There are seven Emirates in the UAE, each of which, in addition to federal laws, may have its own separate requirements for opening a business. This factor must be taken into account when you are planning company formation.
Dubai is by far the most developed region of the country. Company setup in Dubai will give you a number of significant benefits:
- Ability to perform a wide range of business operations;
- Open access to domestic and foreign markets.
- Customs benefits for legal entities that operate in specialized free zones;
- The possibility of opening both real and virtual office in the Emirates.
Forms of legal entities that can be opened in Dubai:
- International business companies that are registered to operate only in the international arena. Such companies are prohibited from conducting activities in the country.
- Companies in free economic zones. They are allowed to carry out business activities both in the international market and in the local (with some restrictions).
- Local businesses are registered to work in the local market, but they do not exclude the possibility of entering the international market. For such companies, the participation of a local partner with a share of at least 51% is mandatory.
Features of Dubai free zones
Today in Dubai there are as many as more than 30 free zones. These are real business towns, built up with ultra-modern offices with the latest communications, which were created in order to simplify the activities of investors as much as possible.
If you register a business in the free zone, then even being a foreign citizen, you can become the owner of 100% of its capital. In addition, entrepreneurship in Dubai free zones has a number of other beneficial features:
- the ability to easily obtain a resident visa for a period of 3 years for all employees and managers of the company;
- no corporate tax;
- income tax for individuals is absent;
- you can specify an unlimited number of founders during registration;
- the ability to obtain a license for a full range of business activities;
- a foreign citizen can fully own real estate with the subsequent probability of its sale or rental;
- the possibility of 100% repatriation of the company’s profits;
- unlimited use of banking services;
- full assistance from the government;
- cheap energy and labo
ur (if we are not talking about specialtiesthat require special training).
RAK free zone – another perfect choice for company setup
Ras Al Khaimah – commonly called the RAK – is one of the seven emirates that make up the United Arab Emirates federation. It is the northernmost emirate, located approximately 100 kilometers northeast of Dubai, with which it is connected with the Emirates Road multi-lane highway, as well as many smaller roads.
Opened in 2000, RAK free zone is one of the fastest growing and most cost-effective free economic zones in the UAE and is home to more than 8,000 active companies.
RAK free zone company setup can be made in such forms:
- Free Zone Establishment (FZE);
- Free Zone Company (FZC);
- Branch of a foreign company;
- Branch of UAE company.
You can obtain these types of licenses for activities in this free zone:
- Commercial License – allows your company to import, export, distribute or store goods. You can choose any specific or general trade license.
- Service License – allows your company to provide services or consulting.
- Industrial License – allows your company to import raw materials, as well as produce, process, package and export finished products.
- Educational License – allows your company to conduct any type of training or to open an educational institution, as well as provide education-related consulting.