By The UAE is a magnet for wealthy individuals, investors, and entrepreneurs due to its streamlined business setup process, fast processing times, and favorable legal framework. In 2023, the UAE made significant updates to the Commercial Transactions Law, including lowering the minimum age requirement for starting a business to 18 years old. Establishing a business in a UAE Free Zone is straightforward and can be completed in six simple steps, as outlined by the Ministry of Economy.
Step 1: Determine the Type of Licence
The first step is to identify the nature of your business and the appropriate category of licence. Free Zones offer various types of licences, including:
- Commercial Trade
- Consultancy Services
- Industrial
- Educational
- Media
- eCommerce
- Offshore
- Freelancer
- Warehousing
- Manufacturing
- Innovation
Step 2: Choose the Legal Structure
Based on your business nature and requirements, select one of the three legal structures available in the UAE Free Zones:
- Free Zone Limited Liability Company (FZ LLC)
- Free Zone Company (FZ Co.)
- Free Zone Establishment (FZE)
Step 3: Register the Trade Name
Apply for a trade name through the Department of Economic Development’s app or website. Ensure the trade name:
- Indicates the legal structure of the company (e.g., LLC)
- Is not offensive or inappropriate
- Is compatible with your business
- Does not include any UAE ruler’s name, official UAE government logos, or names/logos of any foreign governments or bodies
- Is unique and not registered by another company
- Receives approval from the Department of Economic Development and the Ministry of Economy
Step 4: Select a Business Location
Choose the right location from over 40 free zones in the UAE. Options include renting an office space or registering with a virtual office. The choice depends on factors like the number of employees and the nature of your business. Free zones offer various facilities to assist investors, such as IT infrastructure, NOC letters, and residence visa management.
Step 5: Obtain Initial Approval
Submit all necessary documents to receive initial approval. Common documents include:
- Completed application form
- Business plan
- Copy of existing trade license/registration certificate (if applicable)
- Passport copies of shareholders and appointed manager
- Registry Identification Code Form (RIC) for appointed manager (original and notarised)
- Specimen signatures of shareholders and appointed manager
- Title deeds (if applicable)
- Letter of Intent detailing the investment idea and plan
- 2 years of audited financial reports or a bank reference certificate (as required)
- Documents for freelancers/professionals, such as a CV, bank reference letter, and Registry Identification Form (RIC) for Director (original and notarised)
Step 6: Make the Payment
Finally, pay the fees to receive your company license. Required documents may include:
- Completed application form for registration
- Board Resolution appointing Manager/Director (notarised and attested)
- Power of Attorney for Manager/Director (notarised and attested)
- Memorandum and Articles of Association (notarised and attested)
- Specimen signature of Manager/Director (notarised and attested)
- Passport-size photos of Manager/Director
- Share capital information
By following these six steps, you can efficiently establish your business in a UAE Free Zone and take advantage of the country’s dynamic and supportive business environment.
