Company Set-Up in UAE, Process, Price & More

With its strategic location, favourable business environment, and robust infrastructure, the United Arab Emirates (UAE) presents an ideal destination for startups looking to tap into the region's dynamic economy. According to Statista, the Gross Domestic Product (GDP) of the UAE is projected to reach an estimated 652.44 billion U.S. dollars by 2028, marking the eighth consecutive year of growth and setting a new peak. This prediction underscores the UAE's position as a thriving business destination, offering abundant opportunities for entrepreneurs looking to set up a successful business at an affordable cost. Let us delve into the process of how to set up your business in the UAE, its pricing and steps involved in starting a company in the UAE, shedding light on why it is a preferred choice for investors and entrepreneurs.

An overview of starting a business in the UAE:

The Government of the United Arab Emirates is dedicated to enhancing its approach to business activity within the UAE. As part of this commitment, they have introduced initiatives aimed at facilitating online company set-up in the UAE.

Although the UAE has been traditionally known for its zero-tax policy, a new corporate income tax of 9% has been introduced for incomes exceeding AED 375,000 or $100,000. However, companies in free zones can still enjoy a 0% tax rate if they meet certain requirements. Despite tax exemptions for strategic sectors, recent data shows not all free zone companies qualify for these benefits.

Navigating these regulations may prove more intricate and challenging than previously anticipated. Experts at Ras Al Khaimah Economic Zone (RAKEZ) will help you streamline this process of starting a company in the UAE and provide you with a straightforward and hassle-free experience.

Step-by-step process of starting a company in the UAE:

1. Identify the nature of your business activity
The business activity forms the basis for selecting the legal structure and type of licence, such as commercial, industrial, or professional, among others. The types of licences include:

a) Industrial
b) Commercial
c) Professional
d) Tourist
e) Agricultural
f) Occupational

2.  Determine your company's legal structure
Businesses can select from the following popular legal structures, applicable for establishment in the UAE mainland, free zones and offshore:

a) Limited liability company (LLC)
b) Local company branch
c) GCC company branch
d) Foreign company branch
e) Free zone company branch
f) Sole establishment
g) Holding company

3. Register the trade name
When choosing a company name in the UAE, adhere to strict titling conventions. Ensure that the name:
a) Includes the appropriate legal form acronym (e.g., LLC, EST, PJSC)
b) Conforms to the UAE's public morals and order
c) Aligns with the company's activity and legal status
d) Excludes religious, governmental, or external body names/logos
e) Has not been previously registered.

The Department of Economic Development handles trade name registration, and the Ministry of Economy manages trademark registration.

4. Apply for initial approval
Obtaining initial approval signals that your business is on the right track for establishment in the UAE. It indicates the government's willingness to start your company in the UAE, which allows you to proceed with further set-up steps. However, it does not grant unrestricted permission to conduct business activities.

5. Create a Memorandum of Association (MOA)
Depending on the legal structure of starting a company in the UAE, specific documentation is required. For entities such as limited partnerships, limited liability companies, a Memorandum of Association (MoA) is necessary. This document outlines key details and provisions required to start your company in the UAE.

6. Choose your business location
All companies operating in the UAE must start conducting their operations from a physical address. These premises must meet the requirements set by the particular emirate’s Department of Economic Development, as well as comply with the land planning regulations of the local municipalities.

7. Apply for additional government approvals
Apart from general requirements, specific business activities in the UAE need approval from particular government bodies. For example, the Ministry of the Interior handles approvals for transport-related services like driving schools and car rentals. Legal matters are overseen by the Ministry of Justice, while architectural and engineering issues are managed by the local municipal department. Additionally, travel and tourism businesses, insurance activities, and telecommunication operations are regulated by different government entities, ensuring compliance and smooth operations.

8. Collect the business licence
Foreign investors can get their business licence from either in-person service centres or online. To engage in UAE business activities, they must submit the following documents:

a) Initial approval receipt and previously submitted documents
b) Copy of the lease contract attested by the relevant entity
c) Memorandum of Association
e) Any further official approvals required

Payment for the trade licence must be made within 30 days of receiving the demand. Failure to do so will result in the application becoming void.

Price for starting a company in the UAE:
At Ras Al Khaimah Economic Zone (RAKEZ), business set-up in UAE packages are tailor-made to meet the requirements of the companies

Startup package:

For budget-conscious entrepreneurs looking to penetrate the UAE market, RAKEZ offers the BizStarter package. This is designed to facilitate a low-cost company set-up in UAE, and is available at a competitive price of AED 6,000. It is perfect for a wide range of ventures including commercial trading, e-commerce, consultancy, media, e-gaming and education.

The package provides access to a multitude of value-added services, such as assistance with opening a business bank account, along with other essential services like VAT registration, accounting, and compliance. 

All-inclusive package:

For entrepreneurs who prioritise long-term stability, RAKEZ offers an all-inclusive package. This comprehensive package, available at just AED 16,500 per year with no hidden fees, significantly reduces the company set-up cost in UAE, while providing the invaluable benefit of a visa that you don’t need to renew.

It includes a UAE residence visa, taking care of third-party visa processing and pre-approval, and handles immigration files and e-channel registration. It also covers the Emirates ID, medical fitness test, a business licence and a shared workstation.

Getting the right people to help you start a company in the UAE, particularly, the RAK free zone business set-up, is simply a matter of picking up the phone or sending an email. Experts at RAKEZ will not only help you figure out your company structure and narrow down your business activities but also, walk you through the entire process and assist you with pricing details and documentation.

To get a free business set-up consultation, call +971 7 204 111 or send your query via email to info@rakez.com