How to Obtain a UAE Resident Visa by Establishing a Company

The United Arab Emirates (UAE) is known for its thriving business environment and strategic location, making it a prime destination for entrepreneurs and investors. Establishing a company in the UAE not only opens doors to lucrative business opportunities but also provides a pathway to obtaining a UAE resident visa. This guide will walk you through the process, including approximate costs and timelines, to help you navigate this exciting venture.

It’s important to note that while establishing a company in the UAE and obtaining a resident visa offers numerous benefits, including the ability to live and work in the country, it does not lead to UAE citizenship. The UAE does not currently grant citizenship to foreign nationals through company formation or other means. Residency is provided on a renewable basis, but it does not confer permanent citizenship rights. As you plan your business and residency in the UAE, it’s crucial to understand this limitation and consider it in your long-term personal and business strategies.

Understanding the Benefits

Before diving into the process, it’s essential to understand the benefits of obtaining a UAE resident visa through company formation:

• Residency Rights: A UAE resident visa allows you to live and work in the UAE.
• Business Opportunities: Establishing a company provides access to a robust market and various business incentives.
• Family Sponsorship: As a UAE resident, you can sponsor your spouse, children, and other dependents.

Company Formation Options in UAE

There are two primary types of company setups in the UAE:

• Free Zone Company: This type allows 100% foreign ownership, provides tax benefits, and often comes with simplified regulations. Each free zone has its specific requirements and benefits.
• Onshore Company: This type requires a local partner or sponsor who holds 51% of the shares, but offers broader market access within the UAE.

Steps to Establish a Company and Obtain a Resident Visa

Step 1:Obtaining Pre-Approval

Pre-approval for company registration in the UAE is a crucial step in the process of establishing a business. It involves obtaining initial authorization from the relevant authorities before proceeding with the full company registration

Step 2: Choose a Business Activity and Company Type

• Determine Business Activity: Define the nature of your business to select the appropriate company type and license.
• Choose Company Type: Decide between a Free Zone Company or an Onshore Company based on your business needs and goals.

Step 3: Register Your Company

• Free Zone Company Registration:

1. Select a Free Zone: Choose a free zone based on your industry and business needs.
2. Submit Application: Complete and submit the application form along with required documents (e.g., passport copies, business plan).
3. Obtain Initial Approval: Receive initial approval from the free zone authority.
4. Lease Office Space: Secure office space as required by the free zone regulations.
5. Complete Registration: Finalize registration by providing additional documents and paying the relevant fees.

• Onshore Company Registration:

1. Choose a Business Partner: Identify and agree with a local sponsor or partner.
2. Draft Memorandum of Association (MOA): Prepare the MOA outlining the business arrangement.
3. Submit Application: Apply for initial approval from the Department of Economic Development (DED).
4. Lease Office Space: Rent office space and obtain a tenancy contract.
5. Complete Registration: Submit final documents and pay registration fees to the DED.

Required Documents for Company Registration:

1. Business Plan: Detailed description of the business activities and goals.
2. Passport Copies: Clear copies of the passports of all shareholders and managers.
3. Proof of Address: Utility bills or lease agreements to verify the address of the company and shareholders.
4. No Objection Certificate (NOC): If applicable, a letter from your current employer, if you are employed.
5. Photos: Recent passport-sized photographs of the shareholders and managers.
6. Company Name Reservation Certificate: Approved name for the company, if applicable.
7. Memorandum of Association (MOA) and Articles of Association (AOA): Required for onshore companies, outlining the company’s operational structure.
8. Local Sponsor Agreement: For onshore companies, a signed agreement with a local sponsor or partner.
9. Office Lease Agreement: Proof of a physical office space lease, required for both free zone and onshore companies.

Step 4: Apply for a UAE Resident Visa

• Gather Required Documents: Typically, you will need your passport, company registration documents, and proof of employment or ownership.
• Submit Application: Apply for the resident visa through the General Directorate of Residency and Foreigners Affairs (GDRFA) or the relevant free zone authority.
• Medical Examination: Undergo a medical check-up at an authorized clinic.
• Emirates ID Application: Apply for an Emirates ID, which is required for residency.

Required Documents for a UAE Resident Visa Application:

1. Passport Copies: Clear copies of the passport with at least six months’ validity.
2. Visa Application Form: Completed visa application form.
3. Photographs: Recent passport-sized photographs of the applicant.
4. Company Registration Documents: Copies of the business license and registration documents.
5. Employment Contract or Proof of Business Ownership: If applying through a company, a copy of the employment contract or proof of ownership.
6. Medical Examination Certificate: Proof of a medical check-up conducted at an authorized clinic in the UAE.
7. Emirates ID Application Form: Completed application for the Emirates ID.

Approximate Costs

The costs associated with establishing a company and obtaining a resident visa can vary based on the company type and location. Here’s a general breakdown:

• Free Zone Company Setup: AED 10,000 – AED 20,000
• Includes registration fees, office space lease, and initial visa costs.
• Onshore Company Setup: AED 15,000 – AED 30,000
• Includes registration fees, local sponsor fees, and office space lease.
• Resident Visa Application: AED 2,000 – AED 5,000
• Includes medical examination, visa fees, and Emirates ID application.

It’s essential to keep in mind that the costs associated with company registration in the UAE are not one-time fees but are incurred annually. This means that, in addition to the initial setup costs, you will need to budget for annual renewal fees to maintain your company’s registration and licensing. These ongoing expenses cover administrative costs, office space leases, and other regulatory requirements. Staying aware of these recurring costs is crucial for effective financial planning and ensuring the continued smooth operation of your business in the UAE.

Family Memebers Visa

It’s important to remember that as a UAE resident, you have the opportunity to sponsor your immediate family members for residency under your visa. This means that once you secure your own UAE resident visa through company formation or other means, you can extend the same benefits to your spouse, children, and other dependents, allowing them to live with you in the UAE. Sponsorship involves meeting specific financial and residency requirements, so it’s beneficial to understand these criteria to ensure a smooth process for bringing your family to join you.

Additional Documents for Family Sponsorship:

1. Marriage Certificate: Attested and translated, if sponsoring a spouse.
2. Birth Certificates: For children, attested and translated.
3. Proof of Relationship: Documentation showing the relationship between the sponsor and the dependents.
4. Proof of Accommodation: Evidence of suitable living arrangements for the family.

Timeline

The entire process for establishing a company and obtaining a UAE resident visa typically takes:

• Free Zone Company Setup: 2 – 4 weeks
• Onshore Company Setup: 4 – 6 weeks
• Resident Visa Processing: 2 – 4 weeks

Opening a Bank Bank Account in UAE

In the UAE, opening a bank account is a key step in establishing and operating a business. The timing for opening a bank account can depend on several factors related to the company’s registration and legal status. Here’s a general outline of when and how you can open a bank account

To open a business bank account, you will typically need to provide the following documents:

• Company Documents:
  • Trade license or commercial license.
  • Certificate of Incorporation.
  • Memorandum of Association (MOA) and Articles of Association (AOA).
  • Office lease agreement.
  • Shareholder and director resolutions.
• Identification Documents:
  • Passport copies of all shareholders, directors, and signatories.
  • Emirates ID copies for UAE residents.
• Proof of Address:
  • Utility bills or lease agreements to verify the company’s registered address.
• Company Profile:
  • Business plan or company profile outlining the nature of the business and its operations.

Local Banks

In the UAE, local banks are those that are incorporated and headquartered in the country. These banks offer a range of financial services including personal and business banking, investment services, and wealth management. Here are some of the major local banks in the UAE:

1. Emirates NBD

• Overview: One of the largest and oldest banks in the UAE, Emirates NBD offers comprehensive banking services including personal banking, corporate banking, and investment solutions.
• Website: emiratesnbd.com

2. Abu Dhabi Commercial Bank (ADCB)

• Overview: ADCB provides a broad range of banking services such as retail banking, corporate banking, and Islamic banking solutions. It is known for its customer-centric approach and innovative services.
• Website: adcb.com

3. Dubai Islamic Bank (DIB)

• Overview: Dubai Islamic Bank is one of the leading Islamic banks in the UAE, offering Sharia-compliant banking products and services, including personal, business, and corporate banking.
• Website: dib.ae

4. First Abu Dhabi Bank (FAB)

• Overview: FAB is one of the largest banks in the UAE by assets and offers a range of services including retail banking, corporate banking, and investment banking.
• Website: bankfab.com

5. Mashreq Bank

• Overview: Mashreq Bank is a major bank in the UAE known for its innovative banking solutions and customer service. It offers a wide range of personal, corporate, and investment banking services.
• Website: mashreqbank.com

6. National Bank of Abu Dhabi (NBAD)

• Overview: Now part of FAB, NBAD was a major player in the UAE banking sector, providing a wide range of banking services including retail and corporate banking.
• Website: bankfab.com

7. Abu Dhabi Islamic Bank (ADIB)

• Overview: ADIB offers Islamic banking products and services, including personal banking, business banking, and investment solutions, all compliant with Sharia principles.
• Website: adib.ae

8. Union National Bank (UNB)

• Overview: Now part of FAB, UNB was a significant bank in the UAE, providing various banking services including retail, corporate, and Islamic banking.
• Website: bankfab.com

9. Dubai Bank

• Overview: Now merged with Emirates NBD, Dubai Bank was known for its retail and corporate banking services.
• Website: emiratesnbd.com

These local banks play a crucial role in the UAE’s financial sector, offering various products and services tailored to both individual and corporate needs. When choosing a bank, consider factors such as service offerings, fees, branch and ATM network, and customer service to find the best fit for your requirements.

Conclusion

Establishing a company in the UAE is a strategic move that can offer significant business and personal benefits, including the opportunity to obtain a UAE resident visa. By following the steps outlined and understanding the associated costs and timelines, you can streamline the process and focus on achieving your business goals in this dynamic and lucrative market.

For personalized assistance with company formation and residency applications, contact us at HomeFinder.global. Our expert team is here to guide you through every step of the process and ensure a smooth and successful transition to living and working in the UAE.

At HomeFinder.global, we specialize in streamlining your journey to establishing a business and securing residency in the UAE. Our comprehensive services cover everything from company registration—whether in a free zone or onshore—to managing the entire visa application process. With a proven track record of assisting hundreds of clients in obtaining their residency visas, we have not only facilitated a smooth transition but also saved our customers significant amounts of money through our efficient processes and cost-effective solutions. Trust HomeFinder.global to handle the complexities of your business setup and visa application, so you can focus on achieving your goals while enjoying peace of mind and financial savings.

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