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We offer you the best and efficient advice and assistance to setup your business in Dubai and other parts of the UAE. We have in-depth expertise and experience in the field of company formation in Dubai.
Dubai is recognized as one of the world’s most dynamic cities. Dubai’s position as a major commercial meeting place between the East and the West is centuries old – not just for the region, but for the whole world. Dubai maintains a liberal economy and is committed to ensure free trade and competition. There are over 200 nationalities that live and work in the UAE, most of them are in Dubai. There are many benefits of company formation in Dubai such as stability, there are no corporate and personal taxes, no restrictions on profit or capital repatriation, low import duties, high level of security to property and person, no currency restrictions and it has varied human resources that meets the demanding requirements of any business .
There are various types of legal structures or entities (as commonly referred to as “companies”) to operate different types of business activities in the UAE. Therefore, it is very important to deal with the right and experienced company formation specialist in order to incorporate a correct type of company with the right trade license for your business in UAE. Procedure and requirements of company formation in Dubai varies depending on the type of company and business license. However, in comparison to other Emirates, company formation in Dubai is easier and hassle-free due to less red-tape.
In general, the companies that can be registered in Dubai can be divided into three different categories such as mainland (on-shore) companies, free zone companies and offshore companies.
Mainland Company Formation in Dubai
Mainland or on-shore companies are the companies registered in the mainland and their main purpose is to carry out business activities in the local market. One of the main distinctions of the mainland companies is that they can be formed in partnership with a UAE national, who must either act as a company shareholder or local service agent. The capacity of a UAE national is generally decided based on the business activity and legal form of the company.
The business activities in the mainland are generally classified as commercial, professional and industrial. Some of the commercial activities are trading, import-export, investment, real estate development, brokerage, banking, insurance etc. Professional activities include those activities that are practiced as profession with the use of intellectual abilities and skills such as medical services, consultancy activities, IT services, education, farming, restaurant etc. Industrial activities basically include all kind of manufacturing activities.
There are various types of companies that can be incorporated in the mainland, such as:
Sole Proprietorship / Establishment
Branch and Representative Offices
Joint Liability Company
Simple Commandite Company
Joint Venture Company
Limited Liability Company
Public Joint Stock Company
Private Joint Stock Company
As far as commercial companies are concerned, expatriates can participate only in Limited Liability Company, Public and Private Joint Stock Companies, where foreigners can hold up to 49% of shares and the remaining 51% shares should belong to the UAE national. However, distribution of profits and losses can be in different proportions. Limited Liability Company is one of the mostly formed companies with foreign participation in the UAE.
Furthermore, if the business activity falls under professional category, expats can establish Sole Proprietorships or Civil Companies with full ownership. Nevertheless, there are certain activities that are categorized as professional, but can be established only under the full ownership of a UAE national. In addition, existing companies in the UAE or overseas can expand their business activities in Dubai by establishing their fully owned branches and representative offices.
Free Zone Company Formation in Dubai
The free zone companies are registered in one of the free zones in Dubai. Free zone means designated tax-free area where foreigners can own companies fully without associating with a UAE national partner or agent. Moreover, in the free zones, customs duty on import and export do not apply and bureaucratic requirements are lessened in order to create more favorable business environment mostly for foreign investors. As a general rule, the free zone company should conduct business activities within the free zone area where the company is formed.
The UAE has over 30 free zones (with many in the pipeline). Most of the free zones are located in Dubai. In general, all free zones in UAE offer similar incentives and benefits. Followings are some of the benefits of company formation in Dubai free zones:
No customs duty on import and export to/from free zones
100% personal and corporate tax exemption
100 % foreign ownership
Can open a multi-currency bank account(s) in UAE banks
100% capital and profit repatriation
Easier and cost effective setting up
A physical presence in the UAE with an actual office, phone, fax numbers and P.O. Box number
3 year renewable residency visas in the UAE is provided for shareholders and employees of free-zone companies
Ready-made offices, warehouses and industrial units
Seaports and/or airports for import and export of goods
Each free zone has its own distinction and focuses on certain sector of economy. Therefore, the selection of the right free zone is a crucial step before your company formation in Dubai. The selection criteria of the free zone for your business depends on the type of activity (trading, import/export, consultancy, healthcare, financial services, information technology, media services, e-commerce, manufacturing, broadcasting, publishing, etc.) And also the location and amenities required by your business should be taken into account while choosing the free zone in Dubai.
Followings are some of the major free zones in the UAE: Abu Dhabi Airport Free Zone, Jebel Ali Free Zone, Dubai Media City Free Zone, Dubai Internet City Free Zone, Dubai Knowledge Village, Dubai Airport Free Zone, Dubai Gold & Diamond Park, Dubai Multi Commodities Center, Dubai World Central, Dubai International Financial Center, Meydan Free Zone, Dubai Silicon Oasis, Dubai Maritime City, Sharjah Airport Free Zone, Hamriyah Free Zone, Ajman Free Zone, Fujairah Creative City Free Zone, Fujairah Free Zone, Ras Al Khaimah Free Trade Zone and Ras Al Khaimah Investment Authority.
Offshore Company Formation in Dubai
In addition, JAFZA free zone offer offshore company formation in Dubai. As a no-tax country, Dubai is a well-reputed jurisdiction in the world for offshore company formation. Offshore companies in Dubai are mainly formed in order to act as a holding company, to protect assets, to own real estate or to do international business and investment.Dubai offshore companies enjoy following benefits: full tax exemptions, 100% foreign ownership, high level of privacy, no paid-up share capital, no interference, less regulatory control and flexible and easy business administration. Moreover, the UAE is one of the most preferred countries to register offshore companies due to following reasons: the UAE is a ‘real’ country with ‘real’ economy, the UAE is not a dependent or ‘overseas’ territory of another country, the UAE has Double Taxation Avoidance Agreements with more than 40 countries, the UAE is among the white-listed tax-free jurisdictions and it has well-developed banking system.
If you are looking to set up business in Dubai or in other parts of the UAE, please get in touch with us for professional assistance. You can call us on +97144449481, send us email at email@example.com or use the contact us form on this website. First consultation is FREE.