Skip to content

News Alert:

Whether in Freezone or Mainland, Corporate Tax registration is must!

Email

info@bsauditing.com

Phone

+971 4 570 7357

Whatsapp

+971 52 322 6455

Incorporation Of Companies in UAE : How To Go About It

  • by

UAE is a land of opportunities. With it’s evergreen economy and tourism, its one of the best places to do business. It is a hub for international companies. The UAE government has outlined some steps for formation, registration and Incorporation Of Companies in UAE. By following these steps, entrepreneurs can begin their journey of success and professional growth.

Company

A company is a legal entity constituting of an association of people, natural, legal or both, with a certain objective and goal.

Following will be your course of action of you wish to incorporate a company:

Steps towards incorporation of  companies in UAE

Reserving entity’s name:

The first step toward incorporation of a company in UAE is to reserve a name for it with licensing authority.

Initial approval:

Next step is to get the initial approval from licensing authority

If the entity will be overseeing industrial or contracting projects then it will be mandatory to seek the approvals of respective Municipality, MOT and any other proficient authority possible.

Memorandum of the corporation:

The memorandum of association of a corporation is its constitution or a rulebook. It states a company’s goals and the nature business it is going to undertake and plans regarding that. It is consisting of five sections:

  1. Entity’s name clause
  2. Registered business premises (office) clause
  3. Article clause
  4. Liability clause
  5. Capital clause

The memorandum of corporation of the entity must be executed before notary public in UAE.

Articles of association:

Article association states the rules that the internal management is going to follow. These rules are equal for all the members of corporation. It also mentions their rights, duties and liabilities. Alongside the memorandum, it must also be executed before notary public in UAE.

The printing and vetting of memorandum and articles:

The Registrar of the companies usually help promoters to draw And draft the memorandum and articles of association.

Power of attorney:

To complete the legal and other complex documentation formal work of Incorporation of a company, an attorney will be employed to represent the corporation and its promoters. The attorney will have the power to change memorandum, articles and other documents filled by the Registrar.

Business premises:

Your next step in incorporation of companies in UAE will be to get the office lease agreement and its registration with the apropos authority after which you will get the final registration with the licensing authority and the granting of the license.

Also, depending on the activities of your company, you might need further more approvals from other respective government departments.

Incorporation certificate:

Upon complete satisfaction of the Registrar that all the necessary requirements are being filled by the corporation that is to be incorporated, then the Registrar will register the corporation and give an Incorporation certificate. It is the definite proof that all requirements of the respective Act have been satisfied by the corporation being incorporated.

Types of corporations and their Incorporation process:

LLC (Limited Liability Company):

It is a form of private limited company. It  is a business set up that can constitute the pass-through taxation of a partnership or sole proprietor-ship with the limited liability of a company.

Following are the steps for the licensing process:

Entity name:

Reserve the name of the entity from the respective licencing authority.

Initial approval:

Get the initial approval from the respective licencing authority.

Memorandum of the corporation:

The memorandum association of a corporation must be executed before the notary public of the UAE.

Office lease agreement:

 Sign the office lease agreement and get it registered by the respective authority.

Final registration:

In order to obtain the licence you must go through the final registration with the respective licencing authority.

To note that, other more approvals might be needed depending on the type of projects the said LLC oversees.

Branch:

If the business of a corporation is conducted on a different location than the main office then that type of business is called Branch.

Following are the steps you must take in order to get a Branch registered:

Execution of the national agent agreement:

Execute the national agent agreement for the branch in front of notary public of UAE but in any circumstances of change in law get the initial approval from MOE.

Final registration:

From the respective licencing authority get your final registration.

Bank guarantee submission:

Submit the Bank guarantee to the MOE for the final commercial registration certificate of the branch

To note that, other more approvals might be needed depending on the type of projects the said Branch oversees.

Conclusion

BS Auditing of Accounts has skilled and professional staff to help you go about company incorporation without hassle and delays. Book your consultation today.

Feel free to contact us:

• Office # 0641, Tamani Arts Offices, Business Bay, P.O. Box 111390, Dubai, UAE

• +971 4 570 7357

• +971 58 108 5690

• info@bsauditing.com

Leave a Reply

Your email address will not be published. Required fields are marked *