UAE Company Formation in Dubai
Starting a business overseas is a great idea for an investor or an organization. However, for the business to be successful, it will require that you choose a country whose environment allows for the growth and success of your business. This means that you should identify a country which is stable, economically, socially and politically, and has friendly policies for foreign investments.
The United Arab Emirates provides incredible opportunities for the formation of companies by foreigners. Over the past years, the UAE has grown to become an economic hub admired by many investors across the world. Also, there are so many benefits that will arise from setting up your business in UAE such as tax exemption. Therefore, you should definitely consider setting your business in Dubai or the UAE.
Why Should You Consider Company Formation in Dubai or UAE?
The economic growth rate in the UAE has been exceptional. In fact, Dubai is now considered as being the most prominent commercial center in the whole Gulf Cooperation Council (GCC) region. The economic and financial is expected to grow further as the years go by. This among many other advantages that should make UAE be your premier choice as a country where you can invest. Other factors which make UAE a good option include;
As you set up your business, there is no greater benefit than having the support of the government. The government of UAE fully provides support to all those seeking to make investments in their country. This is important as most policies which affect businesses are made by the government. Therefore, by the government supporting all enterprises, from the small ones to the big ones, it makes UAE a wonderful country to set up your Business.
Secondly, thanks to the support of the government and the business policies in place, UAE has grown to become a center of international investment. This is evident by the number of business and organizations that have already started companies in Dubai. Did you know that the World’s Famous Exhibition will be held in Dubai in 2020? This speaks volumes of just how much the international community trust the economic state of the country.
Also, UAE is a tax- free country. Consequently, you will not have to worry about losing part of your profits to paying hefty taxes. There is also an unrestricted flow of external capital thus your business can run efficiently. Also, the advanced legal system in UAE ensures that the rights and freedoms of the investors are respected.
What are the types of companies that investors can register?
In the UAE, there are three main kinds of companies that one can set up namely;
• Companies registered in free economic zones
• Resident companies in partnership with a local
• Offshore companies
Resident Company with local partner has general jurisdiction what allows you to run your business activity on the whole territory of the UAE without any restrictions. According to the legislation, foreign investor has the right to own no more than 49% of the company shares, the rest 51% are owned by local partner. It is very important to choose your partner carefully and conclude the contract thoroughly. The right choice will be to consult professionals with experience who would help you with the whole process of company formation in UAE. If the contract with your local partner is properly finalized, you can run your business on your own and get all the profit, however, paying annual nominal fee to the partner. Being officially registered in the United Arab Emirates as business Consultancy Company, Garant will provide you with qualified and experienced professionals who will help you to choose reliable partner with excellent reputation. Company formation in Dubai or any other Emirate with local partner gives you opportunity to conduct business activity on the whole territory of UAE and participate in governmental tenders.
The type of company that someone will choose to start may vary depending on the legal structure that they adopt and what their business seeks to achieve.
1. Companies in free economic zones
Companies formation in Dubai under the free economic zones have one major advantage. They can be owned solely by the foreigner who sets them up. These companies will not be taxed on the income and profits that they make. Also, the foreigner who opens such a company is allowed to hold properties and do international business while in UAE.
There are over 40 free economic zones from which one can choose to set up their business. They include Masdar city, Abu Dhabi Airport Free zone, Gold and Diamond Park among others. Different economic zones specialize in various types of businesses. Therefore, you know the kind of business which you want to undertake before you choose on a particular free economic zone. It is recommended that an investor should seek from the available consultants as they can help one to determine where their business can fit in the UAE free zones.
The other merits associated with operating a business in the free zones include;
I) Exemption from paying duty fees on goods imported or exported.
Ii) The investors and members of their family will acquire residence visas.
Iii) Legislative systems favorable to the business.
Iv) An investor is free to bring in external capital for their business.
However, you should know that by setting up a company in the free zones, your business will only be allowed to operate within that region.
2. Resident Company Formation in Dubai in partnership with a local
An investor who will start such a business has the advantage of conducting their business activities anywhere in the UAE. Also, such an investor can get into tender agreements with the government. However, the investor will own fewer shares in the company compared to their local partner. While the local partner is entitled to a 51 % stake in the company, the foreign investor can have only 41 % of the shares.
For this reason, it is of essence that the foreign investor gets to identify a trustworthy partner. The Garant Consultancy Company has a reliable team of experts who will assist you to identify a legitimate partner. Also, they can help to guide you through the process and ensure that the contracts entered into meet all the formalities.
3. Offshore Company Formation in Dubai
If you already have a business in your country and are looking to extend your to another country, having an offshore company in Dubai or any other emirate is the best decision you can make. There are so many benefits that come with it. For instance, it is the best way to be acknowledged as one of the companies certified as being legitimate by the International Anti-money Laundering Authorities.
This is because the company regulations used to set up an offshore company in UAE conform to the regulations given against money laundering. Therefore, your company has a huge advantage of being certified as a reputable business which other investors can trade with.
To conclude, starting your business in the UAE comes with many advantages. As an investor, you can carry out your business activities tax-free, acquire residence visas for yourself and your company and have your rights protected by the legal system. Before deciding on which type of company you would like to form, you should ensure that you have carried out extensive research on the options that you have.
When you decide to set up your business in the UAE, please contact us for any assistance that you need. Our professional group of consultants is ready to diligently guide you through the entire process involved in setting up a company in the UAE.