BUSINESS COMPANY FORMATION
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TYPES OF COMPANIES IN THE UAE:
Since every business needs a unique structure to incorporate, UAE facilitates different legal forms to help companies establish, grow and prosper.
The different types of companies available in United Arab Emirates are as follows:
Limited Liability Company(LLC):
- Local & International Trade.
- Office required.
- Visa provided.
- Bank account
- 100 % Foreign shareholding allowed, and no local sponsor required.
Professional License:
This kind of license is required to operate a company in the UAE, which allows a person or a single-ownership firm to practice any profession that provides services based on intellectual or creative skills such as consultancy, brokerages, beauty salons, printing and publishing, repair and maintenance services and computer design. This license has the same characters of LLC. company as mentioned above.
Free Zone Company
- International Trade is allowed and local U.A.E. trade is possible only through a local distributor.
- Office or Virtual Office required.
- Visa provided.
- Bank account provided.
- 100 % Foreign shareholding allowed and no local sponsor required
Offshore Company:
- Only International Trade allowed
- No office required
- No Visa provided;
- 100% Foreign shareholding allowed and no local sponsor required
FREE ZONES COMPANIES IN THE UAE:
Free Zones are special economic zones that are established with the objective of offering tax-free, and free customs duty benefits to expatriate investors. They are designed for boosting international business, by providing complete ownership to foreign investors. Free Zones in Dubai and the UAE are governed pursuant to a special framework of rules and regulations that are applicable to free zones. In Dubai, they are managed and operated by the free zone authority. These free zones operate outside of federal laws or the laws of the Ministry of Labor. A free zone company is very effective legal entity that offers the benefit of 100% ownership to investors or entrepreneurs, as well as many other exclusive advantages that other legal structures do not have. Expatriate normally need a local sponsor to set up companies in the UAE mainland. However, by using free zone companies, the expatriate can set up their business without a local sponsor and can enjoy 100% repatriation of the capital profits. A free zone offers 100 % corporate and personal income tax benefits.
Most of the Dubai free zones offer trading, service, industrial, national industrial, and branch licenses to investors for setting up their businesses. In the UAE, free zones are either attached to a port or are industry specific.
Free zones allow you to set up different types of companies, based on your requirements.
- Free Zone Establishment (FZE) – Single shareholder
- Free Zone Company ( FZC) – Two or more shareholders
- Branch Company – Branch of local company or branch of foreign company
In addition to enabling shareholders, directors and employees to obtain residency visas in the UAE, the benefits of a Free Zone include:
- 100% ownership for investors, regardless of their nationality and country of origin.
- 100% tax exemption on personal or corporate income or gains.
- 100% repatriation of capital and profits.
- Exclusion from all import and export duties.
- Handy office and warehouse facilities.
- Option for a company set up by an individual.
- Exemption on corporate tax for 15 years, renewable for another 15 years.
- Complete secrecy of operations.
- Flexibility to engage in international business.
- Fewer renewal charges.
- Flexibility to hold properties, participate in multiple activities, and open a bank account in Dubai.
- The option of liquidating anytime.
- Assistance in housing facilities, staff visas, and other support services.
TYPES OF LICENCES IN THE FREE ZONES
- Trading License
- General Trading Activities
- Service License
- Industrial License
- Dubai Multi Commodities Centre (DMCC) – Trading, General Trading, Commodities Trade and Exchanges;
- Jebel Ali Free Zone (JAFZA) – Trading, General Trading, Service, Logistics and Industrial;
- Dubai International Financial Centre (DIFC) – Banking, Financial Services and Legal;
- Dubai South (DWC) – Aviation, Logistics, Light industry and Ancillary Services;
- Dubai Knowledge Park (DKP) – Human Resources Management, Training and Personal Development;
- Dubai Internet City (DIC) – Internet and Communications Technology;
- Dubai Media City (DMC) – Media related activities;
- Dubai Silicon Oasis (DSO) – Information Technology, Telecom, Electronic and Engineering;
- Dubai Healthcare City (DHCC) – Healthcare, Medical Education and Research, Pharmaceuticals and Medical Equipment;
- Ras Al-Khaimah (RAK) – Trading, General Trading, Service, Industrial and Educational;
- Fujairah Creative City (FCC) – Media, Consulting, Communications, E-Commerce, Design and Technology;
- Dubai Trade Centre (DWC) – Trading, General Trading, Service;
- Abu Dhabi Free Zone (KIZAD) – Manufacturing, Logistics and services;
- Abu Dhabi Twofour54 – Media related activities;
- Ajman Free Zone – Trading General Trading and services;
- Sharjah Airport International (SAIF ZONE) – Trading, General Trading, Service, Logistics and Industrial.
Procedure to Set Up a Business in Dubai Free Zone:
- Choose a business activity
Decide on a business activity that you wish to carry out, since this will determine the type of license you apply for. Many Dubai zones allow for multiple business activities, so there are several possible options.
- Find a free zone
Once you have decided on a business activity, the next step is to decide which free zone is right for you. Since there are sector-specific zones, such as IT, healthcare, commerce, trading, etc., it is important to conduct thorough research before choosing a particular zone.
- Choose a company name
Before finalizing a name, you must ensure that your business name is available to be registered on the free zone authority portal. There are certain standards that the name must adhere to, including avoiding any blasphemous language or references to religious or political organizations.
- Gather all the documents and apply for a license
After deciding on the business activity and registering the trade name on the portal, the next crucial step is to apply for a license. The type of license depends on the business activity. You must complete the application form and gather the required documents, as specified in the form. You can also submit a visa application during this process.
- Open a corporate bank account
It is easy to open a bank account. It requires you to provide your documents and business license for the chosen financial institution.
Procedure to Set Up a Business in Dubai Free Zone:
1-For Business License:
- Color copy of shareholder(s)’ passport and visa, if applicable;
- Application form;
- Business plan;
- Board resolution;
- Memorandum and Articles of Association (MAA).
2-For Bank Account Opening:
- Board of directors’ resolution addressing the opening of the account, and the signatories of the account;
- A copy of your company’s certificate of incorporation;
- A copy of your share certificate;
- A copy of the company’s Memorandum and Articles of Association (MAA);
- Copies of passports for all partners in the company.
INTERNATIONAL COMPANY REGISTRATION
- Anguilla
- Bahamas
- Belize
- British Virgin Islands
- Canada
- Cayman Island
- Cyprus
- Delaware
- Florida
- Gibraltar
- Hong Kong
- Latvia
- St Lucia
- Malta
- Marshall Islands
- Nevis
- Mauritius
- Panama
- Samoa
- Seychelles
- Singapore
- Switzerland
- United Kingdom
- Vanuatu
- St Vincent
Other
