T: +971 7 244 7676 | E: [email protected]
T: +971 7 244 7676 | E: [email protected]
UAE Company Formation
and Corporate Services
FBS Kotsomitis International Network is one of the most reputable and well-established corporate service providers in the UAE. Our mission is to provide an impeccable and seamless services to our ever-increasing local and international client base at reasonable prices
Learn MoreUAE Company Formation: Why, How & Which Company Type to Set Up in the UAE
Why Set Up a UAE Company?
Constructive use of UAE Company Formation in the UAE can yield the investor significant advantages. Tax, Security, Confidentiality and Lifestyle advantages. Read about the UAE Advantages and UAE Facts.
Which Type of UAE Company Formation?
Types of Companies Available in the UAE. Read More…
How to Set Up a UAE Company: Formation – Incorporation
There are 5 stages in the UAE Company Formation Procedures. Read More…
UAE Company Formation Services from A to Z
Our services span across all professional service areas and throughout the entire UAE Company Life Span. From the UAE Company Formation Agents’ UAE Company Set Up to the UAE Company Operation through to Company Liquidation!
The UAE Company Formation Types / UAE Company Types that appeal and are available to Investors are set out below:
BLOGS | RELATED LINKS
UAE Economic Substance Services
CONTACT DETAILS
8th floor, Office 8F-3
Amenity Centre, Tower 2
P.O.Box 85674, Al Jazeera Al Hamra
Ras Al Khaimah, United Arab Emirates
T: + (971) 7 244 7676
E: [email protected]
UAE Offshore or Free Zone Company? What’s the difference?
UAE Offshore Companies in RAK, Dubai or Ajman are essentially International Business Companies or IBC ‘s and are limited liability companies or ‘Limited Companies’ or ‘Ltd. Companies’, as they are commonly referred to, which exclusively conduct business internationally and hold a UAE Bank account.
UAE Free Zone Companies are onshore, tax resident limited liability companies (FZ-LLC or FZE Companies) registered in specially Designated Geographical Areas or Zones (Free Zones) in the UAE and which are Incorporated / Licensed by the specific Free Zone Authority responsible for the Regulation and Licensing of each Free Zone Area.
Free Zone Companies in the UAE typically hold a UAE bank account and can conduct business internationally, in their Free Zone Area, across other Free Zone areas in the UAE and in Mainland UAE, such as Dubai and RAK outside the free zones, in sales of unregulated services freely or goods, via a commercial agent and payment of 5% duty on the value of the goods.
FBS EMIRATES are up-to date with ALL new laws and regulations and with our help you can cut through the whole process quite easily with minimum involvement on your side.
Below is a brief outline of the Main Company Formation Stages in the UAE.
Stage 1 – Get Initial Consulting from Trusted UAE Advisors
It is valuable that FBS EMIRATES provides free initial advice on UAE Business Set Up. This is so as you DO need Our Services as there are many different options for company formation and complex residency and labour and immigration regulations as well as complex processes, red tape and requirements.
Stage 2 – Submit Documents – Get License – Incorporate
Once all the necessary documents have been obtained from you and certified, the incorporation process starts. The Company, at the completion of this stage is Legally Formed and Licensed and Ready to Operate.
Stage 3 – Open Bank Account
Bank account Opening comes next. A very important stage as Companies with no bank account are considered by Tax Authorities and market counter-parties as Companies without economic subsstance in most cases and therefore not useful. In our capacity of Official Professional Introducer with many banks in the UAE and internationally rest assure the account opening will be fast and quite smooth. We will handle the process and guide you through the documentation requirements.
Stage 4 – Issue UAE Visas
Immigration Residence Visas and Emirates ID is then obtained for you, your family and your staff. All details and actions required will be handled efficiently. Generally the medical examination takes a maximum of 5 working days, although this can faster with an urgent medical application.
Stage 5 – Complete Establishment and Set-Up
The next stage, with our support, involves setting up the corporate image (business – office address, telephone answering, logo, business cards, website) as well as substance (premises, telephone, utilities, virtual office,staff, business plan). We can discuss what is appropriate for Your case.
Below is our simple 8-Step Process to Forming Your Chosen UAE Company.
Summary of Our Simple 8-Step UAE Company Formation Process
UAE Company Formation refers to the process, decisions and actions of legally constituting and setting up (forming) a legal entity in the UAE, under UAE Law and Regulations, intended to conduct business in the UAE and/or internationally. Related and closely linked to this UAE Company Formation process is all work in connection to the establishment of the business per se in the UAE which is to be conducted via this newly formed legal entity.
Such establishment work for Your UAE Company often entails arranging for Visas for the owners, managers and staff if permitted by the license type, opening bank accounts, arranging premises, again if permitted by the license type, arranging for professional services to support the company and other establishment work.
Our Simple 8-Step Process aims at addressing all the actions and decisions necessary to successfully, smoothly and in a problem-free fashion Form, Set Up and Establish Your UAE Company and business in the UAE. Our 8-Step process revolves around 8 central actions and related decisions for your UAE Company Formation: Choosing a suitable UAE-based UAE Company Formation Expert and Consultant, Business and License Type and UAE Location, Ownership Type, Choice of Legal Form, Trade Name, Share Capital – Shareholders – Managers, Bank Account and Establishment Logistics – Premises, Marketing and other set up work.
Following the Formation Stage our role is to continuously support you in all related matters pertaining to the UAE company’s needs for professional services, as required.
Our Role in the UAE Company Incorporation Process …and After
Step 1 – Discuss Your Requirements with Your Chosen UAE Company Formation Agents and Get A Full Quotation
Examine the needs stemming from your UAE company formation business plan in order to choose the right UAE Emirate to base your UAE company activities and most importantly choose reputable well-established and Officially Licensed professionals and Company Formation Registration Agents (such as our group companies).
Our role is to guide you through the UAE Company Formation and UAE Business Set Up Process for Your UAE Offshore Company Set Up, Your UAE Free Zone Company Incorporation – Registration or Your UAE Local Business Set Up.
We will make sure you have the full information and facts you need to make the right choices and take the right key decisions for your business activities, in the UAE Company Formation Steps outlined below.
There is a spectrum of choices available for UAE Company Incorporation in the Dubai and the Other Emirates (Ras-Al-Khaimah, Abu Dhabi, Sharjah, Ajman, Fujeira, Umm-Al-Quwain).
After you make your choice it is our responsibility to implement fast and efficiently all related UAE Company Formation work.
After recording out your requirements we will issue and invoice for settlement so the UAE Company Formation Work can Begin.
Step 2 – Choose the Type of Business and License Type For Your Activities for Your UAE Company Formation
This determines your license category. Broadly, commercial – trading, professional or industrial licenses are available and specialized activities (e.g. banking) which will need further special approvals.
UAE Offshore Company Formation
Offshore companies 0%-taxed and 100% foreign–owned limited liability companies. They are not regarded as tax resident-domiciled – no certificate of tax residence can be issued for this type of company – in the UAE as it is only allowed to transact outside the UAE. But a UAE bank account can be opened and operated and a UAE registered address used. Services of local professionals can be sourced and real estate in the UAE can be purchased with this company. The cheapest type of company.
These companies are also fully acceptable and do not appear in any ‘international black lists’, except being subject to stricter due diligence procedures by local banks. Practical use in tax planning / acceptability: offshore companies can be used to invoice Cyprus or Malta companies or act as holding companies of Malta or Cyprus companies without problems from the local tax authorities. In other high-tax EU countries there might be problems relating to the acceptability of offshore company invoices. The future: Offshore companies internationally have an uncertain future in the next 3-5 years however at the moment they are used internationally by thousands of clients. The first problem, in time, might be increased difficulty to open bank accounts.
Types available:
UAE Free Zone Company Formation
These are 0%-taxed and 100% foreign–owned limited liability companies. They are onshore UAE tax resident companies with the ability to also conduct business inside the UAE to a large extent as well as internationally. They are the preferred company type by international clients as it is considered a ‘proper’ UAE local company and it provides Residence Visas for the client and his family in the UAE. The offices of such companies can only be in designated Free Zone Areas. This type is internationally respected and recognised as a proper UAE local company.
These are local onshore tax-resident entities. They are not ‘under attack’ by the international community (OECD) as they possess adequate local substance and are widely recognised and acceptable. Bank account opening procedures for these type of companies are – naturally – simpler, quicker and with light ‘due diligence’ obstacles. After all the company is local and the owner is also a local resident (UAE resident foreign national with ‘Emirates ID’ and residence VISA as well as present in the UAE at least twice a year. The future: The Free Zone company will survive indefinitely as it is a truly local establishment with economic substance and resident owner in a big – economically – country / market in a world-class regional hub with real and advanced infrastructure where thousands of REAL and resident companies are operating (and not situated a small island where no such infrastructure and market size exists).
Popular types:
UAE LLC Company Formation – Business Formation
Same as the Free Zone Companies in all respects except that these companies allow only a 49% participation by foreigners and need a local individual as a sponsor and holder of the remaining 51% shareholding (although well-established structuring and side-agreements safeguard the foreigner’s 100% control). Suitable if a physical presence in all areas of Dubai (e.g. a store in Dubai Mall) is required which cannot be achieved with a free zone company.
Popular Types available:
Step 3 – Decide Which Ownership Structure is Appropriate For Your UAE Company Formation
[100% Ownership OR a Local Sponsor-Partner (51%) OR 100% Ownership with a Local Commercial / Service Agent]
For 100% foreign ownership you can choose between an onshore local tax resident UAE Free Zone Company set up in Dubai, RAK or in any one of UAE’s 45 Free Zone Areas OR a non-tax resident Offshore Company or RAK ICC Company (activities of which are only allowed overseas offered in RAK / Ras-Al-Khaimah, Dubai and Ajman).
Note here that in Dubai Free Zone Companies with a standard services activity will generally be allowed to transact in the Dubai and RAK local market. If you need to operate locally via an LLC and a 51% local shareholder / local sponsor or a local commercial or service agent, you need a license from the Department of Economic Development (DED).
Step 4 – Decide the Appropriate Legal Form of Your UAE Business for Your UAE Company Formation
Depending on your preferred location, type of business, license, ownership mod and the choice between Offshore, Free Zone or LLC Company there are separate and case-specific rules and procedures for setting up your legal entity in Dubai, RAK or any other UAE Emirate. Rules and approvals / procedures will depend also on whether a standard or a special activity (e.g. banking, law consulting, real estate, medical etc.) is chosen.
The DED regulates LLC Company and Other Local Type of Companies / Entities. Each Free Zone and Offshore Authority Regulates Separately each Free Zone or Offshore Company Type. Also different Emirates have slightly different rules and practices. This is one area where we can help you make sense of it all and make the right choice.
Legal Form for UAE Offshore Company Formation
Legal Form for UAE Free Zone Company Formation
Legal Form for UAE Local Company Formation
Step 5 – Decide Your UAE Company Trade Name
Your trade name is a very important for the Company Formation. The company name should ideally indicate the nature of business, unless it is a branch of another company. All the rules regarding trade names are regulated by the DED or the Free Zone and Offshore Authorities.
Step 6 – Decide On UAE Company Share Capital and Managers
Minimum share capital is stated in the MOA of the company. In standard cases, you do not need to pay minimum capital at the time of setting up. Decide on the level / amount of share capital. Decide on the person or persons that will manage your Company. Decide who the shareholders will be and at what percentage shareholding each.
Step 7 – Decide Between Banks to Open a UAE Company Bank Account
The UAE offers wide choice of Banks and Financial Institutions as well as multi-currency banking products to suit every need.
Step 8 – Decide on UAE Company Premises, Establishment Matters, Logistics and Staffing
The UAE offers wide choice of Real Estate and Business Facility Options as well as a wide and diverse employment pool to suit every need and Business Type (Local, Offshore or Free Zone), corporate or personal. The UAE needs no introductions in this area.
There are many and significant UAE Company Formation Advantages over other jurisdictions. The UAE really stands out from the other jurisdictions as it balanced the difficult act of being a reputable, regulated and ‘white list’ low-tax jurisdiction while at the same time offering maximum protection and investor confidentiality and minimum exchange of Information with Other Countries but Always within Internationally Accepted Norms and Standards.
No (0%) corporate and income taxes, capital gains taxes, withholding taxes and no exchange control restrictions
Your Benefit: Tax-free trading and business activities in the UAE and internationally
Free and unrestricted repatriation of income and capital from banks
Your Benefit: Risk-free and tax-free movement of funds, capital and payments in and out of the UAE
Solid and safe Banks and Financial Institutions and huge State Reserves
Your Benefit: Peace of Mind without the risk of bank system collapse
Numerous International Double Tax Treaties With Advantageous Terms
Your Benefit: Low or 0% withholding taxes on dividends, interest and royalties and avoiding ‘double-taxation’. Minimising Tax Leakages for Your Company and Yourself.
Robust and growing economy
Your Benefit: Significant business opportunities locally and safe and stable support for the future of your company and your family. Resilience to economic shocks and vast state reserves.
One of the lowest crime rates in the world – a safe place for you and your family
Great Lifestyle Options. Excellent schools and hospitals. Highly secure. Your Benefit: Enjoy life without crime or security concerns, great schools and hospitals and strict border controls.
Liberal and advantageous business government rules and regulations
Your Benefit: A welcoming and friendly business regime with service providers undertaking to deal with all the formalities and bureaucracy for you
Secrecy, asset protection
Your Benefit: Avoid leakages information on your affairs to the maximum level globally
An international business hub and an established Global Headquarters Centre
Your Benefit: Live and do business in the biggest business hub in the Middle East
World class logistics and IT infrastructure
Your Benefit: Logistics and IT-infrastructure are of the highest standards available worldwide
Strategic location between East and West
Your Benefit: Enjoy a convenient location, easy access to East and West and an ideal time-zone to do business. The world’s biggest and best ports and airports as well as road networks.
Dubai International Airport is currently the biggest airport in the world with literally direct connections with all countries. Enjoy flying with Emirates, the best airline in the world. Jebel Ali is the biggest port in the World. Dubai Marina is the biggest marina in the world. Telecommunications and Connectivity are cutting-edge.
An exciting place to live and to do business
Your Benefit: Enjoy unparalleled lifestyle and unlimited entertainment options
Large and diverse labour and executive pool
Your Benefit: Recruitment of staff of all levels and from different nationalities is facilitated with easy work and residence visa system.
Corporation Tax
Your Benefit: No taxes on Corporations are imposed on any type of company listed above. Your Benefit: Tax – Free Company Operations
Personal Income Tax
Your Benefit: No personal taxes are levied and the government has no plans to impose personal taxes. Your Benefit: Tax – Free Personal Income
Double Tax Treaties
Your Benefit: Numerous and advantageous tax treaties exist with a significant number of countries ensuring the avoidance of double taxation at the company and at the individual’s level. Your Benefit: Avoiding double taxation and minimising taxes on incoming and outgoing income and capital flows into and out of the UAE company.
Value Added Tax (VAT) in the UAE
Your Benefit: VAT is introduced with effect from January 1, 2018 and affects mainly local companies. Our Group has near to 20 years of experience on VAT consulting and compliance and employs a number of VAT experts who stand ready to assist you be 100% compliant with your UAE VAT obligations and meet all requirements and deadlines and avoid fines. For Peace of Mind in relation to VAT.
So you have decided to set up a UAE Company?
UAE provides unique advantages and constructive use of Dubai Company Formation, RAK Company Incorporation and other UAE Emirates’ Company Formation incentives can give you significant benefits. Tax, residency, safety and unsurpassed lifestyle advantages.
UAE – The Country
The UAE is a federation of seven emirates. Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain and was formed on 2 December 1971
UAE Legal and Regulatory Framework for Company and Business Set Up
The legal system is based on both civil code principles and on the Islamic Shari’a Law. The governments of each emirate regulate commercial activities, issue trade licenses and effect the incorporation of corporate entities. The UAE recognizes the concept of freedom of contract. Contractual parties can regulate their relationship as they choose
UAE Company Formation Options
Free Zone Company, Company – International Business Company, Conducting business through agent / distributor, set up of a local company – business establishment, set Up a Mainland Onshore Company
Process and costs for UAE Company Establishment
Reasonable costs and fees compared to other jurisdictions but time frame somewhat lengthier.
UAE Corporate Income Tax
The UAE has no system of federal company income taxation.
UAE Personal Income Tax
Income is not subject to personal income taxes in the UAE
Withholding Taxes on UAE Company
There are no withholding taxes in the UAE royalties, interest or dividends etc. made by UAE entities to another entity or person (resident or non-resident)
Transfer pricing on UAE Company Transactions
There is no transfer pricing regime in the UAE.
UAE Value Added Tax (VAT)
VAT will be in force in the UAE from January 1, 2018 in Dubai, RAK and the other UAE Emirates. This will affect onshore local businesses that trade within the UAE and from the UAE.
UAE Custom duties
The GCC states apply a Common Customs Law and a Unified Customs Tariff with a standard rate of 5% of goods’ cost, insurance and freight value. Exceptions are tobacco, alcohol and goods for which a customs duty rate of 0% applies. The GCC Customs Law does not levy export customs duties.
UAE Tax Treaties – Certificate of Tax Residence for companies
The CTR is issued for the period of one year for a specific tax treaty.
UAE Company Accounting, Audit and Payroll
All companies are obliged to maintain proper accounting records and keep them for 5 years. Regulatory Authorities require audited Financial Statements on renewal of the annual trade license. Exemptions to this requirement (financial statements) and audit are commonplace for companies but generally companies prefer to prepare them in order to satisfy banks and be seen as properly functioning companies (commercial substance)
UAE Immigration, Residence and Employment Visa
Investors / Company Owners, Employees of companies need to ensure they obtain a Resident Visa in the UAE.
The FBS Group (UAE) Provide Premium UAE Company Formation and UAE Corporate Services – From A to Z:
We Provide You With A Broad Spectrum of UAE Corporate and Professional Services: UAE Company Formation and Bank Accounts – UAE Company Corporate and Administration Services including Immigration Visa and PRO Services & UAE Professional Services – VAT, Tax, Accounting, Audit Services
We help you with UAE Company Formation and to Set Up, Administer and Manage Any Type of UAE Company and Business License in Any Emirate of the UAE: Dubai, RAK, Abu Dhabi, Ajman, Fujairah, Umm-Al-Quwain, Sharjah. Local, Free Zone or Offshore Company.
+971 7 244 7676
7th floor, Office 7F-6A&6B,
Amenity Centre, Tower 2
Al Hamra Industrial Zone,
Ras Al Khaimah
United Arab Emirates
T: + (971) 7 244 7676
E: [email protected]