In light of the changing legislation in most of the countries in terms of offshore jurisdictions which have made typical offshore companies very hard to apply in business, the freezone company formation in UAE is the option which gains its popularity, and there are clear reasons why.
Apart of the points which have already been mentioned in our previous publications such as full foreign ownership and no corporate tax on Dubai companies, there are other elements why these freezone companies have become such a popular option.
The mater of tax residency for businesses and private individuals have become of the high importance, especially in light of the international regulatory changes which take place. For this reason, the option of obtaining the residency visa as the shareholder of the UAE Company clearly gains its popularity.
When considering other jurisdictions to company formation in UAE, most of such jurisdictions provide beneficial tax treatment only for business being done outside of the country of company’s formation. For the UAE - there are no limitations on how the Dubai company has structured its operations means if there are freezone company business operations which are taking place in the UAE - there would be no changes in the corporate tax treatment.
Another reason why UAE company formation is of the clear advantage is that, if you need to bring your team to work in your company in Dubai, the UAE, there are generally no difficulties with it. When compared with other countries which impose rather a harsh limitation on bringing the personnel from outside, the UAE is very flexibly in these terms. Each freezone company can apply for the necessary number of visas for personnel from abroad. The only prerequisite is that the company needs to fulfill some formal requirements to have the option to apply for such visas. These requirements include the appropriate company type and the necessary business premises in the UAE which fit the company activities and the number of visas company in Dubai, or another emirate is permitted to obtain.
Timing - if you need to form a headquarters company in some trustworthy jurisdiction and complete all the formalities on it including formation, bank account, obtaining visas for the team, renting or buying business premises, etc. - this normally can take truly long time. In case of the UAE, the entire procedure, if done properly, can be accomplished in a matter of 2-3 month.
The Dubai companies formation also give access to the UAE banking scenery means you can open the bank account as well as, if required, after some certain time, apply for corporate financing - for trade financing as well as project finance. The key requirement for it is that the freezone company has to operate at least three years and have the positive financial results.
Highly international business environment. For the ones who have considered various countries for company formation, one of the elements is how the international business people are treated in the country of your choice. When talking about the UAE - it is one of the most multinational countries which is the great place for people from all over the world and the reason why it is being chosen so often.
Safety and comfort of living - when talking about jurisdictions with low or no tax - these are the regularly small island or territories having the very little infrastructure and which can pose some certain challenges for daily living. In case of Dubai and the rest of the UAE - this is one of the safest places on earth and offers astonishing live quality with excellent residential facilities, theatres, opera, museums, entertainment parks, etc.
Main steps within UAE company formation procedure- for onshore company in Dubai or other Emirates.
1
Make the clear outline of freezone companies activities in the UAE - activity type and if it would touch the UAE territory.
UAE company formation process has its particulars in terms of licensing and permitted territory of its activity - each company needs to choose which activity / activities it plans to exercise and needs to obtain the respective license.
2
Decide on the possible location of company incorporation
There are various free trade zones in the UAE. Each has its pros and contras in terms of location, infrastructure, available licenses, particular requirements, registration procedure and costs.
3
Make yourself clear with the number of residency visa you may need for company shareholders and personnel- if any
The UAE has certain specifics in terms of visas which can or cannot be obtained over company formation in Dubai or other emirates of the UAE. The company type you choose shall fulfill this requirement.
4
Make the choice on the place of your freezone company registration
As there are various options for formation - 7 emirates and more than 45 free trade zones, thus each business has plenty of options to choose from. Each location has its certain advantages and drawbacks thus you need to find the rightone for your particular objectives.
5
Prepare all incorporation documents
The set of documents you need to prepare for freezone company formation in UAE differs from place to place. Normally these include standard set of documents from shareholders and directors as well as incorporation documents - MOA, resolutions, etc.
6
Select the name for your company
When deciding on your company name, as the general rule, it is suggested to have the business name associated with the company activities. Within formation of the UAE company the authority checks if the name you have chosen is free and does not contradict with the applicable company names regulations.
7
Apply for freezone company incorporation
Apply to the respective department of the new companies’ formation of the authority where you plan to register your company.
Sort out the issue with the business premises
Each location in the UAE has certain set of regulation in terms of business facilities companies can and / or obliged to have for each activity. Some offer an option for service desks, some require the obligatory physical space of the certain minimal size to be leased within the registration process.
8
Proceed with account opening
Some types of freezone companies require share capital payment within the formation procedure, others - no share capital. In the first case the account for the company needs to be opened already within the company formation process and the required capital needs to be paid it. In the second case - when share capital is not required, the company can apply for bank account opening after the company formation has been completed.
9
Finalize the freezone company incorporation
The last stage includes provision of additional documents and forms which may be required by the authority. The last part of the process is the collection of your incorporation documents.
10
Proceed with establishment card and other documents to complete the registration
Once you company has been formed, you need to obtain additional documents such as establishment card, labor card, etc.
11
Putting reminders on the renewal date
Your freezone company is formed. Congratulation! Do not miss the step of pouting the reminder in your calendar on the timely renewal of your company as each UAE company is due for renewal yearly.
Main steps within UAE company formation process - for offshore ICC company in Dubai or Ras Al Khaimah
Even though our article is dedicated to freezone onshore free zone companies and their registration procedure, below we have put together the table on the main steps and process of offshore company formation in UAE - in order for you to be able to see the differences in the steps and procedure and to be able to know why to choose one or another option.
1
Put together the company activities
UAE International business company is permitted to include quite extensive set of activities. However such need to be clearly specified in the application.
2
Prepare documents on company shareholders and directors
The documents on company directors and shareholders needs to be prepared. These include the utility bills, reference letters, etc.
3
Get in touch with one of the registered agents for International Business companies formation in the UAE
Companies of this type cannot be formed directly with the registry and you need to get in touch with one of the registered agents like our company to initiate the registration process.
4
Decide on the name company
If there are any difficulties - your agent shall provide possible suggestions
5
Apply for company incorporation
This step has to be done by the registered agent
6
Proceed with account opening
There is no requirement for share capital this the account can be opened after the company formation procedure is completed. In case you choose our services - we apply for the account opening already within the company formation process to save time.
7
Finalize the international business company incorporation
This step is to be completed by your registered agent, and you obtain the complete set of documents. This type of company, of done by qualified agent, takes just a couple of days to form.
Once your UAE company formation process in Dubai or another part of the country is completed, you can start your daily operations in the UAE. Within the operations make sure that your business activities remain within the permitted activity outlined in your license. Moreover, make sure that you keep your yearly renewal date under control as each year every freezone company in the UAE needs to be renewed according to the applicable praxis which depends on the company type and place of its formation.
Our team wishes you the best results in your business and, in case you need our support on your UAE company formation or administration - please feel free to contact us.
