Interesting facts:
Full versionEach emirate has its own terms and procedures for company registration. Furthermore, on the territory of the Emirates, there are numerous free trade zones with their features and peculiarities. The choice of a free trade zone and the emirate may depend on several factors described below:
A license constitutes the principal legal document authorizing the company to operate its business. Licenses for performing any business are issued by the administration of the free trade zone or the Department of Economic Development (DED) of the Emirate. Depending on the types of business, licenses may be of the following types:
The following types of companies are registered in the Emirates:
In majority of cases foreign companies consider the possibility of registering its subsidiaries and branches in free trade zones of the UAE. This is primarily due to the fact that foreign ownership of 100% interest in legal entities is allowed for free trade zone companies.
At the same time, company registration on the local market in the vast majority of cases does not require the mandatory participation of a local partner or sponsor (in accordance with Federal Law No. 32 of 2021 on commercial companies).
One of the principal requirements for incorporation of onshore company – obtaining the necessary registration approvals and approval of the company name. Subsequently, it is required to execute all documents and to open bank account. Eventually, you shall receive the following documents:
As of June 1, 2023, the UAE introduced a federal corporate tax (in accordance with Federal Decree Law No. 47 of 2022), with a standard rate of 9% on taxable profits above the established tax-exempt threshold (AED 375,000).
Companies registered on the mainland are subject to corporate tax on general grounds in accordance with applicable legislation.
Companies in free zones can qualify for a reduced rate of 0% on qualifying income provided they meet the requirements for Qualifying Free Zone Person status, including conducting permitted activities, meeting economic substance requirements, and maintaining separate income records.
VAT at a rate of 5% applies once the mandatory registration threshold of AED 375,000 in annual turnover is reached.
In any case, companies are required to maintain accounting records and submit tax returns within the established deadlines.
Registering a company in the UAE (on the mainland or in a free zone) provides the opportunity to obtain residence visas for investors (owners), directors, and employees.
The number of available visas depends on the type of license, the size of the leased office, and the requirements of the relevant registration authority.
To obtain a visa, you will need a valid company license, a registered lease agreement, a medical examination, biometric registration, and an Emirates ID.
The residence visa is typically valid for 2 or 3 years (depending on the chosen location and visa category).
For foreign investors, registering a company in the UAE, there are following advantages:
In order to choose the appropriate legal form and structure of the company to be incorporated, you should have some certain knowledge on local laws and business practices. Evaluation of existing opportunities and determination of strategic goals of your business will ensure success of your business and will protect your business and material interests.
Clarify the cost of opening company, corporate or personal bank account, obtaining a residence visa, or another question regarding business in Dubai, UAE:
Our company offers maximum support in resolving the aforesaid issues. Our specialists have long experience and posses best practice relating to starting or expanding existing businesses. We will prepare all required documentation and will provide you with professional services at all stages. If you have decided to incorporate a company in the UAE you should rely on professionals and get the desired result within the shortest period of time and in full compliance with all applicable regulations.
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