Business Setup
Start your business journey in the UAE with Stratify. From planning to registration, we simplify the entire setup process for hassle-free success.
What is Company Formation?
Company formation refers to the legal process of establishing a new business entity in a specific jurisdiction. In the UAE, this involves registering the company, obtaining necessary licenses, and complying with local regulations to ensure that your business operates legally and efficiently.
The Company Formation Process in the UAE
The UAE’s strategic location bridges East and West, providing access to a vast market. Its business-friendly environment, tax incentives like zero corporate tax in many free zones, and minimal personal taxes make it highly attractive. Coupled with a diversified economy spanning finance, trade, technology, and tourism, the UAE fosters abundant opportunities for businesses.
Determine the Business Structure
Many businesses favor LLCs for their limited liability and flexible management. Free Zone Companies offer 100% foreign ownership and tax exemptions but can only operate within the free zone or internationally. Branch offices allow foreign companies to maintain their identity while establishing a presence in the UAE.
- Limited Liability Company (LLC)
- Free Zone Company
- Branch Office
Prepare and Submit Documents
Complete the application form, provide a business plan, and include passport copies of all shareholders and directors. Submit a No Objection Certificate (NOC) if a UAE resident is involved, along with proof of address and a shareholders agreement detailing roles, responsibilities, and ownership distribution.
- VAT invoices from suppliers.
- Customs declarations for imports and exports.
- Bank statements or payment receipts proving that VAT has been paid.
Submit VAT Returns
- Total VAT charged on taxable supplies
- Total input VAT incurred.
- The net VAT to be paid or refunded.
FTA Review
Once the VAT return is submitted, the FTA will review the information. The refund process typically involves verifying the documents and assessing the claim. If additional documentation or clarification is needed, the FTA will request it from the business.
Approval and Refund Disbursement
After the review, if the claim is valid, the FTA will approve the VAT refund. The amount will be credited to the taxpayer’s account or bank account, depending on the refund method chosen.
Documents Required for Company Formation
Passport Copies
For all shareholders and directors.
Proof of Address
Utility bill or lease agreement for the business premises.
No Objection Certificate
If required.
Business Plan
Detailed plan outlining business objectives
Shareholders Agreement
Document outlining shareholder roles and responsibilities.
Legal Documents
Memorandum of Association (MOA) and Articles of Association (AOA)
Why Choose Stratify for Company Formation?
At Stratify, we offer a comprehensive range of services to ensure that your business recovers the maximum amount. Our expert team understands the nuances of law and provides tailored services to streamline the process.
Expert Guidance
We conduct an in-depth review of your busiOur team offers expert advice on the best business structure and location based on your needs.ness to determine whether you meet the VAT refund eligibility criteria, ensuring that all applicable VAT can be reclaimed.
Streamlined Process
We handle the paperwork, approvals, and documentation, ensuring a smooth and efficient company formation process.
Local Knowledge
With extensive experience in the UAE market, we understand local regulations and can navigate the complexities of company formation.
Comprehensive Support
From initial planning to obtaining licenses and setting up a bank account, we provide end-to-end support for your business setup.
Start your Business Today
Start your Business Today
Our Other Company Formation Services
Our Services
Stratify Corporate services is an independent and international organisation with a specialization in crafting sustainable solutions and strategies
Value Added Tax
Ensure full compliance with UAE’s Value Added Tax regulations through tailored advisory, registration, filing, and VAT health check services.
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Corporate Tax
Navigate UAE’s corporate tax landscape with strategic tax planning, filing, and compliance support to optimize your tax position.
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Excise Tax
We assist businesses in understanding and complying with excise tax regulations, including registration, filing, and audit preparation.
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Accounting Outsourcing
Streamline your financial operations by outsourcing your accounting needs, from bookkeeping to financial reporting, for efficient management.
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Customs
Simplify import-export procedures and ensure compliance with UAE Customs regulations through advisory, registration, and customs reconciliation services.
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Company Formation
Start your business in the UAE with expert guidance on company incorporation, licensing, and compliance with local regulations.
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Audit & Assurance
Our audit and assurance services provide reliable financial insights, ensuring transparency and compliance with regulatory requirements.
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Economic Substance
Anti-Money Laundering
Protect your business by staying compliant with UAE’s AML regulations, with risk assessments, monitoring, and reporting solutions.
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Frequently Asked Questions
What is the minimum capital requirement for company formation in the UAE?
The minimum capital requirement varies depending on the business structure and type. For LLCs, there is no specific minimum capital requirement in most cases, but it must be sufficient to support the business activities.
How long does the company formation process take?
The process typically takes between 2 to 6 weeks, depending on the business structure, the completeness of documentation, and approval times.
Can foreign nationals own 100% of a company in the UAE?
Yes, foreign nationals can own 100% of a company in most UAE free zones. However, for mainland companies, at least 51% of the shares must be owned by a UAE national.
Do I need a local sponsor for a mainland company?
Yes, a local sponsor (UAE national) is required for mainland companies. They hold a 51% share in the company but do not participate in the day-to-day management.
Is it possible to change the company’s name or business activities after formation?
Yes, changes can be made, but they require approval from the relevant authorities and may involve additional documentation and fees.
What are the costs associated with company formation?
Costs vary depending on the business structure, location, and services required. Typical costs include registration fees, licensing fees, office lease, and legal fees.
Can I operate my business in other Emirates or internationally with a Free Zone company?
Free Zone companies are generally restricted to operating within the free zone or internationally. To operate in other Emirates, you may need to set up a mainland branch.
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Ready to Simplify Your Journey?
For expert assistance in setting up your business in the UAE, contact Stratify today. Our experienced team is dedicated to providing you with seamless and efficient company formation services, ensuring that your business is established successfully and in compliance with all regulations.
