BUSINESS SETUP
COMPANY FORMATION
Company formation is the first and most important step in establishing a successful business. It involves legally registering your company, choosing the right business structure, and obtaining all the necessary approvals and licenses from the relevant authorities.
In the UAE, business setup can take place on the Mainland, Free Zone, or Offshore, each offering unique benefits such as 100% foreign ownership, tax exemptions, strategic locations, and simplified processes. Proper company formation ensures your business is fully compliant with local laws while giving you access to the region’s dynamic markets.
The process typically includes:
Choosing the right company structure (LLC, sole proprietorship, branch, etc.)
Trade name reservation and initial approvals
Drafting and notarizing legal documents
Obtaining business licenses and permits
Securing office space or virtual address
Registering with government and banking institutions
With the right guidance, company formation becomes a seamless process that allows entrepreneurs and investors to focus on growth rather than paperwork.
SPONSOR ARRANGEMENT
In the UAE Mainland, foreign investors are required to have a local sponsor to establish certain types of companies. A sponsor is typically a UAE national or a corporate entity holding 51% ownership of the business, while the foreign investor retains 49%. However, profit-sharing and management rights can be structured through legal agreements to ensure full operational control for the investor.
There are different types of sponsor arrangements:
Individual Sponsor – An Emirati individual who acts as the local partner.
Corporate Sponsor – A UAE-owned company that provides sponsorship.
Service Agent – For professional licenses, where the agent does not own shares but facilitates government approvals.
A proper sponsor arrangement ensures compliance with UAE laws while providing security, transparency, and peace of mind for investors. Choosing the right sponsor is critical to building trust and protecting business interests, making it essential to work with experienced consultants who can draft clear legal agreements and ensure smooth operations.
OFFICE ARRANGEMENTS
Having the right office setup is an essential part of company formation in the UAE. Depending on the business activity and jurisdiction, entrepreneurs are required to secure a physical office, shared workspace, or a flexi-desk to obtain their trade license.
Office arrangements may include:
Physical Offices – Dedicated spaces for companies that need a full setup.
Flexi-Desk/Hot Desk – Cost-effective shared workspaces offered by Free Zones.
Virtual Offices – For businesses that do not require a physical presence but need a legal address.
Executive Offices – Fully furnished premium offices with meeting facilities.
A proper office arrangement ensures compliance with licensing requirements, provides a professional image, and supports smooth day-to-day operations. With the right guidance, investors can choose the most cost-effective and strategic office solution that matches their business model.
Ministry of Foreign Affairs (MOFA) Services
Public Relations Officer (PRO) services are essential for handling all government-related documentation and approvals in the UAE. From visa applications to license renewals, PRO services ensure your business stays compliant with local regulations while saving time and effort.
Key PRO services include:
Visa processing (employment, family, and investor visas)
Trade license issuance and renewals
Labor & immigration approvals
Document attestation, translation & notarization
Emirates ID and medical test facilitation
Company establishment and registration services
By outsourcing PRO services, businesses avoid delays, reduce costs, and focus on growth while experts handle the paperwork with accuracy and efficiency.
