UAE resident visa when opening a company: sharing our experience of obtaining

Previously, the REVERA team supported the company’s set-up process in Dubai. We have successfully registered an IT company and received the appropriate license in one of the most respectable and popular free zones in Dubai: Dubai International Financial Center (DIFC). In today's post we want to share our experience with you.

Residence permit (residence permit) is impossible to obtain in the Emirates. The local equivalent is the so-called UAE resident visa — its presence gives you the status of a resident of the Emirates.

There are different reasons for receiving it: investment by purchasing real estate in the Emirates, official employment in an Emirati company, incorporation of a company. After registering a company in the DIFC free zone, we assisted in the process of obtaining a UAE resident visa in connection with employment with this company.

Why do you need a UAE resident visa?

• First of all, a UAE resident visa is necessary in order to be able to stay in the Emirates and freely fly into/out of the country.
• Secondly, without a UAE resident visa, a business owner will not be able to open both a personal and corporate account, and, accordingly, quickly begin working with clients: reliable and reputable banks in the Emirates require a UAE resident visa when opening bank account. Having a UAE resident visa can also be an advantage when opening an account and incorporating a business in other jurisdictions.
• Thirdly, in the UAE there are requirements for economic presence (substance). Having a visa for the owner of an IT business will undoubtedly be a plus when conducting a substance test, since it confirms the resident status of the company founder.

What is the validity period of a resident visa?

Today, a UAE resident visa obtained on grounds such as opening a company or employment in such a company is valid for two years from the date of its receipt. In the future, a visa extension will be required; it can also be extended for a period of two years.

It is important to note that to maintain UAE resident status, you must enter the country at least once every 180 days. The length of stay in the Emirates does not matter in this case, the main thing is to go through passport control at the UAE airport.

How is the process of obtaining a UAE resident visa?

It will not be possible to obtain a visa completely remotely; your personal presence in the Emirates will be required.

In our case, the process was as follows:

1. We are waiting for the completion of company registration and receipt of a certificate of incorporation and license.

2. We decide on the position that will be indicated on the UAE resident visa.

If it is important for you that your actual management status is indicated on the visa (for example, founder, director, manager of the company), you will have to legalize your diploma. The UAE has not acceded to the Hague Convention, which abolishes the requirement for the legalization of foreign official documents and provides for a simplified procedure for issuing an apostille. The legalization procedure is complex, lengthy and not the cheapest.

You can avoid the need for legalization by applying for an employee visa (i.e. on the basis of employment in a company registered by you). The status of the document and the rights acquired along with its receipt are not affected in any way by the registered position. Therefore, we recommend choosing this option.

3. Next, you need to issue an Establishment card to the company and obtain an Entry permit:

• Establishment card — Migration card, which is issued by the immigration authority. It gives the company the right to issue UAE resident visas for founders/employees. Accordingly, without this document it will not be possible to obtain a resident visa. The period for receiving the card is about 5 working days from the date of opening of the company.
• Entry permit — permission to enter the Emirates for the purpose of obtaining a resident visa. The permit is issued by the free zone in which your company is registered and is valid for 60 days from the date of issue. During this period, you need to fly into the country and begin obtaining a visa. To obtain an Entry Permit, you need to submit a corresponding application to the free zone, as well as attach an employment contract between the company in the UAE and the resident visa applicant (if you have chosen the option of obtaining a visa with a non-managerial position). Estimated deadline for obtaining Entry permit — 5-7 working days from the date of receipt of the application for its issuance in the free zone.

4. Directly applying for a UAE resident visa

It is important to note that your passport must be valid for at least 6 months at the time you apply for your visa.

5. Passing a medical test and biometrics

The person applying for a visa will need to undergo a mandatory medical examination. Accordingly, at this stage your personal presence in the Emirates will be required.

The period for receiving medical test and biometric results is 3-4 weeks. It is possible to arrange an expedited procedure for an additional fee, in which case the waiting time will be reduced to 2 weeks.

6. And finally, obtaining the visa itself and Emirates ID

The UAE resident visa is issued electronically, your status in the immigration office system will be converted to resident. Therefore, you can leave the Emirates as soon as you receive a notification about receiving a visa (i.e. paste it into your passport, no need to wait for plastic).

Emirates ID — UAE resident ID card. It is issued so that you can have access to the services of government bodies and other organizations (for example, get a permanent mobile SIM card, get a driver’s license). This document is issued in plastic approximately a week after the visa is issued. It is not necessary to wait for it in the country, but you will need to pick it up the next time you visit the UAE.

How much time and money will it take to obtain a UAE resident visa?

The entire process of obtaining a UAE resident visa to establish a set-up business in DIFC took us about 4-5 weeks.

The average cost for obtaining one UAE resident visa in Dubai is about 4,000 USD.

Thus, you will need a UAE resident visa if you plan to move your business (part of it) to the Emirates. A visa, first of all, will provide you with the opportunity to freely visit the country, as well as open personal and corporate accounts in a local bank.

When deciding whether to obtain a UAE resident visa, please remember that the process, minimum requirements and timing of obtaining a visa may vary depending on the free zone in which your company was registered.