Doing Business in the UAE
It is easy to understand why doing business in the United Arab Emirates (UAE) is such an attractive concept. A predominately liberal trade regime has contributed to sustaining an impetus for growth in the UAE.
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Legal and commercial issues, which need to be considered, by companies or individuals when entering a specific market as the UAE are the following:
- The relevant Corporate Structure;
- Free Zone Legislation;
- Mainland Legislation;
- Tax Regime and Tax Exemptions;
- Intellectual property rights and data protection;
- Immigration and Resident Visa Rules;
- Employment Regulations;
- Trading Law and regulation (Fintech Service are usually heavily regulated);
- Property Law;
- Accounting Requirements and Exemptions;
- VAT Rules;
- Audit Requirements.
FAQs
If I register a company in a free zone outside of Dubai, can I live and have a bank account in Dubai?
Yes, you can have a company registered outside Dubai, but reside in Dubai or any other Emirate. You do not have to live in the same Emirate where your visa belongs to. You can also have a bank account in a Dubai branch of any UAE bank of your choice.
Can I open a bank account remotely?
No, you have to visit UAE personally. It is a requirement of a UAE Central bank which all local banks have to follow. Personal visit is required to make sure that the client is known by the bank.
Do banks give debit and credit cards or loans?
Normally you can get a debit card for your newly opened company if there is only one shareholder. You can also have a credit card, but it will be given against a fixed deposit. As for the loan, it is possible to get it, but you need to show company operations and profits to the bank. Upon checking your company's turnovers and profits, a bank may approve a loan. We recommend applying for it at least after one year of company's operations.
Can a free zone company hold its offices outside the free zone?
Officially an office of a free zone company has to be located only within the free zone where this company was registered. If you need an office in Dubai, you have an option to rent a space in a Business center and use it either a few times per month or daily, depending on the package that you choose. However, the free zone minimum required space (flexi desk) cannot be cancelled.
Why do I need a flexi desk or office?
A flexi desk is an obligatory requirement for any company eligible for resident visas. UAE government obliges to have it because it's the minimum physical office space, that a company who has any individual under its visa must have. Apart from that, flexi desk is helpful for bank account opening. The compliance department of the banks needs to see that a company has some kind of office or at least a small physical seat, where it can be working from.
Do we have to pay VAT if our company is registered in the Free Zone?
VAT obligations of the company depend not only on the place of its registration, but on the place where its business takes place. To start with, VAT comes into picture once your taxable turnover reaches 375 000 AED. Taxable turnover means the turnover which was done in the UAE. If your company is registered in a Free Zone, but the trading takes place abroad (for example you sell goods from India to Africa), that turnover is not considered taxable, because the transactions are taking place out of UAE. It means that you do not have to pay VAT. But if you have a free zone company and import goods to UAE, you have to add 5% VAT to your Invoices and pay VAT. If your company is registered in a designated free and sells the goods to another designated free zone or within the same zone, VAT does not appear.
Should I pay any other TAX?
UAE is free from income tax and corporate tax. It has only imported tax 5% for the goods that you bring into the country and VAT 5% for the trading or service transactions that happened in UAE.
Why will a free zone company suit me better than an offshore or a mainland entity?
Everything depends on your business model and requirements, but a free zone setup is the most suitable for the majority of the business needs. Free Zone company has 100% foreign ownership unlike mainland where you need a local partner or agent, it can be eligible for resident visas, allows doing business both in and out of UAE, more favorable by the banks in comparison to offshore companies, can have a flexi desk space instead of an executive office like in mainland companies. Free Zone is a good way to start a business for reasonable fees and without unwanted obligations.
Can you guarantee opening of a bank account?
We do our best when we setup your company in such a way that would make account opening easier for you. Knowing your background and your business model, we can give you our estimation about the chances of successful account opening. The approval of the account fully depends on the bank. Each case goes to a few departments of the bank where it has to be approved before the account gets opened. If the bank has any questions or needs clarifications, it will contact you directly with the inquiries. The more clear picture about your business you give to the bank, the higher your chances of account opening are. Being a consultancy company, we cannot guarantee opening of a bank account, because it depends on the factors which do not depend on us. However, we do our best to prepare you and your company for smooth and fast account opening.
Should I renew my company? When? How much does it cost?
Yes, the company should be renewed annually. The cost of the renewal is usually less than the setup cost. It depends on your company package. You can get the price by downloading the Estimate from this page. Renewal does not require personal presence of the owner and can be done by your agent. After company renewal, the new license has to be shown to the bank in order to extend the bank account. It is always included into our renewal service.
Average Professional Fees:
Usually the first step in to understand if you are looking for an offshore company in the UAE, a Free Zone Company in the UAE or a Mainland Company in the UAE.
A full package to incorporate your business in the UAE includes:
- Formation of Company;
- Company registered address;
- Flexi-desks set up;
- Mail Forwarding Service.
The cost involved starts at: $1,900 + Gov Fees
EXTRA SERVICES YOU MAY CONSIDER TO EVALUATE:
- Local Director;
- Dedicated Manager;
- Bank Account Introducing Service;
- Bookeeping Service;
- Accounting Service;
- Audit Service;
- DIFC Licence;
- Real Estate Brokerage;
- Recruitment Service;
- Immigration and Visa Service;
- Taxes Regime Service.
If you already know the service you will need, book a call back with one of our Team Members and we will get you a bespoke quote.
REQUEST A QUOTE
Are you tired of looking for the best solution for your business?
A one-on-one relationship with someone who can advise you, your company, and your professional career specifically can make a significant difference in your success.
Search no further, watch this video and book your Consulting Session with me.
During the call (up to 120 min) we will:
- Get acquainted, analyse your situation;
- Evaluate how to incorporate your business in the UAE;
- Let you have a clear idea about main corporate and visa issues in the UAE;
- Evaluate the possibilities you have to emigrate to the UAE;
- Develop a strategy to let you succeed in the UAE;
- Have a clear idea about your obligations in the UAE;
- Draw up an action plan for you or your business to relocate to the UAE.
After the call you will get an email with a comprehensive quote and a step-by-step road map.
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Buy nowBEST OPTIONS FOR UAE
Having been in business for so many years, I have seen plenty of different cases so I can easily tell which structure would be best suited for specific requirements. Below I have selected the most popular solutions.
RAK OFFSHORE COMPANY
Due to its high compliance with international rules and practices, Ras Al Khaimah (RAK) is the most reputable offshore jurisdiction in the UAE, but at the same time very affordable.
This option would be best for you if you run an international business that does NOT have a presence in the UAE and you do not plan to move there (RAK offshore company is NOT eligible for UAE resident visas).
RAK offshore company can be used for international business almost of any nature. For example, you can use this structure to hold real estate property in Dubai or to set up your holding company.
By setting up a RAK ICC company you may reap many offshore benefits such as the cheapest company registration process which can be done remotely, a corporate account in one of UAE banks, and finally, easy maintenance and low-cost renewal of the company.
RAK ICC OFFSHORE LICENSE PACKAGE:
- Incorporation of a RAK International Business Company
- Registered Agent Service for 1 year
- Provision of a Registered Office for a company for 1 year
- P.O. Box
- Secretarial Service
Now only $3,000
SHAMS FREE ZONE COMPANY
Sharjah Media City or simply SHAMS Free Zone is the newest free zone in the UAE. It is known as the Media Free Zone, but the business activities are not related only to media sector – trading, professional services as well as some other holding activities.
Sharjah Media City is a really affordable free zone and has one of the most flexible visa allocation systems. You can have a company eligible from zero up to 6 visas. Besides, company registration can be done fully remotely no matter if you are in UAE or abroad, your company can be registered in a week’s time.
Another advantage of SHAMS is that this free zone allows the youngest age of the company shareholders – you can own a business starting from the age of 19. This is a great benefit not available in any other Free Zones. Company employees can be as young as 18 years old, which is also quite unusual in comparison to other Free Zones.
This option would be best for start-ups or for people who are looking for the cheapest way to obtain UAE residency without starting a big business.
SHAMS FREELANCE LICENSE PACKAGE *:
- Incorporation of an LLC in the SHAMS Free Zone
- Registered Agent Service for 1 year
- Provision of a Registered Office for a company for 1 year
- P.O. Box
- Secretarial Service
- 3-year Residence Investor visa (medical test, Emirates ID)
- E-channel deposit (will be refunded at the time of company liquidation)
*1 Visa eligible company with Freelance License in the SHAMS Free Zone
Now only $1,900
+ Government Fees (around $4,770)
You will pay the government fees separately via bank transfer once we get pre-approval from the government.
IFZA FREE ZONE COMPANY
International Free Zone Authority (IFZA) is a brand-new free zone based in Dubai, it migrated there from Fujairah, where it was founded originally, and it is known as Dubai’s rising star in free zones. Even more, it is the only environmentally friendly free zone in the UAE since it uses solar and wind energy.
This option would be best for you if you want not only move to the Emirates but bring your business there.
IFZA has a one of the biggest activity lists which includes commercial, service and industrial activities and some rare activities such as trading of tobacco. It is allowed to have up to 7 activities in one license. At the same time, it is possible to incorporate holding companies.
IFZA Free Zone company has 100% foreign ownership unlike mainland where you need a local partner or agent, it can be eligible for 3 years resident visas, allows doing business both in and out of UAE, more favourable by the banks in comparison to offshore companies, can have a flexi desk space instead of an executive office like in mainland companies.
IFZA LICENSE PACKAGE *:
- Incorporation of an LLC in the IFZA
- Registered Agent Service for 1 year
- Provision of a Registered Office for a company for 1 year
- P.O. Box
- Secretarial Service
- 3-year Residence visa (medical test, Emirates ID)
*1 Visa eligible company in the IFZA Free Zone
Now only $1,900
+ Government Fees (around $6,290)
You will pay the government fees separately via bank transfer once we get pre-approval from the government.
DMCC FREE ZONE COMPANY
Seven times crowned ‘Global Free Zone of the Year’ by the Financial Times fDi magazine, Dubai Multi Commodities Center (DMCC) is a free zone that supports commodities trading and finance.
Being a home for the Gold and Commodities Exchange and the Dubai Diamonds Exchange, DMCC has plenty of incentives for gold and diamonds trading. Furthermore, they have recently launched its new Crypto Centre to support businesses operating in the cryptographic and blockchain sectors. Besides, this is the world’s biggest free zone and one of the most well-known and highly reputable free zones in Dubai.
That’s why this option would be best for you if you do crypto e-commerce or you want to open a real office within Dubai in a developed business community.
You can also open a shop, a clinic, a restaurant or another type of retail business since DMCC is located in the area of Jumeirah Lakes Towers, which has both commercial and residential towers and looks like a city within a city. Overall, it hosts around 16,000 companies including many large multinational corporations.
You will also have all the typical benefits of a free zone: 100% foreign ownership, flexi-desk option, resident visas and good regulation – easier to open a bank account.
DMCC TRADING/SERVICE LICENSE PACKAGE *:
- Incorporation of an LLC in the DMCC
- Registered Agent Service for 1 year
- Provision of a Registered Office for a company for 1 year
- Flexi-Desk 1 year (including P.O. Box, Secretarial Service)
- 3-year Residence visa (medical test, Emirates ID)
*1 Visa eligible company with Trading / Service license in the DMCC Free Zone
Now only $3,520
+ Government Fees (around $13,700)
You will pay the government fees separately via bank transfer once we get pre-approval from the government.
MEYDAN FREE ZONE COMPANY
Meydan Free Zone is a business-focused free zone that is start-up ready, with the backing of 25 years of setup experience. Located in the heart of Dubai and just 15 minutes from airport, Meydan Free Zone offers world class facilities based at the luxurious Meydan Hotel. Setting-up your business in the UAE has never been so hassle-free: all facilities you may need are just within the hotel infrastructure.
But the main advantage of Meydan Free Zone is definitely their proper banking solution – Meydan Pay. With Meydan Pay, you get a virtual wallet with IBAN that enables you to start transacting and generate invoices to get your business off the ground at the time of obtaining your business license. Meydan Pay is a fully digital solution, open for all nationalities, suitable for both residents and foreigners and that offers even Point of Sale (POS) machines for retail merchants.
That’s why this option would be best for you if you need to not only move your business to the UAE, but also start trading as quickly as possible.
You may choose from more than 1500 business activities for your Meydan company and profit from flexibility on number of visas: whether you need 6 visas or none, you can choose what suits your business needs right now and can always upgrade later on.
Finally, due to its ‘all-inclusive approach’, this is arguably the cheapest free zone in the UAE when it comes to total costs of setting up a business in the UAE.
MEYDAN LICENSE PACKAGE *:
- Incorporation of an LLC in the Meydan FZ
- Registered Agent Service for 1 year
- Provision of a Registered Office for a company for 1 year
- P.O. Box
- Secretarial Service
- 3-year Residence visa (medical test, Emirates ID)
*1 Visa eligible company in the Meydan Free Zone
Now only $3,130
+ Government Fees (around $6,630)
You will pay the government fees separately via bank transfer once we get pre-approval from the government.
Unlike lawyers and accountants who focus on theory, I’ve done most of the stuff for myself and I know what works – and what doesn’t – especially in the UAE there are many things to consider before you decide to incorporate your business.
Working as CEO of Astorts Group, my team and I have received many inquiries and helped lots of clients to find a cost effective way to operate in the UAE, to pick the right Free Zone in the UAE, to have all corporate, immigration and legal issues sorted in the UAE, to relocate their business to the UAE, to buy properties or emigrate to the UAE, to apply and renewal their licence in the UAE.
My main focus is all about getting you across the “finish line” as easily as possible, so you will leverage my network and my experience to successfully get where you wanted.
Take your chance to learn from who have done most of the stuff he is talking about for himself and he knows what works – and what doesn’t – in the real world.
Why to entrust Alex?
Alex is an entrepreneur, fintecher, investor, blogger and author based in London and operating mainly in Europe, Asia and Oceania.
Alex uses to dedicate part of his life to inspire others and help them achieve the most out of their lives.
Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech.
Alex is Member of Institute of Directors in London, Member of Changer Club in Riga, Member of Fintech Association of Hong Kong, Member of Singapore Fintech Association, Member of Non Executive Director Association in London and Member of Alumni Network of Draper University in San Francisco.
