How to Start an Insurance Company in UAE?
The insurance industry presents an expanding array of opportunities. The United Arab Emirates (UAE) is a highly profitable country, making it a prime location for establishing the insurance and reinsurance industries. The United Arab Emirates has developed a comprehensive legal framework encompassing the insurance industry. The creation of the Insurance Authority and the regulation of insurance operations are covered by federal law No. 6.
It can be referred to as insurance law in short.
The insurance business is populated by a wide range of entities or insurers, including:
- Adjustors for loss or injury
The Dubai International Financial Center Free Zone is the ideal location to launch an insurance company in the United Arab Emirates because it has unique laws and regulations governing new business establishments.
The first step in establishing an insurance company in the United Arab Emirates is registering your company with the Department of Economic Development in Dubai. You would also need authorization from the Insurance Authority after completing the registration. An operating license is granted to the business owner; you cannot launch a venture involving insurance-related activities without this license.
Steps to start an insurance business in UAE
The steps to set up an insurance business are, moreover, the same process as any other business setup. The steps include:
Business Plan
Your company's objectives and your strategy for achieving them must be crystal clear. The insurance industry in the United Arab Emirates is very profitable, but success is impossible without a well-thought-out plan. It would help if you had a clear idea, comprehend possible risks to your company, recognize obstacles and hazards, and decide how you will raise the necessary funds.
Trade Name Reservation
The company's name is what makes it who it is. However, the UAE has stringent guidelines for choosing a company's name. The company's name shouldn't be associated with any religious titles, nor should it contain any profanity. Additionally, the business owner should refrain from signing his name or initials next to the company name. The DED must grant permission for the word to be used.
Business Structure
You have to decide under what legal structure you are planning to set up your business. In the UAE, you can set up a business in:
- Limited liability company (LLC)
- Offshore        Â
Getting the DED's initial approval is the next step after the business or trade name has been approved. The DED must receive all required paperwork for examination and approval. You must begin working on the Local Service Agreement (LSA) as soon as it is approved.
LSA Agreement
The LSA agreement must be written after it has been reviewed and approved by the DED. Either Arabic or English may be used to draft the LSA Agreement. To legalize the document, a notary public will also be needed.
Court Agreement
After the company's memorandum of understanding (MOA) is ready, all parties involved—including native partners and partners—must appear in court to notarize the document. Four copies of the agreement—one each for the court, the partner, the local partner, and the service provider—will be necessary.
Documentation
The DED receives all of the paperwork for approval. Upon approval, a payment voucher will be issued by DED. Additionally, it will formally add the company name to the commercial registry. Your trade license will be the payment voucher you received from the DED.
Trade License
The said amount in the payment voucher should be paid to obtain the official trade license.
Documents required to start an Insurance Company in UAE
- Passport & Visa copy of Authorized Signatory
- DED issued a payment voucher for a trade license
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