The United Arab Emirates has become one of the richest Arab countries, especially recently, after the discovery of oil and has relied on its economy, which has attracted many individuals to invest their money in it. It is expected that new projects established in the UAE will achieve very high profit rates. The United Arab Emirates attracts a large number of foreigners and visitors, and is characterized by its distinguished location, stable political situation, and excellent infrastructure, which makes it an ideal destination for investment. However, to start a new business or project in the United Arab Emirates, it is necessary to open a business, We will present the main conditions for opening a company in this country. Given the aesthetics of establishing businesses in this dynamic economic context, investors must follow specific procedures and meet certain requirements to ensure the success of their project and enjoy the benefits of the thriving economic environment in the UAE.

Conditions for establishing commercial companies

Conditions for establishing commercial companies vary according to local laws and regulations in each country or emirate. However, here are some general conditions that may be required:

1. Company type: Specify the type of company to be created, such as a limited liability company, joint stock company, or sole proprietorship.
2. Company Name: Choose a unique and legal name for the company, and ensure that it does not conflict with the names of other registered companies.
3. Financial Contribution: Determine the financial contribution required by shareholders and provide evidence of this.
4. Headquarters: Providing an accurate address for the company’s main headquarters and the necessity of owning or renting it.
5. Directors and shareholders: Provide a list of the names of directors and shareholders, their ownership percentages, and determine their roles and responsibilities.
6. Articles of Association and Bylaws: Establishing the Articles of Association and Articles of Association that determine the company’s structure and policies.
7. Licenses and permits: Obtaining the necessary licenses and permits from local authorities and official bodies.
8. Financial Report: Providing financial reports on the company’s expected financial business.
9. Legal Obligations: Comply with all local and international legal obligations related to commercial and corporate activities.
10. Taxes: Understand and adhere to local tax obligations and provide all necessary documentation and disclosures.
11. Legal documentation: Document all documents legally and obtain their authentication as needed.

The importance of establishing commercial companies

Establishing commercial companies carries great and comprehensive importance in the economic arena, and these companies play a vital role in developing the economy and promoting economic growth. Here are some aspects that highlight the importance of establishing commercial companies:

• Generating employment opportunities: The establishment of commercial companies enhances job creation and employment of the workforce, which contributes to alleviating the problem of unemployment and improving income levels in society.
• Enhancing innovation and diversity: Companies contribute to enhancing innovation and diversity in the market, as they seek to provide new products and services and improve existing operations, which enhances competitiveness and fulfills consumers’ desires.
• Stimulating the economy: Companies contribute to advancing the economy by supporting production and trade, and stimulating consumption and investment, which contributes to the growth of the gross domestic product (GDP).
• Achieving economic stability: Thanks to their role in promoting economic growth, companies contribute to achieving economic stability and reducing economic fluctuations.
• Improving infrastructure: Advanced companies can contribute to developing the infrastructure of the country or region, through their investments in large projects and infrastructure such as roads, ports, and airports.
• Improving the standard of living: By providing job opportunities and economic development, companies can contribute to improving the standard of living of the local community.
• Achieving sustainable development: Sustainable companies seek to achieve growth in a way that preserves natural resources and adheres to social responsibility, which contributes to achieving sustainable development.
• Encouraging the spirit of entrepreneurship: Establishing companies encourages the spirit of entrepreneurship and innovation, as individuals receive support to transform their ideas into successful projects and businesses.
• Improving the local market: The presence of companies increases competitiveness in the local market, which enhances choice for consumers and stimulates the provision of better quality services and products.
• Promoting technology, research and development: Companies invest in technology, research and development, which contributes to the progress of society and the improvement of daily life.

Documents required to establish commercial companies

The documents required to establish commercial companies vary depending on the type of company and local laws in the country or emirate concerned. However, here is a general list of documents that may be necessary in the process:

1. Official form of incorporation: A document specifying company details such as name, business activity, company type, and shareholders.
2. Memorandum of Association: A document that defines the organizational structure and basic responsibilities of the company.
3. Articles of Association: A document that explains the rules and procedures for company management and shareholder relationships.
4. List of shareholders and their shares: A document specifying the names and ownership percentages of shareholders in the company.
5. Official company address: A document proving the company\\\’s official address, which may require verification via utility bills or rental contracts.
6. Personal statements of shareholders and directors: Copies of passports or identity cards of shareholders and directors.
7. Personal photos: Personal photos of shareholders and directors may be required.
8. Certificates of higher qualifications: Certificates of study or experience required for key managers.
9. Financial Report: Providing company financial reports may be required, and this varies depending on the type and size of the company.
10. Authorization to establish the company: If you use an agent or a specialized office to establish the company, you may need to sign an authorization authorizing them to represent you in this process.
11. Business Report: In some cases, a report may be required explaining the expected business activity of the company.

Costs required to establish commercial companies

The costs of establishing commercial companies vary greatly depending on the type of company, its size, and local laws in the country or emirate in which it is located. Here are some points you should take into consideration when estimating company start-up costs:

1. Type and company structure: The costs of establishing a limited liability company (LLC) or public joint stock company are greater than the costs of establishing a sole proprietorship.
2. Financial Contribution: A financial contribution must be paid by shareholders, and this factor is important in determining costs.
3. Registration and license fees: There may be fees to register the company and obtain the necessary licenses from local authorities.
4. Headquarters: The cost of renting or purchasing the company\\\’s main headquarters.
5. Consulting and Attorney Services: You may need the services of an attorney or legal consultant to help you arrange documents and ensure legal compliance.
6. Taxes and Fees: Costs related to local taxes and other government fees must be accounted for.
7. Accounting Reports: There may be costs to prepare the required financial and accounting reports.
8. Information Technology: IT costs to set up the technological infrastructure needed for a company.
9. Marketing and advertising costs: The cost of marketing and advertising to attract customers and promote the company.
10. Staffing and Training: Recruitment and training costs if the company intends to hire employees.
11. Insurance: The costs of obtaining different types of insurance, such as property and liability insurance.

Basic documents for establishing commercial companies

The basic documents required to establish a business vary between countries and legal systems. Here is a general list of documents that may be necessary:

1. Social contract or founding agreement: determines the internal arrangements of the partners and the existence of the company.
2. Bylaws (Memorandum of Association): A document that specifies basic information about the company, such as its name, the purpose of its establishment, and registered address.
3. Basic list of contributors (Subscriber\\\’s List): Contains the names of shareholders and their shares in the capital.
4. Financial records: May include pro forma financial statements and investment plans.
5. Legal Reports: Some states may require additional legal reporting.
6. Founders\\\’ identity documents: Passports or ID cards of the founders.
7. Contracts and Agreements: There can be special contracts between shareholders or other agreements related to the business.
8. Certificates of ownership for real estate (if the company owns real estate): In some cases, it is required to submit certificates of ownership for real estate owned by the company.