The United Arab Emirates (UAE) has emerged as a global business hub, offering unparalleled opportunities for entrepreneurs and investors. Central to this allure is the Golden Visa in UAE, a scheme designed to attract foreign talent and investment. This article will explore the benefits and processes involved in obtaining a Golden Visa, setting up a business, and forming a company in the UAE.
Golden Visa in UAE
The Golden Visa in UAE is a long-term residency visa that allows foreign nationals to live, work, and study in the country without the need for a national sponsor. Introduced in 2019, this visa is part of the UAE’s efforts to attract skilled professionals and investors, ensuring long-term growth and stability in various sectors.
Eligibility Criteria
To qualify for the Golden Visa in UAE, applicants must meet specific criteria, which include:
- Investors: Individuals who invest a minimum of AED 10 million in public investments.
- Entrepreneurs: Those who own a business with a minimum capital of AED 500,000.
- Specialized Talents: Researchers, scientists, and innovators in the fields of science and technology.
- Outstanding Students: High-performing students with exceptional academic records.
Benefits
The Golden Visa offers several advantages:
- Long-term Residency: Visa validity of up to 10 years.
- Family Inclusion: Ability to sponsor family members, including spouses and children.
- Ease of Business: Simplified procedures for business setup in UAE.
Business Setup in UAE
The UAE offers a conducive environment for business setup, with streamlined procedures and numerous incentives. Here’s a step-by-step guide to setting up a business in the UAE.
Choose a Business Activity
The first step in business setup in UAE is selecting the type of business activity. This choice will determine the legal structure, required licenses, and regulatory approvals.
Determine the Legal Structure
The next step is choosing the legal structure of your business. Common structures include:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Branch Office
- Free Zone Company
Select a Business Name
Choose a unique business name that complies with the UAE’s naming conventions. The name should not violate public morals or include religious references.
Obtain Initial Approvals
Submit an application to the Department of Economic Development (DED) for initial approvals, including trade name reservation and business activity clearance.
Draft a Memorandum of Association (MOA)
Prepare an MOA outlining the company’s structure, ownership, and operations. This document must be notarized by a public notary.
Secure a Physical Office Space
A physical office address is mandatory for business setup in UAE. The size and location of the office depend on the nature of the business activity.
Obtain Licenses and Permits
Apply for the necessary licenses and permits, which may include:
- Trade License
- Commercial License
- Professional License
- Industrial License
Register with Relevant Authorities
Register your business with relevant authorities, such as the Chamber of Commerce, Ministry of Labor, and Immigration Department.
Company Formation in UAE
Company formation in UAE involves several legal and administrative procedures. Here’s a detailed guide to help you navigate this process.
Free Zone Company Formation
Free zones in UAE offer attractive incentives for foreign investors, including 100% ownership and tax exemptions. Popular free zones include:
- Dubai Multi Commodities Centre (DMCC)
- Jebel Ali Free Zone (JAFZA)
- Dubai Internet City (DIC)
Mainland Company Formation
Forming a company in the UAE mainland allows businesses to operate freely across the UAE. However, it requires a local sponsor holding 51% of the shares. Recent reforms now allow for 100% foreign ownership in certain sectors.
Offshore Company Formation
Offshore companies are ideal for businesses focusing on international trade, asset protection, and tax optimization. These companies are not permitted to conduct business within the UAE.
Required Documentation
Regardless of the company type, certain documents are required for company formation in UAE:
- Passport copies of shareholders and directors
- Proof of residence
- Business plan
- MOA and Articles of Association (AOA)
Banking and Finance
Open a corporate bank account in a UAE-based bank to manage your business finances. Choose a bank that offers services tailored to your business needs.
Hiring Employees
Ensure compliance with UAE labor laws when hiring employees. Obtain necessary work permits and visas for expatriate workers.
Conclusion
The Golden Visa in UAE, combined with favorable business setup and company formation processes, makes the UAE an attractive destination for entrepreneurs and investors. By understanding the requirements and benefits, you can successfully establish and grow your business in this dynamic and thriving market. Whether you are looking to invest, innovate, or expand, the UAE offers a robust platform for success.
