Understand the Jurisdictions Setup Requirement Before Proceed Your United Arab Emirates Company Formation

United Arab Emirates Company Formation Are you a foreigner or local investor looking to invest in the United Arab Emirates? Now, the United Arab Emirates company formation begins with the name reservation and request submission. Afterward, you’ll need to secure a preliminary endorsement on the company activities, business name by filing an application and license with the Department of Economic Development or applicable free zone authority. You can, therefore, proceed with business registration by preparing the company Memorandum, Articles of Association, and shareholders agreement.


Corporate Structures in the UAE

Should you decide to incorporate a Limited Liability Company, you’ll need a minimum of two shareholders and a maximum of 50 shareholders. You must possess at least one-to-five directors, and you should provide a provision concerning the business of the Board of Directors.

The minimum paid-up capital is AED300,000 which may vary on the jurisdiction and the nature of the business. For a foreign-owned company, you’re eligible to shares not exceeding 49 percent of the company’s capital. Meanwhile, foreigners who have established a Joint Venture under the free zone are entitled to 100 percent ownership. Here, you must have a minimum of two shareholders. To legitimize your company as a foreigner, you must ensure you have the following:

  • original certificate of incorporation
  • a copy of the board resolution endorsing the incorporation
  • a power of attorney published by the notary public


United Arab Emirates company formation entails that if you settle the required necessary fees, you can then acquire the principal endorsement letter. The letter will be helpful during the process of opening a bank account. Now, when it comes to the opening of a bank account, you must have your certificate of registration and the corporate application form. The process of legitimizing a company under the Free Trade zone is actually not complex. This is because the main idea is to attract more Foreign Direct Investment (FDI). It allows you as a foreigner 100 percent ownership and not permitted to conduct business on the mainland.


What to Do Next?

According to the laws governing tax compliance, you must obtain a Tax Residency Certificate (TRC) valid for one year. This process will take a month to complete. All you need to have are:

  • copy of a legit trade license
  • the most recent financial statements
  • a copy of a legit rent agreement
  • an endorsement letter from the Ministry of Finance
  • a copy of your bank statement


The fee payable currently stands at AED5,000. Another key consideration in United Arab Emirates company formation required the application of an establishment card from the Ministry of Labour.

The facts are when you have a registered office and address, then it can get easier to receive all your correspondences. Again, you must ensure that you apply for a business license with the relevant authorities. With this, you can avoid some of the unnecessary inconveniences.

The UAE laws require that you register all the native workers with the Ministry of Human Resources and Emiratization alongside the General Authority for Pension and Social Security. The main idea is offering protection to employees for health matters.

United Arab Emirates Company Formation

Contact us, 3E Accounting United Kingdom, for more information. We have an impressive track record when it comes to providing services to those who are planning to incorporate their company anywhere in the world.