The UAE is a country that was created essentially from the bare sands of the desert. It has virtually no resources apart from human ones. And it is precisely the people who have made the country one of the most prosperous in the world.

A businessman who registers a company here possesses an analytical mind and foresight. The UAE is not considered an offshore zone per se. It is a country with low tax rates for non-residents. The country offers numerous opportunities and benefits for businesses, which we will discuss below.

Contents:

1. Types of companies that can be opened in the UAE
2. Step-by-step guide to opening a company in the UAE
3. Advantages of registering a company in the UAE

Types of Companies That Can Be Opened in the UAE

In the Emirates, you can open three types of companies:

1. Local. Designed for trading activities worldwide. However, there are certain restrictions for non-residents. Local companies are further divided into several subtypes. Why “local”? One of the founders must be a local resident (UAE citizen). They act as a “local sponsor” (51% of shares).
2. Free Zone. The company is considered a member of a free zone. 100% of the shares can belong to a non-resident. No need to find a local partner. This type is ideal for international business within the free zone. Branches can be opened in any country.
3. Offshore. Can be fully owned by a foreign citizen without any local support. Suitable for international trade, real estate ownership. Many business owners open the main office of a large holding in the UAE. However, conducting business within the country is prohibited.

By contacting INVESTMAKLER, you will receive comprehensive information on the types of companies that can be opened in the UAE. We will also help you find a reliable person willing to act as a “sponsor” for a local company.

Step-by-Step Guide to Opening a Company in the UAE

Opening an offshore company in the UAE involves the following steps:

1. Choosing the type. Our specialists will help you understand the advantages and disadvantages of each organizational and legal form of business.
2. Choosing the company name. The name is approved by the Dubai Department of Economic Development. A request is submitted to the main office in English or Arabic. Documents for company registration are submitted only after receiving a positive response.
3. Physical placement of the company. An office is purchased or rented, which will be considered the main representative office. The agreement is submitted to the Department of Economic Development.
4. Preparing the articles of association. If the chosen organizational and legal form requires a local sponsor, a contract is concluded with them. Arrangements are also made with shareholders. These are submitted to the Department of Economic Development. The main factor indicated in the documentation is the distribution of shares among shareholders.
5. Submitting the document package. This includes the application, founder’s passport, proof of residence, and approval from the Department of Economic Development.
6. Obtaining a license. It is called a “trade license.” After that, you can legally conduct business in Dubai.

There is a very important point to consider when choosing the legal type of company. For example, in some business sectors, a company can only be opened by a “local” person with 100% of the shares. Foreign partners are not allowed.

However, when registering a company with “professional” activities, all shares can be owned by a foreigner.

Read also: Where to register a foreign company: choosing a jurisdiction

Non-residents have another option. Instead of opening a main office, you can open a branch in the country. However, you will need to find another offshore zone with which the UAE has an agreement to avoid double taxation and taxation in general.

Advantages of Registering a Company in the UAE

Company registration in the Emirates offers numerous advantages for your business. For example:

• Registration in English. You can speak and write in English almost everywhere.
• Location optimal for your needs. This is especially important for industrial and trading companies. Being located between Asia, Africa, and Europe, many profitable deals can be made.
• International banks. Offices of the largest financial institutions in the world offer developed services. Both local and offshore companies can open accounts.
• Attracting investments. The dirham, which is the main currency in the UAE, is quite stable in the international market. There are no restrictions on profit and exchange transactions. Therefore, the largest global investors keep their capital in the UAE.
• Bypassing EU laws. The Emirates are not a member of the European Union. Therefore, they are not subject to its rules. But they are also not on the blacklists.
• Developed infrastructure. The government continually attracts new investors to the country, focusing on small and medium-sized businesses. Hence, new ports, airports, and offices are built every year.
• Encouraging foreign companies. For example, the “local” type of organizational and legal form is an attempt to unite native citizens and non-residents for entrepreneurship.
• Resident visa for entrepreneurs. If you want to open a company in the Emirates, you can almost expect a residence permit valid for up to three years. This status applies to directors, company owners, and their family members.
• Minimal taxes. There are business sectors with special preferential regimes. For “local” types of companies, there are no taxes at all. However, corporate taxation can vary depending on the region and sector.
• Choice of legislation. You can be subject to general, civil law, or any other jurisdiction by choice.
• Avoidance of double taxation. The UAE government has agreements with many countries. Therefore, you can save significantly by registering a company here.

INVESTMAKLER offers buying a ready-made offshore in the Emirates or opening your own company in any other country.

This is interesting: Company registration in Hong Kong: a guide from A to Z

We work worldwide. Therefore, we can advise you and assist you. Contact our managers, and you will surely be satisfied.