How to Start an Insurance Company in UAE?

The insurance sector is a growing field of possibilities. As the UAE is one of the most lucrative countries in the Middle East, it is an ideal spot to start the insurance and reinsurance sector in the UAE. UAE has formulated a definitive structure for being inclusive of the insurance related legal structure. The federal law No. 6 relates to the establishment of the Insurance Authority and Regulation of Insurance Operations.

In short, it can be called Insurance Law. 

There are many players in the insurance industry, or what can be called insurers, namely:

• Insurance companies
• Insurance agents
• Actuaries 
• Insurance advisors
• Adjustors for loss or injury
• Insurance Consultants

The best place to open up an Insurance business in UAE will be the Dubai International Financial Center Free Zone, they have their own exclusive rules and regulations, when it comes to starting an insurance company. 

In order to start an insurance company in UAE, the first step is to register your business with the Department of Economic Development in Dubai. Once the registration is done, you would also need to get authorization from the Insurance Authority. The business owner receives an operating license, and only with this operating license will you be able to start a business related to insurance activities.

Steps to start an insurance business in UAE

The steps to set up an insurance business is moreover the same process as any other business setup. The steps include:

• Business Plan

Your business goals and how your planning to achieve them have to be evidently clear. Insurance business in UAE is indeed lucrative but without a proper plan, it will be impossible to achieve it. You have to have a clear idea, understand potential business threats, identify risks and roadblocks, and determine how you are planning to fund your business.

• Trade Name Reservation

The identity of the company lies in its name. But, UAE has strict policies when it comes to deciding the name of the company. The name of the company should not resonate with any religious names, and it shouldn’t contain any blasphemous language as well. The business owner should also not add his name or initials to the business name. The availability of the name has to be approved by the DED. 

• 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 business in:

• Sole proprietorship
• Partnership
• Limited liability company (LLC)
• Free zone
• offshore                 

• Initial Approval

After the business or trade name has been approved, the next step is to get the initial approval from the DED. All necessary documentation has to be given to the DED for review and approval. Once approved, you have to start working on the Local Service Agreement (LSA).

• LSA Agreement

After the DED’s review and approval, the LSA agreement has to be drafted. The LSA Agreement can be drafted either in English or Arabic. You will also require a notary public to legalize the document. 

• Court Agreement

Once the MOA of the company is prepared, then all stakeholders, including partners and native partners, have to proceed to court to notarize the agreement. There will be a requirement of four different copies of the agreement, which will be for the court, partner, local partner, and service provider. 

• Documentation

All the documents are sent to DED for approval. And once approved, DED will issue a payment voucher. It will also officially enter the business’s name into the commercial registry. The payment voucher sent by the DED will be used as your trade license. 

• 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

• Application form
• Trade License copy
• Commercial registry
• Details of the partners
• LLC agreement 
• Passport & Visa copy of Authorized Signatory
• DED issued payment voucher of trade license. 

Setting up an Insurance company in UAE seems like an easy task, and indeed it is. But, getting the right guidance from a good business consultancy service in UAE will be ideal for the smooth sail. Kiltons Business Setup services has been in the business for a very long time and have the experience and expertise in setting up innumerable businesses in the UAE. Consult Kiltons for a hassle free business incorporation. Call us now