Emirates company formation. UAE Freezones

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:

  • As a local limited liability company;
  • As a branch of a foreign company;
  • As a representative office of a foreign company.

Advantages of Setting up in
one of the Freezones in the UAE

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:

  • 100 per cent foreign ownership is allowed;
  • A guarantee for 15-50 years against the future imposition of corporation tax.
  • The import of goods duty free provided the goods are not supplied to the local market;
  • Streamlined procedures: all formalities are typically dealt with through the freezone authorities instead of the various government departments;
  • No restrictions on hiring expatriates.

Free zones are geographically distinguished areas, different from just offshore. They possess particular laws and regulations that vary from those applied within the state that they are situated in.

The formation of the Free zone has resulted in quadruple growth in the number of companies during the last few years. Ajman free zone with its package of unbeatable advantages is widely recognised as the entrepreneurs’ haven today.

Ajman Company is an appropriate vehicle for sole proprietors, business partnerships and international business, investment and tax planning.

About United Arab Emirates

Capital: Abu Dhabi

Continent: Asia

Language: Arabic

Currency: UAE dirham (AED)

Time Zones: UTC +4

Dial Code: +971

Abbreviations: AE

Free Trade Zones in Emirates

depending on the business activity and requirements

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.

Freezone Authorities

Office Space

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.

Emirates Company Formation

For free consultations on company formation in Emirates ask our BRIS Group team

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.

  • Capital: Abu Dhabi
  • Political System: Democracy
  • Government: Monarchy
  • Governing corporate legislation: Offshore Regulations 2006
  • Type of Law: Civil
  • Currency: Dirham (AED)
  • Exchange Control: None
  • Language of Legislation and Corporate Documents: English/Arabic
  • Time zone: GMT+4
  •  100% foreign owner ship is allow for UAE offshore company formation.
  • Let me tell you one more benefit; or you can say one more strong point; and I think it is the most key point for UAE off shore set up. That is, it is a tax free and free from all import duties, .
  • Hold Asset. That is, offshore company formation in UAE is use to hold asset.
  • 100% repatriation of capital and as well as of profit.
  • Easy to open a corporate bank account in UAE
  • No capital require. That is offshore company formation in UAE does not requires share capital.
  • Easy procedures for shares transfer
  • Income from taxable jurisdiction of an off shore or holding company is not taxable
  • Low operational costs, with world class banking and as well as investment management services
  • Offshore company formation UAE; that is allows to open a multi currency bank account.
  • No foreign currency restrictions
  • 100% tax free. That is, No income tax, no VAT as well as no corporate tax.
  • Protection of Legal Asset and as well as Investments
  • Quick set up time. that is in 2 to 3 working days
  • Freezone company setup has zero corporate and personal tax.
  • Freezone company has full range of licensed business activities
  • In Free zone Company formation has no trade barriers or quotas
  • Unique industry clustering and purpose-built infrastructure
  • Company In Free zone has 100% business ownership
  • Simple export & Import conditions
  • Sole shareholders and corporate are possible
  • Free zone  has no restrictions on hiring expatriates
  • Freezone company formation has 100% capital repatriation
  • 3 years UAE residence visa
  • Free zone Company can be setup as  New companies, branches, subsidiaries, representative offices, etc.
  • Free zone Company formation has Freehold offices for sale or lease
  • Free zone Company Setup has Flexi desk/serviced offices
  • UAE is an independent country
  • No foreign exchange of share holders of the UAE offshore.
  • Emirates is not a member of the Organisation for Economic Cooperation and Development (OECD).
  • Emirates is not subject to EU rules and regulation.
  • UAE is not on the OECD blacklist or FATF blacklist
  • UAE is well developed jurisdiction
  • UAE Politically and Economically is stable country
  • Emirates has a modern and flexible judicial structure
  • UAE is a member of Double Taxation Avoidance Agreement (DTAA)
  • Fast and simple process to set up the business company
  • UAE has a favourable banking structure.

This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.

BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.

Our team of consultants are here to take you through the process.