If there’s one thing that aspiring entrepreneurs dread before setting up a business, it’s the paperwork involved. Handling documentation, navigating procedures, and seeking approvals are commonly seen as challenging tasks. However, it does not have to be as complicated as it seems, especially when you hire a business setup consultant in the UAE to assist you. Let us give you an overview of the key documents that are required before you get started with your venture.
Documents Required for UAE Company Formation
Based on the nature and jurisdiction of your business, the setup process may involve the submission, preparation, and issuance of some or all of these documents.
Identification Documents
As the shareholder of the business, your personal documents such as passport, address proof, and visa (for residents) are vital. Submission of originals or copies of these documents is required right at the start of the setup procedure. In addition to this, you may be required to produce additional documents such as your past bank statements for KYC purposes.
Business Plan
A business plan outlines various aspects of your business such as the long-term/short-term objectives, product/service details, marketing plans, funding plans, financial forecasts, and so on. Essentially, a business plan must effectively convey what your business is all about. Having a well-drafted business plan is crucial as it gives the authorities and potential investors a complete overview of your business.
Board Resolution
A board resolution is a document that formalizes the decisions made collaboratively by the directors of the company. These decisions could be regarding key company affairs such as appointing a manager, setting a company name, starting a new branch, and so on. This document is legally binding and serves as a record of the decisions made by the board. A business setup consultant can assist you in drafting a board resolution.
No Objection Certificate (NOC)
A No Objection Certificate (NOC) is usually required when you are looking to start a business while being employed. An NOC in this scenario must be obtained, stating that your current employer has no objection to your business. This document may also be required if your visa is sponsored by an individual other than your employer (e.g. your spouse). It must be noted that all free zone jurisdictions may not require a No Objection Certificate.
Articles of Association (AOA)
The Articles of Association (AOA) specifies the regulations related to the internal functioning of the company. These could include regulations associated with affairs such as the appointment of a secretary, the appointment of an alternate director, delegation of powers, proceedings at meetings, etc. Also, this document may specify the share capital information and regulations defining the transfer of shares. The Articles of Association (AOA) is prepared by the license issuing authority based on the information you have given.
Memorandum of Association (MOA)
The Memorandum of Association (MOA) defines the company’s fundamental objectives and is an official confirmation that the shareholders have agreed to form a company. This document states the key company details such as the company name, structure, address, objectives, duration, scope of operations, and so on. It can cover aspects such as the dispute resolution process, financial obligations of the shareholders, sharing of benefits, etc. Just like the AOA, the Memorandum of Association (MOA) is also prepared by the license issuing authority.
Tenancy Contract
A tenancy contract is issued by the land department of the relevant emirate. Basically, a tenancy contract is a legal document specifying the rental cost and the duration along with the tenancy terms and conditions as agreed upon between the landlord and the tenant. The tenancy contract must be submitted to the relevant authority before you can be granted the trade license.
Trade License
A trade license is the final document issued to you after which you can get started with your business. This document specifies the business activities that you are authorized to carry out. The main types of business licenses issued in the UAE are professional, commercial, and industrial licenses. Depending on the jurisdiction you have selected for setup, you may be issued a license that varies from these three.
It is advisable to acquire professional assistance and streamline the documentation process. A business setup service provider like InZone can comprehensively assist you with the documentation, and the overall company formation process. Get in touch today and get started with your business in no time.
