Skip to main content

Are you considering incorporating a company in the United Arab Emirates?

Establishing a business in the UAE can be an attractive option for entrepreneurs, given the country’s pro-business environment and open market.

Before taking the plunge, it is important to understand the rules and regulations governing company incorporation in the UAE. In this blog post, we will discuss four things to know before opening a company in the UAE.

Check if your business activity is allowed

Whether you are considering opening a company in the UAE mainland or in one of the free zones, you must determine the nature of your business activity. To do business in the UAE, your business activity must comply with all the relevant laws and regulations. Our team can help you understand whether your business idea is allowed by the authorities and offer guidance on the licensing process.

Additionally, you may need to obtain additional permits and licenses depending on the type of business. Knowing which business activities are allowed in the UAE is essential for successful incorporation.

You need a local sponsor

When setting up a business in the UAE, you must have a local sponsor or an employer sponsor. This requirement is set by the UAE Government and is the same for all international businesses.

Having a local sponsor, like RHJ Accountants, ensures that you have sufficient knowledge and expertise about the local business environment; before launching a venture. The sponsor is responsible for obtaining the required licenses and permits, as well as helping to ensure compliance with the various laws and regulations in the UAE. It is important to note that while the sponsor’s presence is mandatory, they do not have to be actively involved in the business operation, and cannot demand any profits or dividends.


There are three types of licenses available

  • The first is the Professional License for Dubai Mainland. This type of license is ideal for international businesses that require professional services such as financial advisors, consultants, and other service providers. It is a requirement that at least one shareholder holds a UAE-based degree in the field of their profession, or has a minimum of five years of experience in the same sector.
  • The second type of license is the Trade License for Dubai Silicon Oasis Authority. This type of license is suitable for international businesses that provide products or services to customers or clients in the United Arab Emirates (UAE). Companies opting for this type of license need to have a share capital of at least AED 100,000.
  • The third type of license is the Trade License for SHAMS Free Zone. This type of license is mainly used for companies that intend to conduct business with clients outside the UAE, such as export and import businesses. When applying for this type of license, it is necessary to show proof of sufficient financial ability.

RHJ Accountants can help you with all three licenses and following a consultation with us you should be able to determine which license is preferable for your situation. With our expertise, you will be able to confidently make decisions regarding company incorporation in the United Arab Emirates.


You’ll need to have a registered office address

One of the key requirements is having a registered office address. This is relevant for most countries, as having a physical address to register your business with shows that it has substance in the country.

What is included when you have a registered office address in the UAE? Generally speaking, having a registered office address usually involves having a space for conducting administrative and business activities, such as storing documents and maintaining records. You may need to provide additional services or facilities depending on the nature of your business.

RHJ Accountants can provide you with this service and assist you in finding a suitable office space that meets your needs. We have years of experience in the international business world, so you can trust us to help you get your business off the ground.


How RHJ Accountants can help

We can provide you with the guidance and expertise to make sure that you meet all of the legal requirements to open up a business. From start to finish, we can be your guide.

Keep in mind that you will need a visa for opening a business in the UAE and our team at RHJ Law can be your sponsor to help you achieve this. Our experts can also offer advice on international business laws and regulations, helping you get up to speed with how things are done in the region.

Additionally, if you are considering relocating to the UAE, then our team can advise on property and healthcare options that are available. We are confident in helping people move to and establish successful businesses in the UAE and will use our knowledge to ensure a smooth transition.

If you liked this article leave a comment or reply here

💬 PSA: between April & June our Portuguese team have limited meeting availability due to the Tax Return Submission Period 🇵🇹