FAQ

Frequently Asked Questions (FAQ)          

Q. Any options to set up business?

A. Yes You can either setup business in MAINLAND City or in a FREEZONE. In MAINLAND business set-up you require a local sponsor who holds a 51% shareholding but can provide you POWER of ATTORNEY to do business for his NO interference.

Q. What is the cost of business set up in UAE?

A. Please refer to the Cost under Mainland Business. Also refer to Comparative Cost under Free Zone. Briefly it is as under. In a FREE ZONE, a Local Sponsor expenses are not required.

Q. What is the cost of business set up in Free Zone?

A. Please refer to Comparative Cost Chart of Free Zones

Q. What are the procedures for setting up business in UAE?

A. There are three stages:

    Stage 1

 You are required to provide four alternative NAMES for your business and get one approved. Also   required is to get BUSINESS-ACTIVITY approval for which a Business-Plan is generally submitted to the authorities. For types of Documents and Information required by the authorities, please refer below.

Stage 2

Legalization process takes place wherein the authorities do authenticity of Passport, Bank Reference, and Bank Resolution etc.

Stage 3

Allocation of Office Space, giving License, Medical Test, and Visa process is done.

The above process is interlinked and is not very clearly distinguishable but is general guidelines to apprise you of the procedure in U.A.E. Business-Set-Up.

Q. What are the documents required to set up business in UAE?

A.  Your Passport Copy

     Profit of the Owner

    Bank reference Letter Original

   Board Resolution Original

  Business Plan

 In case of Branch office of a Foreign Company, Memorandum of Association and Certificate of Incorporation attested by U.A.E. embassy in that country.

Ten Passport size Photographs

Four Alternatives Names of proposed new business

Details of Business Activities to be done

Office space and number of Visas required

Bank’s Capital Adequacy Letter Original

Application Form and Owner’s Specimen Signature Form

Appointment of Manager / Legal Representative

Q. What is the time required to set up business in UAE?

A. Once all documents are submitted to the authorities, it could take two to three week’s time. Without the office space, authorities do not allow to commence business. Nevertheless, these difficulties can be overcome

Q. Where to set up business?

A. If the business activity is permissible in FREE ZONE and there is no requirement to do retail trading in the MAIN-CITY (one could appoint local dealer who has similar activity license in MAIN-CITY in such a case), then one could choose to set-up business in a FREE ZONE where 100% ownership is allowed. Ajman Free Zone, Ras al khaima Free Zone, Sharjah Free Zone are amongst the cheapest. Dubai FREE ZONE is comparatively costlier.

Q. What are the benefits of forming a limited liability company?

A. Liability of partners is limited to the extent of paid-up capital.
Company attains a corporate entity different from its partners.
The partners can appoint Director(s) who are authorized by the memorandum to carry on the business of the L.L.C. independently without involvement of the U.A.E. national partner

Q. Can the expatriate partner sponsor his family?

A. Any expatriate partner in a Limited Liability Company is eligible for sponsoring spouse and other family members on residence visa if his share in the capital is Dhs. 70,000/- or more, also he should be a director in the company and his salary needs to be stated in the Memorandum of Association (as required by immigration rules).

Q. Which business activities can be undertaken by the company?

A. The company may undertake any business activity permitted by the Department of Economic Development except business of banking, insurance and investment of funds for third parties.
By practice, the department does not permit; Two different classified business activities under one license e.g. trading and manufacturing need separate licenses. Or two different designated classes of activities under one license, e.g. trading of electronics and Jewellery need separate trade licenses.

For an instant reply, you could have a telephonic consultation with our office in Dubai. You can also request us to prepare a detailed BUSINESS / FEASIBILITY REPORT suitable to your type of business.