Free Zone Establishment Company
One hundred percent of the company capital belongs to foreign investors. The charter capital is various; therefore a company may have just one owner (shareholder), one director without restrictions on residence. Thus, any physical or legal entity can be establisher of business setup in Dubai the UAE. Annually, Free Zone Establishment government has to make an audit report on financial activity of the company over the past year. This report must be carried out and verified by the local audit company.
Free zone company in Dubai
One hundred percent of the company capital belongs to the foreign investors. The charter capital is different. A company may have from 2 up to 5 owners and just one director without residence restrictions. Again, the founders may be either physical and legal entities, or both at the same time. The Company has to make annual audit report about the financial activity of the Company over the past year. The report should be verified by the local audit company, chosen from the list.
UAE Offshore Company
It is Company without legal rights for activity within the UAE. It’s the Company with one or more participant, one director; with no restrictions on residency and without charter capital.
Setup Branch of Foreign Company in Dubai
Company registration requires no charter capital and audit report. It has a right to operate within FEZ (free economic zone) territory without residency limits. However, the registration of Branch Company is the quickest and most inexpensive process within FEZ, comparing to other kinds of companies. Still, the preparation of registration documents from the head office – may take a lot of time and costs.
Dubai LLC | Limited Liability Company
Some companies such as for instance, service agencies, retail sales corporations, catering complexes, financial and investment enterprises – they all require a special license from the UAE Department of Economic Development. Such companies require legal organizational form of property (LLC). Thus, the share of foreign partner is limited up to 49% (according to legislation of the UAE). As for the local citizen, his share should be no less than 51%.
This local partner is usually presented as ‘sleeping sponsor’, i.e. he has 51% of shares but has to sign a side agreement according to which he gets 20% of the company income, but in fact, refuses dispose of this property and make any changes. Thus, the local partner only gets his 20% income as it is said in the contract (it is usually about $4000-5000 per year). The registration process is quite difficult: all the documents should be written on Arabic. That’s why this process can take from three weeks up to three months, depending on correct and fast preparation of the required documents.
Companies in the UAE Civil Code | Dubai Civil Engineering
Civil Company is registered in case when a company wants to deal with some specific services that require professional education (e.g.: legal services, consulting agencies, architect activity, etc.). In this case, foreign investor have own 100% of shares, but still needs to use the services of Local Service Agent (the UAE citizen necessarily). This local service agent should represent the company in the legislative institutions. It’s a necessary thing when you are starting business setup in Dubai the UAE.
It is necessary to pass certification of the diploma (sometimes the process involves exams). The Company may have just one owner (physical entity), yet there is no need to have a charter capital for this company.
The common types of licenses (Commercial, Industrial, Agricultural, Professional and Trade) are issued by Department of Economic Development of the UAE on the following branches:
- agriculture
- fishery
- extractive industry
- production
- energy sources and water supply
- building
- trading, repair services
- hotels and restaurants
- transport, logistics and communications
- finances
- real estate
- education
- healthcare and social assurance and other social services
Licenses, issued in each one of the Emirates (as well as in FEZ areas) – vary by types, cost, terms and charter capital requirements.
The cost of setting up a Dubai business
The freezone business setup cost in the UAE – is different in different regions. Thus, in order to register a company in Dubai, one needs about 150000 dirham. In another Free Economic Zone of the United Arab Emirates – Ras AL-Khaimah one needs about 45000 dirham per year to rent an office. It is an obligatory condition today, yet earlier you could rent a “virtual office”, which of course was much cheaper.
There is another condition: company owner must submit the diploma (translated and certified). The obligatory deposit is 100,000 dirham. In Ajman Free zone, the office rent is 54,000 dirham per year, with 100,000 dirham deposit and translated certified diploma too.
The best variant is considered Umm Al Qaiwain Free zone for setup real estate business in the UAE.
