Company registration in the UAE
The number of company registration in the UAE has increased significantly in recent years. The reason for that is the numerous benefits of registering and setting up a business in the UAE.
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This article is a comprehensive guide for company registration in the UAE in 2023. Apart from reading this, you can fill out the immigration assessment form so that our experienced experts will contact you and guide you.
The United Arab Emirates is one of the most developed countries in the region, whose high growth rate has provided a suitable environment for investment in the UAE, immigration and living in this country. This line is considered as an excellent option for Iranians by offering a 3-month stay that can be extended for investors and the possibility of accompanying family and children.
The conditions for registering a company in Dubai and other areas of the UAE have become simpler in recent years, and applicants can register their company and start working in the UAE after passing a few steps.
In the following article, we will examine the steps of company registration in the UAE, its cost, conditions and rules. Also, we got acquainted with the types of company registration programs and types of companies in the UAE, and then we take a look at the advantages and disadvantages of registering a company in the UAE.
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Types of company registration licenses in the UAE
In general, company registration licenses in Dubai and other regions of the UAE are divided into 3 types:
- Professional License
- Commercial License
- Industrial License
Professional License
The professional license is for service jobs and jobs that require mental abilities, academic education, or scientific and precise methods, such as legal and advocacy firms, accounting or consulting firms.
The most important conditions for company registration in the UAE to obtain a professional license are:
- Having 1 sponsor in UAE
- The minimum number of investors is 1 person
- Relevant degree
Commercial License
By obtaining a business license, you can trade goods and sell some goods and services in the UAE.
Registering a company in the UAE using this license allows you to import and sell a wide range of goods into the UAE or export them outside the UAE. Trade in clothes, equipment, cars, etc. are among these items.
Using this license, you can even provide services such as buying and selling real estate in the UAE.
The type of company ownership in this method is 51% to 49%. In this way, your sponsor in the UAE has 51% ownership and you have 49% ownership of the company.
Industrial License
Industrial license is for businesses that are active in the procurement, production and processing of goods. Industrial materials, oil and gas, food, pharmaceuticals, etc. are among these items.
One of the conditions for registering a company in Dubai and other regions of the UAE in this method is that the type of ownership must be 49%-51%. This means that the sponsor or the representative of your company in the UAE has 51% ownership and you have 49% of it.
Considering that the type of activity is manufacturing and industrial, it is not possible to register a virtual company in the UAE using this license. That means you must have an office or a manufacturing plant in the UAE.
The cost of registering a company in the UAE
The cost of registering a company in Dubai and other areas of the UAE varies according to various criteria and factors. The type of company, the type of license issued, the desired area for starting a business, the number of partners, the choice of company name, etc. are among these criteria.
In general, the average price of company registration in the UAE in 2021 can be considered as these figures:
The cost of registering a company in the UAE
Minimum and maximum cost 8-20 thousand USD
AED 30-73 thousand
The costs of guarantor, address registration, company registration license, attorney’s fees are also considered in the high price.
There are also other costs for going to the UAE and setting up a company in this country, the most important of which are listed below:
Service Type US Dollar USD UAE Dirham AED
Obtaining a tourist visa is 95 dollars 350 dirhams
3-year residence in the UAE, 326 dollars, 1200 dirhams
Change of visa type 183 dollars 675 dirhams
Emirates ID card 103 dollars 378 dirhams
Medical tests 87 dollars 322 dirhams
Visa stamp 236 dollars 870 dirhams
Total 947 dollars 3438 dirhams
To start a company in the UAE, you must first go to this country with a tourist visa. After going through the legal procedures and obtaining permits, your visa will be changed to an Investor visa or a Partner visa.
Usually, these steps are done in 1 month and you can register your company in the United Arab Emirates and start working.
Advantages and disadvantages of company registration in UAE
UAE can be considered as the best Arab country to register a company. The rapid economic growth and the existence of numerous opportunities for investment and business activity have provided a very suitable environment for various businesses.
The benefits of registering a company in Dubai and other areas of the UAE are many! In the following, we examine the most important of them:
No need for a language certificate
No need for a degree (except for some jobs and areas of professional license)
No need to have a company in advance
No need to have an insurance employee
Ability to perform up to 10 business activities with 1 license or company registration permit (provided they are in the same group)
No specific age limit: people between 18-60 years old can apply.
The possibility of obtaining UAE residence for spouse and children
Having the right to education and health insurance in the UAE
Obtaining a 3-year residency in the UAE with the possibility of unlimited extension
The possibility of issuing job offers and attracting labor from outside the UAE (even Iran) after starting work
A very short process from the action stage to the start-up stage
Looking at the conditions for starting a business in Arab countries and Persian Gulf countries, we can conclude that the United Arab Emirates has the best conditions for registering and starting a company.
In fact, by comparing the UAE with other countries in the region and its advantages, the disadvantages of registering a company in the UAE are not so noticeable.
Procedures for company registration in the UAE
After checking your conditions, you should go to the UAE on a tourist visa. After going through the legal process of issuing a company registration license, you can start working in this country. Below is a summary of the steps to obtain UAE residence by registering a company:
The first step: examining the case and traveling to the UAE
Second step: Issuance of company registration license
Traveling to the UAE and issuing a permit may take up to 1 month. During this period, the person’s presence in the UAE is mandatory.
The third stage: starting work and obtaining UAE residence
Company registration documents in Dubai and UAE
In the first stage, the applicant travels to this country with personal documents such as passport, personal photo, etc. and obtaining a tourist visa of the UAE.
After obtaining the necessary permits, the applicant must apply for an Investor or Partner visa. The documents required for this work are listed below:
- Company license copy
- passport copy
- Copy of tourist visa
- Company license
- Lease (in case of physical company registration)
- Company Statute
- Photo with white background
- The original ID card of the sponsor (if any)
- Iranian national card
Next, we take a look at the visa conditions and types of residence for brand registration in Dubai and other regions of the UAE:
Conditions for obtaining a companion visa, type of residence and issuing a job offer
In the following, we will explain the type of visas issued, the length of stay and the conditions of working and living in the UAE:
The main applicants for company registration
As we said above, applicants for company registration in Dubai will get an investment and partner visa after completing the licensing process.
These visas are valid for 3 years and can be extended an unlimited number of times. Immigrants can live permanently in the UAE by obtaining these visas.
In order to maintain the validity of the residence in the UAE, a foreigner must travel to this country and enter the UAE every 6 months.
Spouse, children and family members of the 1st degree
After registering the company and obtaining a license, you can also get visas for your family members as a guardian.
For male children over 18 years old and female children up to 30 years old, you can get UAE Employment Visa. Family members can work in another company in the UAE after the NOC is issued.
Labor recruitment and employee visa
After starting work in the UAE, the company can recruit by issuing a job offer. You can even attract the required forces of your company from Iran.
If the company is virtual, it is possible to hire up to 10 foreign workers, and otherwise, it is possible to hire more than 10 people. Each of these employees can get a Dependent Visa for their 1st degree family members after starting to work in the UAE and obtaining residency.
Tax conditions for company registration in Dubai and other areas of the UAE
Value Added Tax (VAT) is a tax imposed on the consumption or use of goods and services at any stage of sale.
In the UAE, no taxes are imposed on bank accounts and transactions. The company registration tax is 5% of the total cost. When renewing the company, this amount of tax is recalculated annually.
If you want to invest in the UAE and register a company in the Persian Gulf region, Parsi Canada has made this possible. To see the services offered in this line, click on the link of the company registration package in the UAE.