Typical UAE company incorporation steps

The procedure for company formation in the UAE varies for each Emirate and depending on the type of entity we register. Below is the summary of the common steps to register a company in the UAE:

PRE-INCORPORATION STEPS (common to all entities)

  1. Client due diligence and commitment: Prior to company incorporation, our Client will need to i) settle CLA Consultants fees, ii) sign and return the Client engagement letter and iii) provide us with all the required due diligence documents.
  2. Planning phase: Our experts will draft a detailed engagement project plan, mapping out by week each step to engagement completion, optimising transparency, and setting Client expectations for the registration process. CLA Consultants will then assist our Client to determine i) what type of Dubai business entity is required ii) what class of business licence is required iii) how a UAE national sponsor will help iv) Dubai corporate banking and cash flow considerations and v) employment visa strategies
  3. Corporate structure: The exact UAE corporate structure is agreed upon with our Client. For engagements requiring a local joint venture partner, CLA Consultants will provide our Client detailed due diligence information about the 51% local shareholder. A detailed legal shareholder contract will then be signed between our Client and the UAE national, clearly defining all roles and responsibilities in the company
  4. Documents preparation: CLA Consultants will prepare and send to our Client a list of documents required for a company registration, which needs to be i) certified by a Notary Public ii) attested by the Ministry of Foreign Affairs and iii) legalised in the UAE embassy in the origin country of the documents. Upon receipt of the original documents, CLA Consultants Group will prepare the Arabic translation and attest the same in the Ministry of Foreign Affairs and the Ministry of Justice in Dubai.

INCORPORATION STEPS

Steps to register a UAE free zone company

  1. CLA Consultants Group will create our Client’s portal account and prepare the pre-approval application, including a Business Plan
  2. CLA Consultants Group will reserve our Client’s preferred company name
  3. The UAE free zone compliance team will then review the application to ensure all is in order with their compliance and regulation policies and issue a provisional approval. The UAE Free Zone Authority will revert with notarisation requirements
  1. Our Client need to review, sign, notarise and attest the required documentation
  2. CLA Consultants Group will assist in locating free zone office premises for our Clients. Our Client may then sign the lease agreement and settle the rental fees. CLA Consultants Group will submit a complete company registration package to the Free Zone Authority, together with the same together with the notarised documents for incorporation
  3. The Free Zone will finalise the application and confirms company set up, but will not yet issue a certificate of registration
  4. CLA Consultants Group will collate all original signed notarised/legalised incorporation documents and physically present the same at the Free Zone Authority offices
  5. Moving forward, the Free Zone will issue the original certificate of incorporation, service licence, share certificates and sealed memorandum and articles of association (M&AA)

Steps to register a UAE offshore LLC

  1. Phase 1: Prepare business registration application
  2. Phase 2: Supply required documents
  3. Phase 3 (only for JAFZA offshore): Security check and travel to the UAE
  4. Phase 4: Issuance of a certificate of incorporation

Steps to register in UAE mainland

  1. CLA Consultants will i) reserve the proposed company name and ii) obtain preliminary approval on the business activities, trade name, and identity of partners (if applicable) by completing the application from the Department of Economic Development (DED) and iii) prepare company deeds of establishment and articles of association and submits for notarisation by a notary public in the UAE courts
  1. CLA Consultants will then i) notarise and file all the company documents with the Commercial Registry at the DED Trade Licence and Commercial Registration Department and ii) settle the required fees and register the company for membership with the Chamber of Commerce and Industry (DCCI)
  1. Our Client will need to supply CLA Consultants Group with a 12 month lease agreement for their office premises. If required, CLA Consultants Group will assist our Client i) to find an office space according to our client’s needs; ii) secure a lease agreement with a landlord and iii) submit a lease agreement for Ejari attestation. Otherwise, CLA Consultants Group can supply virtual office services for six months until our Client finds their preferred business address
  1. Next, CLA Consultants will prepare the licence application for our Client’s business activity. Under the UAE law, our Client will apply for one of the following: i) commercial licence (for engaging in trading business) ii) industrial licence (for setting up a manufacturing business) and iii) professional licence (for offering services including accountancy and consultancy)
  2. Before the licence application is submitted and only if required, CLA Consultants will assist to secure a local UAE partner and draft a service agreement to submit to the DED along with i) the MOA ii) the name approval certificate and iii) the lease agreement. The business licence can be approved within three weeks. However, for some business activities, additional permits from the government authorities will also be required. This will increase the time for licence approval
  1. Subsequently, CLA Consultants will assist our Client to register the UAE LLC with the Company Registry Office and obtain a Company Registration Certificate from the Ministry of Commerce. The company MOA will then be published in the Ministry of Economy and Commerce’s Bulletin

Steps to register a UAE branch

CLA Consultants Group will i) reserve the proposed company name; ii) obtain initial approval on the business activities, trade name, and identity of partners (if applicable) by completing the application with the Department of Economic Development and iii) settle the required fees and register the company for membership with the DCCI

Each branch of foreign company must sign a Local Service agreement with a local agent (UAE national), who will be acting as the company representative with regards to branch registration, licence renewal and employment visas only. CLA Consultants Group will i) provide our Client with the list of our preferred local agents and the agents’ annual fees; ii) sign a Local Agent service agreement in front of the Dubai Courts

Our Client will supply CLA Consultants Group with a 12 month lease agreement for their office premises. If required, CLA Consultants Group will assist our Client to i) find an office space according to our client’s needs; ii) secure a lease agreement with a landlord and iii) submit a lease agreement for Ejari attestation. Otherwise, CLA Consultants Group can supply virtual office services for six months until our Client finds their preferred business address

CLA Consultants Group will i) settle the fees with the Ministry of Economy; and ii) receive an initial approval certificate of Branch of foreign facilities

After submitting the licence application, CLA Consultants Group may secure a trade licence approval with the DED. Under the law, our Client will apply for one of the following: i) commercial licence (for engaging in trading business) ii) industrial licence (for setting up a manufacturing business) and iii) professional licence (for offering services including accountancy and consultancy)

CLA Consultants Group will i) settle the fees with the Ministry of Economy; and ii) receive an initial approval certificate of Branch of foreign facilities

Moving forward, our Client must deposit the required statutory amount to the local bank account. After the deposit is made, the local bank may issue the Bank Guarantee Letter necessary to secure a branch registration approval with the Ministry of Economy

POST-INCORPORATION STEPS (common to all entities)

  1. CLA Consultants Group will prepare a detailed quality business plan to support a multi-currency corporate bank account opening with a leading local banks. CLA Consultants Group will secure a one-hour meeting with the bank officer in our Dubai office
  2. Simultaneously with the above, CLA Consultants Group will then i) apply for an establishment card from the Ministry of Labour ii) register the company with the General Directorate of Residency and Foreigners Affairs (GDRFAD) iii) register the company for VAT and Corporate Income Tax with the Federal Tax Authority (if required)
  3. Some free zones have paid-up share capital requirements. When this is required, CLA Consultants Group will guide our Client on when and how to deposit the same
  4. Following engagement completion, CLA Consultants will courier a full company kit to our Client, including original corporate documents, unopened bank correspondence, and a Client feedback survey
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For more info on company registration, please contact our expert directly:

Mr. Petar Chakarov
Senior Manager, Sales & Business Development
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