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Company Formation Services
COMPANY FORMATION
TYPES OF COMPANIES IN THE U.A.E
MAINLAND COMPANIES
Mainland Companies are legal entities that are incorporated in the mainland of Dubai, or any other emirate of the U.A.E., outside of the free zones. They are governed by the UAE Commercial Companies Law and are subject to the regulations of the Dubai Department of Economy and Tourism (DET). Mainland Companies can operate within and outside of Dubai, and can carry out a wide range of business activities. This type of company is ideal for companies that want to tap into the local market, trade within the UAE, and operate across the GCC.
Setting up a mainland company in Dubai requires a verified office premise from Dubai Land Department. Office space requirements vary, based on the type of license and the investor is responsible for ensuring the availability of a valid tenancy contract for an office at the time of applying for the license.
ADVANTAGES OF MAINLAND COMPANIES
- Full foreign ownership permitted.
- Unrestricted currency exchange.
- Optional yearly auditing.
- Diverse range of license types and activities.
- Readily available employment visas.
- U.A.E. - wide business activity permission.
- Personal taxes not levied.
- Complete repatriation of capital and profits.
- No capital required for a local Dubai license.
FREE ZONE COMPANIES
Free Zone Companies are legal entities that are incorporated in one of the free zones in Dubai or one of the other Emirates. Free zones are designated areas in the emirate that offer 100% foreign ownership for 15 ac 50 years, tax exemptions, and other incentives to attract foreign investment. A Free Zone Company is subject to the laws and regulations of the free zone authority in which it is incorporated. This type of company is ideal for companies looking to operate in a tax-free environment and benefit from the ease of doing business in Dubai.
Free Zone Companies are exempt from customs and export duty while importing raw materials and equipment, are allowed to trade internationally and own real estate inside UAE. Access to services and products from the UAE without the agent is permitted however sales within the UAE require partnering with a UAE mainland-registered agent.
Other amenities include options for flexi-desk and flexi-office setups, great infrastructure, access to the free-hold property and complete privacy to investors with limited reporting obligations. Company formation in the Free Zones is quicker compared to the mainland and does not require the investor presence.
ADVANTAGES OF FREE ZONE COMPANIES
- Full foreign ownership permitted.
- Complete repatriation of capital and profits.
- Complete exemption of income and corporate taxes.
- Swift, efficient, and easy registration procedures.
- Personal taxes not levied.
- No imposition of currency restrictions.
- Economic wage structures.
- Flexible expatriate workforce hiring.
- Uninterrupted import and export procedures.
OFFSHORE COMPANIES
Offshore Companies, also known as International Business Companies or International Business Corporations (IBC) are Non-Resident Companies or Non Resident Corporations as they are legal entities incorporated in a tax-free jurisdiction outside of the UAE, but with a registered office in Dubai. They are governed by the laws of the jurisdiction in which they are incorporated and are not permitted to conduct business within the UAE. An Offshore Company is typically used for holding assets, such as real estate or intellectual property, and for wealth management purposes. It is ideal for individuals or companies looking for asset protection, confidentiality, and tax optimization.
Offshore company shareholders are not eligible for visas or operating licenses and don’t require physical office spaces. U.A.E. offshore companies are issued a certificate of incorporation, as they cannot conduct manufacturing, trading, or business within the UAE.
Offshore companies are established for the utilization of out-of-country corporations, trusts, partnerships, banks, funds, management firms, etc. to protect assets, minimize taxes, plan for the future, and get involved in global investment opportunities, legally
ADVANTAGES OF OFFSHORE COMPANIES
- Office or industrial premises rental not required.
- Trading within the UAE not permitted.
- Chamber of Commerce registration not mandatory.
- Residence visa not necessary .
- Personal taxes not levied.
- Establishment of company account possible.
- Full ownership allowed.
- Guaranteed privacy, confidentiality, and asset protection.
- Tax optimization available.
- International financial diversification facilitated.
- Conducting business within the Middle East, excluding the UAE, is easier.
- Corporate bank accounts offer multi-currency options.
- No foreign exchange controls or trade barriers exist.
- Can serve as intermediaries in transactions between your company and foreign entities.
- Holding shares in UAE Free Zone companies and LLCs is permitted.
BUSINESS LICENSES IN THE U.A.E.
Businesses and industries in the U.A.E. require licenses to operate. The U.A.E. offers the following different types of licenses:
- Commercial License
- Professional License .
- Industrial License.
- SME License (only for U.A.E nationals).
LEGAL STRUCTURES IN THE U.A.E
PARTNERSHIP COMPANIES
The U.A.E. allows for businesses and industries to operate under either sole ownership of the individual or as partnerships of two or more individuals depending upon the nature of the trade. Civil companies as well as limited liability companies, public share holding companies, private share holding companies, company branches, representative offices and franchises can also be established.
The U.A.E. also has a special provision for U.A.E. nationals called Intelaq that allows them to operate a business enterprise from their homes.
