How to obtain a residence permit in the UAE when opening a company

The UAE is a unique region offering extensive business and investment opportunities. One of the advantages of doing business in the UAE is the possibility of obtaining a residence permit, which opens up all the advantages of living in this progressive country. In this article, we will understand how to get a UAE residence permit when opening a company, review the pros and cons of doing business in the UAE, detail the advantages and challenges for doing business in the region, and discuss the main legal aspects.

Overview of opportunities to immigrate to the UAE through business

It should be noted that the UAE is attractive to businessmen and investors from all over the world due to its stable economy, high standard of living and attractive taxation system. Opening your own business in the UAE is one of the most reliable ways of immigrating to this country.

It is important to realize that the UAE actively encourages foreign investment, so all conditions have been created here for successful start-up and business development. The country offers a wide range of areas for investment - from tourism and hospitality to high technology and manufacturing.

The UAE government offers foreign investors the opportunity to obtain a residence permit when starting a business. This makes the UAE even more attractive to entrepreneurs, as a residence permit allows them to live in the country on a permanent basis, enjoy all the benefits of the local lifestyle and have a better understanding of the local market.

In addition, the UAE has special programs for foreign investors that provide additional benefits and advantages. For example, in some cases it is possible to UAE citizenship on the investment program.

Thus, the UAE offers unique opportunities for those who want to start a business in the country and obtain a residence permit. This opens up a wide range of prospects for entrepreneurs to develop their business and create a successful international career.

Pros and cons of doing business in the UAE

Maintaining business in the UAE attractive to many entrepreneurs. However, like any other country, the UAE has its advantages and disadvantages. In the table below, we will look at the main ones.

It is important to consider all these factors when deciding to open a business in the UAE so that your business will be successful and profitable.

Detailing the advantages and challenges for business in the region

An important advantage of the UAE for business is the freedom of economic enterprise and the absence of restrictions on withdrawal and entry of capital. UAE market is one of the most open and free in the world, which favors business development.

The UAE has a highly developed and modernized infrastructure that includes modern transportation networks, high-speed internet and technologically advanced ports and airports. This ensures ease of doing business and facilitates access to international markets.

In addition, the UAE offers a high standard of living, including quality education, healthcare and social protection, making the country an attractive place to live and work.

However, despite all the advantages, businessmen may encounter some difficulties. In particular, this is due to cultural and language barriers, as well as the need to strictly comply with local legislation.

It is important to keep in mind that the UAE has strict laws regarding commercial and financial activities. Violation of these laws can result in serious penalties, including fines and criminal prosecution. Businessmen planning to start a business in the UAE are advised to thoroughly research local laws and seek the assistance of professional lawyers and consultants.

It is also worth considering that the business culture in the UAE may be quite different from what you are used to. For example, personal relationships and establishing trusting connections play an important role in business. This can take time and patience, but can bring significant benefits in the long run.

Types of companies for registration

The UAE provides for several forms of legal entity that can be registered to conduct business. Let's take a closer look at them:

• Joint Stock Companies (Public Joint Stock Company - PJSC and Private Joint Stock Company - PrJSC): These companies are suitable for large projects and require a minimum authorized capital. Both UAE nationals and foreigners can be founders. However, the foreign shareholding cannot exceed 49%.
• Limited Liability Companies (Limited Liability Company - LLC): This is the most common type of company for small and medium-sized businesses. No minimum authorized capital is required, but foreign shareholding is limited to 49%.
• Branches of foreign companies: Foreign companies may open branches in the UAE. The branches are wholly owned by the foreign company and operate under a license issued by the Department of Economic Development.

These companies can be 100% foreign owned and are exempt from many of the restrictions that apply to other types of companies. They may only operate within the selected free economic zone, but may trade with other countries.

Each of these types has its own characteristics and registration requirements, so it is important to carefully consider all available options before deciding on a form of legal entity for your UAE business.

Description of registration options: local companies and companies in free economic zones

Both a local company and a company in a free economic zone can be incorporated in the UAE. Local companies can operate anywhere in the country, but require a local sponsor who will own at least 51% shares in the company. This requirement may create certain restrictions for foreign investors, but at the same time provides an opportunity to do business in any area of the country, including strategically important regions and cities such as Dubai and Abu Dhabi.

In turn, companies registered in UAE free economic zones (freezones) may be owned by a foreign investor on 100%, but their operations are limited to the territory of the zone. However, freezones offer a number of advantages for foreign investors, including full exemption from corporate and personal taxes, the possibility of full foreign ownership, freedom of foreign exchange transactions and no restrictions on the withdrawal of profits and capital.

It is important to note that the choice between a local company and a freezone company should be based on the specifics of your business, your long-term plans and development strategy. For some types of business, such as retail or providing services to the local market, it may be preferable to incorporate a local company. At the same time, for companies that are internationally oriented or specialize in certain industries such as technology, manufacturing or logistics, freezones may offer more attractive conditions.

In any case, before deciding to register a company in the UAE, it is recommended to conduct detailed research and consult with experts familiar with the peculiarities of doing business in this region. This will help you avoid potential pitfalls and make the right choice that will meet your business objectives and development strategy.

Details on free economic zones

UAE Free Economic Zones are areas with special economic conditions created to attract foreign investors. These zones offer various advantages to businesses, including full tax exemption, full foreign ownership, freedom of foreign exchange transactions and no restrictions on the withdrawal of profits and capital.

It is worth noting that each free zone offers its own unique benefits and conditions. Some offer specialized services and infrastructure, while others may offer more attractive tariffs and benefits.

It is important to keep in mind that UAE free zones have a requirement to rent office space or warehouse. The size and cost of the lease can vary significantly from zone to zone.

It is also worth considering that some activities may not be available in free zones. All these factors should be taken into account when choosing a free zone for business registration.

Additional advantages and disadvantages

Strategy and approach

It is important to remember that these disadvantages can be minimized by choosing the right strategy and approach to doing business in the UAE. The assistance of experienced consultants with knowledge of the local business environment can be very helpful in this process.

First stage - is to register your company in the UAE. This process involves filing an application, preparing all the necessary documents and paying the relevant fees. It is important to pay attention to detail and fill out all forms correctly to avoid delays or rejections. Company registration is your first step to obtaining a UAE residence permit.

Second stage is related to obtaining a business license. The type of license you will need will depend on the specifics of your business. There are different types of licenses in the UAE, including trade, professional and industrial, so you should choose the one that best suits your business.

Third stage - is to apply for a residence permit. This application will be processed within a few weeks. During this process there may be various checks, so it is important to be prepared to confirm any information provided and be ready for the interview.

Fourth stage - Once your application has been approved, you will receive a UAE entry visa. This visa will allow you to enter the country and begin the process of obtaining a residence permit. The visa is usually valid for a short period of time, so planning your entry into the country is an important aspect of this stage.

Fifth and final stage - is the replacement of your entry visa with a residence permit once you arrive in the UAE. This usually takes a few days. Once you have obtained a residence permit, you will be able to fully reside and do business in the UAE.

It is important to note that this process may vary slightly depending on your specific situation. Therefore, it is highly recommended that you contact professional consultants who can provide you with detailed information and help you through the process of obtaining a UAE residence permit. This will help you avoid unnecessary complications and speed up the process of obtaining a UAE residence permit.

Legal aspects

The legal aspects of starting and running a business in the UAE are quite complex and require a thorough understanding of local laws. They include choosing the right legal form for your company, registering your trademark, obtaining the necessary licenses and permits, and complying with labor and immigration laws.

It is important to remember that non-compliance with laws and regulations can lead to serious consequences, up to and including license revocation and deportation. This can have a negative impact on the reputation of your business and lead to financial losses.

You should also take into account that UAE law is constantly changing and modernizing. Therefore, even if you are already familiar with some aspects of it, you may still need professional legal assistance to stay abreast of all changes and ensure that your business operates in full compliance with the law.

It is therefore advisable to seek the assistance of professional advisors who specialize in the legal aspects of doing business in the UAE. They can offer you relevant and accurate advice, help you avoid potential problems and ensure that your business operates efficiently and legally.

Family aspects of obtaining a residence permit

If you decide to open a business in the UAE and obtain a residence permit, you also have the option of bringing your family. Your spouse and children under the age of 18 can obtain dependent status and reside in the UAE with you. To do so, you need to provide the relevant documents including marriage and birth certificates.

It is important to note that the residence permit for family members is issued on the basis of your residence permit, and their status will directly depend on yours. Thus, if you lose your residency status, your family members will also lose theirs.

RIVIERA 35

from $343 605

Mohammed Bin Rashid City (MBR), Dubai, UAE

RIVIERA 36

from $190 589

Mohammed Bin Rashid City (MBR), Dubai, UAE

RIVIERA 41

from $245 043

Mohammed Bin Rashid City (MBR), Dubai, UAE

RIVIERA 59

from $394 792

Mohammed Bin Rashid City (MBR), Dubai, UAE

RIVIERA 61

from $300 314

Mohammed Bin Rashid City (MBR), Dubai, UAE

RIVIERA 65

from $367 020

Mohammed Bin Rashid City (MBR), Dubai, UAE

It is also worth considering that to obtain a residence permit for family members, the UAE requires proof of your ability to provide for them. This may include evidence of your income, property UAE housing etc.

Plus, if your children reach the age of 18, they will have to get their own residence permit based on education or employment.

Obtaining a family residence permit is a great opportunity for everyone to enjoy the benefits of living in the UAE together. However, the process can be quite complicated and requires careful preparation and understanding of all requirements and procedures.

Recommendations and advice

Choosing the type of company and freezone to do business in UAE depends on many factors including the specifics of your business, future plans, budget and many others.

Here are a few guidelines that can help you through the process:

• Market analysis: Do a thorough research of the UAE market to understand what type of business will be most profitable and in demand.
• Understanding the law: The UAE has complex and detailed legislation, so it is important to understand its main provisions and requirements.
• Linkages and partnerships: Building business relationships and partnerships can be very beneficial to doing business successfully in the UAE.
• Budget planning: You need to realistically assess your budget and take into account all possible expenses, including company registration, office rent, employee salaries, etc.
• Family circumstances: If you are planning to bring your family to the UAE, keep in mind that there will be additional costs involved as well.

You need to thoroughly explore all available options and make an informed decision. Do not forget that the assistance of professional consultants can be very helpful in this process. They can help you with understanding the local legislation, choosing the most appropriate form of business and optimizing the process of obtaining a residence permit.

In general, the UAE is an attractive place to do business and obtain a residence permit. Despite certain difficulties and challenges, the benefits of opening a company in this region can be very significant. Favorable business climate, stable economy and high standard of living make the UAE one of the best places for investment and business.