How to start a company in Dubai and UAE for foreigners 2019 – invest in the UAE
Through the following report, we will provide a detailed analysis of the legal requirements, market viability and all that it takes to start a business in the United Arab Emirates; and also the investment opportunities available in this country.
Investment, Dubai, UAE, for foreigners
Why do you have to invest in the United Arab Emirates?
The United Arab Emirates is a good place to start foreign investment as more than half of its population is filled with foreigners. Not only is there an abundance of resources, but there is also a generally good working climate that results from stability in the political atmosphere of the country. The UAE is also working to provide a rich investment environment at the regional and international level, and according to the World Bank’s Doing Business report for 2019, the UAE topped the Arab countries in ease of doing business, and got 11th place globally, and for more information on a set of statistics and information We invite you to read the World Bank report on the Emirates from here: The World Bank Report for the Emirates
Steps started to establish a company in Dubai for foreigners
- The type of investment or project
Your project type will determine the type of license you will need. Whether they are commercial, professional or industrial licenses, these will lay the groundwork for your operations. However, during the selection, remember that some activities such as food trade, jewelry trade, veterinary activities and legal advice require additional approval from other government departments.
The Department of Economic Development in Dubai has a list of more than 2,100 activities to choose from. If you cannot find your own one there, you can call or communicate with government agencies involved in investing in the country, the most important of which are:
Emirates Investment Authority (EIA)
Dubai Government Investment Corporation
Sharjah Investment and Development Authority
Ras Al Khaimah Investment Authority
Abu Dhabi Investment Council
Investment and Development Office – Ras Al-Khaimah.
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As a foreign investor, if you want 100 percent company ownership, you must choose a license and location in one of the many free zones in the United Arab Emirates. There are specific types of activities that each free zone meets and its clarity in the first step will help you find the best option for you. There are over 45 free zones in the United Arab Emirates with different categories of operations, so you don’t lack a choice.
If you need a local license or need to work locally, you must obtain a license from the Department of Economic Development. The license comes with some restrictions on the ownership of foreigners, based on different legal structures under the law.
- Legal structure
Depending on your location and your business type, there are rules for forming your company. For example, if you are planning a legal consulting firm, this can only be done as a subsidiary of a company or as a stand-alone company. Only owner is not allowed to do this activity. Each free zone has its own restrictions on the structure of the company, and you can view all laws and legislations related to foreign direct investment in the UAE:
Foreign investment law in the Emirates
Commercial Agencies Law
Ministry services guide
Investment protection and promotion agreements
Double Taxation Prevention Agreements
- The trade name
Your trade name is a very important part of legal process. The company name must indicate the nature of the business, unless it is a subsidiary of another company. All the rules related to trade names can be found on the official website of the Department of Economic Development.
- Share capital
The minimum capital is specified in the Memorandum of Incorporation of your proposed company. In most cases, you do not need to pay the minimum capital at the time of preparation.
Once the legal procedures and forms are ready for action, it would be better to draw up a shortlist of some offices with costs and other details. This will mean a clear way forward once you exit your legal process. In the free zones, you will get help finding suitable places for your needs in addition to helping to prepare electricity, internet, water and other facilities.
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In most of the legal forms of the Ministry of Economic Development, you need to appoint a director to oversee operations and make them operational before approving your registration. But in other cases, you may not be allowed to hire at all. For example, holders of launch licenses (a license for Emirati business owners staying at home) are not allowed to hire employees, but they can contract with contractors. Details can be seen here. As for the free zones, each region has its own regulations regarding the business structure.
- Local support
For DED licenses, it is necessary to have a local agent, partner or sponsor and this is a great support for foreign investors for free zones, the presence of a local contact can help push the business forward effectively. However, this is not mandatory and Dubai as a commercial destination prides itself on being easy to prepare for all business people regardless of nationality.
The fields of investment opportunities in the United Arab Emirates
The investment opportunities in the Emirates are perhaps the best regarding real estate investment in Dubai for foreigners and investment funds, in the following files you will find the most important projects and opportunities that are offered by the government itself:
Investment opportunities in the United Arab Emirates
15 profitable small business ideas in the United Arab Emirates
Investment opportunities in Sharjah
Frequently asked questions regarding establishing a company in Dubai for foreigners
Are there specialized economic or industrial zones in the UAE?
Yes, there are many specialized economic and industrial free zones in countries The Emirates are like the Higher Corporation for Specialized Economic Zones, the Kizad Industrial Estate in the Emirate of Abu Dhabi, the Jebel Ali Free Zone in the Emirate of Dubai, and many industrial areas in the rest of the Emirates.
Is there a special federal law on investment in the UAE?
The Ministry of Economy is currently in the process of issuing a federal law to regulate investment in the country, which is in its final stages of issuance.
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What are the costs of setting up an investment project in the UAE?
The investor can view the procedures and fees guide on the ministry’s website that includes a detailed explanation of the fees according to the type of license required.
What are the economic activities that a foreign investor can do in the UAE?
A foreign investor can engage in any commercial activity in the country, but there is a very limited number of activities that are restricted to citizens of the country only, such as general trade activity and labor supply, for example.
What are the most promising sectors to invest in in the Emirates?
Travel and tourism sector / real estate / Islamic economy / renewable and alternative energy / medical tourism / education / manufacturing industries
What are the procedures required to establish an investment project in the UAE?
The investor can view the procedures and fees guide available on the ministry’s website that includes a detailed explanation of all procedures according to the type of company to be established and the emirate.
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What is the legislative system applied in the UAE?
The legislative system in the Emirates is divided into several sections, including:
Federal Laws and Legislations: This set of laws is divided into sections, some of which are federal. Its provisions apply to the state as a whole, including what is local specializing in the emirate and not others. Commercial laws and laws pertaining to the organization of work in a specific sector, such as the Commercial Companies Law and the Law on the Organization of Industrial Affairs … etc.
Ministerial decisions and executive regulations governing the set of laws issued: Such decisions are issued to provide a detailed explanation of the provisions and provisions of laws.
Agreements concluded with other countries such as agreements to avoid double taxation on income and agreements to encourage and protect investment.
What are the official government agencies in the UAE?
A list of all federal and local government agencies in the UAE can be found through the Emirates Government website, which is the official portal of the Emirates government