Doing business in a country with a strict tax policy and an unstable economic situation is tricky. Therefore, entrepreneurs from such countries seek a solution to minimize business costs and avoid constant checks and reporting. Registering a company in the UAE, where one of the best conditions in the world for foreign business has been created, will help solve all these problems. Our article will discuss how to open a turnkey company in the UAE.
Advantages of Doing Business in the UAE
The attractiveness of opening a company in the UAE and a bank account in this country is provided by several advantages. We divided them into two large groups: a favorable business environment and privileges for foreign investors.
UAE Business Environment
The main advantages of the business environment are the following:
- The ability to choose a suitable business model due to the variety of types of companies and the presence of free economic zones.
- A developed economy, a dynamically growing market, and a stable political environment.
- Zero tax rate on personal income and the absence of most corporate taxes. If you do not operate in the oil and gas and banking sectors, you will only have to pay VAT at 5% and federal corporate tax at 9%, provided that the annual income exceeds 375,000 dirhams ($102,000).
- No export-import duties.
- The possibility of obtaining tax residency status will help avoid double taxation.
- Reliable banking system — when registering a company with a bank account in the UAE, you can freely withdraw funds, thanks to a guaranteed 100% repatriation of capital and profits and the state’s absence of currency control and regulation.
- Developed infrastructure, which allows organizing convenient logistics for materials and goods, given the favorable geographical location of the Emirates.
- Well-developed labor market.
- Simple and fast registration of a company in the UAE with an account.
Privileges for Foreign Investors
The privileges for foreign entrepreneurs opening a business in the UAE include the following:
- The possibility of obtaining a residence visa for the investor, his family, directors, and employees of the company.
- Absolute confidentiality of doing business — data on the primary beneficiaries of the company are in closed registers.
- Protection against the exchange of information (CRS) with other countries’ tax authorities.
To open a company and an account in the UAE, spending money on flights to go through all the required procedures is unnecessary. We have developed a convenient algorithm of actions and offer turnkey business registration services in the Emirates.
What Services Are Included in the Package
The turnkey company registration package in Dubai and the UAE include the following:
- Consulting assistance in choosing the company’s structure and the place of its registration.
- Assistance in obtaining licenses, company immigration cards, and resident visas.
- Support in opening a bank account.
- Assistance in tax accounting.
- Renewal of licenses.
Advice on Choosing the Best Company Structure
The effectiveness of future company work depends on the correctly chosen corporate structure. At this stage, you need to decide on a choice of the following:
- Number of founders (shareholders) of the company. It can be individuals or legal entities.
- Number of directors.
- Managers or administrators.
In this case, the same person can simultaneously act as a shareholder, director, and manager.
The requirements of the registration authorities for the maximum number of shareholders in different emirates and free zones can vary significantly, which should be considered when choosing the place of registration of a company with a bank account in the UAE.
Assistance in Obtaining Documents and Licenses
Registration of documents necessary for registering a company and obtaining licenses and permits is a troublesome process that includes the following procedures:
- Preparation of a package of papers.
- Legalizing documents — their translation into English or Arabic and certification in all necessary instances.
- Office rent;
- Submission of documents to the registration authority.
Support in Opening a Bank Account and Tax Accounting
When registering a company in Dubai and the UAE on a turnkey basis, we will select the appropriate bank since the conditions for opening and servicing an account may differ in different institutions. The bank will require your presence, but a specialist in our company will accompany you.
We also offer outsourcing tax accounting services, which will help you save on maintaining a highly-paid accountant or your accounting staff.
One of three types of companies can be registered in the Emirates, and each can engage in international business but has different opportunities for doing business within the country.
Local LLC Company
A local company in the UAE with an LLC-type account is registered in the main territory of the UAE, outside the free zones. Its main advantages are the following:
- Guaranteed receipt of a resident visa for an investor, directors, and family members.
- The ability to provide services and sell goods throughout the country.
- 100% ownership of foreign capital if the company does not work in the oil and gas industry, does not engage in banking activities, and does not conduct a hotel or insurance business. A local UAE citizen investor must own 51% of the shares in these cases.
- The opportunity to participate in government tenders.
- Lower cost of buying and renting premises than in free zones.
A foreign investor needs to obtain a special permit to open a local company in Dubai and the UAE with account.
Company in the Free Zone (Onshore)
You can conduct business only within the selected zone by opening a company in the free zone. The advantages of such a company include the following possibility:
- Ownership by a foreigner of 100% of the shares.
- Obtaining resident status for shareholders, directors, employees of the company, and members of the investor’s family.
- Cooperation with companies registered in other free zones.
- Rent an office inside the FEZ and hire employees.
The main disadvantages of registering a company with a bank account in the UAE in the Free Zone are the following:
- Conducting activities exclusively on the territory of the selected FEZ.
- Unavailability of participation in tenders held by the state.
An offshore company can be registered in the UAE only in three free zones: JAFZA in the emirate of Dubai, RAK Investment Authority in Ras Al Khaimah, and Ajman Free Zone. The main advantages of Offshore in the UAE are the following:
- 100% foreign investor ownership.
- Quick and inexpensive registration compared to other types of companies.
- Total exemption from taxes, including VAT.
- Lack of requirements for annual audits and financial reporting.
Cons of opening an offshore company:
- The impossibility of obtaining a resident visa and renting a physical office.
- A ban on doing business in the UAE.
Company Registration Process
Registration of a company in Dubai or another emirate on a turnkey basis in Dynasty Business Adviser provides for the following algorithm of actions:
- The business model, company structure, and place of registration are selected at a preliminary consultation with the customer.
- Preparation and legalization of documents, which takes 1-2 working days. Office rent.
- Payment of the registration fee and submission of a package of documents for registration (up to 3 working days).
- Obtaining a registration certificate and licenses.
- Registration of resident visas.
- Filing an application and documents for opening a bank account.
To submit documents to the bank, we will need your presence. The specialists of our company will do the rest of the work.
Overview of the Most Promising Industries for Investment in the UAE
Opening a turnkey company in the UAE is beneficial for doing business in the following profitable industries:
- Local trade, import, export, and re-export of various goods.
- Real estate — from the sale and lease of residential and commercial premises to the operation of a management company.
- Construction, including the design and construction of objects for various purposes. The production of building materials.
- Transport and logistics.
- Tourism and restaurant business.
- The provision of services — consulting, education, repair, IT, beauty industry, or delivery.
- Production of goods for any purpose.
We are a licensed registrar of companies in the UAE. Our office is located directly in Dubai, and Dynasty Business Adviser specialists are well-versed in all the intricacies of the country’s legislation and the peculiarities of doing business. Therefore, with our help, you can open a turnkey company in the UAE without much hassle in the shortest possible time.
Our article is for informational purposes only and does not constitute legal advice. If you want to consult on the issues of registering a company in Dubai with a UAE bank account, don’t hesitate to contact Dynasty Business Adviser specialists!