The United Arab Emirates (UAE) is a destination of choice for entrepreneurs from all over the world thanks to its attractive tax environment, strategic location and modern infrastructure. If you are considering setting up a company in the UAE, this guide will give you an overview of the steps and benefits of doing so.

Why choose the United Arab Emirates?

The UAE offers many advantages for starting a business , starting with a favorable tax system. Indeed, there is no corporate income tax in most cases, except for certain specific activities and for large companies (from June 2023, a 9% tax applies to net profits above AED 375,000).

Also, the UAE has over 40 free zones, offering benefits such as 100% foreign ownership, tax exemptions and simplified procedures. Located at the crossroads of Europe, Asia and Africa, the UAE is an ideal business hub. From state-of-the-art ports and airports to advanced digital services, everything is designed to make doing business easier.

What are the types of companies in the UAE?

There are several types of legal structures for setting up a company in the UAE:

• Free Zone Company: Ideal for businesses that do not need a physical presence inside the Emirates. You benefit from 100% ownership and numerous tax advantages.
• Mainland Company: Allows you to do business directly in the local UAE market. Until recently, it was necessary to have a local Emirati partner holding 51% of the shares, but this requirement has been lifted for many sectors.
• Offshore company: Designed for international activities, it offers maximum flexibility and simplified management.

Steps to Create a Company in the UAE

There are certain steps that are essential to setting up a company in Dubai or in the United Arab Emirates in general:

Choose the type of company

Identify whether your business would benefit more from a free zone, a mainland presence or an offshore structure. Also, you will need to clearly define your business activity. The UAE authorities classify business activities into several categories. Make sure your business is authorized and obtain the necessary licenses. As for the business name, it must comply with local rules. It is recommended to avoid offensive terms and reflect the business activity.

Administrative formalities

If you are opting for a free zone, choose one that is relevant to your sector (e.g. Dubai Internet City for technology). You will then need to provide the required documents. This includes a copy of passport, a photo, a business plan and, in some cases, a bank reference or a no-objection certificate.

Once the company is registered, it is essential to open a local bank account to manage your finances. Note that entrepreneurs and their employees can apply for residence visas to live and work in the UAE. For all these procedures, there are specialized structures to support you at each stage.

Setting up a company in the United Arab Emirates can be a strategic move to expand your business internationally. With competitive taxation, a business-friendly environment and exceptional growth opportunities, the UAE continues to attract ambitious entrepreneurs from around the world.