Emirates Company Formation. Operating a business in the UAE under UAE federal law foreign businesses have three main forms to choose from to conduct business in the UAE:
Alternatively, six out of seven Emirates (the exception being Abu Dhabi) offer the possibility to conduct business out of a free zone and three Emirates – Dubai Offshore, Ras al Khaimah Offshore and Ajman offshore – offer an International Business Company regime.
If there is no need to sell goods directly to the local market then setting up in a free zone is often more attractive than setting up as a local company, which requires 51 per cent local ownership. The practice is to allow the provision of services through a freezone entity to the local market as long as a significant proportion of the turnover is realised abroad.
The main advantages of setting up in one of the freezones in the UAE are as follows:
The business environment here is “activity driven” and there are many options. We work with a number of Free Trade Zones in assorted Emirates depending on the business activity and requirements. These are onshore Free Zone companies however in most instances these companies do not allow trade in the open UAE market place.
We generally offer bespoke services once we understand the business requirement the number of Visas required and the type of trade.
Free Zone companies allow 100 percent foreign ownership but restrict where the company can do business.
A full onshore company can come in many different forms and is allowed to openly trade in their activity anywhere in the UAE.
To retain 100 percent ownership clients often establish branch offices or representative offices. Otherwise a normal LLC onshore in any of the Emirates requires a Local (Emirati) Sponsor who must own between 51 – 100 percent of the LLC depending on the activity of the company.
In all onshore environments the client will have to visit the UAE in person on a number of occasions. Contact us if you need by way of further information or guidance.
The free zones each have their own free zone authority. These are profit-making entities. Their main source of income is derived from renting office space, collecting license fees, and providing services to the companies operating in the freezone. In all freezones financial statements need to be submitted to the freezone authorities annually.
One of the pleasant side effects of the economic downturn is that freezones are competing for business more so than before. For example, whereas it was an absolute requirement to rent office space until a few years ago, now there are several free zones outside Dubai that have introduced a flexi-desk concept. This means that a room is shared or a desk is rented for a number of hours a month.
The UAE is particularly well positioned to cope with the increasing pressure from onshore tax authorities to provide real economic substance. The UAE free zones offer a very easy and inexpensive way to obtain office space, locate a server, and hire staff: i.e. those factors that are important to determine whether a company has real economic substance. Furthermore the professional infrastructure is developed. A broad range of advisory, support and outsourcing services is available that will further enhance the possibility to locate real business functions here.
Like several other entrepreneurs, business expansion plans may exist in your mind. You may also harbor a plan to expand the venture in Asian countries first before moving to the western world. In that case, taking your existing venture to the UAE is a viable idea. The United Arab Emirates is made of seven autonomous and independent subjects. It is a viable destination for entrepreneurs. The geographical location also makes it suitable for business expansion. If you are keen on taking an existing business to the UAE, it is time you check out our UAE Companies Formation package.
One of the bigger attractions of the UAE for foreign investors is the presence of a number of free trade zones in the territory. These have been formed to woo the foreign companies and investors. Over the years, a number of MNCs hailing from the EU and USA have come to the UAE owing to these zones. By setting up company on these free zones, you get exemption from customs and taxation in a major way.
The governments in the UAE have made it easier for foreign companies to start operations. The company formation process has been simplified in the last decade. As a company owner, you can operate by buying property within the UAE and trade with several countries without many restrictions. The good thing is that there are hardly any legislative restrictions on currency exchange.
The economy of the UAE region is pretty stable and same can be said about the currency used here. The govt ensures crime rates remain at a low level and this makes the region more ideal for business investors.
The telecommunication setup in the UAE is on par with what you get in European countries and internet access facilities are top notch. The transport system is very good and the airports in the region are linked with major airports across the world. This is ideal for business expansion needs. You may feel enticed by these factors but seeking our UAE Companies Formation package can be useful for your needs.
The govt policies and other suitable factors may make you enthusiastic about expanding venture in the UAE. However, assistance of an expert consultant agency may still be of use to you. In this regard, BRIS group can be your most apt companion. We will ensure your business expansion in the UAE becomes smooth. Call us for more information today.
About Emirates Country
|Capital city:||Abu Dhabi|
|Region:||A country at the southeast end of the Arabian Peninsula on the Persian Gulf, bordering Oman to the east and Saudi Arabia to the south, as well as sharing sea borders with Qatar and Iran|
|Governing corporate legislation:||Free Zines’ Regulations|
|Type of Law:||Civil|
|Language of Legislation and Corporate Documents:||English/Arabic|
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BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.