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Business Setup in the UAE | Attestation of Commercial Documents in UAE

Starting a business in the UAE requires a thorough understanding of legal and regulatory procedures. Company registration and document attestation are pivotal steps in establishing your business presence in the UAE. Attestation is the process that verifies the authenticity of your documents, ensuring they are recognized by UAE authorities, and is mandatory for completing your company registration, securing visas, and accessing banking services.

The UAE is a prime destination for business due to its strategic location, world-class infrastructure, and favorable tax environment. Setting up a business here involves navigating through a variety of legal structures and compliance requirements. The two most popular options are Free Zone and Mainland setups.

  • Free Zone Setup: Ideal for businesses that aim to operate within specific economic zones. Benefits include 100% foreign ownership, tax exemptions, and simplified customs procedures.
  • Mainland Setup: Allows businesses to operate anywhere in the UAE and enter into contracts directly with the government. However, it typically requires a local sponsor owning 51% of the business.

What is Trade License Attestation?

Trade license attestation is a process that validates the authenticity of your trade license, ensuring it meets legal standards. The Ministry of Foreign Affairs (MOFA) attestation is often required for various legal and business purposes. Here’s a step-by-step guide:

  1. Notary Public Attestation: First, get your documents attested by a Notary Public to verify their authenticity.
  2. MOFA Attestation: Submit the notarized documents to MOFA for attestation. This process confirms the documents’ validity for use in the UAE and abroad.

What is a Trade License in the UAE?

Trade License in the UAE

A trade license in the UAE is a mandatory legal document that permits businesses to operate within the country. Issued by the Department of Economic Development (DED) in the respective emirate, this license is crucial for the lawful functioning of any business entity. A trade license in the UAE is an essential legal document that permits businesses to operate within the country. Issued by the Department of Economic Development (DED), it ensures compliance with the UAE’s regulations and standards. Here are the main types of trade licenses available:

  • Commercial License: For trading activities.
  • Professional License: or service-oriented businesses such as consulting and IT services.
  • Industrial License: For manufacturing and industrial activities.
  • Tourism License: For businesses in the tourism sector, including travel agencies and hotels.
  • Freelance License: For individual freelancers in specific free zones.

  • Detailed Information for Trade License in the UAE:

    :A trade license in the UAE is an essential legal requirement for businesses, providing the authorization to conduct various commercial activities. It is critical for compliance with local regulations and smooth business operations.

    • License Number:
    • ADCCI Number:
    • Establishment Card MOHRE:
    • Establishment Card ICA:
    • Legal Form: L.L.C.
    • Trade Name:
    • Establishment Date:
    • Issue Date:
    • Expiry Date:
    • Roles (Owner, EC Authorized Signatory, Manager) with associated nationalities:
    • Economic Activities:
    • Address:

Abu Dhabi trade license sample - Economic License for Emerging Economic Establishment by Department of Economic Development

Company Setup, Business Formation, and Branch Opening in the UAE

Types of Business Structures in the UAE

When considering business setup in the UAE, selecting the appropriate business structure is crucial. Here are the primary types of business entities:

Mainland Companies

Governed by the UAE Commercial Companies Law (CCL), mainland companies allow businesses to operate across the UAE and internationally. They are typically registered with the Department of Economic Development (DED) in the relevant emirate.

  • Ownership Requirements: Recent reforms allow 100% foreign ownership in most sectors, although some strategic sectors may still require a local sponsor or partner.
  • Wide Scope of Operations: Mainland companies can trade within the UAE market and bid on government contracts.

Free Zone Companies

These are established in designated free zones, offering various incentives such as:

  • 100% Foreign Ownership: Full foreign ownership is allowed without the need for a local sponsor.
  • Tax Exemptions: Free zone companies enjoy exemptions from import/export duties, corporate taxes, and value-added tax (VAT) for certain activities.
  • Restrictions: These companies are limited to operating within the free zone or internationally unless they engage a local distributor.

Branches of Foreign Companies

This structure allows foreign companies to open branches in the UAE. Key features include:

  • No Separate Legal Identity: The branch operates under the parent company’s name and can engage in commercial activities similar to those of the parent company.
  • Licensing: Requires licensing from the Ministry of Economy and the relevant DED or free zone authority.

Detailed Steps for Company Registration

Mainland Company Registration

  • Determine Business Activity and Legal Structure: Identify the specific business activity and choose an appropriate legal structure (e.g., LLC, sole proprietorship).
  • Trade Name Registration: Secure a trade name that aligns with UAE naming conventions and register it with the DED.
  • Initial Approval: Obtain initial approval from the DED, which may require submitting a business plan, passport copies, and other relevant documents.
  • Office Space: Secure office premises as part of the legal requirements. The size and location of the office must align with the business activity.
  • Draft Legal Documents: Prepare the Memorandum of Association (MoA) and other necessary legal documents, which may need to be notarized.
  • Final Submission and Licensing: Submit the finalized documents, pay the required fees, and receive the trade license from the DED.

Free Zone Company Registration

  • Select a Free Zone: Each free zone is specialized for specific industries (e.g., Dubai Multi Commodities Centre for trading, Dubai Internet City for tech companies).
  • Submit Documentation: Required documents typically include passport copies, a business plan, and the MoA.
  • Lease Office Space: Choose from a range of office options within the free zone, from flexi-desks to full offices.
  • Obtain License and Visas: Upon approval, the free zone authority issues the business license and relevant visas.

Opening a Branch in UAE of a Foreign Company

To establish a branch of a foreign company in the UAE, the process involves several steps, each requiring careful attention to detail:

Initial Approvals:

  • Ministry of Economy: Apply for initial approval from the Ministry of Economy, which includes submitting the parent company’s documents, such as a certificate of incorporation, MoA, and a board resolution to open the branch.
  • DED or Free Zone Authority: Depending on where the branch will operate, additional approval and licensing are required from the DED or the relevant free zone authority.

Registration and Licensing:

  • Legal Documentation: The parent company’s documents must be attested by the UAE embassy in the country of origin and then by the UAE Ministry of Foreign Affairs.
  • Commercial License: Obtain the commercial license that permits the branch to conduct business in the UAE. This involves paying registration fees and other applicable charges.

Office Setup:

  • Physical Office Requirement: The branch must have a physical office in the UAE, adhering to the size and location requirements stipulated by the relevant authority.
  • Employment: The branch must also register with the Ministry of Human Resources and Emiratization (MOHRE) to employ staff.

Regulatory Compliance and Considerations

Legal Compliance

  • Commercial Companies Law: Mainland companies must comply with the UAE Commercial Companies Law, which governs business operations, corporate governance, and other legal aspects.
  • Free Zone Regulations: Free zone companies must comply with specific regulations set by the free zone authority, which may include sector-specific rules.
  • Employment Law: All companies must adhere to UAE labor laws, including the provision of health insurance and adherence to working hour regulations.

Taxation

  • Corporate Tax: While mainland companies are subject to UAE corporate tax laws, free zone companies typically enjoy tax holidays and exemptions. However, they must comply with VAT regulations where applicable.
  • Customs Duty: Free zone companies are generally exempt from customs duties for goods imported and re-exported.

Strategic Advantages of Setting Up in the UAE

Global Connectivity

The UAE’s strategic location offers access to markets in the Middle East, Africa, and Asia. It is a key hub for global trade, with world-class ports and airports facilitating international business operations.

Advanced Infrastructure

The UAE boasts state-of-the-art infrastructure, including advanced telecom networks, modern highways, and world-class logistics facilities, making it an ideal base for international operations.

Business-Friendly Policies

The UAE government provides robust support for businesses through initiatives like 100% foreign ownership, streamlined visa processes, and extensive investment in innovation and technology sectors.

What is the process for attesting commercial documents required to open a company branch in the UAE?

Commercial Document Attestation for Branch Opening in UAE

Opening a branch of a foreign company in the UAE requires strict adherence to legal formalities, including the attestation of essential commercial documents. Proper attestation ensures that your documents are recognized by UAE authorities, facilitating a smooth setup process for your branch.

Why Document Attestation is Crucial for Branch Opening:

  • Legal Recognition: Attestation certifies that your documents are genuine and recognized by UAE government bodies.
  • Smooth Licensing Process: Properly attested documents are necessary for obtaining licenses and permits from the Ministry of Economy and other relevant authorities.
  • Global Compliance: Ensures that your business adheres to both UAE laws and international regulations, allowing seamless business operations.

Step-by-Step Process for Document Attestation:

1. Initial Document Preparation:

Ensure all documents, such as the Memorandum of Association (MOA), Articles of Association (AOA), and Board Resolutions, are duly prepared in English or Arabic. If the original documents are in another language, they must be translated by a certified translator.

Documents Required:
  • Trade name reservation certificate.
  • Certificate of Incorporation from the parent company.
  • Board resolution authorizing the branch setup and appointment of a manager.

2. Notarization:

All commercial documents must first be notarized by a notary public in the country where the parent company is incorporated. This step validates the authenticity of the signatures on the documents.

3. Attestation by the Ministry of Foreign Affairs (MOFA) in the Home Country:

The notarized documents should be attested by the Ministry of Foreign Affairs in the country of origin. This step confirms that the documents are recognized by the home government.

4. UAE Embassy Attestation:

Once the documents are attested by the home country’s MOFA, they must be further attested by the UAE Embassy or Consulate in that country. This is a crucial step as it ensures that the documents are recognized by UAE authorities.

5. Attestation by the UAE Ministry of Foreign Affairs and International Cooperation (MOFAIC):

Upon arrival in the UAE, the documents need to be attested by the UAE MOFAIC. This is the final attestation step and ensures the documents are legally valid for use in the UAE.

6. Submission to Relevant Authorities:

After attestation, submit the documents to the Ministry of Economy (MoE) or the relevant free zone authority to proceed with branch registration and licensing. Ensure that you meet all specific requirements of the local authority where the branch is being established, such as Dubai Development Authority (DDA) if in a Dubai Free Zone.

What are Essential Documents for Company Setup in the UAE?

Essential Documents for Company Setup in the UAE and their Attestation Requirements

Attestation from the Chamber of Commerce is typically required for documents related to company formation and operation, such as:

Company Formation Documents

  • Certificate of Incorporation
  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • Shareholder Agreements (if applicable)

Financial Documents

  • Board Resolutions
  • Tax Certificates (if applicable)

Business Operation Documents

  • Trade License
  • Power of Attorney
  • Commercial Invoices (if applicable)
  • Certificate of Good Standing (from home country Chamber of Commerce)
  • Certificate of Incumbency
Why is Attestation Essential for Business Setup in the UAE?
The UAE government places high importance on verifying the legitimacy of documents. Attestation confirms that your documents are genuine and have been issued by the appropriate authorities. The UAE government emphasizes transparency and legal compliance, making document attestation a mandatory process for:

Company Registration

Attested documents are vital for registering your company with the relevant authorities (Department of Economic Development, free zone authority, etc.). These documents provide proof of your identity, business purpose, and legal standing.

Visa Applications

Attested educational certificates, employment documents, and other relevant documents are required for obtaining residency visas for you and your employees.

Bank Account Opening

Banks in the UAE require attested documents to verify your identity and establish your company's legitimacy, facilitating smooth financial transactions.

Contracts and Agreements

Attested documents add weight and enforceability to all business contracts and agreements, ensuring clarity and legal protection for all parties involved.

Book a free consultation today and let us guide you through the process!

Documents Typically Requiring Attestation

The attestation process can vary slightly depending on the type of document and the issuing authority. However, here’s a general overview of the steps involved:

Certificate of Incorporation

Memorandum of Association (MOA)

Articles of Association (AOA)

Board Resolutions

Power of Attorney

Shareholder Certificates

Specific Attestation Requirements

UAE Business Regulations

Businesses in the UAE must keep their commercial books and supporting documents for a minimum of five years from the date the book is closed.These books could be requested for verification during attestation procedures.

Power of Attorney

Attestation for Power of Attorney documents need to be attested by the issuing authority, the Ministry of Foreign Affairs in your home country, and the UAE Embassy.

Commercial Register

Registration in the commercial register is mandatory for businesses. Attestation might be required for documents used during registration.

Get in touch with our team for a free consultation and personalized quote. Our experts are available 24/7 to assist you.

Seeking Professional Help

Attestation is a vital part of setting up a business in the UAE. The attestation process can be intricate and time-consuming. Consider consulting a business setup service expert like GloboPrime specializing in UAE requirements to ensure accuracy and avoid delays. business setup in the UAE. We provide fast, reliable, and cost-effective attestation services for all types of documents

Our Attestation Process:

Our Attestation Process

Document Evaluation

We review your documents to ensure they meet the necessary criteria for attestation.

Notary Verification

The documents are verified by a notary public to confirm authenticity.

Chamber of Commerce Attestation

For commercial documents, we obtain certification from the relevant Chamber of Commerce.

Ministry of Foreign Affairs (MOFA)

We then proceed with MOFA attestation, which is mandatory for all documents to be recognized abroad.

Embassy Legalization

The final step involves legalization by the embassy of the destination country.

Documents We Handle

  • Incorporation Documents: Memorandum of Association, Articles of Association, Certificate of Incorporation.
  • Financial Statements: Audit reports, balance sheets, and profit & loss statements.
  • Commercial Agreements: Contracts, joint venture agreements, and franchise agreements.
  • Power of Attorney: Legal authorization documents for business operations.
  • And More: We handle a wide range of other essential documents required for business operations and expansion.

We have successfully facilitated the attestation of documents for hundreds of various clients, enabling smooth

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