According to the Abu Dhabi Chamber of Commerce and Industry the growth rate forecast for UAE for the coming years is 13% and the government is promoting foreign investment by liberalizing its laws to attract foreign investors. Dubai is one of the fastest growing markets of the world, where the entrepreneurs from around the world are setting up their companies and taking advantage from the growth of UAE and making enormous profits for their firms. Having a sole establishment in Dubai is not a child’s game. If you are looking to establish your company in Dubai, then you should take care of certain things before making any investment as the procedure for establishing need number of complex approvals and lengthy documentation. Alternatively, you can choose the services of company formation consultant and leave all the documentation and painstaking to him and aim yourself at your job.
The reason for choosing UAE is its state-of-the-art infrastructure and high-class facilities which makes it the preferred choice for the investors worldwide. However, businesses in UAE can be classified into three categories depending on the location of the business entity.
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Mainland Business Setup: Having a sole establishment in Dubai will include a local sponsor who will own 51% shares of the company, and the presence of local sponsor is compulsory according to the UAE law. Foreign investors will have a 49% share in the company. On the other hand, if the mainland company is offering professional services then, in that case, a local service agent is necessary and will represent the company in the government offices. In this scenario, the owner of the mainland company will have 100% ownership of the company. A mainland company can work anywhere in the country, and there are no restrictions on the number of visas. The investor’s of the incorporation can avail investor visa and can have investor status in UAE along with their families.
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Free Zone Business Setup: The incorporation of a free zone company will have its own advantages. The owner of the business will have 100% ownership and will be 100% tax-free making it free to do its business operations. Adding to it the company can use multiple currencies for managing numerous transactions. These zones are also called special economic zones which are specially made by the government to attract foreign investment by giving them unique leverage in their working making it very eye-catching opportunity for companies who want to benefit from this setup.
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Offshore Business Setup: UAE has a stable political and economic environment, and the laws do not change with the change in power in the center. The laws are investment friendly and strict adherence to secrecy clause makes it the ideal destination for offshore incorporation. Moreover, no tax policy, other forms of duty exemptions, and no audit requirement for an overseas company make it tax-free heaven for foreign investors. If you have a valid registration and license, then you can apply for a branch company.
Taking into consideration several laws and a complicated process the services of company formation consultant will be beneficial for the smooth set up of a firm.
