In our earlier overviews from preceding months, we have published our summaries on the use of offshore and mainland companies. In the present issue, we provide the info on the praxis on the use of the UAE companies, which can be registered in various free zones of the United Arab Emirates. In the present issue, we summarize the most common cases when such legal body can be highly useful. Before starting with the facts on the legal entity itself we must note that registration of a UAE company is straight forward and, once registered, you enjoy all the benefits of a fully functioning company whereby there are no taxes applicable in the UAE on the income of such types of companies.
Using of this company type to obtain UAE residency visas
If you and your family need residency visas in the UAE, the most cost-efficient and straight - forward solution is a free zone company. By registering it, you get the right to obtain residency visas. If this company would be used by you for business or not – this is totally up to you as, for the further visas renewal, there is no such requirement, and legal entity can be active as well as have no activities.
Tax residency – personal and for company
Once you obtain your visa over registration of this company type, there is the option to get the personal tax residency certificate in the UAE. The free zone company itself, once registered, can also get such certificate. It gives the possibility to use the advantages of the country’s double tax treaties as well as enjoy the taxation absence which UAE provides to companies and persons.
Registration of a UAE company in free zone - holding company or any other type of management
Another highly useful feature of this company type is registering it for holding activities. Whereby similar activity can also be executed over UAE offshore company, for the larger holdings it is also worth to consider this legal entity type. In comparison with an offshore company, the onshore holding can have real substance in the UAE – office and personnel. It can also obtain tax residency certificate.
Consulting or any type of service
Similar to an offshore company, UAE free Zone legal entity can be used for various consulting and services. The difference to offshore solution – it can also have activities in the UAE itself whereby such company would be under your 100% ownership.
Registration of a Free Zone UAE company for business activities with real substance
The companies of this type may be registered in different free zones of the UAE. The matter of selecting the specific one as the place of registration may have some factors to consider. We just mention the main points – free zone location, available office and other business facilities, available licenses types and costs of company and business premises lease as well as share capital requirements and a number of maximum visas under the standard company. On the types of activities of such companies – can be absolutely different - any production and assembly, recycling, storage and logistics, etc.
Advantages for such activities – in comparison with the alternative LLC company, is in your full ownership means assets are fully under your control, this legal entity enjoys tax-free regime, reasonably priced labour, great logistics facilities and perfect banking service.
Summary on the advantages of Registration of a UAE company in Free Zones
There are various scenarios when a UAE company in the status of a Free Zone entity can be registered and used in praxis. In all these applications this type of legal entity delivers its full advantages –foreign ownership in combination with the complete absence of taxation. In addition to it, there are other factors which make these companies so attractive – their entirely residential status in the UAE, no additional costs on personnel such a social security payments or taxes on wages combined with the excellent legal framework and the greatly friendly business environment.