Complete guide on Company Formation in the UAE
Complete guide on Company Formation in the UAE | Emirates Chartered Accountants Group
In the United Arab Emirates, Dubai is one of the booming Emirate with its magnificent infrastructure, intense and quick growing horizons, making it one of the biggest business hubs in the world. Dubai offers one of the best business strategies with its wide options to opt for different types of company formations, inviting opportunities and evolution for all those aspiring business people around the globe. In the UAE, there are different types of Company Formations that would cater your requirement. The different types of Company Formations are listed as below.
Are you looking for Company Formation in the UAE?
With Emirates Chartered Accountants Group, Company Formation in the UAE has never been so smooth and quick with over a decade of its experience in the related field. Our professional team from the Company Incorporation department are proficient with the rules, regulations and procedures that one must comply with regard to forming a company in the UAE. We invite all business enthusiasts with high-net-worth individuals, or start – up entrepreneurs to offer our complete package of Company incorporation in the UAE.
1.UAE Free Zones Company Formation: there are multiple free zones in the UAE. A few of them are listed below.
- Jebel Ali Free Zone (JAFZA): Jebel Ali Free Zone is one of the oldest free zones in the UAE with over 7,000 established companies now. It has been designed for manufacturing & trading companies.
- Dubai Multi Commodities Centre (DMCC): Since its inception in the year 2002 it has around 8,500 companies registered in this zone by now. The supplies that can be traded through this free zone is tea, agricultural products, metals, gold, silver, diamonds, pearls etc.
- Dubai Airport Free Zone (DAFZA): The Dubai Airport Free Zone offers an office and a warehouse space. For businesses having Logistics activity this is a prefect location for set up as it is situated near to Dubai International Airport and offers an onsite customs clearance facility providing well organised cargo and clearance methods.
- Dubai Silicon Oasis (DSO): It is a 100% government owned free zone established in Dubai Silicon Oasis is a technology park providing hi technology working environment to the community.
- Dubai International Financial Centre (DIFC): The Dubai International Financial Centre is a financial hub in Dubai. What makes it unique is that it has its own systems and courts and it is independent from the ones in UAE. DIFC is recognized as a platform for financial institutions to provide progress towards the economic development in the UAE.
- Dubai South: Dubai South is one of master-planned city based on the happiness of an individual which is expected to withstand a million population. As an economic platform, it is designed to support every conceivable kind of business and industry.
- Sharjah Media City (SHAMS): The media city is located in another Emirate of Sharjah. This media city is a new establishment with a vision to be a world-class hub for media and creativity.
- Sharjah Airport International Free Zone (SAIF): provides some of the most attractive business opportunities in the region. It prides for the delivery of their speed of service and easy process. It gives an easy access to the seaports on the Gulf of Oman & Arabian Gulf.
- Ajman Free Zone (AFZ): It is located in another Emirate Ajman. Its chief principle leads to immense industrial development in Ajman to fascinate many companies and benefit from the investment in the Ajman Free Zone.
- Fujairah Free Zone (FFZ): Fujairah free zone has been established two decades ago. The location gives easy access to all Arabian Gulf ports providing fast access to transportation for their commercial operations.
- Ras Al Khaimah Free Zone (RAK FZ): Ras Al Khaimah Free Zone is situated in Emirate Ras Al Khaimah. It excels its commitment to offer the investors with cost effective & word class commercial culture.
- Hamriyah Free Zone (HFZ): Hamriyah Free Zone is located in Sharjah. It is situated in an exceptional geographic location with sheltered and easily accessible reach to nearby countries through land, sea and air.
- Umm Al Quwain Free Zone (UAQ FTZ): This Free Zone is situated in Umm Al Quwain. It possesses a perfect site for Micro Businesses, SME’s & business conglomerates to ensure that businesses are protected and safe.
2.UAE On Shore Company Formation: A few on shore company formations are listed below.
- Dubai Commercial License: It is a type of Limited Liability Company (LLC). Article 22 of the Companies Law specifies that there should be minimum 51% shares of the UAE National. This LLC will have a local share of 51% which will be paid annually to act as a local sponsor. This local sponsor can either be an individual or a corporate sponsor.
- Dubai Professional License: It is a type of Sole Proprietorship or a Civil Company. The license holder is permitted 100% foreign ownership and sole proprietorship. In order to obtain this licence a UAE national must be appointed as Local Service Agent but he has no direct involvement in the business and the sponsorship fees is paid on a yearly basis.
- Dubai Representative Office: To retain 100% of foreign ownership in the UAE it is preferred to open a representative office. These offices do not have a separate legal identity but are treated as an extension of the foreign company which ultimately remains liable for their activities.
3.UAE Off Shore Company Formation: Different incorporations under off shore company formation is listed below.
- Jebel Ali Offshore Company (JAFZA): Jebel Ali Free Zone is one of the oldest free zones in the UAE with over 7,000 established companies now. JAFZA offshore companies allows to trade internationally and to own a property in Dubai. They are get registered in the Emirate but has no resident visa.
- RAK International Corporate Centre (RAKICC): is an association of two company in Ras Al Khaimah; specifically RAK International Companies (formerly a part of RAK Free Trade Zone) and RAK Offshore (formerly a part of RAK Investment Authority). RAK International Corporate Centre was formed as per the Decree No.12 of 2015 and was amended by Decree No.4 of 2016.
What is a Designated Zone in the UAE?
As per Cabinet Decision No. (52) of 2017 on the Executive Regulations of the Federal Decree-Law No (8) of 2017 on Value Added Tax Article (51)
1.Any Designated Zone specified by a decision of the Cabinet shall be treated as being outside the State and outside the Implementing States, subject to the following conditions:
- The Designated Zone is a specific fenced geographic area and has security measures and Customs controls in place to monitor entry and exit of individuals and movement of goods to and from the area.
- The Designated Zone shall have internal procedures regarding the method of keeping, storing and processing of Goods therein.
- The operator of the Designated Zone complies with the procedures set by the Authority.
List of Designated Zones in the UAE:
|Sl. No.||Designated Zone||Location|
|1||Jebel Ali Free Zone (North-South)||
|2||Dubai Cars and Automotive Zone (DUCAMZ)|
|3||Dubai Textile City|
|4||Free Zone Area in Al Quoz|
|5||Free Zone Area in Al Qusais|
|6||Dubai Aviation City|
|7||Dubai Airport Free Zone|
|8||Free Trade Zone of Khalifa Port||Abu Dhabi|
|9||Abu Dhabi Airport Free Zone|
|10||Khalifa Industrial Zone|
|11||Hamriyah Free Zone||Sharjah|
|12||Sharjah Airport International Free Zone|
|13||RAK Free Trade Zone||Ras Al Khaimah|
|14||RAK Maritime City Free Zone|
|15||RAK Airport Free Zone|
|16||Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port||Umm Al Quwain|
|17||Umm Al Quwain Free Trade Zone on Sheikh Monhammed Bin Zayed Road|
|18||Fujairah Free Zone||Fujairah|
|19||FOIZ (Fujairah Oil Industry Zone)|
|20||Ajman Free Zone||Ajman|
Steps for Mainland Company Formation in the UAE
for Company Formation in the UAE, get in touch with our Company Incorporation team for a free consultation. Emirates Chartered Accountants Group provides a free consultation and advisory services to its existing & potential client to ensure it is processed on time at a minimal cost pertaining to UAE company formation laws and regulations with regard to company formation.
FOR ALL COMPANY INCORPORATION SERVICES IN THE UAE:
Contact: Mr. Viju Divakaran