What is the Process of Company Formation in UAE?

What is the Process of Company Formation in UAE?

With its world-class facilities and investment opportunities, Dubai is recognized as one of the business powerhouses of the Middle East. Its improved economic strategies and business-friendly company setup laws attract investors and business owners from around the world. UAE facilitates many legal formats as an initiative of helping companies establish their ground in the UAE. With the availability of such excellent features and countless business opportunities, you can also think about company formation in the UAE. 

Two basic approaches towards the same are free zone company formation and mainland company formation in the UAE. UAE Mainland company formation is said to be very profitable due to the freedom it provides for doing business throughout the country. We suggest you read the blog further to get detailed information about mainland company formation.

What are the Types of Company Formation in UAE?

There are various types of company formation in the UAE. A brief explanation of the same is as follows:

1. Sole Proprietorship

Also known as individual entrepreneurship, this is an entity solely owned by an individual. The establishment of a sole proprietorship is a cost-efficient process. The owner is liable for all the debts and financial duties of the company. Mostly, small retail businesses and other self-employed individuals opt for this business structure.

2. Civil Company

A civil company provides 100% foreign ownership as well as full access to the UAE’s local market but entails unlimited liability. Surgeons, doctors, accountants, consultants, engineers, lawyers, etc are some of the professions recognized under a civil company. Investors and entrepreneurs who have a certain set of skills and specialties can go for a civil company formation in the UAE.

3. Limited Liability Company

LLC is amongst the most popular forms of companies in the UAE. two to fifty shareholders can come together to form a Limited Liability Company (LLC) in the UAE. The government of UAE provides complete legal ownership of an LLC. Moreover, there is no need for specific minimum capital while setting up a Limited Liability Company (LLC) in the UAE.

4. Private Shareholding Company

The private shareholding company is also known as the private joint-stock company. The private shareholding company allows partnership action of two to two hundred shareholders together. You need a minimum investment of AED 2,000,000 from at least 3 investors for the establishment of a private shareholding company. Trading of shares with the public is not allow in a private shareholding company.

5. Public Shareholding Company

A public shareholding company is also known as a public joint-stock company (PJSC). The initial shares of such a company are divide amongst all its shareholders equally. Moreover, the liabilities of a shareholder are based on the number of shares occupied by the company. A minimum capital of about  AED 10,000,000 is required for the formation of a public shareholding company in the UAE. It is mandatory to have a minimum of 10 shareholders to start a Public Shareholding Company. 

6. Simple Limited Partnership

Minimum 2 partners, one general and the other limited partner can form a Simple Limited Partnership. The general partner is legally responsible for the company’s liabilities, both personal and business assets. The limited partner is only responsible for his share in the liabilities of the company equal to his share in the capital. 

7. Joint Venture

Also referred to as a Consortium, a joint venture can be form by two or more individuals. However, two or more legal entities can also form a joint venture. All the parties involved have to agree to share all the profits and losses of the business. But, a joint venture can only be carry out in the name of any one of the partners. He/she must be an Emirati (UAE national).

What is the Process of Company Formation in UAE?

What are the Types of Company Formation in UAE?

The process of company formation in the UAE is very easy, especially for mainland company formation in UAE. To make it easy for you, this process is broken down into simple steps:

  1. Firstly, collaborate with a local service agent to start your company formation process.
  2. State the type of business you wish to conduct.
  3. Apply for the general trading license.
  4. Visit DED for approval of your trade license.
  5. Draft the MOA (Memorandum of Association) and LSA (Local Sponsor Agreement) in DED. 
  6. Apply for a residency visa and employment visa.
  7. Find an appropriate office location, then apply for its license and tenancy contract.
  8. Submit all the documents and pay the required fees.
  9. Finally, obtain your license and start your business activities.

What is the List of Required Documents for Company Formation in the UAE?

When it comes to paperwork, there is no long list of documents you need to submit, but just a few prominent papers required for any type of business setup. A list of these documents is as follows:

  1. Firstly, passport-size photos of each shareholder.
  2. Bank reference letter for each shareholder.
  3. Photocopy of visa page.
  4. Trade name of your company(minimum 3).
  5. NOC photocopy.
  6. Business managers passport photocopy.
  7. Proof of an attested Memorandum of Association MOA and Articles of Association AOA.
  8. Full list of shareholders(if any).
  9. Proof of shareholders address(PAN/Aadhaar/ driving license/Voter ID).
  10. Proof of a UAE Embassy Certified CV and Degree.
  11. Finally, a photocopy of the plot number and address proof of your office.

Why Form a Company in the UAE?

Besides offering a lucrative business environment, tax exemption, and other facilities for flexible and easy business setup, the UAE offers various other benefits. From a large talent pool, ample business opportunities, 100% business ownership to a well-planned geographical location for doing business with ease, the UAE provides you all. But, it doesn’t end here; the company formation process is also very smooth and straightforward. With growing digitalization, you can now register your company with just a few taps and complete the process within 3-4 working days. 

Connect With Shuraa

With so many companies’ formation options available, it might get confusing for you to decide upon one. You can get in touch with company formation experts to help you choose the right structure for your company. Company formation experts at Shuraa Business Setup can guide you to lay out a plan and then select appropriate business activities accordingly. All you have to do is call us and we will give you all the information related to company formation in the UAE. Get proper assistance for the company registration process and acquiring your business license at a low cost. 

Connect with Shuraa today by calling us on +971 44081900. For chat assistance, send a WhatsApp message on +971 50 777 5554. You can also write to us at info@shuraa.com.


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