Dubai is one of the richest and fabulous emirates in the UAE. Its investor friendly business culture attracts the global investors to explore doing business in Dubai. A large number of people around the world plan to start company in Dubai for various reasons. Business setup in Dubai is more attractive due to certain reasons:
- Low tax Economy
- Investor Friendly Atmosphere
- 100% of repartition of funds
- Hassel Free Procedures
- Highly Developed Infrastructure facilities
- 100% ownership for Investors in Freezone company
- No personal Income Tax
- Low import and export duties
- Highly developed banking atmosphere
- Easy access to the Middle East & North African countries
If you think about business, the best option is then setting up of business in Dubai/UAE. In other words, think business think Dubai, UAE.
Company formation in Dubai/UAE is a bit complicated for investors those who are entering here for the first time. If you have the proper knowledge on the business registration process, procedures and types of companies in UAE, then the company incorporation is half done & it’s much easier.
If you are planning to set up a company in Dubai – UAE, better to take advice from business setup consultants in UAE. Company formation advisors will assist you to guide right entity for your company in Dubai. UAE company formation consultants advise you for choosing the right legal entity and jurisdictions for the new startup, like whether it’s a free zone company formation or setting up of limited liability company or branch of the foreign company in UAE or offshore company registration in Dubai/UAE and more….
Following are types of companies can be registered in UAE by foreign or local investors
1. Limited Liability Company Formation in Dubai – UAE
Limited Liability Company (LLC) in UAE are considered as a local company. By setting up a Limited Liability Company the investors can do business locally as well as internationally. LLC in UAE allows the expatriate investor to hold 49% shares and rest of the 51% is owned by UAE nationals or 100% UAE citizens owned companies. Even though 51% owned by UAE nationals but the managerial, operational and banking powers can be vested to a foreign investor in normal practice exiting in UAE. The expatriates can also limit the profit and loss distribution on the company in the legal documents of limited liability Company, i.e., the minimum profit and loss for UAE national is 20% and for foreign investors is 80%.
Setting up a LLC in Dubai – UAE is the suitable option for investors those who are planning to expand their business locally as well as internationally.
2. Branch of Foreign Company Formation in Dubai – UAE
Branch of Foreign Company is an apt entity for foreign companies those who are looking for offshore company formation in Dubai/UAE market without negotiating their brand name. The major attraction of setting up of a branch of the foreign company in UAE is its 100% ownership of the parent company. Even though the branch of the foreign company allows 100% ownership to the parent company, the UAE branch company have to maintain or appoint a local service agent from UAE. The local service agent must be a UAE citizen or 100% UAE citizen owned company. Local service agent doesn’t have any powers or shares in the branch company. Branch of the foreign company allows to do business in the same activity as mentioned in the legal documents of the parent company but it allows subject to the approval of the department. Certain activities like trading, real estate are not allowed under the branch of the foreign company.
The major disadvantage of the branch of foreign company set up in UAE is that the trading activity is not permitted to do under their branch company. Most of the service oriented companies are doing their market entry in UAE by setting up of a branch of the foreign company.
3. Professional Firm/Civil Company Formation in Dubai – UAE
Setting up a Professional Firm/Civil company in UAE/Dubai allows 100% ownership to the investors and the business owners. All the companies cannot be registered as professional firms or civil companies in Dubai – UAE. In other words professional companies or civil companies only can be setup for professional activities and those who owning professional company in Dubai –UAE must have the qualification and enough experience in relevant filed of the company.
For example, if you want to set up an engineering consultancy, then you must have a bachelor degree in engineering and enough experience in engineering filed as per the requirements of the authorities.
Professional firms /civil companies required a local service agent for setting up the company and local service agent must be a UAE national or UAE national owned companies. Local agents are not eligible to hold the share in the company and also they don’t have any powers in the company.
4. Freezone Company Formation in Dubai – UAE
Freezone company formation is the foremost attractive entity in Dubai – UAE for the investors. Due to the 100% percentage ownership and low import – export duty making free zone company setup is a preferable entity for foreign investors. Company registration in UAE free zone allows to do business internationally without any restrictions and in local market free zone company can do trading by appointing a local agent and pay 5% duty.
100% ownership of company of company, 100% tax-free, low import and export duties are the major attractive of free zone company setup in UAE. Trading and service companies are equally choosing free zone entity for their market entry in UAE. Freezone company registration is an apt option and makes sense for foreign investors on their business operation.
5. Offshore company formation in Dubai – UAE
Offshore company formation in UAE allows 100% ownership and tax exemption for the shareholders. Confidentiality on shareholding structure, holding of assets and property on behalf of the company in UAE and abroad the UAE, the opening of multicurrency Dubai offshore bank accounts making hike demand for UAE offshore company registration. Besides the traditional advantages of total tax /duty exemption, offshore companies established under the UAE regulations enjoy added benefits from U A E’s reputation for commercial transparency and it is strategic regional location.
Offshore company registered agents in UAE are acting as the authorized intermediaries for an offshore company set up IN Dubai – UAE. In UAE there are three offshore jurisdictions available for an offshore company set up they are Jebel Ali offshore company or JAFZA offshore company or usually named as Dubai offshore company, RAKICC offshore company or RAK offshore company and Ajman offshore company.
Following are the major benefits and feature of UAE offshore company registration.
- Investors can hold 100 % ownership in offshore company
- Confidentiality on ownership of the offshore company
- Offshore company can hold multicurrency bank account in UAE and abroad
- UAE offshore company allows to hold properties in UAE and abroad countries
- Company can operate without any physical office but eligible to get a registered office
- UAE residence visas are not issued under the offshore company
- Submission of book of accounts or audited financials are not mandatory
- UAE offshore companies can act as holding company in UAE and abroad
- Offshore companies are not allowed to do business in the UAE but there is no restriction for international business
- Offshore companies in do not have any minimum capital requirements
NEX Consultants have experienced professionals who are well-versed in the field of setting up business in UAE, and can help you with Dubai company registration. We provide company formation services to companies and investors in a wide range of industries across UAE. We have worked with all free zone authorities, offshore authorities, government departments and their respective document processing requirements. We recognize all the formalities and requirements of all the company registration authorities and government departments in UAE.
We are always set to go the extra mile to have all the needs of yours. Our know-how, competitive rate and trusted and quality service have made us one of the most preferred company formation consultants and corporate service providers in the UAE.
Kindly contact us for your business setup requirements in UAE