The United Arab Emirates is located in the eastern part of the Arabian Peninsula. The region is rich in minerals, has a developed infrastructure and has high rates of economic growth. At the same time, the region maintains political stability and transparent rules for doing business. That is why entrepreneurs ask "How to open a business in the UAE?" are advised to evaluate the advantages of the region and the main procedural points for incorporating a new business in Dubai, Abu Dhabi or another emirate.
Advantages of owning a company in the UAE
Having an offshore company in the UAE or another business is potentially beneficial due to:
Openness to implement new business ideas;
A higher level of trust in UAE companies;
Simplicity and clarity of registration procedures, along with compliance with all generally accepted compliance standards;
Lack of exchange controls;
The presence of free economic zones (FEZs);
Tax conditions that create a relatively low burden for businesses.
Ways to do business in the UAE
Registration of a business in UAE is possible in one of the following forms:
Limited Liability Company is the most popular form of business in the UAE, where the financial and legal liability of the participants is limited to the amount of their investment. The number of participants varies from 2 to 50. The minimum authorized capital is 300,000 dirhams, but the amount may vary depending on the emirate and the FEZ.
Joint Stock Company is suitable for large businesses to attract external financing. The financial and legal liability of the participants is limited to the amount of their investment. A JSC can be of several types: (1) closed, in which there is no public offering of shares (minimum authorized capital - 5 million AED), or (2) open, which can offer its shares to third parties, including on the stock exchange (minimum authorized capital - 30 million AED).
A branch is an option for a foreign company that plans to test the possibilities of local markets before investing more significant amounts.
Procedural aspects of opening a company in the UAE
You can register a company in the UAE after going through some interconnected steps:
Drawing up a business plan with a list of activities that the company plans to carry out.
Choosing and reserving the name for the future company in the UAE.
Obtaining prior approval for registration from the Department of Economic Development or another competent authority of the FEZ, which is selected to register the company.
Preparation and execution of all necessary documents for the registration of a new legal entity.
Choosing and renting an office (to meet the content requirement).
Passing a medical examination and obtaining an Emirates ID.
Opening a bank account.
Submitting documents for examination and registration.
Registration for payment of taxes and mandatory social contributions.
Registration of necessary permits and licenses (for regulated activities).
Regulatory environment of the region
Any person, natural or legal, resident or non-resident, can register a company in the UAE. For an offshore or FEZ company, 100% foreign ownership is permitted. For an onshore company, the share of UAE residents must be at least 51%.
The registration procedure is simple and completed quickly if the formal legal requirements are met. It is also possible to buy a company in Dubai UAE, preferably with an audit of accounts and previous transactions.
Taxation of offshore and offshore companies in the UAE
The UAE tax system provides for such basic taxes for local companies:
Corporate tax - for oil and gas companies - up to 55%, for branches of foreign banks - 20%, for most other companies and branches - 0%;
Income tax - not applicable
VAT - 5%
Withholding tax - not applicable
Capital gains tax - not applicable
Offshore companies in the UAE are exempt from paying taxes in the UAE.
How our experts can help
Let's say you are evaluating starting or purchasing a company in the UNITED ARAB EMIRATES. In this case, the lawyers of "Smart Startup UK" are ready to put this option into practice by providing legal support for the following aspects of business registration in the UNITED ARAB EMIRATES:
Request and collect all data and documents for opening a business in the UNITED ARAB EMIRATES;
Choose the name and in the interests of the client, all negotiations are conducted by us with local authorities and banks;
We arrange the legal address, accounts and employees, as well as all necessary documents for applying for the future company;
We provide comprehensive legal support for the further functioning of the new legal entity in the UNITED ARAB EMIRATES.
The portfolio of "Smart Startup UK" specialists is formed by more than 8,000 cases in the field of registration and support of international business. Our lawyers will apply this experience to the goals of your project.
CREATE A COMPANY
Company name check and reservation
Company registration, including government fees
Obtaining an administrative identification number
Registering the company with government agencies
Writing a company charter
A set of company charter documents in electronic form
Bank contribution for the company's authorized capital
Obtaining a foreign investment permit
Opening an account at: First Abu Dhabi Banka, Commercial Bank of Dubai.
Opening a personal bank account
Apostille and translated corporate documents
Obtaining a residence permit
Free consultation
Assistance with online trading and opening an account at viva.com for online trading
Accounting services - 12 months
Accounting services
Annual renewal 1500 Euro (paid from the second year)
*Within 35 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over 5000 Euro) for registering your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit an application for company registration through the application form.
2. We check whether the company name for registration is free and eligible for registration.
3. Choose a bank that meets your company's needs from a list of Smart Startup UK partner banks.
4. We send you a proforma invoice for payment to be paid to our bank account + the amount for the initial capital of your company.
5. You receive all the necessary company documents for reconciliation.
6. You receive details of your newly opened bank account.
7. Within the specified period (for the UNITED ARAB EMIRATES it is 35 days) you receive all the services included in the package.
8. You can manage all the services included in the package through our platform, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticket system for our customers, through which we process each of your support requests.
All services such as management, accounting, bank account opening requests, licensing, tax return filing, tax payment and others are carried out through your account on our platform, making it easier to manage your business!
