansion.
A United Arab Emirates (UAE) Limited Liability Company is one of the most popular company types for foreign investors. It is treated as a distinct legal entity and grants limited liability protection to the shareholders. An LLC has between 2 and 50 shareholders. Although historically local sponsorship was needed (with 51% local ownership), the recent reforms permit 100% foreign ownership for most activities in the mainland UAE.
Foreign firms can set up a branch office in the UAE to engage in activities that are similar to their parent company. A branch is not a distinct legal entity and is completely owned by the foreign parent firm. Nevertheless, it should have a local service agent (UAE national or fully UAE-owned company) to act on behalf of the branch in administrative affairs.
A joint venture in the UAE is generally a foreign and UAE nationals sharing and operating a business together. General Partnerships and Limited Partnerships are forms of partnerships. All partners have to be UAE nationals in a General Partnership, whereas foreign nationals can be part of Limited Partnerships with limited liability confined to their investment. Partnerships provide access to local market expertise, contacts, and fewer regulatory requirements.
There is no UAE-wide minimum paid-up capital requirement. Yet, some free zones or specific business activities have a minimum capital requirement.
Foreign investors can now have 100% ownership in most business areas in the UAE mainland, dispelling the earlier need for a local sponsor. Partial local ownership, though, may still be needed in some strategic sectors.
There is no strict requirement to have a UAE-resident director unless required by a specific free zone or regulator. Directors may be of any nationality.
Having a company secretary is not obligatory in the UAE. However, companies may opt to have one to keep corporate records and maintain compliance.
A physical office address is required for company registration in mainland and free zone jurisdictions alike. It is the official registered address of the company. Virtual offices might be allowed in certain free zones for certain activities.
What are the Company Incorporation Documents to provide?
The procedure starts with choosing a distinctive trade name and receiving the approval of the concerned Department of Economic Development (DED) or the free zone authority. Check availability and reserve the name officially.
In the UAE, company formation can be done through:
Prepare and notarize the Memorandum of Association, complete office lease agreements, collect all company and individual documents, and present them along with initial approval and trade name reservation certificates.
Incorporation is dealt with by the Department of Economic Development (DED) in the case of mainland companies, or by individual free zone authorities like Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone Authority (JAFZA), or Abu Dhabi Global Market (ADGM), based on the jurisdiction selected.
After being incorporated, companies are required to open a corporate bank account. Requirements typically consist of:
UAE banks can ask for face-to-face interviews and major due diligence. Some of the major banks are Emirates NBD, First Abu Dhabi Bank (FAB), Mashreq Bank, and Abu Dhabi Commercial Bank (ADCB).
Companies have to register with the FTA for Value Added Tax (VAT) if their taxable turnover is over AED 375,000 per year. They can voluntarily register for turnover between AED 187,500 and AED 375,000.
Companies employing staff must register with the UAE’s WPS system to ensure timely and full payment of wages through authorized banks.
Employers must register UAE and GCC national employees with GPSSA and make monthly contributions toward their pensions.
Although expatriates have no obligatory workplace pension, UAE labor law demands end-of-service gratuity. This is a lump sum paid at the end of employment, depending on service duration and last pay.
