UAE introduced a host of changes in the Commercial Transactions Law making it easy to set up business in the free zone

People across the globe find it convenient by the process efficient for setting up businesses in the UAE. The laws, easy setting up procedures, and quick processing attract businessmen from around the world to the UAE.

Several noteworthy modifications were made to the Commercial Transactions Law in the United Arab Emirates in 2023, one of which was the lowering of the legal age limit for establishing a business. The Ministry of Economy has set the age requirement to 18 to operate a business. The UAE Ministry of Economy claims that establishing a business in a free zone is quite simple and just requires six basic procedures. They are as follows:

 

There are several licenses that UAE Free Zones can offer:

Figuring out the nature of business and the category it belongs to, several types of licenses are offered by the UAE free zone. Here are some of them:

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

 

There are three types of legal structures that your company can have

A set of rules and regulations has to be followed based on the nature of the business and its requirements:

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

 

A trade name can be applied through the Department of Economic Development's app or website

It must be noted that a trade name is the name of your business and that no other registered company's name must be identical to yours. The following are some of the terms and conditions:

• Your trade name must indicate the legal structure of the company (for example LLC)
• it should not be offensive to the general public 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

 

There are more than 40 free zones in the nation, so you should pick a suitable spot for your company. 

• You can register with a virtual office or rent an office to obtain an independent or professional license. 
• The size of your workplace and the type of business you run will determine how many people work for you. After you have your business license, you can purchase or rent an office that is partially or completely equipped. Free zone properties are typically rented out. 
• Free zones also provide several advantages to aid in the establishment of enterprises by investors. IT infrastructure, obtaining "To whom it may concern" or NOC letters, and granting, renewing, and canceling resident permits are a few examples of these.

 

You must submit all required paperwork and confirm that you have met all requirements to get your first clearance

The following are some typical documents you'll need to have ready:

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

 

Payment of fees to receive a license for your company

Your fees would also include company license issuance fees. Some of the documents to be produced will be as follows: 

• Completed application form for registration
• Power of Attorney given to Manager/Director (notarised and attested)
• Memorandum and Articles of Association (notarised and attested)
• Board Resolution appointing Manager/Director (notarised and attested)
• Specimen signature of Manager/Director (notarised and attested)
• Information on share capital
• Passport-size photos of the Manager/Director