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Setting up an onshore company in the United Arab Emirates (UAE) involves establishing a business entity within the borders of the country, typically in a mainland area rather than a free zone. The process of forming an onshore company in the UAE can vary based on the chosen emirate and the type of business activity. Here’s a general overview of the steps to establish an onshore company in the UAE:
Select the emirate where you want to establish your onshore company. Each emirate has its own economic department and specific regulations. Determine the type of business activity you plan to undertake, as this will influence the type of license you need.
Choose the legal structure that suits your business, such as Limited Liability Company (LLC), Public Joint Stock Company (PJSC), or Private Joint Stock Company (PrJSC). The choice of legal form affects factors like liability, ownership, and governance.
Reserve a unique name for your company that adheres to UAE naming guidelines and regulations.
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA). These documents outline the company’s objectives, activities, share distribution, and other key details.
Submit the necessary documents to the relevant economic department for initial approvals and review. This step includes obtaining approvals for the proposed business activities.
In many cases, UAE onshore companies require local partners or shareholders who hold at least 51% ownership. However, there are specific free zones that allow 100% foreign ownership.
Lease office space that meets the requirements set by the economic department. Proof of a physical office is often necessary for licensing.
Apply for a trade license from the relevant economic department. The trade license specifies the business activities your company is permitted to conduct.
If you plan to hire employees, apply for their residency visas through the UAE immigration authorities.
Depending on the nature of your business, you might need industry-specific approvals and permits from relevant government authorities.
Open a corporate bank account in a UAE bank to manage financial transactions related to your business operations.
Adhere to all local regulations, labor laws, and any other requirements relevant to your business activity.
Maintain proper financial records and ensure compliance with reporting and auditing requirements as mandated by UAE regulations.
Once all approvals, licenses, and infrastructure are in place, you can begin your onshore company’s operations.
