About the UAE
The meteoric rise of the United Arab Emirates to global relevance over the past two decades has taken the world by surprise.
Becoming the business hub of the Middle East, and the envy of oil rich nations worldwide, it is no secret that the Emirate royals have engaged in one of the most outward-looking development strategies of any single governing body of the last century.
Although the cities of Abu Dhabi and Dubai undoubtedly represent the epitome of comfortable living for hundreds of thousands of expats, there is much more to this unique coalition of no less than seven kingdoms.
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Capital City
Abu Dhabi
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Population
9.27 million
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Land Area
83,600 km²
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Currency
United Arab Emirates Dirham
(pegged to the USD at AED 3.67/US$1)
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Economic Activities
Oil Exports
(77% GDP), Tourism, Construction, Services, Manufacturing
Benefits of the UAE
The UAE have several obvious benefits that make it the jurisdiction of choice for many businessmen across the world
There is 0% tax rate on both corporate and private profits. The same rate is also applied on sales, inheritance and wealth tax. Taxes are levied only on petrol, gas and banking industries.
The UAE are not regarded as a tax haven as the tax exemption applies for both resident and non-resident companies. The jurisdiction is also not featured on OECD blacklist. Unlike other offshore jurisdictions the UAE enjoy an excellent reputation worldwide.
Since 1st of January 2018 the UAE benefits from a status of a VAT regulated jurisdiction. The 5% rate of VAT is applied on trade of goods and services inside the GCC region. However, VAT does not affect companies used for international trade because selling goods and services outside of the region is taxed by 0% VAT.
- 0% TAX
- No profit tax is being collected.
- OECD WHITE LISTED
- The jurisdiction is not featured on OECD blacklist.
- VAT REGULATED
- Companies can apply for VAT number.
- 5 DAYS INCORPORATION
- Incorporation time is five days.
- STABLE SYSTEM
- Sound and stable legal system.
- CONFIDENTIALITY
- High level of confidentiality.
FREE E-BOOK: INCORPORATE YOUR BUSINESS IN THE UAE
Explore 0% taxation and other benefits of the United Arab Emirates!
Company types
There are 3 types of company you can set up in the UAE. All the types are tax exempt but have different benefits and restrictions.
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IBC
OFFSHORE COMPANY
Since 2003 foreign investors can set up a non-resident company that may open bank accounts in the UAE and hold real-estate and intellectual properties. However, all business activities must be conducted outside of the country.
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LLC
ONSHORE COMPANY
Foreign investors can create a local LLC company, however, a majority of the shares must be held by a local business partner. In few limited fields of business activity like consulting services can the foreign ownership remain 100%.
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FZC
FREE ZONE COMPANY
This type of company is a convenient alternative to an offshore company. It allows foreign investors to keep 100% shares in the company without a need for a local sponsor. It also can sponsor a resident visas for it’s shareholders and employees.
4 Easy Steps of Setting up a Business in Dubai
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Free Consultation
YOU WILL BE PROVIDED WITH A COMPLIMENTARY CONSULTATION IN PERSON OR ONLINE.
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Company Incorporation
WE WILL INCORPORATE A COMPANY TYPEACCORDING TO YOUR BUSINESS ACTIVITY.
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Bank Account Opening
WE WILL PREPARE YOUR BUSINESS CASE AND APPLY FOR A BUSINESS ACCOUNT IN A BANK OF YOUR CHOICE.
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Visa Processing
WE WILL ASSIST YOU WITH A RESIDENT VISA PROCESSING AND STAMPING.
Typical uses of companies
incorporated in the UAE.
- TRADING COMPANY
- The company can accept orders from the purchaser and instruct the manufacturer or other seller. The profit resulted from the transaction can be accumulated in the UAE.
- INVESTMENT HOLDING
- The company can be used to hold shares in other companies and corporate structures. It can also hold international real-estate, equities, bonds or other types of investments. The profit from the investments can be received without a tax burden and with high level of privacy protection.
- ASSET PROTECTION
- The companies can be used a vehicle for a legal asset protection and diversification strategies. In such scenario the intention is to legally separate the assets from its beneficial owner and therefore make it very difficult for prospective adversaries to locate the assets and win judgements against these assets.
- INTELLECTUAL PROPERTY HOLDING
- Allocating the intellectual property rights such as patents, trademarks, copyrights or any other “know-how” to an offshore company allows the royalties to be paid to such company at 0% tax rate. Such transaction usually brings a significant tax-optimisation effect.
Frequently Asked Questions
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What language do I have to submit the application and accompanying documentation in?
All documents and application forms must be in either English or Arabic.
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Do I have to live in Dubai in order to have an office in the UAE?
No. The UAE will ask that your General Manager is a registered resident, so the majority of our clients tend to apply for a residence visa on behalf of their GM. However, 100% foreign ownership is absolutely fine. At Alpha Citizen, we are more than happy to administer any visa applications that you require.
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Do I have to have physical presence in the UAE, through the rental of commercial property or offices?
Yes, you will need to have a physical presence, such as a lease on office or warehouse space. There are many reasons that this can be to your benefit in terms of taxation though; get in touch with us and we can discuss your options.
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What is the definition of a Free Zone?
A free zone is an area that has been established specifically to help grow international business in an area. Incentives such as 100% foreign ownership are often in place to try and make this a more attractive option, and free zones have their own activity and physical presence requirements, such a leased property. Compare to this a company registered outside of a free zone; these require local sponsors and cannot achieve majority foreign ownership (49% maximum), and the immediate benefits are very attractive.
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What are the main differences between free zones and non-free zones in terms of business incorporation?
If you have established your company within a free zone, you can have 100% ownership, giving you complete control. As these are incentivised areas to increase foreign presence, it is also very cheap and easy to do this. This doesn’t necessarily mean that a free zone is the best option for your business, though. For example, if you establish your business outside of a free zone on a DED license (Department of Economic Development), then you can operate within all areas of the UAE, giving you more freedom and fluidity, although an Emirati sponsor would own a 51% majority stake of your company. Alpha Citizen have been operating in the UAE for several years and are experts in business incorporation advice. If you are unsure whether a free zone or non-free zone setup would benefit you more, get in touch and we can help you come to a decision.
Think global and incorporate where they treat your business well.
Robert Sládek
CHEF EXECUTIVE OFFICER
Incorporate your new company in United Arab Emirates today!
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