The Emirate of Dubai and the UAE and the entire UAE, offer extremely attractive and friendly opportunities for business registration. In this article we will evaluate the most important characteristics of the UAE companies, business opportunities, and company incorporation procedure.
First, registration of businesses in Dubai, United Arab Emirates includes combination of the following major factors:
- Infrastructure and security in terms of business and residence.
- Significant incentives for business development in the form of tax and other duties exemptions.
- Official policy designated for attracting foreign investments and promotion of business, supported by relevant laws.
As for companies, we’ll not go into all details and specifics of each type of companies. On the whole they can be grouped into three major types possible for incorporation of business in Dubai, the United Arab Emirates:
- The company for international business. Full exemption from taxes. No reporting requirements. Relatively low expenses. Disadvantages – business may be carried out only outside of the UAE, and owners of such type of company are not entitled to apply for residence permit in the UAE.
- The company with resident status / for doing business in the UAE and abroad – may be incorporated in any free trade zone in the UAE. Such company is entitled to file documents and obtain residence permit for owners and work visas for employees. The company of this type can be in complete foreign ownership. Such type of companies enjoys free tax regime - complete absence of taxes.
- Company designated for doing business on the mainland. Such type of companies, depending on the type of business, shall include local national as a shareholder or an agent of the company. Such type of legal entities, registered in Dubai or other Emirates of the UAE , shall pay taxes only in case of performance of the following activities: banking, oil industry and hotel business.
All three types of companies may be registered within relatively short period of time, and may have access to products offered by banking institutions in Dubai - both local and international banks.
The fees charged for incorporation of companies vary depending on the type thereof. The first type of companies is the most cost-efficient option, but is only suitable for international business. The second and third types of companies are more expensive, but may be facilitated for doing business not only abroad, but also in the country.
Furthermore, members of the latter two types of companies, as noted above, are entitled to obtain residence permit in the UAE and have employment contracts with employees under which they may apply for work visas in the UAE, that authorizes them to reside and work in the country.
If you opt for the second or third type of companies, in addition to residence permit you may apply for permanent residence in the United Arab Emirates in the capacity of tax resident of the country. In this case, in addition to opening business in Dubai with tax free status, you may also obtain the personal status of resident of the United Arab Emirates – entitled to tax exemption applicable to individuals – residents in UAE.
Before commencement of incorporation of business in Dubai, the UAE, you shall first pinpoint which type of company you need, and then, having determined specific configuration of the company, identify the Emirate where the company is to be registered, which license shall be obtained, the place where the office shall be leased, etc.
If you have any questions with respect to company incorporation in the UAE, please email or call us – we’ll provide free advice with respect to determine the type of company subject to your prerequisites. Besides, we provide legal support relating to company incorporation and resolution of issues arising in the course of it registration – licensing, bank account, visas, etc.