Establishment of a company in the United Arab Emirates

One of the most favorable jurisdictions for doing business has been created in the United Arab Emirates (UAE). It is a country where English is spoken even in public institutions, the accountability of legal entities is simplified to a minimum, a new business can be established in the area most suitable for it, and when opening a current account one can choose from many banks and payment institutions. After evaluating the prospects and new business opportunities, we suggest choosing Dubai, a region where you get the following privileges together with the company:

  • A license to carry out the desired activity
  • Resident’s visa, if business needs to be conducted in the country
  • Work visa for employees (it is enough to pay only for employee health insurance, there are no additional fees for employees)
  • Renting a virtual or physical office (as needed)
  • 0% corporate tax rate if the turnover does not exceed 375,000 AED (95,288.96 Eur) when operating in the territory of Dubai and 9% corporate tax rate if the specified turnover exceeds
  • 0% value added tax rate for companies in the free zone when their annual turnover does not exceed 375,000 AED (95,288.96 EUR) and 5% value added tax rate for companies located in the mainland of ​​Dubai

Where to start?

In order for us to provide you with an offer for establishing a company in the UAE, please provide the following information:

  • Company name;
  • Data and contacts of the founders (phone number and e-mail);
  • Planned activities;
  • Intended market of operation (indicate whether you will be operating in the UAE or outside the borders).

Setting up a company takes just 3-5 working days, and you don’t need to go to Dubai or be a UAE resident to set up a company. However, in order to open a bank account or operate from an office in Dubai, you need to apply for a resident visa once you arrive in the country. There are no additional equirements for company shareholders and managers who wish to obtain a UAE resident visa, it is sufficient for them to have an established company and to stay in the country legally.

You can choose to establish a company both in the mainland of ​​Dubai (Mainland) and in the free zone (Freezone), depending on the nature of the planned activity and the circle of customers. If you are interested in starting a business in a world-class city, contact us for an initial free consultation.

IMPORTANT: There are no monthly fees in Dubai, analogous to ours in Lithuania, but there is a licensing system, where any activity is licensed and the first license fee is paid at the time of the establishment of the company, and the license is valid for one year. The license must be renewed annually in order to continue to operate. Usually the price of the license is between 14,000 and 17,000 AED (from 3557.45 to 4319.77 Eur)

Establishment of a company in a free zone (Freezone)

Dubai has 26 free economic zones, where the most favorable regime for the establishment of companies is applied, when the responsible municipalities offer new companies an office rental contract and provide a list of banks with which they cooperate for the founder to choose. We recommend choosing establishment in the free zone in Dubai, if your company’s activities will be focused on foreign markets and carried out outside the Emirates, but it is still important for you to have a bank account in one of the UAE banks. It is important to note that opening a bank account requires coming to Dubai and applying for a resident visa. Also, free zone companies have restrictions on the number of employee work visas (up to 5), so such companies are not suitable if you plan to have a large number of employees.

How is everything going?

After receiving all the necessary data for the establishment of the company from you, i.e. details and contacts of the founders, company name and activity and planned market of activity, we generate an establishment card and order an e-visa for arrival in Dubai for the next step – applying for a resident visa and opening a corporate bank account.

 It is possible to open a current account both in a standard Emirates bank (process takes up to 3 months) and in an electronic payment system, which is faster and simpler, depending on your needs. In order to open a bank account, you must have a premises lease agreement (EJARI)

We recommend Meydan free zone to our customers. Company establishment in Meydan Free zone price.

Establishment of a company in the main territory of Dubai (Mainland)

Based in the main area of ​​Dubai, the company can operate in the entire territory of the Emirates, it is best for having a shop, cafe, beauty salon in a location of your choice, as well as for larger businesses planning to reside in the UAE.

Mainland companies are registered with the Department of Economy and Tourism and receive the most favorable conditions from the Bank of the Emirates and have no restrictions on the number of invited foreign workers. The government of the Emirates imposes restrictions on foreigners carrying out in Dubai some strategic activities important to the state (gas or oil extraction, sale, arms trade, etc.).

The establishment of a Mainland company does not take long and lasts up to 7 days, despite the fact that it requires obtaining some additional approvals that are not required when establishing a company in a free zone. The process is as follows:

  • Reserving trade name
  • Initial approval – means that the UAE government does not oppose the establishment of the entity in the country and indicates that the next step can be taken to obtain a commercial license.
  • External approval of the responsible institutions (if necessary for certain specialized activities, issued by the responsible state institutions)
  • License payment and statute approval
  • Selection of office premises (EJARI)
  • Issuance of a license
  • Issuance of immigration company establishment card and work card
  • Visa application
  • Opening a company bank account

Company establishment in Mainland price.

Opening a corporate bank account

Dubai can offer a range of banks and financial institutions for your business.

Major national banks in the UAE:

  • Emirates National Bank of Dubai (ENBD)
  • Dubai Islamic Bank (DIB)
  • Mashreq Neo
  • Emirates Islamic Bank
  • WIO

Major international banks operating in the UAE:

  • HSBC Middle East
  • BNP Paribas Middle East
  • Standard Chartered Bank
  • Citibank N.A.
  • Royal Bank of Canada
  • Credit Suisse AG
  • Arab African International Bank
  • Habib Bank A.G. Zurich

A standard package of documents for applying to a bank for opening an account in Dubai:

  1. Company license and incorporation documents
  2. Passport and Emirates Resident Visa or ID
  3. Premises rental agreement (confirmation of address)
  4. A statement of the shareholder’s personal bank account (can be from the bank of the country of origin) with confirmation of having funds for living.