Frequently Asked Questions
FAQ’s on Dubai Mainland
United Arab Emirates comprises of 7 Emirates namely Abu Dhabi (capital), Dubai, Sharjah, Ajman, Umm Al Qawain, Ras Al Khaimah and Fujairah.
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.
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.
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
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.
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
The Types of Licenses Issued are Commercial License (specific trading activity or general trading), Professional License, and Industrial License.
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.
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.
The residence permit is valid of 2 years and renewable for similar period thereafter.
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.
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.
Summer temperature often goes above 42degrees whereas winters are quite cool with temperature going down 14degrees
FAQ’s on Free Zone
Each of the seven Emirates has free zones in U.A.E
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.
he 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).
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.
The types of licenses issued in the free zone are Commercial, Services, Industrial.
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.
We can assist you choosing and providing options suitable to you based on your business requirements.
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.
Yes mostly all the free zones requires an audited balance sheet in order to renew its licenses yearly.
FAQ’s on Offshore
An Offshore Company is a legal structure which provides individuals or corporate asset protection, tax structuring and privacy.
Currently there are 3 offshore jurisdictions i.e. Jebel Ali Offshore, RAK offshore, Ajman Offshore.
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
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
No, you require a registered agent for setting up an offshore company
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.