Starting from choosing the right company structure to obtaining the trade license, there are few steps that investors must be knowing to have a hassle-free company setup in UAE.

Investors in UAE – Things to Know before setting up a company

Knowing the right steps will help entrepreneurs save significant start-up costs. Also, to successfully run the business operations, the investor must ensure the company registration is done the right way complying with the business laws and authority guidelines.

Things to Know for the Investors before setting up their business establishment in the UAE.

Company Structure

There are a few company structures for setting up a business in the UAE. The company structure varies depending on the business jurisdiction – Free Zone, Mainland & Offshore.

1. Limited Liability Company

Limited Liability Company (LLC) is the most popular company structure in the Mainland of UAE. It No longer requires appointing a UAE National Sponsor for the company (51% share ownership) and the rest by the foreign owner.

Now, expatriate investors can own 100% shares in a mainland LLC Company as per the latest Commercial Companies Law.

There are only few strategic industry sectors and special business activities such as chemical products, petroleum products, banking services, etc., where local partner requirement is still a requirement.

Again, depending on the share capital deposit and approval requirements, the full ownership can be retained by the expatriate investor.

2. Sole Proprietorship

Another type is Sole Proprietorship where the investor will be the Single Owner of the establishment. A professional License has to be taken for this and is a favorable option for consultants, advocates, doctors, to start a small establishment themselves.

3. Civil Works Company

Civil Works Company in the mainland is another common company type that requires a professional license. It requires appointing a Local Service Agent for liaising with the government authorities for administrative and visa works.

4. Public Joint Stock Company

There are other types of Company Structures like Public Joint Stock Company, General Partnership, Simple Limited Partnership, Private Shareholding Joint Stock, and Branch of a Foreign Company.

5. Free Zones in UAE

Moving to the Free Zones there are mainly two Company structures that are Free Zone Establishment – Single Shareholder Company, and the Free Zone Company – Formed by more than 2 and up to 50 shareholders.

Some Free Zones in UAE has the provision of registering an FZ-LLC company structure for the investors, it is a 100% foreign-owned company eligible to enjoy all the benefits offered by the Free Zone

Documents Required for Company Setup in UAE

Most of the companies registered in the Free Zones and the mainland requires very minimal documentation. Few business activities require additional approvals and site inspections.

Often Commercial and Industrial Licenses require site/warehouse inspections and clearance from the government departments for ensuring the safety standards are in place.

Special Approvals and Business History for Corporate Bank Account Opening

Also, there are certain selected industry sectors like Finance, Transports, Oil & Gas, Healthcare, Education, etc., that require pre-approval.

Most of the business activities to be registered requires minimal documentation – investor passport and photograph.

However, during applying for the corporate bank account, the KYC norms would require to furnish previous business history, investor profile, previous company details (if any).

LLC Company in UAE – Documents Required

For LLC Company setup the following documents are required:

• Shareholder Agreement with the UAE National Sponsor
• Side Agreement to protect the rights of the foreign owner as well as UAE National Sponsor
• No-Objective Certificate (if already having UAE Residence Visa)
• Passport Copy & Photograph of Investor
• Board Resolution stating appointing of director/manager to newly formed LLC Company

LLC Company is an establishment in the mainland and can easily expand to locations within the UAE by forming branches of LLC Company. It is an ideal company structure for general trading companies intending to tap the local UAE market.

Steps for Company Steps in UAE

Now comes the understanding of the steps in the company setup process in the UAE. Be it a Free Zone company or an LLC one, the steps are the same. For Free Zones there is no requirement for the local Service agent.

Following are the Steps involved in Company setup in UAE

1. Choose the trade name and get the name approved. Follow the guidelines while choosing the trade name as the brand is built on the trade name
2. Finalize the company structure and the business activity (Aurion will assist you in choosing it right)
3. Choose the right business jurisdiction- Free Zone, mainland, or offshore
4. Submit the required documents, get the clearances and pay the fees
5. Choose the right office space and prepare the tenancy contract
6. Obtain the business license and start operating the business from day 1
7. Apply for a UAE Residence visa and proceed to open a corporate bank account.

Company setup in UAE is relatively straightforward, however, the process could get lengthy if not done the right way.

Hence, it is advisable to take the assistance of experienced Business Consultants like Aurion Business Consultants to set up your company in the most comfortable way.

To know more about Company Formation in UAE, talk to our expert Business Consultants right away!

Contact: Aurion Business Consultants

The post Company Setup in UAE – What do new entrepreneurs/investors need to know? [ A Detailed Guide] appeared first on AURION.

Cleaning Services License in UAE is gaining popularity as there is a growing demand for the service from newly constructions and existing large organizations. Also, the modern homes of the working class are also looking for professional cleaning companies for home cleaning requirements.

Cleaning Services Company in UAE – Demand from Residential and Commercial Consumers

Real Estate Analysts in the UAE estimate that almost 50000 new residential units are to be added to the property market in the year 2020. This will further raise the demands for cleaning services companies as there would be growing requirements for maintaining and carry out regular cleaning activities in these apartments.

On the corporate side, the demand is driven by large numbers of hotel apartments, hotels, office spaces, manufacturing facilities, hospitals, and many more. The Scope of Cleaning services Companies are extensive; It can be classified into specific services depending on the exact customer requirements.

Main Categories of Cleaning Services in UAE:

• Residential Apartments (Flats, Town Houses, Villas)
• Commercial Cleaning (Offices/Manufacturing/Hospitals)
• Industrial Cleaning (Equipment/Machinery)

Sub-Categories in Cleaning Services

Cleaning Services Companies can be categorized based on their exact business activity. Following are a few Sub-categories where Cleaning Services Companies facilitate their operations.

1. Streets Cleaning Services

There are special contracts for cleaning streets, footpaths, and markets by manual or mechanical tools. Dubai Municipality regulates the activity and the business license is subject to the approval of the Dubai Municipality.

2. Sea & Shore Cleaning Services – This activity enables companies to collect and dispose of marine waste and pollutants.

3. Building Cleaning Services – Residential, Government, and Professional premises

For example, Cleaning and maintaining huge office blocks such as the Dubai Airport Free Zone. It requires an administration team to handle the operations such as washing each floor, external glass cleaning, restroom & laundry cleaning, and more.

4. Advertising Signboards Cleaning – Cleaning of the large signboards fixed on streets and road cleaning.

5. Runways & Roads Cleaning Services – Manual and mechanical cleaning of runways and roads.

6. Yacht Cleaning Services – Yacht interior and exterior cleaning, polishing, restoration, brightening, interior cleaning, vinyl treatment, etc.

7. Car Cleaning License – Car Cleaning Service activity includes car wash using automatic or manual washing station activities.

How to Start a Residential Cleaning Services Company in Dubai?

To start a Residential Cleaning Services Company in Dubai, the business must register with the Department of Economic Development (DED) to obtain the required cleaning services license.

Based on the Shareholding pattern, the investor can decide on the company structure and license types. For Mainland Companies in UAE, there are two Business License categories that are right fit for the Cleaning Services Companies:

1. Professional License, or,

2. Commercial License

Alternatively, Cleaning Services License in UAE can be easily obtained from the Free Trade Zone also. However, for Cleaning companies aiming to employee a number of ground level staffs, take a warehouse, etc., mainland of UAE will be the right choice to keep the overall cost low and easily expand the market reach.

Professional License in Dubai – Things to Know

• 100% Ownership of your business
• Register as Sole Proprietorship or a Civil Company
• Appoint a UAE national as a Local Service Agent (LSA)

Commercial License in Dubai – Things to Know

• Must appoint a UAE national or Local Sponsor
• Local sponsors will own 51% of company shares and the rest 49% by the foreign investor
• The company will be registered as a Limited Liability Company

Documents Required for Setting Up a Cleaning Services Company in UAE

• Completed business application form for the Cleaning Services company setup
• Trade name for approval- 3 names
• Passport copies of shareholders
• Entry Stamp/Visa page/residence visa of the investor
• NOC from the current sponsor if the shareholder has a residence visa
• Any additional approval required if any

Step by Step Procedures: How to register a Cleaning Services Company in UAE

The Process of Registering the Cleaning Services Company with the Department of Economic Development (DED) is as follows:

• Choose the required business activity from the activity list
• Select the company structure (Sole Proprietor/ Civil Company/LLC Company)
• Get the tradename approval
• Get initial approval from the DED, Dubai.
• Prepare and sign the LSA Agreement (for Professional License) or the Memorandum of Association (MOA) for Commercial License
• Rent a physical office and submit the Tenancy Contract & Ejari. A mainland company must have a physical office as a mandatory requirement for obtaining a business license.
• Submit any additional approval if any
• Pay the fee and get the Business License

Things to Look for Before Setting Up a Cleaning Services Company in UAE

Cleaning Services Company Setup in Dubai is relatively easy but there are various costs and process to be in place to continue in business such as the following:

• Competition from other similar players
• Workforce requirements and logistics support
• Equipment and supplies
• Expertise in the Sub-Categories to expand business services

1. Highly Fragmented Market and Intense Competiton

The investor must be well aware of the market scenario in the UAE. The cleaning Services sector is a highly fragmented industry with a lot of small and large players intensifying the competition.

2. Large Office Space and Warehouse Facility Requirements for Cleaning Services Company

Cleaning companies would require heavy equipment, machinery, disinfectants, and related cleaning essentials in large volumes to cater to their clientele accordingly.

Hence, Investors have to account for huge upfront expenses and set up a support system to effectively procure, manage, and consume, the required essentials. It must achieve consistent profitability to continue business operations.

3. Heavy Investment and Operational Cost of Cleaning Service Company

The Cleaning Services business requires a lot of investment in logistics, essentials, labor, warehouse facility, office space, etc.

The operational costs are to be on a higher side always, investors must have a solid business plan to sustain the operations.

Why Choose Dubai Mainland for Setting Up Cleaning Services Company?

For Cleaning Services Company mainland company formation is the ideal choice than a Free Zone due to the requirement of region-wise operational flexibility and setting up branch offices anywhere in UAE.

1. Flexibility to Employee More Staff

Also, Cleaning Services is a heavy labor-intensive sector that requires employing a huge number of contract staff, in-house staff, part-time workers, etc.

So, for obtaining work-permits, applying for employee visas, gaining more visa quotas, a mainland company would be the right fit.

2. Easily Scale-up the Business Operations

There would be a requirement of having large office spaces or a warehouse to store the cleaning essentials and other required support systems. Again, locating an ideal warehouse would be more cost-effective in the mainland of Dubai.

3. Identify your Niche Area in Cleaning Services Sector

The scope of a Cleaning Services Company varies depending on the list of business activities that will be included in the business license while setting up the business.  

There is an all-time demand for various types of Cleaning Services in Dubai due to the ever-growing infrastructure and real estate investments in the region. So, investors can choose their niche area of cleaning services and set up their cleaning services company to scale up easily.

To know more about the procedures to open a Cleaning Services Company in the UAE, Connect with our expert Business Consultants right away!

Read more >> “How to Start a Manpower Supply Company in the UAE?“.

The post How to Start a Cleaning Services Company in UAE? – All Things to Know appeared first on AURION.