The UAE government is very accommodating to foreign investors who wish to start a company within the country. The main requirement is to meet all registration conditions and obtainthe necessary documents to ensure the business operates legally. The company’s Establishment Card is one of these requirements. This Card serves as proof that the enterprise is officially registered, has the right to conduct business activities in the UAE, hire employees, sponsor visas, approach government services, and handle important administrative, financial, and legal matters.
In this article, specialists from Dynasty Business Adviser explain the features and benefits of obtaining and using the Establishment Card in the UAE.
What is Establishment Card in UAE?
The Establishment Card is an identification document for a company, resembling a bank card, that indicates the official status of the enterprise. It contains important identifying information such as the company logo, name, type of activity, legal form, issuing authority, unique number, and card expiration date. This card is issued by the immigration department of the emirate where the company was registered, and it’s valid for one year. Upon expiration, the Establishment Card needs to be renewed.
The Establishment Card of a company has several synonymous names:
- Establishment Card;
- Card of Establishment;
- Company Establishment Card (CEC);
- Immigration Card;
- Company Immigration Card (CIC).
Benefits of using the Card
This document ensures the effective and uninterrupted operation of the business, providing the following advantages:
- Legal employment. The Establishment Card in the UAE confirms the company’s registration and grants employees the right to work in it, which is crucial for complying with legal requirements.
- Visa sponsorship opportunity. With the Establishment Card, you can arrange visas for yourself and your employees, making entry and stay in the country easier.
- Access to banking services. Having the Establishment Card makes opening bank accounts and obtaining financial services easier.
- Confirmation of business status. The Establishment Card serves as proof of your business’s official operation to contractors, clients, and partners.
- Visa processing speed. With the Company Immigration Card, the visa acquisition process becomes simpler and faster.
- Other services. The Card is needed to connect utilities to the office, such as water, electricity, internet, and telephony.
- Interacting with government authorities. Without the Card, it will be difficult to resolve administrative issues such as license renewal, opening branches, legal disputes, and registering employees in the payroll service.
How to obtain a UAE establishment card
Above, we briefly discussed what the Establishment Card is in the UAE and the advantages it offers. Now let’s look at important points regarding how to obtain one.
Conditions for obtaining the Establishment Card
If you registered your company in a Free Zone, the application for the Establishment Card will be processed automatically within 8-12 days. Otherwise, you will need to handle the card application process yourself. You can start the process of obtaining the Immigration Card on the mainland UAE by gathering the necessary documents immediately after registering your business.
Application process
If you want to know how to apply for Establishment Card in Dubai and other emirates, follow these steps:
- Make sure that your company is officially registered with the appropriate authorities, such as the Department of Economic Development (DED) in Dubai or the Sharjah Economic Development Department (SEDD).
- Prepare all necessary documents.
- Submit the application through the official website of the immigration service Amer or through a Happiness Service Center.
- Pay the required fees and wait for the Establishment Card application status to change.
Required documents
The basis for submitting an application for the Establishment Card in Dubai and other Emirates is a commercial license. In some cases, depending on the business sector, additional documentation may be required, such as:
- foundation agreement;
- document on the formation of the Board Of Directors;
- list of persons with the right to sign documents;
- powers of attorney (if applicable);
- identification documents of the founders.
If the legal form of the enterprise is an LLC, then a list of interested parties must be specified in the license. Their IDs will also need to be presented.
Let’s consider the additional documentation that may be required depending on the type of enterprise:
|
Government organizations |
Document on the formation of the Board Of Directors. Letter to the government administration. |
|
Private companies |
Letter of authorization for signature with a list of authorized persons. Copies of partners’ passports. General power of attorney (if applicable). |
|
National companies |
Memorandum of establishment. License of the national sponsor or local service agent. |
|
Startups participating in support programs |
Letter confirming participation in the program. |
Timing and cost of obtaining the Establishment Card
After successfully submitting the application and paying the fees, the Establishment Card will be issued electronically to your email within 48 hours. You will receive an SMS notification about picking up the physical card at one of the immigration service centers. Be sure not to lose the physical card, as you will have to apply for a new one if you do.
Estimated fees for online application submission:
- Application fee: AED 50 ($13.6).
- Card issuance fee: AED 100 ($27).
- Electronic services fee: AED 10 ($2.7).
Additional fees:
- Knowledge Dirham fee: AED 10 ($2.7).
- Innovation Dirham fee: AED 10 ($2.7).
- Express service fee: AED 100 ($27).
A 5% VAT is traditionally added to all payments. Note that commission fees may vary depending on the selected service and registration location, as local authorities may set different rates. If you operate in a Free Zone, the cost for document issuance and renewal typically ranges from AED 650 to AED 1,500. An Immigration (Establishment) Card in Dubai and other mainland areas of the Emirates will cost around AED 1,000, and around AED 2,000 in a free zone. Its renewal will cost the same amount.
Opportunities provided by the Establishment Card
- Payment processing. Alongside a bank card, the Establishment Card allows for online payments, such as paying for government services for businesses.
- Expense tracking. Through the online service, track payments and account balances. You can also manage multiple cards, which is very convenient if you have several companies registered in the country.
- Fraud protection. To prevent unauthorized use, the Card is issued only after presenting the commercial license and the passport of the person authorized to sign, confirming their identity. In some cases, the immigration service may request additional company documents to verify legal status. All transactions are also securely protected.
Using the labour Establishment Card by employers
Integration of the Establishment Card with payment and other systems reduces administrative barriers. As a result, employers can carry out necessary procedures quickly and efficiently.
Payroll
For employers, the Establishment Card plays a key role in simplifying the process of calculating employee salaries. It ensures accurate and timely distribution of funds, which contributes to employee satisfaction and compliance with labor laws in the Emirates. Additionally, the Immigration Card simplifies the process of registering workers with the General Directorate of Residency and Foreigners Affairs (GDRFA). This is important for managing employees’ visa requirements, especially when crossing borders or renewing visas.
Tax compliance
The payment for the issuance and renewal of a founding card, as well as licensing, essentially serves as an alternative to tax collection. The tax rates in the UAE are very low compared to other developed countries. This is why complying with the Card issuance requirement is so important. Moreover, it is convenient and simplifies business operations, such as using the Card for automatic tax payments if your company attains VAT payer status.
Privileged access for businesses
Establishment Card holders have access to 24/7 technical support for any issues related to card replenishment, automatic settings, and service support.
Channels for technical support:
- Social media ICA: Facebook, Twitter, ICA_Help.
- Email: [email protected].
- Chatbot: Ask Hamad at www.icp.gov.ae for immediate assistance.
- Call center: contact via phone at 600522222 for direct support.
Features of working with the Card
Establishment card renewal and cancellation
You can renew or cancel the Card through the same service where you registered, typically within 48 hours. Usually, this is Amer. To renew, you need to follow the same steps as during registration:
- fill out the online form in English or Arabic;
- attach the necessary documents;
- pay the service fee, government fees, and commissions.
It’s advisable to take care of the renewal in advance to avoid possible delays, holidays, or circumstances that may prevent you from getting the Card quickly. The Card might be needed for certain business processes, and using an expired Card for these purposes can result in fines.
To renew the Card, you will need to pay the following fees:
- approximately AED 650 for mainland companies;
- AED 1,000 to AED 2,000 for companies in Free Zones;
- service commissions from AED 10 to AED 300;
- 5% VAT.
Updating company information
The information on the Immigration Card must always be up-to-date. If the company name, owners’ names, or company activities change, these must be reflected on the card. Thus, the card must be updated.
Certainly, the reason for making changes must be documented. Therefore, when submitting an application, you will need to provide the documents required for Establishment Card renewal:
- updated commercial license;
- resolution of the Board Of Directors;
- copy of the decree with signatures of authorized persons.
Conclusion
In this material, you have learned about the Establishment Card: what it is, how to obtain it, and how to renew it. Here’s a little secret: if you order a turnkey company registration in the UAE with our company, including subsequent legal support, you won’t need to remember how many documents to prepare, translate, or legalize or when and which ones to renew. We will take care of renewing your licenses, Establishment Cards, and other documents promptly, so you can focus solely on business matters.
Certainly, we are ready to provide legal consultation services as a separate offering. If you need assistance with preparatory tasks such as documentation, professional translation, legalization, and notarization, feel free to contact us. This will save you time on bureaucratic issues and correcting documentation errors. Experience shows that these errors are inevitable without specialized knowledge. However, our expertise will help you quickly adapt your business processes to start operations.
