UAE is one of the most exciting and profitable places to start a business today. Not only does it offer robust infrastructural capabilities and visionary business-friendly administrative policies, but its reputation as a global destination, with a high standard of living, helps attract quality talent.
A UAE national is required for Mainland company setup in UAE who is known as local sponsor or local service agent. A local sponsor is necessary for commercial companies where he will hold maximum number of share, that is 51% and expatriate will hold only 49% shares. Local service agent is also needed for professional company setup, in which an expatriate is permitted to hold 100% shares in mainland company setup in UAE. We can provide you a local sponsor and you’d have full power to do business in your own unique style. The sponsors will not be involved in profit sharing or any of your business operations.
Main Land Business License Types
Three types of business licenses are permitted for mainland companies in UAE, these are:
Commercial License - Covers different types of trading activities
Industrial License - Issued to companies performing industrial or manufacturing activity.
Professional License - Issued to companies offering professional services, and other related services like craftsmen and artisans
Main Land Company Type
Any investor planning to establish a mainland company in UAE, can setup business establishments in any of the following ways:
Limited Liability Company (LLC)
LLC is the most common form of business in UAE, can be established with a minimum of 2 and a maximum of 50 partners. The percentage of individual's share in the capital decides the liability to each partner.
It is mandatory to have a UAE national as a partner in the LLC (51% shareholding)
Branch of Foreign Companies
Foreign companies are not allowed to practice their primary business, or incorporate branches in the Mainland, or engage in trading activities unless licensed by the Ministry of Economy
The license mandates a national agent to act on the behalf of the company
Proposed business activity for a branch of foreign Company should be within the domain of the activities performed by the parent company
UAE Commercial Company Law allows foreign companies to open Branch/Representative offices without any shareholder. Representative Offices are not allowed to perform trading or manufacturing activity and cannot even invoice as these are essentially the parent company's marketing arms
Professional Firms/Civil Company
Professional Firms are also known as Civil Companies, Unlike LLC Companies Expatriate can hold 100% share and UAE national as Service agent.
In order to carry out professional practice in the UAE, Foreign Investors can setup a partnership firm/Professional Company. Eg. Marketing Consultancy, Management Consultancy, Engineering Consultancy Etc.
Public Shareholding Companies
Companies performing public shareholding, financial, banking or insurance activities are known as public shareholding companies, the minimum capital required is US$ 2.725 million for Public Share holding Company.
Advantages of Main Land Company in UAE
· No currency restrictions
· No restriction of office location
· No corporate tax
· No minimum capital requirement
· Personal income tax exemption
· Access to clients from anywhere in the world
· No limit on the number of employment visas
The main 6 steps involved for company formation in mainland are:
· Business Activity Selection and Name Approval
· Selection of Local Partner or Service Agent
· Apply for Initial Approval for Mainland company setup
· Preparation of Court Notarization and MOA
· Get Office Space and Tenancy Contact
· Final Submission for Mainland company formation in UAE
A Free Zone enterprise is a physical entity established in any one of the many Free Zones spread across the UAE. Envisioned to ease the company formation process within its premises, the Free Zones have laws and facilities separate from the rest of the UAE that ensure that they remain investor-friendly in spite of their varying stipulations and regulations. Free Zones in the UAE offer 100% foreign ownership rights for the investor and permit full repatriation of capital and profits.
FREE ZONE COMPANY TYPES
A majority of the Free Zones across the UAE allow four types of company types or business entities within their premises:
· Free Zone Establishment (FZE)
Formed with one shareholder, either an individual or a company. The minimum capital requirement depends on the activity.
· Free Zone Company (FZCO)
Formed by a minimum of two shareholders, either individuals or companies or a combination of both. The minimum capital requirement depends on the activity.
· Branch Office of a Local Company
The license allows an existing local company (with license to operate in the UAE) to open a representative office or branch within the Free Zone.
· Branch Office of a Foreign Company
The license allows an existing foreign company to open a representative office or branch within the Free Zone.
INCENTIVES & BENEFITS
· 100% foreign ownership allowed
· 100% of repatriation of capital & profits
· 100% personal income tax exemption
· 0% import or export duties
· Speedy incorporation
· Easy transfer of capital and profits
· No recruitment restrictions
· No bureaucratic red tape
· Low facility prices
· Low electricity prices
· Low leasing pricesFREE ZONE REGISTRATION
The process for registering a company within the UAE requires the following documents.
· Free Zone Establishment (FZE)
o Duly filled application form
o Individual business profile and passport copy
o Banker’s reference (depends upon Freezone)
· Free Zone Company (FZC)
o Original filled FZCO application
o Individuals business profile and passport copy
o Banker’s reference (depends upon Free zone)
o Board resolution
o Manager’s passport copy
o Specimen signature of the manager
· Branch of Parent Company
o Certificate of Registration with UAE embassy’s attestation and notarization
o Memorandum and Articles of Association with UAE embassy’s attestation and notarization
o Board Resolution with UAE embassy’s attestation and notarization
o Manager’s passport copy and his attested signature
o The parent company‘s profile
Offshore company setup is perfect choice for the companies that do not plan to conduct business in the UAE, yet need a UAE address. Offshore businesses are allowed to bank with national banks and hold investments within and outside the UAE. An offshore company allows investors to take advantage of the UAE’s zero-tax laws and double taxation treaties. Unlike a Free Zone company, there is no minimum capital. A few other advantages of offshore companies include complete privacy, 100% foreign ownership, the ability to open multiple currency bank accounts, and the allowance for real estate investments.
Off shore company or International Business Company is a legal entity which provides zero tax environments which results in minimization of tax burdens and improves wealth management. To protect assets in a tax free country, Offshore Company formation in UAE is step in the right direction.
Offshore Companies are non – resident Companies, which means shareholders get no visa and there is no physical office.UAE Offshore companies are not issued an operating license
and only get a certificate of incorporation, as they cannot conduct manufacturing, trading or Business with in the UAEAdvantages to Start Off Shore Company in UAE
· UAE’s Double Taxation Avoidance Agreements with several countries
· UAE has not signed on as a member of the Organization for Economic Cooperation and Development (OECD) and is not obligated to exchange financial information of companies
· Stable political atmosphere in UAE, means that the norms do not keep changing with the change in the regime.
· Dubai has a reputation of being a clean, secure and tax-free
· destination for international financial services and large companies. With increasing cross-border control and crackdown on tax evasion by several countries, UAE has emerged as one of the last-remaining safe locations to store your wealth and protect your assets.Benefits of Offshore Company
· No corporate or income tax payment
· 100% return of profit
· Offshore companies can own property in designated areas
· Allowed to hold shares in UAE freezone companies and LLCs
· Easier for you to conduct business within Middle East, outside UAE
Offshore Option in UAE
Ras Al Khimah Economic Zone (RAKEZ)
Ajman Free Zone (AFZ)
Jebel ALi Free Zone (JAFZ)