Which are the leading commercial places in United Arab Emirates?
United Arab Emirates comprises of 7 Emirates namely Abu Dhabi (capital), Dubai, Sharjah, Ajman, Umm Al Qawain, Ras Al Khaimah and Fujairah.
What are the legal structures of Companies in United Arab Emirates?
There are many forms of legal structures in United Arab Emirates namely Limited Liability Company, Limited Partnerships, General Partnership, Joint Venture, Public Joint Stock Company, Private Joint Stock Company and Partnership limited with shares.
Which of the legal structures of Companies mainly popular in United Arab Emirates?
Limited Liability Company or known as L.L.C is the most popular legal structure in United Arab Emirates. It can be formed with minimum 2 partners and maximum up to 50.
What is the share capital required for such L.L.C companies in United Arab Emirates?
Minimum share capital required for L.L.C company in Dubai is AED 300,000 (USD 82,000 approximately) whereas in other emirates the minimum share capital required is AED 150,000 (USD 41,000 approximately). For certain activities the share capital requirement is higher i.e. Investment Companies, Insurance, Banking, Financial Institutions etc
Do I need to block this share capital and obtain a bank deposit capital letter?
No, for all general businesses the deposit of share capital into the bank account has been waived off therefore the share capital is only mentioned on paper. Certain activities as mentioned above does still have the requirement to show the capital.
As an expatriate, can I own the full business ownership in L.L.C?
No, as per the Federal Law any commercial business/license the minimum shareholding of 51% should be with U.A.E National partner and balance 49% can be divided among the expatriates. Only in the cases of Professional activities you can own 100% ownership but require a U.A.E National to act as a Local Agent
What types of licenses are issued in United Arab Emirates?
The Types of Licenses Issued are Commercial License (specific trading activity or general trading), Professional License, and Industrial License.
Which activities require special approvals?
License to practice major activities are issued by Department of Economic Development in respective Emirate. However certain activities are required special approval/consent from related government body/Ministry (for e.g. medical, pharmacy etc – Ministry of Health; air transport, air cargo – Department of Civil Aviation; financial institutions, banks, money exchange centers – U.A.E Central Bank; Schools, University etc – Knowledge and Human Development Authority (KHDA) / Ministry of Education; industrial projects – Ministry of Finance and Industry and Ministry of Economy; publishing, printing, newspaper, advertising, etc – Ministry of Information / National Media Council; Branch of a foreign company, audit firm etc – Ministry of Economy; insurance brokers, insurance companies etc – Insurance Authority.
Are there any taxation in United Arab Emirates?
Currently there are no corporate or personal income taxes in United Arab Emirates. Only certain industry pay taxes i.e. Hotels, Banks, Oil and Petrochemicals companies.
How can I obtain a visa for United Arab Emirates?
Visa can be issued only after your license formalities are completed and by completing immigration formalities.
How long is the visa valid for?
The residence permit is valid of 2 years and renewable for similar period thereafter.
What formalities do I need to complete to get my visa stamped on the passport?
For investors, once they get the employment visa and enter the country, they have to do a blood test and application for Emirates ID after which they can complete the formalities of residency visa. For Employees, apart from the above procedure labour contract is a must.
What are the recreational facilities available?
Recreational facilities are available almost each Emirate ranging from cinema, theatre, theme parks, water sports, apart from these the most unquie is the desert safari.
What is the climatic condition of United Arab Emirates?
Summer temperature often goes above 42degrees whereas winters are quite cool with temperature going down 14degrees
Which of the Emirates have Free Zones in United Arab Emirates?
Each of the seven Emirates has free zones in U.A.E
What are the advantages of being in Free Zone?
The advantages are as follows: 100% foreign ownership hence no requirements of U.A.E National partner, 100% repatriation of profits and capital, 100% exemption of import and export duties, No Corporate or personal income taxes, No currency restrictions.
What are the legal structures of companies in Free Zones?
The legal structures Free Zone Establishment (FZE) – single owner, Free zone Company (FZC) – minimum two partners and maximum up to 5, certain free zones can allow maximum up to 50 shareholders, Branch Company (Branch of a Foreign Company or Branch of a Local Company).
Are Free Zone Companies having unlimited liability?
Free Zone Companies liabilities are restricted up to its share capital. Only branches can have unlimited liability and liabilities can go to its parent company.
What types of licenses are issued in free zone?
The types of licenses issued in the free zone are Commercial, Services, Industrial.
If I have a company registered in Free Zone, can I easily trade in U.A.E local market?
As per the free zone regulations, any import and export are duty free however if you import and trade in local market, you need pay 5% customs duty and sell through an agent or distributor from the local market.
How to choose which free zone would be beneficial or suitable to me?
We can assist you choosing and providing options suitable to you based on your business requirements.
Are there any limitations on the number of visas issued by a Free Zone?
Yes, number of visas depends on the nature of your activity and the facility area size you lease out with the free zone. Normally for offices every 9sqmtr area leased you are eligible for 1 visa. However there are various other options and packages available with limited number of visas with business center options.
Is it necessary to have yearly audited balance sheet to file in Free Zone?
Yes mostly all the free zones requires an audited balance sheet in order to renew its licenses yearly.
What is an offshore company?
An Offshore Company is a legal structure which provides individuals or corporate asset protection, tax structuring and privacy.
How many offshore jurisdictions does U.A.E have?
Currently there are 3 offshore jurisdictions i.e. Jebel Ali Offshore, RAK offshore, Ajman Offshore.
Why Offshore Company in U.A.E and its benefits?
Going offshore is the popular way of managing business and assets as they offer excellent and tax efficient strategies. U.A.E has Double Taxation Avoidance Agreements (DTAA’s) with over more than 40 countries. Benefits of Offshore are as follows: 1. complete privacy 2. Offshore company exempted from Taxes, 3. Cost effective solution, 4. Asset Protection, 5. Can own real estate properties of approved developers (only Jebel Ali Offshore) 6. No minimum capital required
Can I set-up the offshore company on my own?
No, you require a registered agent for setting up an offshore company
What documents do I need to provide?
Mainly the documents like Original Bank Reference Letter, CV/Resume, Proof of residence, Clear passport copies are required. Additional documents might be required depending on the jurisdiction you incorporate the offshore company.
Are there any restrictions for offshore company in U.A.E?
Yes, you are not allowed to trade or provide any services to U.A.E market; it has to be purely international business. No office space, No residency visas are allowed in Offshore. The address of registered agent is being used for any correspondence.
Can I change the registered agent easily?
Yes it is easy to change the registered agent with having a No Objection Letter from the previous registered agent and a letter from new registered agent for appointment on acting a new registered agent.