Dubai – Closer Partners

Incorporation Process and Timeline

Taxation and Accounting

Others

Corporate Bank Account

Operational Information

Background

The United Arab Emirates (UAE) is known as the business centre of the Middle East due to its strategic location to many major European and Asian capitals as well as its highly developed infrastructure, advanced manufacturing facilities and logistical system. UAE is also known as a pro-business environment, with more than 40 free zones governed by liberal economic policies.

Dubai, the second wealthiest emirate in the UAE is famous as a tourist and trade destination with its Jebel Ali port. Due to its location at the centre of export trade in the Middle East. Dubai has developed itself to be a global hub for service industries such as finance and IT since 2004. The UAE has the ninth largest port globally in volume of goods, Jebel Ali, and is the gateway to the Arabian Gulf’s market, which is one of the fastest-growing worldwide.

It is unarguable that setting up an entity in one of the free trade zones is an attractive option for businesses to conduct international operations, regardless of the what the industry may be. Furthermore, obtaining a residence visa through incorporation is straightforward.

There are several offshore structures seen below that offers similar benefits to the traditional Caribbean offshore companies, adding its reputation and favourable press as a solid jurisdiction.

	Limited Liability Company (Commercial/ Trading)	Limited Liability Company (Professional)	Jafza & RAK LLC (Offshore)	Limited Liability Company (Free zone)	Limited Liability Partnership	Representative/ Branch Office
Minimum number of directors	1	1	2	1	1	1
Minimum number of shareholders	2	1	2	1	2	Parent Company
Local Presence (director/ shareholder/ officer)	Yes	Yes	No	No	Yes	Yes
Maximum Foreign Shareholding	49%	100%	100%	100%	99%	100%
Physical registered office address requirement	Yes	Yes	No	Yes	No	Yes
Minimum Paid Up Share Capital	USD 1	USD 1	USD 1	USD 14, 000	USD 1	USD 1
Security Deposit Required by Local Government	–	–	–	–	–	Branch Office USD 13,650
Preference Shareholder Option	Yes	Yes	Yes	Yes	Yes	No
Incorporation Timeline	Less than a month	Less than a month	Less than a month	Less than a month	Less than a month	Less than a month
Regulator	DED	DED	JAFZA/ RAKFSA	DMCC	DED	DED

	Limited Liability Company (Commercial/ Trading)	Limited Liability Company (Professional)	Jafza & RAK LLC (Offshore)	Limited Liability Company (Free zone)	Limited Liability Partnership	Representative/ Branch Office
Corporate Tax	0%	0%	0%	0%	0%	0%
Annual Tax Return filing	Yes	Yes	No	Yes	Yes	Yes
Quarterly Tax Return	Yes	Yes	No	Yes	Yes	Yes
Entry to double taxation treaties	49%	Yes	No	Yes	Yes	Representative Office – No Branch Office – Yes
Access to local government grants	Yes	Yes	No	Yes	Yes	Representative Office – No Branch Office – Yes
Tax Exemption	Yes	Yes	Yes	Yes	Yes	Yes
VAT Payable for local sales	5%	5%	0%	5%	5%	5%
Dividends	Dividends received in UAE are legally tax exempted
Confidentiality	No disclosure of public register of shareholders and directors
Expatriate & local staff	No specific requirement of the amount of expatriate or local staff to hire
Security Deposits	No security deposits to the authorities/ government
International currency control on remittance	None

	Limited Liability Company (Commercial/ Trading)	Limited Liability Company (Professional)	Jafza & RAK LLC (Offshore)	Limited Liability Company (Free zone)	Limited Liability Partnership	Representative/ Branch Office
Local Citizen Sponsorship	Yes	No	No	No	No	No
Access to residence visa	Yes	No	No		No	No
Maximum Staffs Allowed	No Limit	No Limit	No Limit	No Limit	No Limit	Representative Office – 5 Branch Office – No Limit
Option to hire local staff	Yes	Yes	No	Yes	Yes	Yes
Obtain Import and Export License	Yes	No	No	Yes	Yes	No

Corporate Bank Account Available

Bank account in Asia, upon request.

Multi-currency option

E-banking platform quality

Corporate Debit Cards

Bank Account Opening Timeline

1 – 2 months

UAE offers the following benefits:

Preferred destination for foreign investments. Dubai and Abu Dhabi are both located in the Middle East and provide offshore facilities that attracts a great deal of foreign capital.
Low-tax jurisdiction. No corporate tax for all industries except for foreign banks, oil and gas companies. UAE residents are also exempt from taxes on personal income and capital gains tax, the VAT is as low as 5%.
100% foreign ownership for free zone companies. A company incorporated in any of the free zones in UAE can be wholly owned by foreigners except for limited liability trading companies that require 51% shareholding by UAE nationals.
UAE is a leading trading hub in the Middle East. UAE has a strategic location that allows companies in UAE to have easy access to the GCC countries as well as European, African and Asian markets.
Pro-immigrant and business-friendly economy. No limits on the number of employment visas that a UAE company can procure to hire its foreign employees (with a straightforward process).
Services sector is rather advanced and supports the growth of international trade via sophisticated financial instruments and global merchant accounts.

UAE Company Registration Guide

Abu Dhabi Global Market (ADGM), the Registration Authority is responsible for the registration, incorporation and licensing of legal entities in ADGM and supports with all government-related services. Providing a range of activities to facilitate market entry, growth and the emergence of a vibrant and sustainable business community, the Authority guides and supports companies through the application and set-up of ADGM-registered entities.

The Department of Economic Development (DED) is the government body entrusted to set and drive the economic agenda of the emirate of Dubai, UAE. The DED supports the structural transformation of Dubai into a diversified, innovative service-based economy that aims to improve the business environment and accelerate productivity growth.

The Dubai Multi Commodity Centre (DMCC), a Government entity established in 2002, by an decree issued by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Prime Minister, Vice President of the UAE and Ruler of Dubai. DMCC was established to create a Commodities Centre in Dubai to stimulate trade flows through the Emirate by providing the physical, market and financial infrastructure required.

Apart from acting as a Commodity Centre, DMCC is also a free zone attracting number of companies worldwide by providing the right platforms to grow their businesses. DMCC Free Zone is located on Sheikh Zayed Road and is in close proximity to Jebel Ali Free Zone and ports, Al Maktoum International Airport, and Dubai Logistics Corridor.

The Dubai Multi Commodity Centre Authority (DMCCA) is the sole Authority that issue licenses and implement rules and regulations governing the Centre. DMCC permits all the business activities ranging from General Trading, Consultancy, Information Technology, Advertising to E-Commerce (DMCC) and is subjected to the rules & regulations applicable to the Centre. Licenses are issued as Trading, Service and Industrial.

Closer Partners Services in UAE

With more than a decade of experience, our team at Closer Partners is here to meet your business needs beyond just company formation. We also provide the following services in the UAE:

Company formation
Obtaining Tax Residency Certificate – on completion of 1 financial year*
Assistance in Business Management
Corporate Management advisory
Real Estate advisory for both residential and commercial properties
Provision of registered agent and registered address
Provision of company management, directorship, and shareholding services
License application assistance
Funds setup and structuring
Onshore/ Offshore bank account introductions and applications
Virtual office services and other corporate services
Nominee services

Application Process:

Submit your interest here
Our Offshore Formation Specialists will reach out to you for an in-depth discussion
A customised proposal will be sent to you upon uncovering your needs,
Upon the proposal confirmation, we will require the of the following information for the application

Proof of Identity
Proof of Residence (within the last 3 months)
director(s),
shareholder(s) and
beneficial owner(s)

Once the above has been approved, we will send you an invoice for payment.

The incorporation process will commence upon receiving payment

Licensed by Belize International Financial Services Commission (IFSC), Closer Partners deals directly with the authorities instead of the use intermediaries in your application process. In this way, we are able to ensure our prices remain competitive while you are ensured of utmost privacy and care in your application.