Company Formation in UAE
Establishing business in UAE or company formation is an excellent way to legitimately book international profits without paying any tax. Besides, there are no capital gains or personal income taxes in UAE.
Emirates Chartered Accountants Group liaison with clients to set up their business in uae. We handle the complete uae company formation process – strategic recommendations, negotiations with local stakeholders, documentation formalities – the entire assistance towards business floatation.
The Department of Economic Development, with the institutional support from the Dubai Chamber of Commerce & Industry, is the statutory body that regulates and controls the licensing procedures for an entity in Dubai. It was formed to organize and activate industry as well as internal and external trade in the Emirate and prepare studies relating to industrial and commercial activities.
UAE Business environment
U.A.E. offers incoming businesses all the advantages of a highly developed economy. The infrastructure and services match the highest international standards, facilitating efficiency, quality and service. Among the benefits are:
- Free enterprise system.
- Highly developed transport infrastructure.
- State-of-the-art telecommunications
- Sophisticated financial and services sector.
- Top international exhibition and conference venue.
- High quality office and residential accommodation
- Reliable power, utilities etc..
- First class hotels, hospitals, schools, shops etc. Cosmopolitan lifestyle
UAE Business climate
- No personal income and capital taxes
- No corporate taxation
- 100% repatriation of capital and profits
- No currency restrictions
- Competitive import duties (5% with many exemptions).
- Modern efficient communication facilities
- Abundant and inexpensive energy supply
- Simple staff recruitment procedures
- Competitive freight charges
- Competitive real estate costs
- Easy access to both sea and airports
Types of Licenses issued in UAE
1. Trade License
Trade license is issued to a natural or juridical person to practice any trading activity for the purpose of profit making through buying and selling of goods. These licenses are issued for engaging wholesale or retail trade enterprises, contractors, hotels, transport and storing establishments etc., A Trading License can be a General Trading or Specific Trading. A specific trading license limits the scope of activities to trade in only closely related items. [For e.g. a company cannot trade in building materials, if its licensed activity is trading in computer peripherals.
2. Industrial License
An industrial license is issued to a natural or juridical person to practice any investment activity, the object of which is to discover natural resources or transform raw materials in terms of its structure or appearance into manufactured products or to transform the semi-manufactured products into fully manufactured products by using mechanical power and segregate the products, filling, assembling or packing them.company formation
3. Professional License
A professional license is issued to a natural or juridical person to practice any profession in which he depends on his physical or mental efforts rather than depending on a cash capital. This license is issued to practice certain professions such as engineering consultancy, other consultancy services and studies, auditing and accounting, business set up, company formation, medical and educational services and similar services.company formation
Requisites for registering a new business in UAE
Prior to operating any business in UAE, it is first necessary to follow the steps outlined below in order to meet the legal requirements of all concerned government authorities and to guarantee maximum commercial benefit for the business owner:
- Determine the category/categories (commercial, industrial and/or professional) and type of business activity/activities to be practiced.
- Determine the appropriate business legal form taking into consideration the desired business activity/activities and the number and nationalities of the business owners.
- Determine and register the trade name of the business.
- Submit the company registration application and the proposed company name to the Department of Economic Development (DED) for an initial approval.
- Notarize the company’s Memorandum of Association.
- Leasing premises and contact the counter of the Planning Department of Dubai Municipality in order to verify that the said premise is suitable for the business.
- File company documents with the Department for Economic Development (DED) and obtain trade license and the Chamber of Commerce and Industry
- Make a name board
- Apply for establishment card at the Ministry of Labor
- Register native workers with the Ministry of Labor
- Register native workers with the General Authority for Pension and Social Security
United Arab Emirates nationals may operate all commercial, professional and industrial activities, when they fulfill all Terms and Conditions. GCCC nationals may carry on most commercial, professional and industrial activities, when they fulfill all Terms and Conditions (except for activities of Haj and Umra, trade agencies, houses of disabled and old people, community service, and journals and magazine publishing and printing houses as they are limited only to United Arab Emirates nationals). Fifty-one per cent participation by UAE nationals is the general requirement for all UAE established companies except:
- Where the law requires 100% local ownership
- In the Free Trade Zones where 100% foreign ownership is permitted
- In activities open to 100% AGCC ownership
- Where wholly owned AGCC companies enter into partnership with UAE nationals
- In respect of foreign companies registering branches or a representative office in UAE.
- Professional or artisan companies where 100% foreign ownership is permitted.
The different categories of business organization defined are:
- General partnership company
- Joint venture company
- Public shareholding company
- Private shareholding company
- Limited liability company
- Share partnership company