Company establishment and licensing sector in the UAE
It's widely known that the UAE is one of the best places globally to invest and generate income, so we will skip this well-known part.
What should you pay attention to when planning to establish your business in the UAE? Let’s start with the very basics.
1. The first fundamental aspect to understand is: who issues business licences in the UAE?
There are two main jurisdictions where you can establish your business: freezone and mainland. It's crucial to understand the difference between these two before starting the process. In short, if you establish your company in a freezone, you can operate overseas and within the freezone only. On the other hand, with a mainland company, you can operate directly in the UAE market as well as overseas. Each jurisdiction offers a wide range of business activities from which you can choose, aligning them with your business plan.
2. Understand what type of company you need. Standart LLC or a Freelance?
Many people are unaware that moving to the UAE doesn't necessarily require investing millions. For beginners, there are options such as obtaining a freelance permit or licence, which allows you to issue a residency visa and even open a bank account. It is commonly used to kickstart your business. Unlike in other countries, freelancers here need a licence from authorised governmental authority to provide services.
Once you understand the jurisdiction you require and determine the type of licence that best suits your business plan, you can proceed to select your business activity and initiate the process of obtaining the licence.
Certain industries, such as education, healthcare, manufacturing, aviation, maritime, food and honey production, and precious stones and metals trading, are regulated by the government. This means that you will need to obtain a Non-Objection Certificate from the relevant government authority in order to operate your business in the UAE. This is a more complex procedure and should be considered from the very beginning when planning your business relocation.
If you opt for a freezone jurisdiction, it's essential to note that the UAE has over 70 free zones. Therefore, it's crucial to select the correct one that aligns with your plans effectively.
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