To carry out any type of business in the UAE, a company must acquire a commercial license and be incorporated. The UAE has specific processes for the acquisition and incorporation of licenses, and companies that seek to establish the need to follow these processes to the letter. To establish a new business in the United Arab Emirates, you must first determine the most appropriate corporate structure for the activities in which you wish to participate. For this initial step in the formation of the company, extensive market research and feasibility study are needed to determine aspects such as the type of company and target market. The data from this investigation could help determine if it is more beneficial for you to establish a free zone or a company on the ground.

Business configuration in UAE: on land or in the free zone?

The UAE economy is clearly divided between two sectors: the “land” sector, which is dominated by local business interests and restrictions on foreign ownership, and the “offshore” sector, which consists of a number of free zones.

Abu Dhabi presently has fivecompletely operational free zones:

• Kizad – for industrial activities
• Abu Dhabi Airports Company – for logistics companies
• TWOFOUR54 – for media companies
• Masdar City – for sustainable development / renewable energy
• Abu Dhabi international Market – for money corporations and corporations

In addition, there are free zones located in Dubai and the other emirates as well. Investors can search in these areas for the most viable location to establish their business.

Company formation in free zones in the UAE

Free zones are house to a heterogeneous range of corporations from totally different industries, and these corporations should do their activities among the geographical boundaries of the selected free zones.

However, meetings can be held outside these areas.

Investors enjoy numerous exclusive benefits for free zones such as:

• Full ownership of the company.
• Full exemption from income and corporate tax
• Freedom to repatriate profits
• Customs Duty Exemption
• Independent Regulatory Measures

There are also restrictions for the commercial configuration of the free zone, which include:

• Geographic restrictions for commercial operations
• Commercial transactions with customers from the continent will be made through agents or distributors.
• Contracts, tenders and other types of dealings with the government require a continental DED license

 A new business set up in the UAE as a mainland company

For the establishment of a mainland company in the UAE, there are three main company structures where a business might meet the requirements below:

• Foreign Branch Office
• Limited liability company
• Representative office

To establish a brand new business as a ground company, the associate capitalist should work with a neighborhood partner, United Nations agency can operate as a service Agent (Foreign Branch or Representative Office) or Sponsor (LLC). Ready to get started? Contact Unicorn Corporates today and speak with one of our setup specialists, for more detailed guidance.