Company Setup and Bank Account Opening in UAE – What Investors Must Know?
UAE is on the right track in terms of trade and commerce activities. Even with the slowdown and downturn due to the Pandemic, UAE manages a strong position in trade and provides a sound environment for businesses to grow and sustain.
The political stability, business-friendly laws, 100% foreign ownership, profit repatriation, improved lifestyle, robust banking network, world-class business infrastructure, easy setting up of a company, etc., make UAE the right choice for entrepreneurs around the world.
Most Popular Company Setup Options in UAE
The most popular company setup options in UAE at present are the Free Zone company formation and the mainland LLC company setup. Investors can choose from their main business jurisdictions in UAE namely the Free Zone, Mainland, and the Offshore.
The business ecosystem in UAE is very advanced and robust with most of the foreign investors preferring the Free Zones of UAE due to various business benefits it offers.
With the latest announcement from Cabinet on 100% foreign ex-pat ownership in Mainland Companies; LLC Company is becoming a prominent choice for the investors.
1. Free Zone Company Formation
The Free Zone Company Formation in UAE is the most sought after among foreign investors due to the enormous business benefits the Free Trade Zones provide to the business investor.
There are more than 40 plus Free Trade Zones in UAE offering attractive company setup packages depending on the business requirements of the investors.
The 100% foreign ownership, no income tax, favorable business laws, 100% profit repatriation, improved business infrastructure, etc., are making Free Zones the attractive choice for the investors.
How to Setup a Company in Free Zone?
Free Zone company formation involves a set of processes to be followed. To get the company registered quickly it is advisable to get assistance from an expert Business Consultant like AURION.
The respective Free Zone Authority will be the governing body of the company that will be registered. All documents, approvals, are to be obtained by the Free Zone Authority.
Role of a Business Consultant
Getting the assistance of an expert Business Consultant is advisable to speed up the process of setting up a company in the UAE.
The Business Consultants will ensure the required business support services to the investors. Ranging from UAE residence visa processing to bank account opening assistance, the Business Consultants offer a host of business support services.
Our team of experts will handle a wide range of business support services like document clearance, and tenancy contract preparation for office spaces, customs registration, and more.
The role of a Business Consultant in company formation is vital. they educate the clients with the latest company laws applicable to the company based on the business activities, contact with government authorities, arrangement of the right auditors for the companies, preparation of share certificate, and many more.
Steps in Setting up a Company in Free Zone
The following steps are involved in setting up a company in the Free zones of UAE.
- Prepare the company registration application form and decide on the tradename
- Decide on the exact business activity and company structure based on the shareholding pattern
- Submit the required documents to the Free Zone and initiate the fee payment for securing the business license
- Choose the right office space for your business based on the business requirements and prepare the tenancy contract with the free zones
- Obtain the Trade License, get all approvals, attestations, customs registration, etc.
- Get the UAE Residence Visa and proceed to open a corporate bank account for the company
Hence, the company setup process in a Free Zone is a very straightforward process with quick company registration and processing of paperwork.
Once the trade license is issued the company can start operating from the Free Zone seamlessly. It is a plug-and-play system that has a robust infrastructure to support the investors. It helps them to open a company in UAE without any hassles.
2. Mainland Company Formation
Limited Liability Company is one of the most preferred company structures in UAE. The 100% ex-pat ownership in mainland companies makes it an attractive choice for investors. Global investors prefer UAE due to many business benefits.
The flexibility of a business in the mainland of UAE in terms of taking office space & warehouses in UAE, hiring employees, expanding business by selling in the local markets, etc., make the mainland of UAE a lucrative option for trading companies, manufacturing units, etc.
The trade license for mainland companies is issued by the respective Emirate’s Department of Economic Development.
The documents are to be submitted to the DED and the required fee has to be paid. Any special approvals required for the business activity must be obtained from the Government Authorities in UAE before starting a business in the region.
Business Bank Account Opening
Corporate Bank Account Opening is a crucial component for a new business establishment. UAE has a growing network of international and local banks offering a wide range of business and personal banking services.
The banks in UAE have a robust security system and vibrant product services ranging from business credit cards, loans, securities, and more.
The Banks in UAE have a strict compliance process and transparent document submission. The investor has to meet the compliance process of the Bank and maintain a significant cash flow through the bank.
Also, there is business insurance that some banks insist the investors to sign-up for to keep their business secured.
With the latest digitization and smart technology, banks in UAE offer smart banking services such as online bank account opening, online KYC Calls, Instant loan approval online, and more.
Hence, the business banking scenario is becoming more flexible in UAE to accommodate the growing business requirements and new company registrations.
To know more about Company Formation in UAE and the business support services required, talk to our expert Business Consultants right away!