The United Arab Emirates (UAE) is known for its favorable business environment and strategic location, making it an attractive destination for entrepreneurs and investors.
To establish and register for an onshore company in the UAE, the following steps must be taken:
1. Choose the Appropriate Legal Structure: The first step in setting up an onshore company in the UAE is to decide on the legal structure that best suits your business needs.
The most common legal structures are:
a) Limited Liability Company (LLC): Suitable for most businesses, an LLC requires at least two and up to fifty shareholders, with liability limited to their respective shareholdings.
b) Sole Establishment: Ideal for a single owner, this structure provides full control, but the owner bears unlimited personal liability.
c) Civil Company: Suitable for professionals like doctors, lawyers, engineers, etc., who wish to offer their services as a partnership.
2. Choose a Business Activity: Determine the specific activities your company will engage in. Different activities may require approval from various government departments, so it is crucial to choose the correct business activity during the registration process.
3. Local Sponsorship: For an onshore company, you will typically require a local sponsor who holds 51% ownership of the business. This local sponsor can be an individual UAE national or a UAE-owned company. While they have ownership rights, profit-sharing, and other arrangements can be agreed upon in a legal contract.