Russian
English
Purchase of a ready-made company in the UAE
Business development in the UAE attracts entrepreneurs from all over the world due to favorable tax conditions, a stable economy, and the country’s strategic location. Buying a ready-made company in the UAE is one of the ways to enter the Middle Eastern market while preserving brand value and business history. This approach is especially important for those who value business continuity and aim to strengthen client and partner trust
Table of contents
Why buy a ready-made company instead of registering a new one?
Registering a new company in the UAE is no more complicated than buying a ready-made one, but the latter option has a key advantage – preserving reputation and business history. This allows to continue previously established business processes, retain existing clients, and maintain relationships with current partners.
Possible Risks and Challenges
Purchasing a ready-made company involves certain risks that require thorough due diligence, such as:
-
Existing debts or obligations to third parties, including unpaid fines. Such encumbrance could lead to freezing the company’s bank account;
-
Legal violations committed by previous owners;
-
Incomplete disclosure of information to the buyer. For instance, license may appear valid but still be a subject to revocation due to breaches of its conditions ;
-
A narrow license scope that may not align with your business objectives and aims.
Those risks can be minimized through professional legal due diligence before the transaction, which the Law&Trust International team can conduct for you.
Advantages of purchasing a ready-made company
The key benefit is the ability to start operations immediately. A ready-made company in the UAE is already licensed, may have established processes, and can possess an operating infrastructure. Furthermore, an existing track record increases trust from clients, partners, and banks
Necessary steps before purchasing a ready-made company in the UAE
-
1. Mandatory review of accounting documentsBefore buying a ready-made company with a bank account in the UAE, it is crucial to thoroughly examine primary documents, financial statements, and past audit results This helps identify hidden issues such as debts, discrepancies, or other risks.
Paying for an audit in advance is a reasonable precaution that helps avoid major penalties or sanctions in the future. The costs of professional due diligence are far lower than potential financial losses from undisclosed obligations.
Law&Trust International team offers the services of professional auditors and accountants to assist you in this process.
-
2. Legal due diligence of the companyCheck company’s legal purity. Make sure, all documents must be properly executed, licenses valid, and obligations to government authorities fulfilled. Pay particular attention towards pending lawsuits, claims, outstanding debts. Legal due diligence before acquiring a ready-made company in the UAE helps minimize risks related to previous owners’ violations.
-
3. Review of company history and reputationExamine the company’s background: date of registration, business activities, client and partner base. Reputation directly impacts its attractiveness to investors and new business partners. Negative reviews, scandals, or terminated contracts may significantly hinder business operations. Business continuity in this case may be both an advantage and a drawback.
-
4. Evaluation of current business conditionCurrent business state analysis must include:
• Financial results;
• Assets availability;
• Staffing;
• Contractual obligations;
• Sustainability of business processes.
It is important to assess whether the company’s structure and current activities match your goals and strategies. If the company is operational, analyze its competitiveness and market position. -
5. Review of bank accounts and financial obligationsSpecial attention should be given to bank accounts: they must be open, active, and free from restrictions or frozen funds. It is also essential to check for loans or other financial obligations to avoid unexpected expenses after acquisition.
Time-frame for acquiring a ready-made company in the UAE
The transfer of ownership usually takes 10–20 working days, depending on transaction terms. In addition to official ownership transfer, banks require approval of the new director and shareholders, which may also take 10–20 days depending on the bank’s policies.
It is important to note that procedures may vary depending on the requirements of a specific free zone or mainland jurisdiction. Each transaction requires an individual approach, which should be factored into planning.
Proper structuring and comprehensive due diligence will help mitigate risks and ensure an efficient business launch in the UAE. Law&Trust International can assist you with purchasing a ready-made company not only in Dubai but in any emirate of the country.
F.A.Q.
Can I obtain a UAE residence visa through a ready-made company?
Yes. The owner and employees of a ready-made company may apply for residence visas. Conditions depend on the jurisdiction and license type
Is it possible to change ready-made company’s business activity?
Yes. In most cases, the business activity can be changed or expanded by submitting an application to the registration authority. The procedure depends on the jurisdiction and may take from a few days to a couple of weeks.
Is physical presence required to purchase a ready-made company?
In many cases, physical presence is not required if you have a trusted representative or agent. However, transferring a bank account and completing certain legal procedures may require personal presence.
