4 Major Types of Business Licenses in UAE
There is a wide range of Business Licenses in the UAE that caters to specific investor requirements. Over the years new company incorporations are on a rise due to the demand from foreign investors for setting up a company.
The availability of numerous types of business licenses in the UAE helps entrepreneurs to effectively establish a company under the specific business license type. The government of the UAE is constantly introducing entrepreneur-friendly policies like Long Term Residence Visas, reducing certain business setup fees, etc.
UAE aims to drive its economy to greater heights by inviting more investors to the UAE market and providing world-class infrastructure for business setups.
Free Zones, Mainland, and Offshore Business Licenses in UAE
The Free Zones, Mainland, and Offshore provide the investors with a whole lot of options to choose setting up the company in UAE.
Based on the nature of your business, the business activities selected, and the target audience. You can choose which business jurisdiction and business license in UAE for establishing the company.
There is a host of business license types in UAE for investors to choose from, whether you set up your business in any of the three business jurisdictions.
How to get a Mainland Business License in UAE?‘
Future Bangash prefers investors who aim at expanding their business to the local UAE market. Also, Mainland companies have a provision to add more branches and hire more staff easily.
The most common company type in the mainland is the limited liability company and here is how you can obtain a mainland business license and start operating an LLC Company.
- Reserve the company trade name and get approval from the respective Department of Economic Development (DED) of the Emirates
- Select the trade activities and business license type depending on the business requirements
- Submit the application form, the investor passport copy, and the photograph to DED
- Pay the required fee for obtaining the business license from the mainland of UAE.
- The business license will be issued after approval from the DED
- With the business license, the investor can apply for a corporate bank account as well as take a UAE Residence visa under the company.
The latest amendment of 100% expatriate ownership in mainland companies is a major factor in the popularity of mainland companies in the UAE. Global investors can open a fully-owned mainland company in a wide range of business activities.
There is no requirement for a UAE National Sponsor anymore for opening a mainland company in UAE.
How to get an Offshore Business License?
Offshore is a business jurisdiction in the UAE that consists of Non-Resident Companies. There are no residence visas attached to the companies and also they cannot own or lease physical office space in UAE.
Offshore businesses are mainly virtual companies registered with the same address as their REGISTERED AGENTS and are international companies operating globally. They mostly facilitate international trade and operations remotely.
The Offshore companies will not be having a trade license instead, they have a Certificate of Incorporation. Offshore companies in UAE are formed to boost international trade among countries. They are non-resident companies that indulge in global trade operating from UAE.
Choosing the Right Business Jurisdiction
The rationale behind choosing the right business jurisdiction mainly depends on whether you are targeting only international markets or you also considering UAE and the rest of the GCC markets for your business.
There are a host of benefits in UAE like growing domestic demand from the ex-pat population, applying for government contracts, Low taxation, a wide range of business licenses, business activities, etc.
Whereas in the case of Free Zones, you get benefits such as 100% foreign ownership, 100% profit repatriation, customs duty exemption, world-class infrastructure, easy company formation, etc.