Company Formation In U.A.E
Over the years, UAE has emerged as a premier destination for various new enterprises and companies. It has facilitated a suitable platform for clients in delivering efficient company formation services and has helped various clients to set up their own companies or enterprises. It has helped various companies and enterprises to set-up their businesses without any hassles.
The Emirates or the United Arab Emirates is one of the fastest growing countries in the Middle East. The UAE has many benefits in terms of business, trade, government, and economic conditions. Including sever emirates, including Abu Dhabi, Dubai, Ajman, Sharjah, Ras Al- Khaimah, Fujairah, and Umm Al- Quwain, the UAE offers unlimited opportunities for businesses and entrepreneurs to build a business and operate flawlessly. As the hub for businesses across the world, Dubai is highly considered for trade by entrepreneurs and traders from different counties, such as China, India, Latin America and Western country traders for its strategies position and economic ties with other countries in the region. Helpline Group has set up professional services in the UAE to help you set-up your business in the UAE.
Company Formation Steps in UAE
Finding A Partner
The first requirement in company formation is ensuring local partner or sponsor from the UAE, which is essential to acquire registration, licenses and commencing activities in the UAE.
The UAE has varied business models and setups catering to the needs of the different entrepreneurs. Helpline Group provides the required support and guidance for entrepreneurs in selecting the most appropriate business model suiting their interests.
Every company should have all the necessary licenses and registrations in the UAE. Helpline Group is a specialist in offering such licensing and registration services in the UAE.
Legal Structures of the Company
The UAE has different company structures on offer. One must understand the basic difference between these structure models and types in the UAE, and make the best decision based on the ownership needs, requirements and conditions. Helpline Group can guide you through this process and help you choose the most suitable company structure in the UAE Company Formation.
- Limited Liability Company Formation (WLL)
- Branch Office
- Commercial Agencies
- Representative Trade Offices
- General Partnership Company
- Limited Share Partnership Company
- Holding Company
- Public Share Holding Company
- Joint Venture
Limited Liability Company Formation in UAE (WLL)
A “Limited Liability Company” or WLL is the most basic form of business formation in the UAE. This is usually useful for small businesses in the country, where fixed capital is divided into equal shares and registered under the Commercial Register with the Ministry of Commerce and Industry. The following conditions are followed in an LLC in UAE.
- Shareholders: Minimum 2 shareholders and a maximum of 50 shareholders
- Liability: Limited to the extent of investments
- Minimum Share Capital: Not specified – proof of having sufficient capital is mandatory
- Foreign Investment: Foreign investors are allowed
- Local Partners: At least one local partner is mandatory – with a minimum 51% ownership of the LLC
- Tax Requirements: LLC is given the privilege of the local company due to the higher percentage of local ownership
General Partnership Company Formation in UAE
A general partnership is formed between two or more partners in the UAE. A general partnership company is formed on the basis of a partnership agreement between partners that describe roles and responsibilities, profit and loss sharing and other areas of the business. The following factors are applicable to a general partnership company in the UAE.
- Shareholders: Minimum 2 shareholders
- Liability: Unlimited to the extent of personal wealth
- Foreign Investment: Foreign investors are not allowed
- Local Partners: All partners should be UAE nationals to form a general partnership company
- Naming Requirements: Must contain one or more partners’ name in the company name.
Limited Share Partnership Company Formation in UAE
A limited share partnership company in the UAE are set up to include both general and limited partners. While general partners have the freedom to make business decisions and manage the business, limited or silent partners are only allowed to make investments to the business. The following conditions are applicable in a limited share partnership company in the UAE.
- Shareholders: Minimum 2 shareholders
- Liability: Unlimited to the extent of personal wealth for general partners and limited to the capital contribution for limited partners
- Minimum Share Capital: AED 500000
- Foreign Investment: Foreign investors are not allowed
- Local Partners: All general partners should be UAE nationals to form a limited partnership company. Foreigners can be limited partners.
- Naming Requirements: Must contain one or more partners’ name in the company name along with the core activity of the business
Holding Company Formation in UAE
A Holding Company in the UAE is formed to make investments in other businesses. It is possible for foreign investors to form a holding company in the UAE. It is possible for holding companies to gain control over other companies in the UAE by making direct investments to such businesses. A proper board of management is mandatory to set up a holding company in the UAE. A holding company can establish subsidiaries and start their own businesses such as LLPs or LLCs and so on, depending on their area of interest. Contact Helpline Group for more information on setting up a holding company in the UAE.
Public Shareholding Company Formation in UAE
A public sharing holding company in the UAE is the most suitable form of business for carrying out large projects and business activities requiring huge business investments. It is possible for a public sharing holding company in the UAE to attract investment from the general public. The following conditions are applicable.
- Shareholders: Minimum 10 founders
- Liability: Limited to the extent of capital contributions in shares
- Minimum Share Capital: AED 10 Million
Joint Venture Formation in UAE
Joint Ventures are formed in the UAE to carry out joint activities of companies in the UAE. One of the parties in the UAE should have a commercial license to conduct activities in the UAE. In spite of such conditions, there is no legal recognition for joint ventures in the UAE as a legal entity. Activities of a joint venture is carried out under the name of one company and the specific company is solely responsible for all activities conducted by the joint venture. Profit and losses, and business activities conducted in the joint venture are based on the agreement or partnership contract furnished by the partnering companies. Helpline Group can guide you through necessary activities of setting up a joint venture in the UAE.
Representative Trade Offices (RTO) in UAE
Foreign companies may establish representative trade offices in the UAE to carry out specific activities apart from profit generating activities. While parent companies can have full control over such companies, they can only engage in activities that support the main activities of the parent business, such as promoting products or maintaining customer relations etc. Helpline Group can guide you through necessary activities of setting up a representative trade office in the UAE.
Commercial Agencies in UAE
Commercial agencies in the UAE are set up to handle the commercial requirements of business without making any investments in the country. A commercial agent must be appointed in this case to carry out commercial activities of the parent company. This commercial agent can be a fully owned UAE company or a local commercial agent. There are specific protections and requirements for such commercial agents in the UAE. Helpline Group can guide you through necessary activities of setting up a commercial agency in the UAE.
Branch Offices in UAE
Branch offices in the UAE are one of the ways to establish commercial or business presence in the UAE. There is the provision of 100% ownership for branch offices in the UAE. It is the most suitable form of business for companies having financial services, or having engineering business or manufacturing businesses abroad, where such companies may carry out selling and commercial activities with its clients in the UAE through their branch offices. The parent company of the branch office is solely responsible for all activities conducted by the branch office in the UAE. In addition to this, there are separate requirements and legal conditions concerning branch office set up in the UAE. Helpline Group can guide you through necessary activities of setting up a branch office in the UAE.
There are different rules of real estate businesses and brokerage companies in the UAE, which can be extended towards ownership and management of such businesses and most importantly, the licensing requirements. Even though you are making huge investments towards real estate businesses in the UAE, one must make sure adequate attention is paid towards registration and licensing requirements in the country to make sure their business is legally protected and recognised. As foreigners have certain restrictions and limitations in handling real estate and properties, such as buying or selling, one must consult with Helpline Group to gain more insight into how to handle real estate requirements in the UAE.
All the emirates in the UAE have the freedom to establish their own taxation policy. The UAE charges no taxes for personal income or on capital gains. Similarly, no corporate taxes are levied on individuals. However, purchasing properties and real estate for businesses often attract a 4% tax, where the seller and the buyer contribute 2% each. Similarly, taxes imposed by the UAE towards direct forms are very low. Contact Helpline Group for more information on taxation conditions and requirements in the UAE or on different emirates in the UAE.
Visa requirements change from country to country. When you are setting up a business in the UAE, the first issue you need to consider is obtaining a suitable visa for your activities. For example, you are not permitted to carry out business activities on a visiting visa – you shall need a business or investor visa for such requirements in the UAE. We can help you get your visa requirements carried out in the UAE through Helpline Group. We handle all visa requirements, including entrepreneurs’ visa, employee visa and visa for managers and so on.
As a business, you may have different requirements for importing and exporting goods from and to the UAE. You shall need different licensing and registration to engage in importing and exporting activities in the UAE, even if you have appropriate licenses for carrying out business activities in the UAE. There may be additional issues to consider in the type of products allowed to import or export, and business-related requirements or restrictions in importing and exporting goods. Helpline Group can guide you through these requirements in the UAE.