Page 15 - Premier Brains Global -Doing Business in UAE (Low Res)

DOING BUSINESS in UAE
Steps for Setting Up the
Business in UAE
A General Overview of the procedures
involved for setting up a business is
described, although it may vary depending
on the jurisdiction and type of business:
• Perform a comprehensive roadmap for
nature of business to be conducted in UAE
• Determine the Business Type and Activity.
• Choosing a Company Name.
• Determine the legal structure of the
business.
• Location of the company (Mainland or
Free Zone). Choosing the correct location is
a very important decision.
• Obtaining initial approvals – No objection
Certificate (NOC) from the department of
Economic Development (DED). For certain
category of license specific NOCs are
required from regulatory authorities like
central bank, insurance authority etc. One of
the conditions of such NOCs is reviewing the
relevant experience in particular business
activity. There can be minimum capital
requirements for more comprehensive
business activities.
• Preparation of Legal Documents –
Memorandum of Association (MOA) and
any other documents prescribed from time
to time.
• Leasing the Office space for the chosen
jurisdiction (in case of freezones, option of
taking virtual or flexi desk offices are possible
which are a low cost option)
• Applying for the Trade License from the
appropriate regulatory authorities.
• Completing the registration process with
the relevant authorities and getting the
copy of the trade license. Once registered
companies may also be required to obtain
other registrations such as with chamber of
commerce, obtaining establishment card,
opening labour card etc.
• Visa processing for owners and
management staff of the entity. Every
license in UAE usually requires appointing
a “Manager”. This manager is the most
important person in the company for
handling all legal related aspects. Even
though taking the visa is not a mandatory
requirement but usually Manager taking
the visa is a customary practice for smooth
flow of operations and especially at time of
opening bank account in UAE.
• Opening a bank account in the name of
the company and depositing the share
capital into the bank. For multinationals,
a clear group structure with identification
of an Ultimate Beneficial Owner (“UBO”) is
an important aspect for opening a bank
account.
It is very important that a proper review for
nature of business activity, tax implications
and place of doing business be determined
before taking a decision on identifying
location for opening company.
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