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1. Minimum capital for incorporating a foreign company in the UAE: 

The required capital for incorporating a company in the UAE depends on.:

a). The type of legal structure of the company to be incorporated; and

b). The jurisdiction where the company will be incorporated. 

Indeed, in the UAE a company could be either incorporated in one of the seven Emirates or in one of the several free zones that exist in the country.  The main difference between setting up in a free zone and in one of the Emirates is that free zone entities in the UAE are entitled to 100% foreign ownership, whereas in Dubai the foreign ownership is limited to 49%.  Most popular legal entities for the establishment of a business in Dubai are Limited Liabilities Companies (¡°LLC¡±), branch offices of foreign companies, representative offices of foreign companies and private or public joint stock companies.  Most of these entities except for public or private joint stock company could also be incorporated within any of the free zones.  The capital of these companies varies from 300,000 UAE Dirham for a LLC in Dubai to between 100,000 and 500,000 UAE Dirham for an LLC in the free zone. 




2. Required Documents:

Procedures for incorporating companies in the UAE depends on the type of the company and the free zone where the company will be established.  However, the documents required are more or less similar.  The incorporator should provide with the following:

a). A certificate of registration or certificate of good standing for the company;

b). The memorandum and articles of association of the incorporator;

c). A board resolution calling for the establishment of the company in the UAE guaranteeing its full financial commitment and appointing the company¡¯s negotiator or legal representative and the appointment of the company manager if required;

d). A power of attorney in favor of the company¡¯s negotiator or legal representative; and

e). A specimen signature of the company¡¯s manager or representative and a copy of his passport.

There is no need for an address during the incorporation process.  Once the required paperwork is submitted either to the relevant governmental authority or to the free zone authority, the authority will issue a letter authorizing the company to rent, lease an office in the name of the company.



3. Visa for long term residents and required documents. 

Once the company being incorporated, a visa form shall be completed by the manager and any other employee who will be working for the company.  There are no specific requirements as such for the issuance of a visa in the UAE as long as the employee is duly employed by the company and has undertaken a  medical test to be provided by the company.  The only restriction concerns the age limit, in most of the free zones unless the manager has high qualifications visas cannot be issued for individuals above 60 years old.



4. Processing time:

Depending on the type of activities to be undertaken by the company and the legal structure of the company itself and whether the company will be incorporated in any one of the Emirates or in a Free Zone the incorporation time may vary from 2 weeks to 6 months (6 months being the average for incorporating some companies that require a lot of approvals such as Municipality approval, the Ministry of  Defense approval for activities such as construction or legal advices that require the Ruler¡¯s Court approval).  Average time for setting up an LLC in Dubai for trading activities, commercial or service activities is approximately 5 weeks.



5. Retainer fee or other expenses:

Our firm usually charge on a time spent basis, according to our experience the average costs for setting up an LLC in Dubai is approximately AED 50,000 this is exclusive of any governmental fees.  The average legal cost for setting up an entity in the Free Zones is between AED 30,000 to AED 40,000.  the other head of expenses to be considered is the translation of documents from English to Arabic, the several governmental fees for the incorporation, the license fees to be paid to the free zones which may vary from AED 10,000 to AED 30,000 and the lease of premises expenses.



6. Scanned Certificate of business:

Attached are scanned copies of certificates for business in a free zone, an offshore company and an LLC.


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