UAE document attestation

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Is your business set up in UAE? 9 Essential company documents and pre-requisites.

UAE document attestation Wondering what the essential company documents and immigration requirements are, to sponsor employees and legally practice business in UAE….

UAE is one of the most business-friendly countries in the world and has several regulations for the smooth and fair conducting of the business. We shall discuss few of the necessary requirements and some of the most important company documents that needs to be obtained and periodically renewed from the governing authorities in order to compliantly practice business in UAE.

1. Commercial License (Trade license)

First and foremost, is the commercial license which is the legal permit issued by the authorities enabling a company to do any trade or business. The trade license is issued for one year and would need to be renewed every year depending on the area of the jurisdiction. For instance, in Dubai if the business is set up in mainland, the issuing authority would be Dubai Economic Department (DED) while the issuing authority will be the respective free zone authority for free zone registered companies. 

2. Establishment Card

The company regardless of whether is in mainland or free zone, need to register with the General Directorate of Residency and Foreigners Affairs (GDRFA) in order to obtain the immigration establishment card. This will enable a business entity to obtain employment visa approvals for the foreign nationals it intends to hire. 

In many of the free zones it might be issued as a soft copy and it specifies the details of the company like the name of the company, the card number and the expiry date. Depending on the jurisdiction the card may be issued for 1 or 2 years which needs to be renewed well before the expiry date in order to avoid fines or any delays in the residence visa approval for the employees. 

 In addition, for the companies registered in the mainland, one of other requirements is to procure Labour Establishment card through Ministry of Human Resources and Emiratization (MoHRE), which in turn will entitle the company to apply and obtain the work permits for its employees.

3. Quota

Prior to work permit application, the employer needs to ensure that sufficient quota are approved by the relevant authorities. The process of obtaining quota varies from one jurisdiction to another. The quota allocation would depend on the nature of business, size of the office space, or legal structure of the entity. 

Companies in free zones do not have apply in advance and have the quota allocated generally based on the office space. The quota eligibility details would be available in the company profile within the company portal. Generally, one quota is allocated per 80 square feet of office space. 

However, in case of mainland companies the quota needs to be applied well ahead of sponsoring any foreign employees through MoHRE. The Ministry would conduct an inspection before approving the quota. In addition, the mainland companies may need to fulfil labour market testing requirement prior to getting the quota approved.

4. Bank guarantee requirements

One of the factors to be kept in mind before sponsoring employees would be the bank guarantee requirement which varies depending on jurisdiction. While some of the free zones have a standard bank guarantee (between AED2500-3500), other free zones may have a requirement for higher deposit, or certain percentage of employees’ salary. Additionally, there are certain jurisdictions (e.g. mainland and JAFZA) that have implemented an insurance scheme, which has replaced traditional bank guarantee. The companies are required to pay a nominal premium for this insurance policy while submitting a request for the new or renewal work permit. It is important to understand this requirement in advance for better financial planning.

5. Employee contracts and offer letters

Before commencing work legally, a foreign national must sign an employment contract with the employer. While some of the free zones accept the company’s internal signed contract, other free zone authorities mandate the submission internal employment contract, along with the free zone generated employment contract signed by the employee. In case of mainland companies, employee would be required sign an employment contract generated through MOHRE prior to getting the work permit. The employment contract should contain salary break down, probation, leave days, notice period, etc.

6. Portal Access

The portal access is granted for a business entity to manage their immigration related activities. Though generally, portal access is granted once the entity registration is complete, however, in certain circumstances, submission of manual application may be necessary. For mainland companies the portal access can be requested once the immigration and labour establishment cards are fully approved. 

7. Certificate of Authorization or e-signature card

Registering the name and signature of the authorized signatory with the authorities is an important exercise for the submission of work/residence visa application for its employees. With the e-signature system, the authorized signatory is not required to physically sign all the application forms or MOHRE employment contracts. 

However, in the free zone, as the work permit applications are submitted through the company portal, there is no requirement for an e signature card.  The signature of the authorized signatory is needed only on certain manual forms like employment contracts, salary amendment, or end of service/final settlement forms. The license manager automatically becomes the authorized signatory for the free zone companies. There is an option to add additional signatories and thus obtain the certificate of authorization in order to facilitate the work in the absence of the license manager.

8. Medical insurance provider set up

Every employer in the UAE is legally obligated to provide health insurance coverage for their employees through licensed health insurance companies operating in UAE. Based on the nature of work, size, type and number of employees, the employer can choose an insurance coverage.  

Even though the employer in Dubai is not legally obligated to provide the insurance coverage to the dependents of the employees, yet they are encouraged to do so. Since health insurance enrolment is interlinked with the residence permit application, failure to procure medical insurance coverage for employees will not only lead to rejection of new and renewal visa applications but also attract fines from the authorities.

9. WPS:

Wage Protection System (WPS) has been implemented to protect the employees for non-payment or delayed payment of salaries as specified in the employment contract. As per regulations the foreign nationals are required to be employed and directly paid by the sponsoring entity. Companies in select jurisdictions (mainland, Jebel Ali Free Zone, etc.) must pay salaries through the WPS. 

How can BM Strategies assist?

Given the dynamic nature of the immigration environment, we at BM Strategies guide our clients on the best and most efficient options in developing, implementing, and managing compliant UAE immigration programs. Please reach out to us for more information on contactus@bmstrategies.com

Disclaimer: The information provided here are only for the purpose of providing an overview regarding the UAE immigration processes. The immigration regulations are subject to change from time to time and from one jurisdiction to another. The information provided hereby should not be considered an opinion or advice from BM Strategies but only a practical guide for general information. visit this website = https://bmstrategies.com/