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
The UAE is a magnet for high net worth individuals, investors and businessmen – the ease of setting up businesses, the quick processing time and the laws are among the reasons why people across the globe come to the UAE to do business.
In 2023, the UAE introduced a host of changes in the Commercial Transactions Law, one of the several notable changes was the reduction in the legal age requirement to have a business. The Ministry of Economy changed the minimum age for a business to 18.
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Setting up a business in a UAE Free Zone is considerably easy, and can be done in just six simple steps, according to the UAE's Ministry of Economy. They are:
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:
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:
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:
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.
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:
Finally, you would be required to pay the fees to receive a license for your company. Your fees would also include a company license issuance fees.
You will also be asked for some documents, some of which are listed below:
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Meher Dhanjal is a Digital Journalist who breaks news first and breathes second. She loves chasing page views and finding stories that tug at readers' heartstrings.
meher@khaleejtimes.com