Classification Based on Personal Presence Requirement for Set-up

Did you actually know that there are options to set up your company in the UAE remotely? If you are watching this chapter from the UK, India, Ukraine or any other country on planet Earth, we have exciting news for you. In case you have been planning business set-up in the UAE for quite some time and you are just about to start your business in this beautiful country, this is the first and foremost thing you should know: you can start business in the UAE right now, even being currently located in a different part of the world. If you are wondering how, this chapter is for you. Moreover, in the module on resident visas that will follow, you will also learn how you can even apply for your entry permit from outside of the country. But let’s take one step at a time.



    In general, there are two options, as to how a company in the UAE can be set up without you flying to Dubai. First of all, you can arrange for a Power of Attorney and authorize someone to do it on your behalf, second option, to ensure that you have a UAE entry stamp in your passport, which will show that you have been in the UAE before as a tourist or on business trip. Now let’s discuss each option in more detail.


    First of all, as we just said, you can issue a Power of Attorney to a person that will represent you in the UAE during company formation process. You might be an extremely busy businessmen and you might have no time for such administrative matters. So it might be easier for you to hire a business consulting firm to do everything on your behalf. If this is the case, depending on the free zone you shall be registering your company in, you might need to include some specific wording in your POA. We always recommend to run the draft through the free zone’s representative first to ensure that its content is compliant with the requirements of the free zone. Only then you may proceed with legalization of the document for the purposes of the UAE. We again remind you that the UAE did not join The Hague Convention, therefore, apostle is not recognized in the UAE, only legalized documents. The legalized document shall be first attested by the Ministry of Foreign Affairs of your home country, then by the the UAE embassy in your home jurisdiction and then by the Ministry of Foreign Affairs in the UAE. In general, all registration authorities accept POAs for the purpose of company registration. The only thing to watch out for is that the document shall contain specific wording required by the free zone authority.


   The said option for remote set up has both its advantages and disadvantages. While it allows you not to travel to the UAE and gives you the freedom to arrive only once the company is registered, you would need to bear the costs of arranging a relevant Power of Attorney and it will take time and significant resources to legalize the document in your home country (which is from 2 to 3 weeks). As such, if this is absolutely necessary to appoint someone to do the company registration on your behalf, you can do so. And as we already mentioned, any free zone authorities and even economic department allow to register companies on the basis of correctly drafted powers of attorneys.


   The second option for remote company set-up, that we also mentioned in this chapter, we find much more cost-efficient and less time-consuming. Let me clarify why and in general explain how the mechanism works.


   First of all, it is important to mention that the approach we will be discussing now cannot be applied to company formation in any free zone or even in mainland. There is a limited number of free zones in the Northern Emirates, which allow you to register a free zone company with them upon providing a scanned copy of your most recent UAE stamp. This UAE entry stamp can be 1,2,3 or sometimes even 5 years old, could be stamped in your previous passport that you no longer use. The key is to have on file a scanned copy of your previous passport and old UAE entry stamp.


   Let’s enumerate those free zones, which would allow you to apply for a company set-up with them remotely. These would be SHAMS (Sharjah Media City), Umm Al Quwain Free Trade Zone (UAQ FTZ), RAKEZ in Ras Al Khaimah and Fujairah Creative City Free Zone or FCC. The said free zones allow you to register your UAE company without visiting the country. You will just need to prove that you have been to the UAE previously and email a scanned page from your passport, where you have a UAE entry stamp. As we have recently mentioned, you might have received your entry stamp 5 years back when you have been on vacation in Dubai and you no longer have this passport. What counts is a scanned copy of the passport page with a UAE entry stamp on it and a scanned copy of the main passport page with your picture from your old passport. As such, you either email free zone authority a scanned copy of your new passport with a UAE entry stamp page or also include a scanned copy of the previous passport with entry stamp page, if you have a UAE entry stamp in your old passport.


   Although the second option limits your choice of free zones, since only some of them allow you to apply for company set-up remotely using a recent UAE entry stamp, isn’t it still comfortable to have your company registered form the comfort of your home?


   Now that you know both options for remote company set-up, it will be your choice either to use any of the said two or to come to the UAE and start the process, when you are already inside the country.


    If you want to know more about Dubai freezone company formation, feel free to get in touch with our professional consultant team and we would be delighted to assist you and help you to compare Dubai freezone company setup costs and help you to find that free zone, which would suit your business needs the most.


 Disclaimer: Business Boutique is not affiliated with any particular government or legal entity. Business Boutique does not give professional legal advice nor any other professional advice subject to a public office in the government. This article merely sets out a simple and basic idea as to the reasons of Dubai freezone company setup and Dubai free zone company formation cost. Business Boutique in no way holds nor imposes any official governmental or legal authority and the article herein is only to be taken as a guide. All further governmental or legal issues should be addressed to the corresponding authorities.

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