business registration in dubai uae
TRANSCRIPT
Business Registration In Dubai / UAE
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Dubai. The tourism, trading, commercial and transport hub that connects the world.
• From a timeless desert, Dubai has been transformed into one of the most cosmopolitan cities in the world. Known for its tallest buildings with unique infrastructures, largest mall, high end boutiques, fine dining restaurants and home to more than 190 nationalities with diverse and different cultures, Dubai certainly is making global recognition and continues to attract tourists and businesses worldwide by converging in one common goal, living and working in this place they call Haven.
Being one of the greatest business capital, Dubai’s success continue to inspire people, making it one of the most preferred destinations for global expatriates which now stands at more than two million. It is the choice for local and international organizations because of its strategic location, world class infrastructures, diversified and easily accessible market offering low logistics and operational cost. Doing business in Dubai also offers the following advantages.
1. No personal income and capital taxes2. No corporate taxation3. 100% repatriation of capital and profits4. No currency restrictions5. Competitive import duties
6. Modern efficient communication facilities7. Abundant and inexpensive energy supply8. Simple and efficient recruitment procedures9. Competitive freight charges10. Competitive real estate costs11. Easy access to both seaports and airports12. 100% ownership in Free Zones
13. Availability of skilled and experienced workforce14. High level of administrative support15. Dubai also offers different options in registering a company at the convenience of the shareholder or of the organization. They can choose from any of the following:
A. FREE ZONES
• Dubai was the first emirate to pioneer the free zone model and offers foreign businesses attractive concessions and a number of investment incentives. If the target market is outside of UAE, and you require an office space and a UAE residence visa, then registering a Free Zone Company or Establishment is recommended.
The procedure and the cost for incorporating the company depend on the Free Zones you choose and the type of your activity. A Free Zone company will be restricted to do direct business with the UAE Local Market. However, direct business with Local Market can be made through a Distributer with 5 % duty applicable.
There is no restriction for a Free Zone company to do Business outside UAE and within the Free Zone. In a Free Zone, you can start the company as a Free Zone Establishment (single owner), Free Zone Company (maximum 5 shareholders) or Branch of your existing foreign company. The features of Free Zone companies are:
• 100% foreign ownership• No local participation needed• 100% import-export duty exemption• Bank Account in Dubai/UAE• Resident visas available• Local trading by paying 5% duty (through a
distributor)• 100% tax free
Free Zone Areas are in Dubai Silicon Oasis, Dubai International Financial Center (DIFC), Internet City Free Zone, Dubai Media City Free Zone, Jebel Ali Free Zone, Knowledge Village Free Zone, Dubai Airport Free Zone, RAK Free Trade Zone.
B. OFFSHORE COMPANY
Examples of Professional Firms are Management Consultancy and Marketing Consultancy. There is no 51% local equity restriction like the LLC. Qualified foreign investors can set up this kind of main land company. Professional Firms has the following details:.
• Appointment of a UAE national as your local service agent.
• The local service agent will have no direct involvement in the business.
• Local service agents are paid a lump sum or a percentage of profits or on turnover.
• Allowed to do non-commercial activity.
C. LIMITED LIABILITY COMPANY (LLC)
A limited liability company is formed with a minimum of 2 shareholders and a maximum of 50 whose liability is limited to their share in the businesses’ capital. While foreign equity in the company may not exceed 49%, profit and loss distribution can be delegated.
• LLC Companies offers a UAE Visa, an office space and business within UAE and International market. This type of company can be formed with 51% ownership of a UAE national and 49% with the foreign national. The UAE national is paid a lump sum fee yearly which depends upon his profile and status.
However, complete managerial powers is vested with the foreign national and the UAE national’s role in the operation of the company is very limited. LLC companies have the following features:
• 100% tax free• Get local presence in UAE• Liability is limited to the company and not to
the share holders• Advantages on bid with local companies• Can setup branches all over UAE in future
100% tax freeGet local presence in UAELiability is limited to the company and not to the share holdersAdvantages on bid with local companiesCan setup branches all over UAE in future
D. PROFESSIONAL FIRMS
Examples of Professional Firms are Management Consultancy and Marketing Consultancy. There is no 51% local equity restriction like the LLC. Qualified foreign investors can set up this kind of main land company. Professional Firms has the following details:.
• Appointment of a UAE national as your local service agent.
• The local service agent will have no direct involvement in the business.
• Local service agents are paid a lump sum or a percentage of profits or on turnover.
• Allowed to do non-commercial activity.
E. BRANCH OR REPRESENTATIVE OFFICE OF FOREIGN COMPANY
• The following are the features of Branch or Representative Office:
• Branch office is permitted to exercise the activities (Licensed) of its parent entity
• Also, it empowers to undertake transactions and offer services to customers
• Representative offices are only allowed to have promotional activities supplementing the business activity of parent company
• Representative office cannot enter into business transactions or market products
• Additional license is required in some cases for the Branch of foreign company from Ministry of Economy
• Appointment of local service agent
• The Local Service Agent is:• Not responsible to undertake any financial
obligations and commitments as a result of the operation of the Branch or Representative office
• He should not interfere in the matters related to the Branch or representative office’s management or activities
• His duties towards the Branch or Representative Office are as requested by the principal (E.g; getting approvals and permits from government authorities)
• He is remunerated on a lump sum basis as agreed between the parties.
F. SOLE ESTABLISHMENT
A sole proprietorship can only be owned by an individual of any nationality, and not a Company. He will have 100% ownership and control of all its operations and profits. He will also be responsible for all the business debts and other financial obligations.
A sole establishment, on the other hand, that is commercial and industrial can only be owned by a UAE or GCC National.
• Dubai, being the Middle East’s number one business tourism destination is a great business capital inspiring and attracting both international SME’s and worldwide corporations all over the world to establish themselves in Dubai and be part of the growing economy globally.
• Dubai is just about everything that is known to be the best.
