Once you manage to establish your business in the UAE, you should not think that everything is over since there are still steps to follow to give the company a greater boost. You still have to acquire the establishment card before you can, hire employees, issue invoices, receive payments, and much more. This is undoubtedly necessary for a company to start its economic activities properly.
In this article, you will learn about the establishment card in the UAE. The UAE establishment card is a must for any foreign entrepreneur who wants to invest in a business in UAE. It is also necessary to comply with other requirements such as the company establishment card. So that the company can legally offer its products and services to the public without any problem. For example, if you want to develop a company in Dubai, you must first obtain the Dubai establishment card.
What is an establishment card?
Cost to obtain the UAE establishment card.
Why is it necessary to obtain an establishment card in the UAE?
What happens if a company works with an expired establishment card in the UAE?
Documents needed to apply for the establishment card in the UAE.
Procedure for obtaining the UAE establishment card.
How can we help you obtain the establishment card for your business?
1. What is an establishment card?
This document may have various names. But regardless of its denomination, it is basically a plastic card very similar to a bank card which indicates the information of a company in the UAE such as its name, the establishment card number, and its expiration date. This is what an establishment card UAE sample would look like.
For its part, this document is approved by the immigration authority of the emirate where the company is located. Likewise, it is important to know the process for obtaining the establishment card since it is not the registration authority that grants this card but the immigration authority.
This is important to be clear about because the registration of a company in any of the UAE emirates is extremely fast. Now, the delivery of the establishment card is not so fast but it is not really fast. Normally, the card is issued between 8 and 14 days after the request. Therefore, the employer must schedule the start of business activities based on these periods.
Its content is in both English and Arabic. Also, on the back of the card, there are a series of instructions for the holder.
Undoubtedly, the most important piece of information in this document is the establishment’s card number.This it is the one that individualizes and identifies the company in front of the country’s authorities. Practically, it is the identification card of a company. Therefore, like any identification, this document gives legal status to the company during the time it is valid.
2. Cost to obtain the UAE establishment card.
The issuance of the establishment card will depend on the payment of the corresponding fees. However, on some occasions, the free zones specify the charges of the establishment card individually.
In relation to local companies, the establishment card fees are separate and must be paid directly to the immigration authority.
For its part, the amounts of the establishment card are different depending on the. These costs range from AED 650 to AED 1,500 per year. Fee costs for local companies in Dubai are higher and range from AED 4,940 to AED 5,000.
The period of validity of the establishment card for companies in free zones is most of the time 1 year. Now, for local companies, the validity is normally 3 years. Therefore, the employer must budget these expenses according to where have established your company.
3. Why is it necessary to obtain an establishment card in the UAE?
It is necessary to obtain this card, among other things, because with it the employer can apply for a resident visa, both for himself and for his foreign workforce. And it is that in order to apply for the respective resident visas, in addition to the requirements of the application for this visa, the employer must present a copy of the establishment card.
Now, state providers often request this card to provide internet, water, or electricity in the premises where the company operates.
Likewise, it is important to point out that there are two forms of delivery of the UAE establishment card. The delivery of this document can be directly in original or via email with an establishment card photo.
In the event that the delivery of the establishment card is direct in its original version, the employer must be very cautious and keep it in a safe place, since if it is lost, he must request a new card and therefore, must cancel all the corresponding fees again to this document.
For its part, the entrepreneur must not neglect the expiration date of his business establishment card and must renew it. Although, if the company is registered in a free zone, the authority normally renews this card for him automatically.
On the other hand, if the company is a local company, the employer must carry out the procedures for the renewal of the card several days in advance since unlike companies in the free zone, this process must be carried out by the employer in order to prevent the company from working with the expired establishment card during the process.
4. What happens if a company works with an expired establishment card in the UAE?
If a company renews its card after its expiration date, the corresponding authorities will impose sanctions. This must be taken into account by the employer so it is advisable to pay attention to the expiration date of the company’s establishment card and its main documents in order to avoid the inconvenience of having to pay a totally unnecessary establishment card renewal fine.
As we know, the card is an essential instrument for the company. Therefore, not only must the employer worry about renewing this card on time to avoid the corresponding fines, but it also depends on it those public services such as internet, water, and electricity work in the physical space where the card works business.
Imagine for a moment that the workplace has no electricity. Practically, on days when this public service is not provided, the company will stop billing, and, therefore, this will mean losses for the business.
5. Documents needed to apply for the establishment card in the UAE.
Like all procedures, they are necessary for the presentation of certain documents. In the case of the UAE card, it is necessary to present the following documents:
Sponsor’s Original Emirati Citizenship ID.
Simple copy of the business license.
Copy of the addendum indicating the names of the partners in the case of LLC.
Authenticated copy of the authorization for authorized signers. To obtain authorization to sign, the applicant must have a resident visa. If the foreign owner does not have a valid residence visa in the UAE, he can add their signature after affixing the visa to the passport.
Actually, the only prerequisite required by the immigration authority is the trade license. That is, in the first instance, the entrepreneur must go through the process of obtaining the business license in order to then be able to go through the process of obtaining the UAE establishment card.
Of course, the employer will not necessarily have to take care of all these procedures since he can count on the services of a company like PEO Middle East and will not have to worry about these procedures.
6. Procedure for obtaining the UAE establishment card.
Having at hand all the necessary collections, you will be able to request the application for the UAE establishment card. For this, it is necessary to complete the form and send it to the competent authority.
After that, these are the following steps:
Go to the Tasheel Typing Center with the documents to obtain the application form. Then you need to fill it out and get this form in Arabic.
The stamp of the company and the signature of each one of the partners of the same are also necessary.
Once all these steps have been completed, you will be able to withdraw the UAE establishment card.
Remember that you must keep it in a safe place since if you lose this card you will have to carry out this procedure again, including the payment of the corresponding fees.
Another thing that you should also remember is that you are not alone in the processing of this and any other document for the operation of your company in the UAE and that you can also count on the comprehensive services of PEO Middle East so that you do not lose focus of what really interests him is having a productive company in the UAE. The rest can be left to us.
7. General considerations
The UAE establishment card is a necessary document for a company to legally carry out its economic activities. For its part, this card is the identification of the company before the UAE authorities. Therefore, by having it, the company will be able to count on all the advantages offered by a great country for business such as the UAE.
It can be said that the constitution of the company is like its birth certificate and the card is like its identification, which, like any identification in any country in the world, will allow its owner to have certain prerogatives that those who do not have it they will not be able to count.
Likewise, depending on whether the company is from a free zone or a local company, the validity period will vary. In the case of free zone companies, the period of validity of the establishment card is normally 1 year, but the company will have the advantage that the free zone authority will carry out the card renewal process for the company automatically. Unlike local companies in which your card will normally have a validity period of 3 years but without the emirate authority carrying out the renewal process for it.
Therefore, for these cases, for example, companies in Dubai must be aware of the expiration date of their establishment card in Dubai in order to avoid administrative sanctions and the suspension of public services as important as water, internet, or electricity.
8. How can we help you obtain the establishment card for your business?
At PEO Middle East we know that these procedures take time away from entrepreneurs. So they can do what they really know how to do which is to turn their companies into productive businesses.
Therefore, every entrepreneur who wishes to establish a business in Abu Dhabi for example can count on the services of our company to obtain an establishment card in Abu Dhabi.
We are a firm with a long and extensive experience in the market. So, without a doubt, we will be your best ally so that you can establish your company in this great world business center such as the UAE. We provide our solutions in the following regions:
If you consider that our services can be useful for your business objectives, this is the moment for you to contact us.You can do it via email to the following address: [email protected] or call us at +971 43 316 688. We have enough staff to give a timely and effective response to all requirements, requests, or questions you may have about our business service or any other related issue.
On the other hand, if what you really want is to work in a large company in the Middle East, PEO Middle East, send us your CV to: thetalentpoint.com or via email to the following address: [email protected]. We have a large number of recruiters who will receive your CV and analyze the possibilities of your profile adapting to one of the positions that the company needs. Do not miss the opportunity. Send us your CV and be part of the PEO Middle East team.