- Company Formation
- Mainland Company Formation
- Offshore Company Formation
- Freezone Company Formation
- Corporate Services
COMPANY FORMATION IN UAE: FREE ZONE Vs MAINLAND
Are you really interested in setting up a business in UAE? If yes, but where…..?
Whether it is in free zone or mainland, certain things that you must know are here. Let us have a deep and simple glance together.
Key Step To Start A Business In ‘FREE ZONE’
Would you like to really set up a business in free zone? Then we would like to convey you a message that setting up a business in free zone is relatively easier than that of setting up one in the mainland. Free zone authorities require minimum paperwork and duration. Well! Let us now look into the key steps to set up a business in a free zone.
Firstly, determine the type of legal entity. It would mean that you can set up two types of companies:
- Free Zone Limited Liability Company,
- Free Zone Establishment.
The difference would lie in the number of shareholders, and it is about whether the shareholder is a natural person or legal person. All free zones might not register both types of companies. You have to check with individual free zone authorities about the type of company they can register.
Then you can choose a ‘trade name’ according to your preference; Here what you need to be careful about is that you must be checking the permitted trade names and whether the intended name has already been registered. You can check this with the respective free zone authority.
Up then you may apply for a business license; Applying for a business license you must do based on the primary activity of your business.
What next is nothing but ‘choosing an office space; After completing all the above given activities it is your time now to choose an office space. Actually, you can either buy or lease office spaces in free zones. Office requirements depend on the number of employees and type of business activity of your company.
Finally, get the pre-approvals, register your business and get your license.
Above mentioned facts are the key steps for you initiate a business in free zone. If you are really eager, please go forward. It is an ocean full of opportunities.
Starting a Business on the ‘MAINLAND’
Are you also one among those bright minds who is waiting to set up a business in the mainland of UAE? Then don’t be worried, let us now look into that. You can apply online to start your business on the UAE mainland within 15 minutes at the most. If you are starting a business in ordinary way it requires a series of steps, it includes the procedures and approval from the economic department and other government entities. Let us now look into that.
If you are starting a business in ordinary ways it includes a series of steps,
Firstly, you must identity a business activity, Business activity is the basis for selecting the legal form and the type of license. It would mean which type of license you are taking, it could be commercial, industrial or professional.
Then you have to select the legal form, The legal form is depending mainly on the business requirements. It is also the basis for identifying the applicable laws and regulations.
Up next you may register the ‘Trade Name’ As we have already discussed, a trade name is the one that distinguishes one business from another. It also clarifies more about the nature and the form of business. If you are an investor, you can apply for the trade name through the economic department of each Emirate, through its website or mobile application.
Once you have registered the trade name, now you have to wait for the ‘Initial Approval’
What does it mean by the initial approval?
- An initial approval means nothing but the fact that the UAE government has no objection for the business to be established in the country. It also allows you to proceed with the next step to continue with your business dream.
- MOA and LSA; Depending on the legal form of a business, a completed and signed memorandum of association (MOA) or Local Service Agent Agreement (LSA) of the business is required.
- Then you can select a business location. You must know that all business in UAE must have a physical address to operate. Therefore, selecting a business location is very important.
- Collect the business license, after completing the above-mentioned steps you can collect the business license from service centers of the economic departments or through their websites.
If you’re a really eager to set up a business in UAE free zone or mainland this information will surely help you. Starting a business in UAE is a very much possible activity. So, without thinking twice, grab the ocean full of opportunities.
For more information regarding this, kindly reach out to is in FIMKIN.