The setting up of a new company is called Company Formation or Company Registration. The United Arab Emirates controls the whole process of company formation through its corporate law.
A company in UAE can be formed in any of the following three ways:
Types of Business License:
Business Licenses issued in United Arab Emirates (UAE) depends on the business activity of the company and it can be one of the following:
Tourism –The tourism license covers all activities related to hospitality & tourism.
The common legal forms of business in Mainland, Free zone and Offshore formation in the UAE are:
Limited Liability Company (LLC)
Private Share Holding Company
Public Share Holding Company
Branch of Foreign Companies / Representative Office
Branch of GCC companies
Branch of Free zone company
Branch of Dubai based companies
Branch of UAE based companies
Fact: In commercial & industrial licenses, 51% shares are owned by a UAE National (referred to as local sponsor/partner) and 49% shares are held by the expat partner. In professional license, 100% shares are owned by expat partner and an UAE national is appointed as a Local Service Agent.
For foreign investors to establish a business entity in UAE in one of the 45+ Free trade zones (FTZs) is an attractive option. The key benefit of setting up a company in a free zone is that there is no UAE national shareholding required and the companies can operate within the free zone boundaries carrying out business activities as mentioned in the license. All free zones in UAE offer the following incentives:
100% foreign ownership of the enterprises
100% cent import and export tax exemptions
100% repatriation of capital and profits
No currency restrictions
Corporate tax exemption for 15 years, renewable for an additional 15 years
No personal income taxes
Registered company can lease minimum office space within that particular Free Zone
Company can obtain UAE residence visas for the director, shareholder and also employees of the company through the Free Zone where it is registered
Spectrum Audit is an expert in the Company Formation process. Reach us to have a frills free life in your journey in Dubai or any of the Emirates in UAE. We at Spectrum will assist you in taking care of all the legal procedures involved in the registration process of your company whether in the mainland or any free zone. Reach us today for any kind of assistance,
call us at +971 4 2699329 or email us at email@example.com to get all your queries addressed. Spectrum is your partner in your success.