The UAE has emerged as a prominent player in the realm of business opportunities in the GCC and worldwide, evolving over time. This transformation can be attributed to the country’s business-friendly policies, which foster a conducive environment for enterprises to flourish and entice investors to engage in the diverse range of industries within the Emirates. By facilitating foreign investment and welcoming international corporations, the UAE’s economy has prospered, all while ensuring that investors and entrepreneurs are content with straightforward and comprehensible procedures and regulations. Establishing an international business in the UAE presents a highly profitable prospect for prospective investors seeking to expand beyond the nation’s borders. In this article, we delve into the distinct stages involved in commencing your own global enterprise in the UAE.
The initial step involves selecting the economic activity in which you wish to engage for your newly established international business in the UAE. From the Department of Economic Development’s (DED) provided list, you can opt for your desired business activity. Subsequently, you must decide on a trade name for your venture. It is crucial to ensure that the chosen name aligns with the DED’s guidelines and protocols for trade names. When applying to the DED, include at least three name options for your international business in the UAE.
Depending on your business’s location and type, there are different regulations that can impact the overall structure of your company. Ownership structures such as Limited Liability Company, Sole Proprietorship, Civil or Professional Company, and Free Zone Company are available options. Moreover, you have the choice to establish your international business in either the mainland or a free zone within the UAE. By selecting a free zone like IFZA Free Zone, you can enjoy advantages such as 100% ownership without requiring a local agent or “sponsor.”
To successfully establish your international business in the UAE, it is vital to complete all the essential paperwork and legal requirements in accordance with the rules and regulations governing business setup and operation. The Memorandum of Association (MOA) or Local Service Agent (LSA) Agreement is a crucial document necessary for registering and operating your venture. The partner(s) and, if applicable, the local sponsor must prepare and sign this document before submitting it, along with other required paperwork, to the DED for approval. Some additional documents include:
Obtaining the initial authorization is a crucial step as it signifies the approval of the UAE government regarding the formation of your company and the validity of the submitted documents. Once you receive the initial authorization from the DED, you can proceed with other necessary formalities to initiate your international business in the UAE. Depending on your business line, you may need to obtain additional approvals if required.
Upon successful application, the DED will issue a payment voucher. After paying the specified amount on the voucher, your application will be officially approved, allowing you to commence business operations. It’s important to note that a minimum paid-up share capital is often required to establish a business, typically starting from AED 10,000.
Starting an international business in the UAE can present challenges for those unfamiliar with the country and its regulations. Our dedicated team, MARKEF is here to assist you throughout your business journey, ensuring that all your needs and inquiries are met. We strive to make the process of initiating your international business in the UAE seamless. Contact us at +971 4 589 2828 to commence your consultation today.