Company Incorporation

1. Type of Business
Your business type determines the required license (commercial, professional, or industrial), which outlines your operational scope. Some activities, such as food trading, jewelry trading, veterinary services, and legal consultancy, may need additional approvals from government bodies.

2. Ownership
For 100% foreign ownership, consider setting up in one of the UAE’s free zones, which cater to specific activities and provide a range of options. There are over 45 free zones, each with unique offerings. If you require a local license, you will need to register with the Department of Economic Development (DED), which may impose restrictions on foreign ownership.

3. Legal Structure
The legal structure depends on your business type and location. For instance, a legal consultancy firm can only operate as a branch or a stand-alone entity, not as a sole proprietorship. Each free zone has its own rules regarding company structure.

4. Trade Name
Your trade name is crucial to the legal process and should ideally reflect the nature of your business unless it’s a branch of another company.

5. Share Capital
Minimum share capital is usually stated in your company’s Memorandum of Association, though immediate payment is often not required.

6. Premises
Once your legal requirements are in order, consider office options. Free zones can assist in finding premises with the necessary utilities like electricity, internet, and water.

7. Employees
DED licenses often require a manager to oversee operations, whereas other legal forms may have hiring restrictions. For example, Intelaq license holders (home-based Emirati business owners) can engage contractors but cannot hire staff.

8. Local Support
DED licenses require a local agent, partner, or sponsor, providing support for foreign business owners. While not mandatory in free zones, having a local contact can be beneficial.

Business Setup Options: Mainland, Free Zone, and Offshore

Mainland
Businesses on the mainland can operate across the UAE, enjoy unlimited visas, and have access to a wider range of licensed activities without business or personal taxes. Key legal entities for mainland setup include:

• General Partnerships
• Joint Venture Companies
• Public and Private Joint Stock Companies
• Limited Liability Companies (LLCs)
• Branches of Foreign Companies
• Civil/Professional Companies

Setting up a business in the UAE mainland offers numerous benefits, including flexibility to operate anywhere in the UAE, no restrictions on visas, and access to a broader range of business activities.