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Freezoner Dictionary

Company Formation Simply Defined

Freezoner team is proud to introduce UAE’s company formation dictionary that will simplify your company formation journey and make it understandable in the simplest way. To add more definitions, feel free to email us at

Yours Sincerely,
Ramy Amin
CEO Freezoner

All b c d e f g h i l m n p r s t v
Bank letter

It is an official letter issued by licensing authorities in UAE requesting UAE banks to open a corporate bank account to new company owners.


Client Confirmation Letter is a letter given by some Free zones in UAE to Investors to confirm the terms & conditions that are agreed on for the business setup by singing for the filing purpose, it usually kept with the registrar

Corporate/Business Bank Account

A bank account or type of bank account used for business transactions rather than personal ones


Department of Economic Development or DED is the main Government Authority in each of the seven Emirates responsible for Non-free zone “Mainland” company formation and all its related work

Employee Visa

Is a Visa given to an individual when employed and sponsored by a UAE company, visa length varies depending on the issuing authority, however it is mainly valid for two years.

Entry Permit

Entry Permit is the 1st official step when applying for residence visa in UAE, it is a document that allows you to enter the UAE boundaries and finalize your Visa procedures

Entry permit is usually valid for 60 days from its issuance, however it might vary depending on the issuing Authority

Facility confirmation letter

Facility confirmation letter is an official letter requested by some UAE parties from tenants to get an official letter confirming their facility details, this letter is mainly requested by banks.

Free Zone Offshore

Offshore free zone company means the company registered in free zone, but, unlike the free zone onshore company, all the activities of free zone offshore company must be outside of UAE only (with exception of purchase of real estate in UAE and holding of shares of other companies in UAE)

Free Zone Onshore

Free Zones (also known as free trade zones) are designed for boosting international business through providing 100% ownership to expatriates and single window administration convenience. In UAE, freezones are either attached to ports or industry specific.


Freezoner is referred to a dreamer, entrepreneur, an individual or group of people “Freezoners” who have decided to make the smart move and step out of the comfort zone and start their own business.


Free Zone Limited Liability Company or FZ-LLC is a Free Zone company which is owned by more than 1 person (Starting from two Individuals as a minimum)

Some Free Zones use the term FZ-LLC and others use FZC for the same meaning


Free Zone Company or FZC is a Free Zone company which is owned by more than 1 person (Starting from two Individuals as a minimum)

Some Free Zones use the term FZ-LLC and others use FZC for the same meaning


A Free Zone Establishment or FZE, is referred to the sole ownership of a company by an individual or a corporate person (One Owner)

General POA

A general power of attorney acts on behalf of the principal in any and all matters, as allowed by the state. The agent under a general POA agreement may be authorized to take care of issues such as handling bank accounts, signing checks, selling property and assets like stocks, filing taxes, etc.

Good Conduct Certificate

With effect from February 4 2018, it is going to be mandatory to receive a ‘certificate of good conduct’ which is a Criminal Record Verification, In order to obtain a work visa in the UAE,

As per a decision of the Council of Ministers No. (1/8) of 2017, which has been adopted recently by the Dubai Police Coordination Committee, the applicant should provide the certificate from the home country or from the country of residence where the person has been residing during the last five years. This should be certified by the UAE missions abroad or attestation centers of the Ministry of Foreign Affairs as part of International Cooperation.

Holding of Family Visa (Only in Mainland, not applicable in Free Zones)

Holding family visa is the process done by the family sponsor to temporarily hold the visas of his family some time and the sponsor finalizes the process of his/her new visa. This facility is subject to special approval from senior officer at Immigration office. Approval depends on your new Designation and Salary mentioned in the job offer letter.
If approved, Family visa can be held without canceling, while changing sponsor’s visa to another company. Benefit of this facility is, dependents can continue their existing visa and you can avoid expense of Cancellation, Applying new visa, Status change, Medical, Emirates ID and Visa stamping. if not approved, you will have to cancel dependents visa and apply new visa for them.
Outside: You cannot hold family visa if they are out of the UAE on vacation.
Different Emirate: You cannot hold family visa in Dubai if you are changing to another Emirate

Investor Visa

Investor Visa lasts for a maximum period of three years and is a good option for foreign nationals seeking to establish their own business or to invest into an existing business in the UAE.

The term “Investor” is mainly given to single establishments.


A Limited Liability Company (LLC) is the most common type of registration in the UAE and is recommended where the purpose of the entity is to make sales within the region. However, it should be noted that 100% foreign ownership of such an entity is not permitted. Under the UAE Commercial Companies Law (CCL), foreign investors are permitted to hold up to 49 per cent equity ownership in UAE companies and 51 per cent of the equity must be held at all times by one or more UAE nationals.

Local Agent

It is important to mention that Local partner is not required in all cases when you set up a local UAE company. Local partner is required for any trading activities, unless a new company is a branch of a foreign entity. In case of a branch of a foreign entity (trading activities) and in case of professional services, local company may be 100% foreign owned, however such company requires a local agent.

Local agent (or Local Service Agent) is a UAE national or a UAE local company which is appointed against annual remuneration to carry out administrative functions only and assist with license renewals, visa applications and alike.

Local Sponsor

When a foreign investor setup a business in Dubai, the UAE legislation states that a local sponsor be appointed for representative dealings with the ministries and the government for getting the various paperwork done.

A local sponsor is an Emirati or a UAE national, who acts as your service agent or a partner who holds 51% of the shares for your business in the UAE and he usually acts as a sleeping partner of your company.

Maid Visa

Sponsoring a maid


The memorandum of association of company, often simply called the memorandum is one of the most important documents and must be drafted with care. It must be filed with the Registrar of Companies during the process of incorporation of a Company. It contains the fundamental conditions upon which the company can operate. Its purpose is to enable shareholders, creditors, and those who deal with the company to know what its permitted range of enterprise is. It informs all persons what the company is formed to do and what capital it has to do with.


No Objection Certificate or NOC is a commonly used official document requested by Government Authorities to individuals to do a certain action which requires their sponsor’s approval

Partner Visa

Like the Investor visa, however “Partner visa” is given to a shareholder, or to an investor who owns part of the business and doesn’t stand as a single owner.

Personal POA

Personal POA is a limited power of attorney that gives the agent the power to act on behalf of the principal in specific matters or events. For example, the personal POA may explicitly state that the agent is only allowed to manage the principal’s company. A personal POA may also be limited to a specific period, e.g., if the principal will be out of the country for, say, two years.


A power of attorney (POA) or letter of attorney is a written authorization to represent or act on another’s behalf in private affairs, business, or some other legal matter.


It as mandatory screening process by UAE authorities for everyone who is willing to apply for a new license or willing to join an existing one

Property residence visa UAE

A visa which is given to investors who owns properties in UAE

Relative Residence visa UAE

Sponsor your parents, parents-in-law, brother or sister. Not automatic, special application needs to be made.

Silent Partner

A silent partner is an individual whose involvement in a partnership is limited to providing capital to the business. A silent partner is seldom involved in the partnership’s daily operations and does not generally participate in management meetings. A silent partner is also known as a limited partner, since his liability is typically limited to the amount invested in the partnership.

Sleeping partner

A sleeping partner is a partner who is part of a partnership and does not participate in the management of the company, in business setup in UAE, sleeping partner is mainly the Emirati partner who participates in the company as a government requirement to own 51% of the shares

Specimen Signature Form

This is a form where a someone’s signature to be compared to an original signature in order to verify someone’s identity

Sponsorship Visa

Sponsor your husband or wife, and children.

Strike Off

Striking off a company is a legal procedure taken by any of the company’s shareholders or the registrar to permanently delete the company’s related data and name, this might happen for many reasons and must be supported but supporting documents, varies from case to case

Student residence visa UAE

Full-time tertiary level students at UAE colleges and universities can get UAE residence visas, usually renewable annually. Secondary and primary level students will normally be under the sponsorship of one of their parents.

Tax Residency certificate

Tax Residency certificate or Tax Domicile Certificate is a certificate issued for eligible government entities, companies and individuals to take advantage of agreements of double taxation avoidance on income signed by the UAE.

Visa Medical Test

Through this service, expatriates who are over the age of eighteen years can obtain a medical check-up certificate. This certificate is a necessary requirement to apply for or renew a residence visa.

Visa Stamping

It is the final process after going through the entire visa process by stamping the visa sticker on your passport, it officially means you are a residence of UAE

Visa Status Change

It is a process where you have the option to change your visa status from one to another without leaving the country

Visa Transfer

Visa transfer is the process where you are allowed to transfer your visa from one employer to another without starting the visa process from scratch

On 12th May 2016, the General Directorate of Residency and Foreign Affairs (GDRFA) passed the rule that Dubai will no longer allow visa holders to transfer any employment or dependent visas which have been issued in other emirates.

Therefore “Visa transfers are only allowed within the same Emirate”

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