Frequently Asked Questions (FAQs)
Common company setup FAQs, Mostly people have in mind when they going to start a company in UAE.
Why start the company in UAE?
If you wanted to live somewhere that is reasonably affordable, has a thriving entrepreneurial community, close proximity to Europe and Asia, and is located in a region with low taxes and free trade zones.
A location search narrowed down options to the UAE, which has all of those things (and more). It has been an incredibly easy place to do business.
Where to setup a company in UAE?
The United Arab Emirates is a federation of seven different emirates, each with its own unique culture and style. To varying degrees, they are influenced by Arabic, Persian, and Indian traditions. This can make it difficult to decide where you'd like to base your company in the UAE.
A good thing to consider is that all seven emirates have great access to the sea and have developed into major centers for trade and industry. The bigger cities of Abu Dhabi and Dubai in particular have become ever more important hubs for business as a result of their international connections through air travel and ports.
How to start a business in UAE?
When setting up your small business in UAE, it helps to know what sort of culture you are getting involved with. Although the government is generally very good at making things straightforward and simple for new businesses, they do like to control many aspects of how things get done here. Once you understand this, it becomes much easier to manage your expectations and plan accordingly so that your company can enjoy success right from the start.
What type of company structure are available in the UAE?
The UAE offers a variety of company structures that vary depending on the activity or activity of your business. The most common and most popular are free Zone Company, offshore company and Mainland Company.
Is it easy to start a business in the UAE?
The UAE is one of the best countries in the world for starting a business. There are extremely low restrictions on foreign ownership, no minimum capital requirements and very little red tape, which means that opening a company in the UAE can be done quickly and easily.
Difference between Mainland, Free Zone, and Off Shore company in UAE?
Mainland Company - A Mainland Company is a local company, established or incorporated in UAE. A Mainland company is registered with the Ministry of Economic Development (MED) and will be governed by the Commercial Companies Law of UAE and subject to mandatory periodic filing of annual financial statements with the Ministry.
Free Zone is a special economic zone in the UAE where a number of companies operate that are not permitted to trade with the rest of the UAE. These companies form their own free zone, to run their business as they choose, free of most taxes and duties.
Offshore companies can be formed in the UAE and other jurisdictions in a similar manner to that of a local company. A local registered office address is required, but the shareholder and director names do not need to be disclosed by law. The annual accounting fees for this type of registration are significantly lower than for a local company.
Should the owner visit the UAE to setup the company?
It is strongly recommended that the owner visits the UAE. It will take a few business days from submitting all the documents to getting the company letterhead done and setting up bank accounts. While there is no need for you to be present at the time of raising your company, having an appropriate representative from your side would be extremely important regarding the issuance of appointment letters to employees and other matters pertaining to their employment.
What are the bank account opening procedure?
Open a bank account at the bank of your choice. The procedure may vary across banks, but you generally have to fill out an application form, provide proof of identity, address, and employment. Some banks may require a minimum deposit balance to open an account.
Under which circumstances, one should register company on the Mainland?
There are several reasons why people choose to register mainland company in the UAE. The first is that it is possible to get a work visa for your foreign employees. This saves your business a lot of time and money. In Dubai, for example, non-nationals can receive a 'no objection certificate' in just twenty minutes at City Pass Emirates. In this way, if you have employees who are nationals of countries outside the Gulf Cooperation Council (GCC), they can start working within hours of arrival rather than having to wait months for a residence permit.
Under which circumstances should one register company in Free zone?
If you are an international investor and want to start a new business in UAE without registering it at the local commercial registry. A Free Zone is an area that has been specially designated by the government of UAE where foreign investors can operate their free zone businesses in accordance with their own laws and regulations, free of the restrictions imposed by local regulations or taxation.
The UAE Freezone is a place for people to register their companies at low costs and with minimal requirements, and the best part is that these companies can conduct business within the country without having to pay local taxes.
What is legal jurisdiction for any company to operate its business?
The UAE is a federation of emirates, each governed by a monarch. The UAE has three legal jurisdictions: civil law, Sharia law, and customary law. In the UAE, it is possible for any company to operate its business under any one of these jurisdictions.
UAE legal jurisdiction for any company to operate its business is based on the Memorandum and Articles of Association of the Company, which should be in compliance with the UAE Commercial Companies Law.
Under which business plan, an offshore company should be formed?
In order to minimize the tax rate, and maximize the profit, a company should be incorporated in offshore jurisdiction. With offshore company formation there are two main business plans: corporate and family. In corporate business plan, there are more than one shareholder’s who own a part of shares. In family business plan, one single shareholder owns all shares of an offshore company by himself.
Who is the registration government authority for Mainland companies?
The registration Government authority in UAE is the Department of Economic Development - (DED), which serves as the central database for commercial companies. It is responsible for registering and licensing companies, facilitating business establishment through procedures such as establishing an entity, applying for financial aid, processing Visa applications and issuing Identity Cards.
Who is registration government authority for Freezone companies?
Free zone is an established business environment in UAE, where businesses can be set up with minimal government interference. The free zones operate under strict regulations that allow international trade and investment to flourish within their borders. A free zone company in its own right can apply for registration as a Free Zone Company in Dubai or any other emirate with the respective Freezone Authority of each state.
Where can I get more detailed information on company registration for many different types of business activities / industries?
We’re here to help you solve any problems you might have with setting up your business in UAE. We are your go-to company if you want to register a new company or need to get an existing one re-registered. With complete information on all kinds of companies available on our website, we are more than ready to assist you in finding the information you need for the type of business you wish to operate.
