UAE is known as a central Hub for business in the MENA region considering the feasibility and accessibility. And in an effort to attract more investments and businesses, UAE provides a very conducive environment for entrepreneurs. Hassle-free company formation, highly advanced infrastructure, no corporate & withholding taxes and easy availability of labor.
Why Set Up Your Business in UAE?
UAE is an ideal location for all Business startups that offers a favorable business environment, world-class infrastructure, zero corporate, income and withholding tax, and fast document screening, license and certificates issuance. The following reasons make UAE as the best start up location;
100% repatriation of business profits and capital
100% Ownership
Zero personal and corporate tax
No currency restrictions
Liberal economic policies and legal framework
100% exemption from customs duty on goods and services
Simplified and online immigration process
Multimodal connectivity via air, sea and land
Availability of business parks, Pre-built offices, warehouses & industrial plots
Abundant and cheap energy supply
The largest harbor in the world
Metro Ethernet environment
Investor-oriented policies
Companies can operate around the clock
The transportation system throughout the UAE is well developed
The energy supply is abundant and low-priced
Our team has a thorough understanding of the end to end legal requirements when setting up a business in the UAE. This ensures peace of mind for our clients whose businesses are setup within budget and without costly delays.
Company Registration in UAE
There are three main options for business formation in Dubai- mainland business setup, offshore business setup and free zone business setup.
In mainland and free zones, an entrepreneur can have 100% ownership of their company. But a free zone company will not be allowed to do direct trade in the local market. If a person does not want any local trade and only want to protect their assets in UAE, then there is a third option of offshore business.
Mainland Company Formation (On Shore Company)
Mainland licenses are intended for business owners concentrating on physical businesses locally. These licenses are registered under the Department of Economic Development.
The company registration process comes under the Dubai Economic Department.
Benefits of setting up a business on the mainland
There are many benefits of setting up a business on the mainland. Some of them are:
Liberty to open the office anywhere in the emirate
Flexibility to do business in any part of the UAE
No limit on number of visas
No business or personal taxes
More business activities available for licensing
Professional
Professional and personally offered services are classified under this category. This type of entity is applicable for professional activities, service activities and consultancy services. Setting up such type of a company allows 100% ownership to the foreign investor for service related activities with a support of local service agent who does not have any shares in the particular company.
Civil Company
A civil company is a business partnership for professionals like doctors, lawyers, engineers and accountants. The ownership of the company is deemed as 100% for foreign nationals or local nationals depending on the type of activity chosen.
Commercial
All retail and commercial activities are classified under the commercial business category. These type of companies are the most common type of registration in the UAE and is recommended where the purpose of the entity is to trade within the whole region. They are allowed to own 100% ownership in the company or can only partner with a UAE national.
Industrial
Manufacturing companies are required to have an industrial license in the UAE. These licenses are issued by the Department of Economic Development with external approvals from Ministry of Economy, municipality, civil defense and police. In some cases we will have to provide an Environment study report to the municipality based on the activity and location that is being chosen.
The industrial license has been issued for the companies that converts raw materials to a finished products or any activities related to imply production, segregation, accumulation, packaging etc.
Free Zone Establishments
Free-trade zones (FTZs) are special economic zones set up with the objective of offering tax concessions and customs duty benefits to expatriate investors. There are more than 50 Free Zones operating in UAE. FTZs in Dubai and the UAE are governed pursuant to a special framework of rules and regulations. Most of the free zones in UAE broadly offer trading, general trading, services, and industrial licenses to investors looking to set up their businesses. FTZ’s are likely more ideal for investors concentrating on export businesses.
The benefits of UAE Free zones are:
100% tax exemption on personal or corporate income or gains
100% ownership for investors regardless of their nationality and domicile
100% repatriation of capital and profits
Exclusion from all import and export duties
Exemption from corporate tax
UAE’s foreign policy geared towards creating greater commercial opportunities and positioned as a financial hub for the region has further strengthened its position as a member of the global community. UAE Free zones are well known jurisdictions due to its diverse business model and flexible rules and regulations.
In 1985, Jebel Ali Free Zone (JAFZA) opened as the UAE’s first free zone and over the years, this had become a gateway in establishing industry specific free zones across the UAE.
The following licenses are offered by free zone authorities for free zone company setup:
Trading License
It is a commercial license, which is ideal for carrying out trading activities like buying, import & export, and selling of a limited number of commodities.
General Trading Activities
One can deal with the trading of all types of goods, with an exemption on a few banned products which need special approval with this license.
Service License
Companies that want to deal with activities like consulting, accountancy, etc. can acquire this license.
Industrial License
A company can carry out manufacturing, packaging and processing activities after obtaining this license.
Prime Global is a premium channel partner of most of the free zones based in Dubai and across UAE.
Offshore Company Incorporation
An Offshore Incorporation in UAE is a legal business entity, which is set up with an intention to operate the business outside its registered jurisdiction. The offshore incorporation helps you to run your business or asset in a profitable manner in the UAE. The term “offshore” is mainly based on executing, managing and operating in foreign countries with benefits in financial, legal and tax.
Prime Global is a renowned service provider offering competitive offshore incorporation packages in the UAE. The UAE offshore incorporation demands a registered local agent with the respective offshore licensing authority.
Advantages of the Offshore Incorporation
Here are just some of the general benefits of offshore company incorporation:
Anonymity
Asset Protection
Tax Free Zones
Simplicity
Financial Privacy
Benefits of UAE Offshore Company Formation
The sole reason for establishing any business is to reap long-term profits from it. Hence, UAE is fast emerging as an appealing destination because of the huge financial rewards that accompany numerous projects. However, the benefits of offshore company formation in UAE are not just limited to the financial aspects. The several advantages of offshore business are listed below.
Besides the benefit of tax exemption, the offshore company formation in UAE allows 100% foreign ownership.
An offshore company will be in virtual form. However, it may own real estate properties which are approved by the authorities of the UAE.
An offshore company respects privacy and the business can be carried out in complete anonymity. Moreover, it is not necessary for an offshore company to hold public record of directors and shareholders.
An offshore company is registered faster as it has a faster incorporation process.
An offshore company can open a corporate bank account, which is largely flexible. The bank accounts can support multiple currencies.
An offshore company is exempted from any income tax, corporate tax, personal tax or custom duty.
It is not necessary for an investor to meet the authorities in order to incorporate the company. A registered agent can get the documents signed by the investor at his/her office and complete the procedure.
