Frequently Asked Questions About Investment in the UAE

The Commercial Companies Law does not require a partner or a manager of a limited liability company to be a resident of the UAE.

Companies and investors of various nationalities may assume ownership of all legal structures mentioned in the Commercial Companies Law, namely public joint stock companies, private joint stock companies, limited liability companies, limited partnership companies and partnership companies.

It is not a requirement for the Chairman and the majority of Board members to be Emirati nationals, with due consideration to the requirements set by the Council of Ministers or the competent authority, pursuant to Article (10) regarding strategic impact activities.

A foreign investor has the right to take full control of the Board membership in public joint stock companies, unless otherwise decided by a resolution of the Council of Ministers or the competent authority.

A single natural or legal person may incorporate and own a limited liability company; and shall not be liable for its obligations, except to the extent of the capital stated in the articles of incorporation, while being subject to the provisions applicable to limited liability companies.

• Obtaining initial approval.
• Completing the registration form and reserving a trade name.
• Copy of the ID.
• Copy of the passport of the responsible manager and a no-objection letter from his current sponsor.
• Approval of other government entities, depending on the activity.
• Board resolution for establishing the branch and appointing the manager.
• Copy of the articles of incorporation and commercial registration, attested by the UAE embassy and the Ministry of Foreign Affairs.

 The licensing process for activities that have a strategic impact is subject to the approval and requirements of government authorities responsible for overseeing the organization of such activities within the scope of their expertise. The authority is responsible for determining the percentage of contributions by citizens and/or foreign investors to the capital. They also determine the percentage of citizens' contribution and/or the percentage of foreign investors' contribution to board membership, if applicable. In addition, any other necessary conditions or controls are imposed by the regulatory authority.

To issue a golden residence permit to exceptional talents, certain requirements must be fulfilled:

1. Culture and art talents: It is necessary to have a recommendation or approval from the relevant federal or local cultural authorities within the country.
2. Innovators and inventors: The applicant should hold a patent that contributes to the country's economy and must have received a recommendation or approval from the Ministry of Economy (MoEc) or the competent local authority.
3. Athletes: A recommendation or approval from the General Authority of Sports (GAS) or local sports bodies is mandatory.
4. Digital technology talents: A recommendation or approval from the UAE Council for Artificial Intelligence and Blockchain is required.
5. Exceptional talents in other key areas: Government entities or the relevant federal or local authority should provide a recommendation or approval.
6. Applicants under this category must have comprehensive health insurance coverage for themselves and their family members when applying for the golden visa, in accordance with the guidelines set by the competent local authority.
7. A golden residence permit may be issued to the business manager of the talent owner in accordance with the regulating requirements, provided that it does not exceed (3) three residence permits for business managers during the validity period of the golden residency permit of the talent owner.

The Golden Residence Permit is granted to scientists and specialized professionals if specific conditions and regulations are met. The eligible categories are:

1. Scientists and researchers with high achievements and influence in their field on the recommendation of the Emirates Scientists Council.
2. Leading scholars and clergy with high contributions and influence at the recommendation of the Ministry of Culture and Youth or competent local authorities.
3. Elite industry and fourth industrial revolution specialists on the recommendation of the Ministry of Industry and Advanced Technology or competent local authorities.
4. Elite health professionals on the recommendation of the Ministry of Health and Prevention or the competent local authorities.
5. Selected specialists in educational fields on the recommendation of the Ministry of Education or the competent local authorities.
6. Skilled labour specialists at higher professional levels according to the occupational classification approved by the Ministry of Human Resources and Emiratisation, covering the following categories

  -      Chief executives at the first professional level.

   -      Specialists at the second professional level are:

•           Specialists in sciences (physicists, astronomers, climate scientists, mathematicians, actuaries, statisticians, life scientists, environmentalists, epidemiologists, and agricultural scientists)
•          Engineering specialists covering vital disciplines such as electrical engineering, computer engineering, communications engineering and industry, production, mining and environmental engineering, robotics engineering, and biotechnology, architecture and urban planning.
•            Health specialists including doctors, dentists, pharmacists, nurses, audiologists, speech therapists, optometrists, physical therapists, and other healthcare professionals.
•          Higher education specialists, general education specialists and vocational specialists, curriculum developer, advanced education methods specialists, education assessment specialists, education resource and gifted education specialists and others.
•     Business and management experts, including finance and investment advisers, financial analysts, e-commerce and digital marketing specialists, along with other related fields.
•    Information technology specialists covering a range of expertise, such as software and application developers, data science specialists, artificial intelligence specialists, and information security specialists.
•   Specialists in law, sociology, and culture, including lawyers, judges, economists, sociologists, philosophers, politicians, historians, authors, journalists, linguists, and fine arts experts (galleries, museums, sculptors), musicians, singers, directors, actors, and anchors.

• The applicant must be the owner or partner of a pilot project registered in the country in the category of SMEs in a sector accredited by the Ministry of Economy, the competent authority or local authorities, provided that it generates annual revenues of not less than AED 1 million.
• Or be approved by an approved business incubator, the Ministry of Economy or the competent local authorities to establish the proposed activity in the country.
• Or be the founder of a previous pilot project/projects sold for a total value of not less than AED 7,000,000, subject to approval by the Ministry of Economy, the competent authority or local authorities.
• The entrepreneur must have a comprehensive health insurance for himself and his family members effective when applying for a golden residence or as applied by the competent local authority.

• The investor must have one or more properties with a total value of not less than AED 2,000,000 and the property must be wholly owned by the investor. It may be a loan provided that the loan is from a local bank determined by the competent local authority.

• The investor must be in a property upon purchase of one or more real estate units on the map with a total value of at least AED 2,000,000, provided that the purchase is made from local companies approved by the competent local authority.

• The investor shall have comprehensive health insurance for himself and his family members for the duration of the stay or as applied by the competent local authority.

To have a deposit of at least AED 2,000,000 in an investment fund or in national banks operating in the UAE.

• Or establish an enterprise in the country with a capital of at least AED 2,000,000.
• Or be a partner in an existing or new establishment/company with a share of at least AED 2,000,000.
• Or be the owner of an enterprise/company that pays a tax amount of at least AED 250,000 to the Federal Government.
• Or be a partner in an enterprise/company that reimburses taxes imposed on it by the Federal Government, whose share in the company is equivalent to at least AED 250,000 per year of tax paid annually.
• Invested capital is wholly owned by the investor and not a loan, and evidence is provided.
• A comprehensive health insurance for the investor and his/her family members is required when applying for a golden residence or as applied by the competent local authority.

The Golden Visa is a long-term residence visa renewed every ten years depending on the visa category and upon meeting the eligibility criteria. 

Investors, entrepreneurs, talented individuals, scientists, experts, top graduates, humanitarian workers, and frontline personnel can apply for a golden residency permit based on specific criteria for each category. For further details, you can visit the official website of the Federal Authority for Identity and Citizenship, Customs, and Port Security:

  https://beta.smartservices.icp.gov.ae/goldenservices/web/landing

The procedures for business incorporation in the UAE are subject to the requirements of each emirate. We recommend visiting the official website of the Department of Economic Development in the concerned emirate; however, in general, businesses are incorporated in the UAE through one of two options:

• Business Incorporation Online.
  The federal government provides the “Basher” platform for businesses, which is a comprehensive e-Service that enables investors to establish their companies in the UAE online through the unified digital platform fully integrated with the relevant local and federal government entities concerned with licensing economic activities in the UAE, within minutes and using a quick, convenient and secure process, without the need for investors to physically visit any government agency.
  https://basher.gov.ae/invest/#/
   
• Business Incorporation through Conventional Methods.
  The process of incorporating a commercial business in the UAE goes through a series of steps that include the following:
  - Identify the nature of the activity.
  - Determine the legal structure.
  - Register the trade name.
  - Request for initial approval.
  - Choose the location or address of the commercial activity.
  - Obtain additional government approvals.
  - Submit documents and pay the required fees.

For more information, visit Establishing Businesses page.

On June 1, 2023, the UAE began implementing corporate tax, which is a direct tax imposed on the taxable income of companies according to the following rates:

• No tax on income bracket up to AED 375,000.
• 9 per cent tax on the income exceeding AED 375,000.

 For further details, please visit the official website of the Federal Tax Authority  www.tax.gov.ae