The United Arab Emirates (UAE) is a federation of seven emirates located on the eastern side of the Arabian Peninsula. The UAE has undergone a remarkable transformation and today, it represents a hub with diversified economy that includes finance, real estate, tourism, and technology.

Recently, the UAE Government has implemented various residency programs to attract foreign investment. One of these options is the UAE Residency Through Company Formation.

In this guide you will learn about:

What is the UAE Residency Through Company Formation?

The UAE Residency Through Company Formation program provides residency options for expats, inviting investors to form companies in the UAE to obtain residency for their families.

Obtaining residency through UAE company formation is a popular pathway for foreign entrepreneurs and investors looking to establish a business in the region. This process allows individuals to secure a residency visa by registering a company in the UAE, particularly in Dubai, which is known for its favorable business environment.

This is a great option for those that don’t fall under the requirements for the UAE Golden Visa which is structured specifically for exceptional talents, real estate investment, and financial investors. The business formation pathway is specially tailored to encourage establishing businesses in the UAE.

Read our UAE Golden Visa Guide

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Top Benefits of UAE Residency Through Company Formation

  • Business ownership: Foreigners are now permitted to fully own their UAE businesses without requiring a local sponsor.
  • Family sponsorship: Once applicants obtain residency in Dubai or the UAE, they are permitted to sponsor family members.
  • High quality of life: The UAE offers fantastic education, with a variety of private schools and elite healthcare systems. Additionally, there is world-class infrastructure in areas like Dubai.
  • Tax advantages: The UAE offers one of the lowest corporate tax rates in the region, making it an attractive destination for entrepreneurs. In addition, the UAE has no personal income tax, which is a significant financial advantage for residents.
  • Strategic location for business: The UAE, particularly Dubai, is ideally located for trade and logistics between Asia, Africa, and the Middle East. The UAE is the ideal location for multinational companies looking for a business friendly environment.
  • Convenient travel: UAE residency offers a multiple-entry visa, allowing holders to travel in and out of the UAE freely without needing to reapply for a visa.
  • Extended time outside the UAE: One of the biggest benefits for UAE residency is that you can spend prolonged time outside the UAE without affecting your residency.
  • Quick application process: Establishing a company in the UAE takes between 1-4 weeks. If the application is in order, applying for UAE residency can take as little as 7-10 business days.

Eligibility of UAE Residency Through Company Formation

There are strict eligibility criteria to apply for UAE residence visas, including:

  • Non-UAE nationals: Only non-UAE nationals are eligible to apply.
  • Age requirement: The primary applicant must be 18 or older.
  • Financial proof: You’ll need to show evidence of financial resources to support both your business and residency, often requiring proof of capital investment.
  • Clean criminal record: All applicants must have a clean criminal record in their home country and the UAE.
  • Health insurance: Valid health insurance approved by UAE authorities is required for residency applicants to not rely on government health services.
  • Health standards: Applicants must be in good health, free from communicable diseases deemed socially dangerous, and pass a medical examination in the UAE.
  • Business registration: You must register a business in the UAE, either in a Free Zone or on the mainland. The business must be legally recognized and operational.
  • Trade license: A valid trade license is essential, verifying that your business follows all UAE laws and regulations.

UAE Residency Through Company Formation Requirements

canada-businessTo qualify for UAE residency through company formation, the visa is primarily based on ownership of the company rather than employment. There is no minimum amount required for the creation of the company, however there are recommended guidelines:

  • Business ownership: You must be the owner or shareholder of a registered business in the UAE. This business can be a Free Zone company, a mainland company, or an offshore entity.
  • Residency through business ownership: Company owners are eligible for a residency visa, allowing you to live and work in the UAE. Unlike employment-based visas, this visa doesn’t require job offers or a valid employment contract.
  • Trade license: To operate legally in the UAE you need a valid trade license from the Department of Economic Development (DED) or relevant Free Zone authority.
  • Family sponsorship: Once you have residency, you can sponsor family members (spouse and children) for residency visas, allowing them to live in the UAE under your sponsorship. There’s no additional requirement to add dependents, but you’ll need to show proof of income or financial support and evidence of adequate accommodation for them to live comfortably.
  • Financial requirements: You need to show adequate financial resources to support both your business and personal expenses. This may include:
  1. Capital investment proof (minimum AED 50,000 for some company types).
  2. Bank statements or confirmation from financial institutions.

Important Note: The UAE has three types of companies: Mainland, Free Zone, and Offshore. Only Mainland and Free Zone companies can sponsor visas; Offshore companies do not have this ability.

UAE Residency Through Company Formation Document Requirements

There is quite an extensive list of document requirements. Here are the documents needed for company formation in the UAE:

  • Passport copies: Copies of valid passports for all owners and shareholders.
  • Business plan: An outline of your business goals and strategies.
  • Passport photos: Recent passport-sized photos for each applicant.
  • Company name options: A list of possible names for your company, following UAE naming guidelines.
  • Memorandum of association (MOA): A document describing the company’s structure, purpose, and the roles of each member.
  • Articles of association (AOA): Defines the company’s internal rules and management policies.
  • Office lease agreement: Proof of your physical office space in the UAE (required for mainland companies).
  • Trade license application: The official application for your company’s trade license.
  • Initial approval certificate: Approval from the relevant authority (DED or Free Zone) to move forward with the registration process.
  • Establishment card: An immigration card required for hiring employees.
  • Share capital deposit certificate: A bank certificate showing that you’ve deposited the necessary share capital in a UAE bank.
  • Certificate of incorporation: Issued by the Department of Economic Development (DED) or Free Zone authority once your registration is approved.

Document Requirements for UAE residency permits

Once the company is approved you can apply for the residency permit. Here are the documents required for obtaining a residency permit in the UAE:

  • Trade license: The official business license needed to operate in the UAE.
  • Certificate of incorporation: Proof of your company’s official registration.
  • Passport copies: Copies of valid passports for all applicants.
  • Photographs: Recent passport-sized photos for all applicants.
  • Ejari certificate: Required to secure or renew a residency visa, set up utilities, or obtain a commercial license. Without this, processing your visa or registering services in your name can be delayed.
  • Medical fitness certificate: A health report from an approved medical center in the UAE.
  • Emirates ID application: A completed form for the Emirates ID, required for residency.
  • Proof of relationship (if applicable): Documents like marriage certificates or children’s birth certificates to verify family ties for dependent visas.
  • Health insurance: Proof of coverage for yourself and any dependents.
  • No Objection Certificate (NOC): If required, a letter from your current sponsor (needed if you’re already in the UAE on another visa).
  • Financial documents: Evidence of sufficient funds to support your business and residency.

How to Apply for UAE Residency Through Company Formation: Step by Step Process

Step one: Choose your business activity: The first step is to select the type of business you wish to operate. The UAE offers a wide range of business activities, from trading and consulting to manufacturing and services.

Step two: Select a business structure: Depending on your business goals, you can choose from various structures such as a Free Zone Company, a Limited Liability Company (LLC), or an offshore company. Each structure has distinct requirements and benefits.

Step three: Obtain necessary approvals: After deciding on the business structure, you need to secure the required approvals from relevant authorities, which may include submitting a business plan and paying registration fees.

Step four: Obtain name approval: Get your proposed company name approved by the relevant authority (Free Zone or Department of Economic Development).

Step five: Register your company: Once you have the necessary approvals, you can register your company by submitting the required documents and obtaining a trade license.

Step six: Secure a physical office or flexi desk: Obtain a physical office space in the UAE if required by your jurisdiction or alternatively a flexi desk.

Step seven: Collect your business license.

Step eight: Open a UAE bank account: Open corporate bank accounts to conduct business transactions.

Step nine: Apply for the UAE Residency Visa: With your company registered, you can apply for a UAE residency visa. This application typically requires proof of your business registration, trade license, and other relevant documentation.

Step ten: Undergo medical testing: Complete a mandatory medical test as part of the UAE visa application process.

Step eleven: Apply for Emirates ID: Obtain an Emirates ID card which serves as proof of UAE residency

Step twelve: Sponsor family members: If eligible, sponsor family members like spouse and children to obtain their UAE residency visas.

UAE Residency Through Company Formation Processing Time

The entire UAE residency visa process generally takes about 7 to 10 working days from the application date. Meanwhile, setting up your business in the UAE can take 1 to 4 weeks, depending on the type of company and location.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Ask Questions About: UAE Residency Through Company Formation

Do you get a residency permit if you own a business in Dubai?

Yes, the UAE Residency Through Company Formation grants you the right to reside in the Emirates for business purposes. This visa is available to foreign investors, including founders or shareholders of a UAE company. The company can be registered either on the UAE mainland or in any of the country’s free zones.

How can I get Residency by Company Formation in Dubai?

To obtain Dubai residency by company formation, you must register a business in either a Free Zone or on the mainland. Once registered, apply for a residency visa as the company owner or shareholder. You’ll need to complete medical and biometric checks, provide health insurance, and obtain an Emirates ID. After approval, you can sponsor your family for residency under the same conditions.

How to become a resident of Dubai?

There are two main pathways for becoming a resident of Dubai. The first option is through the UAE Golden Visa program and the second is with the UAE Residency Through Company Formation.

What is the Dubai company formation and visa?

UAE residency through company formation allows you to obtain a UAE residency visa by starting a business within the UAE. An investor can obtain a standard residence visa by establishing a new company in the UAE. This visa is valid for two years (previously up to three years). The company in which the investor holds ownership or a partnership will act as the sponsor for their visa application.

Is there a residence visa UAE?

Yes, there are UAE residence visas for individuals who wish to live and work in the country. These visas are typically granted to employees, business owners, investors, and their family members. You can also obtain a residence visa through company formation, property ownership, or other investment opportunities.

How long does it take to get UAE residency?

The timeline for obtaining UAE residency depends on the chosen pathway. Through company formation you can obtain UAE residency in about 7-10 working days. The UAE Golden Visa can take up to 30 days depending on the nature of the investment.

Can a foreigner set up a company in the UAE?

Absolutely! Foreigners are welcome to set up a company in the UAE. That’s why the company formation visa exists to streamline the process for foreign nationals.

Where can I open a business in the UAE?

Free Economic Zones (FEZs) in the UAE are designated areas where foreign investors can fully own companies, with 100% of the share capital under their control. Mainland businesses are registered with the Department of Economic Development (DED) and can operate anywhere in the UAE.

Can I register a company in Dubai without living there?

Yes, you can register a company in Dubai without living there. As a foreign investor or business owner, you can set up a business in Dubai’s Free Zones or mainland, even if you’re not a resident. However, you will need a local sponsor for mainland companies, and you must fulfill other requirements like obtaining a trade license and securing a residency visa if you plan to live in the UAE.