Companies incorporation

Companies Incorporation in the UAE. And what we provide in the legal group of services to our clients in this field

خطوات تأسيس الشركات في المناطق الحرة في الإمارات

6 Steps to set up Companies in Free Zones in the UAE

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6 Steps to set up Companies in Free Zones in the UAE – The UAE economy is booming for several reasons, most notably the setting up  companies in the free zones in the Emirates.

In addition to the flexible laws, and the smooth procedures provided by the state to businessmen and investors.

So, In this article, we will talk about 6 steps to set up companies in the free zones in the UAE, and legal group services in this field, to ensure you a successful and distinguished business.

What is free zone? 

Free zones are defined as free trade zones, where various goods and services are traded. Free zones emerged to promote international business, by providing benefits and advantages to foreign companies to encourage foreign investment. There are more than 40 free zones across the UAE, which have evolved to meet different needs. And to be the best choice for import and export trade.

Set up companies in free zone in the UAE

Thinking about setting up your business in the UAE is the first step to ensuring the success of your corporate goals. Because the presence of the company in a region that facilitates the establishment and development of its business, such as the free zones in the Emirates, contributes to great success at all levels.

Why to set up companies in free zone in the UAE?

There are many reasons that could encourage you to set up your company in the free zone in UAE:

1- Easy procedures to set up your company

The process of setting up companies in the free zones in the UAE is straightforward and easy.  It depends on two factors: your business and the free zone you choose.

You may need some basic documents like passport copies and commercial papers, and the whole process takes only a week or two.

2- Comfortable tax system

Many entrepreneurs choose to invest in free zones in the UAE, due to the ease of the tax system. In addition to benefiting from the 0% corporate and personal tax, your business is also currently exempt from VAT at a rate of up to 5%.

On the other hand, free zone companies are exempt from import and export tax and can trade without currency restrictions.

3- Ownership of foreign companies

Setting up a foreign company in the UAE requires partnering with a local entrepreneur. And this does not apply to set up companies in the free zones in the UAE. 

Any foreign entrepreneur can set up his company with full ownership without the need for a partner.

4- Trade in the United Arab Emirates

Free zone companies are not allowed to trade directly with the local market in the UAE.  It is possible to work with a designated distributor locally who can bring your goods and services to market for a set fee.

But you can set up your own free zone business, then open branch offices of the free zone company across the Emirates at a later time.

5- Support and help

Free zone authorities are working to provide various assistance during the set up of your company there. 

Most free zones provide visa assistance for both shareholders and any dependents such as spouses or local employees.

 Which helps in opening corporate bank accounts, and advises the best bank for your needs.

6- privacy protection

Free zones are particularly popular with privacy-conscious entrepreneurs, as there is no open proof of company ownership, and company information such as shareholder details is not disclosed to the public.

How to set up Companies in Free Zones in the UAE? 

There are a set of steps that must be followed, to set up companies in the free zones in the UAE:

1- Determine the type of business

The first step to set up your company in the free zone in the UAE, is to choose the type of business. 

It is possible to choose from hundreds of commercial activities, which is important in determining the cost of applying for a license and the free zone that best suits your business needs.

2- Choose your company’s name

Deciding on a company name can be a challenge anywhere in the world, but here in the UAE – with its own rules regarding naming conventions – it will be a necessary and delicate task.

You should refer to the relevant Free Zone Authority, or the relevant Department of Economic Development for the authorized trade names, in each emirate of the UAE.

3- Apply for a business license

The commercial license can be chosen according to the type of business you want to practice in the country.

The application process requires a completed application form and passport copies of the shareholders.  Some Free Zones may also require you to submit a business plan.Therefore, it is better to hire a team of experts, to complete your work easily and professionally.  As our team at Legal Group.

4- Choose offices and work facilities

Office space can be purchased or rented in the free zones, depending on the number of employees and the type of business of the company.  Available spaces may vary from one free zone to another in the Emirates.

5- Obtaining initial approvals and licensing

According to The United Arab Emirates’

Government portal, There are a number of things you need to get the initial approvals:

  • Completed application form
  • Business plan
  • Copy of existing trade licence/registration certificate (if you are an existing company, applicable for local company only)
  • Coloured passport copies of the company’s shareholder/s and the appointed Manager/Director for the new company
  • Specimen signature of the company’s shareholder/s and the appointed Manager/Director for the new company
  • 2 years’ audited financial reports for corporate entity or certificate of reference from a personal bank of the individual shareholder
  • NOC from current sponsor (for individuals)
  • Unit title deed
  • Letter of Intent
  • Registry Identification Code Form (RIC) for Manager/Director (Original and notarised)

6- B. Registration

After obtaining initial approval and paying the necessary fees, you will need the following documents:

  • Completed application for registration
  • Board Resolution appointing Manager/Director (Notarised and attested)
  • Power of Attorney given to Manager/Director (Notarised and attested)
  • Memorandum and Articles of Association (Notarised and attested)
  • Specimen signature of Manager/Director (Notarised and attested)
  • Passport-size photo of Manager/Director against white background
  • Share capital information

6 Steps to set up Companies in Free Zones in the UAE

In conclusion, these were 6 steps to set up Companies in free zone in the UAE. Therefore, contact us at Legal Group to establish your company or factory in the UAE, within 48 hours only.  We do all collection services and represent your organization in a responsible and professional manner.

كل ما تحتاج أن تعرفه عن تأسيس الشركات في الإمارات

All you need to know about companies incorporation in the UAE

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Companies incorporation in the UAE – Corporations cannot be established without the legal process known as companies incorporation. Because the company is a separate entity with individual obligations and rights. On the other hand, you can establish your company anywhere in the world, so that the company becomes an officially recognized practical organization. 

Therefore, in this article, we will talk about companies incorporation in the UAE, and our services in legal group to make your company shine.

Companies incorporation in UAE

The incorporation of companies is defined as the legal process, which makes the company a legal personality. This is an important thing that allows companies to enjoy many advantages.

The incorporation of companies provides additional credibility with potential customers, distributors and employees.In addition to strengthening the legal presence of the company in any country of the world.

In order to discuss the various affairs of the company, the Board of Directors is elected annually.

Companies Form in UAE

There are two types of companies, private companies and public companies. And there are certain features to each of them.

1- Private company in UAE

A private company has a minimum paid-in capital, and it is not allowed to issue stocks to the public or transfer them. And you need two people, as a minimum, to establish a private company.  It is necessary to write private limited next to its name to clearly identify its type.

2- Public company in UAE

Public companies require seven people as a minimum of its establishment. Unlike private companies, public companies offer stocks for the public. And the Limited word must be used with its name.

Create and organize companies in UAE

Companies incorporation is the process of drafting of legal papers, which need to insert the following positions:

  • The main purpose of the company
  • The Company’s name
  • The company’s location
  • the total number of stocks Which being issued

In addition to the above, there are the registration fees and jurisdiction data. And you should keep it in your mind, that There’s only one manager for small companies. While large companies have a board of directors of 12 or more directors.

The importance of companies incorporation in UAE

Companies incorporation is important to protect the company’s managers and shareholders. So, the company that is incorporated is capable of taking certain risks to advance without the manager or investor being subject to any financial liability.

There for, Here’s the most important benefits of companies incorporation, which encourage you to start one.

  1. Easy access to financing, to complete the company’s actions, through the sale of stocks
  2. Effective owner tax planning, using lower tax rates.
  3. Make simple transfers of company ownership
  4. Continue the business of the company normally, even after the owner leaves

And to make sure that your work is done professionally, It is recommended to employ the services of a corporate lawyer when incorporat companies. And this is one of the services we offer to our clients in Legal group.

What do I need to incorporate a company in the UAE?

Incorporating companies in the UAE requires a set of papers and procedures, so that the incorporation process is complete without any problems. And here’s what you need:

  • Proof of identity for all directors and shareholders (eg: Pan Card, Passport, Driving License).
  •  Proof of address for all members of the board of directors and shareholders of the company (for example: a bank statement, or any utility bills).
  • Director Identification Number (DIN)
  •  Digital Signature Certificate (DSC) for director or partner
  •  Designated Partner Identification Number (DPIN) in the case of an LLP registration.
  • Passport size photos.
  •   Proof of registered office address.
  •   No objection certificate form from the building owner to use this address as a registered office address.
  •  Any invoice attached to the owner’s name and signature.
  •  Form DIR-2 (signed by company directors), approving your employment as director

Conclusion

Companies incorporation in the UAE is popular, as all eyes and capital are drawn to set up companies in any emirate in the UAE.

Therefore, contact us at Legal Group to establish your company or factory in the UAE, within 48 hours only.  We do all collection services and represent your organization in a responsible and professional manner.

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