UAE: Set up a business in free zone in 6 easy steps

Recently, the country made a host of changes to the Commercial Transactions Law, one of which was to reduce the legal age to establish a business

Step 1: Type of licence

There are several licences that UAE Free Zones can offer, your first step would be to figure out what the nature of your business is and which category it falls under. Here are some of them:

Commercial Trade
Consultancy Services
Industrial
Educational
Media
eCommerce
Offshore
Freelancer
Warehousing
Manufacturing
Innovation

Step 2: Legal structure

There are three types of legal structures that your company can have. Basis the nature of your business and its requirements, you would have to follow a set of rules and regulations.

There are three legal forms of business in the Emirates, they are:

Free Zone Limited Liability Company (FZ LLC)
Free Zone Company (FZ Co.)
Free Zone Establishment (FZE)

Step 3: Trade name registration

You can apply for a trade name through the Department of Economic Development's app or website.

Keep in mind that a trade name is the name of your company and it cannot be similar to the name of any other registered company. There are some terms and conditions which are as follows:

Your trade name must indicate the legal structure of the company (for example LLC)
it should not be offensive to the general public of or have inappropriate words
It should be compatible with your business/company
The trade name should not have any UAE ruler's name or logo, or any official UAE government logo or the name or logo of any foreign government or government bodies
It should not be registered by another company
The trade name and trademark must be approved by the Department of Economic Development and the Ministry of Economy, respectively
Trade name certificates are subject to renewal

4. Business location

Now, you should choose an appropriate location for your business – there are more than 40 free zones in the country.

For an independent/professional license you can rent an office or register with a virtual office.

Your office space will depend on the number of employees in your company and the nature of your business. You can get a fully-furnished or partially furnished office that can be rented or purchased once you receive your commercial licence. Usually, properties in free zones can be taken on rent.

Free zones also offer several facilities to help investors set up their businesses. These include but are not limited to IT infrastructure, getting NOC letters or ‘To whom it may concern’ letters and issuing, renewing and cancelling residence visas.

Step 5: Receiving initial approval

To receive your initial approval, you must submit all necessary documents and ensure that you have satisfied all the mandatory criteria. Here are some common documents that you will need to prepare:

Completed application form
Business plan
Copy of existing trade license/registration certificate (if applicable)
Passport copies of the company’s shareholders and appointed manager
Registry Identification Code Form (RIC) for appointed manager (original and notarised)
Specimen signatures of the company’s shareholders and appointed manager
Title deeds (if applicable)
A brief letter clarifying the investment idea and the investor's plan (Letter of Intent)
2 years audited financial reports or certificate of reference from a bank (as required)
Documents commonly required for freelancers/professionals
Application for registration
Curriculum vitae or profile
Reference letter from a bank
Registry Identification Form (RIC) for Director (original and notarised document)