Company Formation Services in U.A.E
Learn the best ways of starting a Company Formation in UAE, different types of business structures in UAE, and what is required to start a business in UAE.
- We will help you look for and choose a suitable partner or sponsor from UAE
- We will help you set-up your business and associated requirements
- We will help you register for tax and licenses
Find out how to register a company/business in UAE in very easy steps. Our comprehensive list of services is here to help you.
The United Arab Emirates (UAE), popularly known as Emirates is a growing Middle East country. The UAE shares its regional borders with Oman and Saudi Arabia and its nautical borders with Qatar and Iran. The United Arab Emirates is a seven emirates federation, which includes Abu Dhabi (nation’s capital), Dubai, Ajman, Sharjah, Ras Al- Khaimah, Fujairah, and Umm Al- Quwain.
Dubai is a hub of business for many Chinese traders, as Chinese businessmen deal with Africa through Dubai.we are also providing assistance for company formation in UAE. Others like Latin American traders, Western national traders, and Indian traders also use Dubai as such a hub for conducting their business. All this indicates the strategic importance of this market.
The United Arab Emirates or UAE is one of the most developed and the seven emirates are undergoing tremendous changes in the process of development. Latest statistics show that the UAE is the sixth richest country in the world. While planning for setting up a business or Company formation in UAE you have to know about the advantages of it. Starting in a location which is geographically helps in connecting different nations like the GCC countries (Gulf Cooperation Council) and other European, Asian and African countries attracting a vast number of traders and businessmen. Moreover that Emirates has a low tax jurisdiction and the business entities are not subject to the corporate taxes, which in turn attract the foreign businessman and natives to start businesses
Company Formation Steps in UAE
Finding A Partner
You need partnership and support from a UAE Citizen to get the fundamental licenses to work in the country. Helpline Group can guide you and help you gain a UAE partner.
Business set-up activities in UAE may change depending on the industry and type of company. Helpline Group can guide you and help you apply for business set-up.
You may need to apply for additional licenses to begin operations of your business in UAE. Helpline Group can guide you and help you get these licenses in UAE.
The UAE has made several drastic changes to develop its economy since its inception. Apart from the oil and gas business, UAE is known for its strong financial reserves that make its financial and banking sector very strong, secure and durable. Although UAE have strong financial base and good economic growth, the country continue to focus on attracting foreign businesses to sustain this development.
This focus is visible in specific areas like air transport, tourism, financial services, alternative energy solutions and trade. There are about 35 Free Zone areas in UAE, which allow traders to enjoy tax-free business to its full extent by exempting income from corporate tax, along with100% business ownership, exemption from export / import duty. This is right time for investing for foreign players in UAE.
Promise on Quality and Reliability
Our highest priority is in ensuring our commitments are met, and we deliver our promises on time. Hence, you can be assured that your company formation activities will be completed on time, as per your requirements.
Legal Structures of the Company
The first step in business set up in UAE is determining the appropriate structure for the business. Decisions on the business structure should be based on your business requirement like the nature of the business, capital investment, issuance of shares in the market, etc. Most common and suitable business structure in UAE is “Limited Liability Company” LLC business structure. Legal business structures in UAE allowed are given below.
- Limited Liability Company Formation
- Branch Office
- Commercial Agencies
- Representative Trade Offices
- General Partnership Company
- Limited Share Partnership Company
- Holding Company
- Public Share Holding Company
- Joint Venture
Limited Liability Company Formation in UAE
“Limited Liability Company” or “With Limited Liability” is the most popular business form for company formation in UAE. With the effect of Article 227 of Commercial Company Law of UAE, an amendment is made to abolish the minimum requirement of share capital. Now, for establishing a Limited Liability Company Formation in UAE, you must have a proof of having sufficient share capital to start a business, but there is no limit for minimum share capital. There must be minimum 2 shareholders (and a maximum of 50 shareholders) with a local partner from UAE sharing 51% of the ownership in the business.
However, an advantage is that in UAE, it is not necessary to share the profit in the same ratio. The local partner can be paid in a fixed fee or can have profit share (as per agreement) and rest of the profit can be distributed according to the shareholders’ will. In UAE, tax benefit on corporate income can be availed by LLC, as an LLC is given the privilege of a local company because of the high percentage of ownership in businesses. Limited Liability Company Formation in UAE can be done within a few months without many hurdles, as Helpline Group will handle all your documentation work and government necessities.
General Partnership Company in UAE
General Partnership Company is also known as Joint Liability Company. A General Partnership Company is a legal agreement created between partners (two or more) that make them liable to bear the liability of the company jointly or severally to the extent of their personal wealth. Shares of this business form are not negotiable certificates. In UAE, foreigners cannot form any General Partnership Company, only UAE nationals have the right to do so.
Name of the company should be selected in such a way that it contains the names of every partner or one or more partners; few words can be added to give it a company name. All partners forming this partnership agreement have the right to make administrative and managerial decisions until and unless it is specified anywhere in General Partnership agreement. A third party can be appointed to look after the management of the company with the consent of all partners. Every partner in a general partnership possesses the right of commencing the business, thus, if any one of the partner gets bankrupt that leads to the bankruptcy of the whole company.
Limited Share Partnership Company in UAE
Limited Share Partnership Company or Simple Commandite or Simple Liability Partnerships is a type of partnership where two types of partners work. First, Active Partners are those who actively take part in the managerial decisions and administration of the company. Second, Silent Partners are those who do not take part in any managerial activity, they just make the monetary contribution in the business. Active partners are fully liable to the extent of their personal wealth whereas a Silent partner is just liable to the amount invested by him in the business. In case, the silent partner starts his own project under the name of the Limited Share Partnership Company, then he is liable to the full extent for the obligations emerging out of the project started by him.
Simple Liability Partnerships can have commercial registration in UAE, only if general partners have UAE nationality (citizens), foreigners can work as silent partners. The minimum share capital of 500,000 AED is required for establishing a Limited Share Partnership Company setup in UAE. Name of the company should be chosen in such a manner that should possess the name of all partners with a title describing the nature of the business. If you are worried how to start a company in UAE with so many legal complications, we the Helpline Group members can assist you about how to do business in UAE without any trouble, as we have sound legal knowledge about documentation work and can help you throughout your journey.
Holding Company in UAE
Holding Companies in UAE can be established by foreign investors or by nationals of the country with the aim to take part in ownership or capture assets of other companies. Holding company has the legal identity in UAE and it can be incorporated in any of the seven emirates of UAE. For Holding company formation in UAE, a proper board management should be appointed or the minimum of one Board of Director, for regulating and controlling the activities of the company.
A Holding Company may have its subsidiary units in the country under the managerial supervision of management authorities. Holding Company can be formed in different forms of business structure like Closed Shareholding Company or, Single Proprietorship Company or With Limited Liability. Business activities like manufacturing goods or providing services cannot be performed under the holding company.
Public Shareholding Company in UAE
Public Share Holding Company is suitable to make big investments in UAE. In this business, you can get funds through public subscription. In a Public Company, shares are equally divided and can be traded in local stock exchange of the country. Share capital required for Public Shareholding Company formation in UAE is minimum 10 million AED. Liability of each partner is limited to the amount shared by them and there should be not less than 10 founders (founders are the members who sign the MOA). A public company is allowed to conduct commercial, industrial or any professional business activity.
Joint Ventures in UAE
Joint Venture or Association in Participation is an association formed between 2 or more parties through an agreement. For having a Joint Venture Company set up in UAE, it is essential that one of the parties must have a UAE license. Joint Venture does not enjoy the benefit of separate legal identity. In this business form, trading activities are done in the name of one company, who is held solely responsible for the decisions taken. Profits and losses are shared on the basis of the agreement made between the partner companies. In UAE, a foreign investor can hold the share in company capital and get the benefit of participation in managerial and administrative decisions of the company. In UAE, through a joint venture, a foreign investor gets the opportunity to enjoy the facilities availed by the local business.
Representative Trade Offices (RTO) in UAE
Establishing Representative Trade Office in UAE with 100% ownership is legally allowed to foreign investors. Parent Company can have full control over the activities performed in RTO. In UAE, Representative Trade Offices cannot indulge themselves in profit-making activities, as its actions are limited to performing promotional or marketing activities only for the services or products belonging to the parent company. It is essential for the parent company to run its Branch Office under commercial registration by providing a license in its own name. Parent company should appoint a local individual as a National Service Agent (NSA) or it can also appoint a fully owned UAE corporate company as an NSA.
Commercial Agencies in UAE
Establishing a Commercial Agency is the best option for foreign-owned businesses, which want to run its business in UAE without maintaining its physical presence. Through running a Commercial Agency, foreign business can have its legal presence abroad. Commercial Agency can also be established by entering into an agreement with a local, fully owned UAE company. A commercial agent is appointed for running such business.
In case, commercial agent registers the contract with Economy and Commerce Ministry of UAE. The law provides such a commercial agent certain protections, including exclusive right to import goods which form business of the commercial agency and receiving commission on the sales done by agent or parent company or the third party. Registration of contract also provides facility to get compensation for not renewing agreement on the date of expiry, by the principal, as principal can terminate its agency only on “material grounds”.
Branch Offices in UAE
Setting up a Branch Office in UAE is a common way for foreign companies to reserve 100% ownership-right over their businesses abroad. Opening a Branch Office in the foreign country sometimes becomes essential for running a smooth business for the parent company. This business form is best suited to companies dealing in financial products or having engineering business abroad. Branch Office Commercial registration in UAE is legally allowed. Branch Offices cannot enjoy the benefit of a separate entity as they are treated just as an extension of business by the parent company. The parent company is always held liable for all the activities conducted in (or performed by) Branch Offices in the UAE.
In UAE, a branch office is allowed to get engaged in commercial activities for monetary gain. However, a branch office can engage only in the activities alike to those executed by its parent company or main company in its home country, as approved by the UAE Department of Economic Development. For Branch Offices, it is essential to have commercial registration to conduct its business and it should work in the name of its parent company. A local National Service Agent (NSA) should be locally hired or a fully owned UAE company should be hired to act as NSA.
Real estate business in UAE is growing at a very fast rate. Many investments are made in the country to expand this sector. Developers, Investors, Construction Companies and Brokers are continuously looking forward to investing in Real Estate business.
For starting a real estate business commercial registration in UAE is required with a unique name via the Economic Development Department of UAE. Helpline Group can assist you in registering your business, getting approval and applying for commercial trade license from the ministry to deal in real estate business (buying and selling of property) without any trouble.
All the emirates in UAE are allowed to frame their taxation policy individually. Its liberal taxation policy is a major factor in attracting a high amount of foreign investment. From the taxation point of view, the UAE is a highly favourable place for conducting business because no tax is charged on personal income of individuals, no taxation on capital gains, no income tax, and no corporate tax. In case of purchasing any property through real estate business 4% tax is charged, from which 2% is taken from the seller and 2% is charged to the buyer. In UAE, the direct amount of tax charged is quite low.
Obtaining a visa is highly essential to start a business in UAE, through which you can hire employees to live in the country. Helpline Group can assist you in getting a visa for almost every type of business. The number of visas issued to the company depends on the size of the business, business nature, employee category or investors, etc. We can assist you throughout the process of company formation in UAE and towards obtaining the appropriate Visa. as we know very well how and when things are supposed to be done.
UAE has a good opportunity for import business as it imports include diamonds, cars, jewellery and gold. However, imports are taxable under VAT, under this scheme the importer has to pay the charges on the basis of reverse charge. VAT is an addition to the customs duty charged on the imported goods. In UAE, the VAT rate charged on the imported goods is the same as the tax rate charged on domestic goods; this is done to maintain equality. VAT rate charged on the imported material is 5%, except for precious materials that are not charged with any VAT tax.
Get in touch with Helpline Group today to take your goals further.
Our Company Formation Services are available in many countries. To know more about our services, please leave a message, stating your requirements on the left. Alternatively, you may contact us through either of the following methods. Helpline Group associates will contact you as soon as possible. We are also available in WhatsApp (Use the following numbers).