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Benson Formations

The United Arab Emirates

Basic Facts

The United Arab Emirates Overview

Attractive tax system Double taxation agreements with more than 60 countries Business friendly environment Advanced infrastructure High quality of life English and Arab speaking

Top 3

Reasons For Doing Business In The United Arab Emirates

No taxes

Except for CIT (9%) and VAT (5%)

Residence visa allocated automatically with your company

Legal certainty for investor community

i.e. option for non-Muslim investors to register their wills with the official registry and to pass on their assets applying investor home country law rather than UAE laws

More advantages​

  • English common law courts in some free zones (e.g. DIFC) with English judges,
  • No anti-avoidance provisions,
  • No transfer pricing regulations,
  • No CFC rules,
  • No thin capitalisation rules,
  • No inheritance/estate tax/succession taxes.

important things you should know

The United Arab Emirates consists of federation of seven Emirates (Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah, Umm Al Quwain, Fujairah and Ajman). Abu Dhabi is the capital and Dubai is the second largest city and the most important commercial and financial centre of the UAE. The currency is the AED (dirham).

About companies in The United Arab Emirates

In general, type of company depends on its function and business activity to be carried out. Essentially, there are three types of companies available to be formed in UAE

These are local companies conducting business in the UAE and register with the relevant emirate, typically by the Departments of Economic Development (DED) of such emirate.

Traditionally, there have been some restrictions of foreign ownership in UAE for local companies (e.g. non-UAE nationals to hold shares not exceeding 49%). However, UAE Cabinet in 2019 relaxed those restrictions on certain conditions for some business activities in the manufacturing, agricultural and services and further relaxation is expected.

Presently, there are more than 50 free trade zones in the UAE, the majority of which are concentrated in Dubai. The most known are Jebel Ali Free Zone (JAFZ) which was the first, Ras Al Khaimah Free Trade Zone (RAK), Dubai International Financial Centre (DIFC), Dubai Multi Commodities Centre (DMCC) and Dubai South (formerly Dubai World Central /DWC/). Each free zone caters to a particular industry or type of activity.

Unlike local company, the purpose of FZC is typically from the free zone to make business overseas or/and within the free zone with other businesses established there. Restrictions of foreign ownership related to local companies do not apply to companies established in free zones. Other major benefits are residency permit and work visa, free repatriation of profits and capital, corporate and personal income tax exemptions and import/export tax exemptions.

Once accepted into a free zone a company will typically operate under one or more licences (e.g. commercial licence, general trading licence, industrial licence, service licence). Costs of Free Zone set up vary in each Free Zone and will largely depend on the type of activity, entity, size of office required to rent and the number of work visas requested.

There are several offshore facilities in the UAE, e.g. The Jebel Ali Offshore Company, The Ajman Offshore Company, The Ras Al Khaimah Offshore Company. They are regulated by respective Free Trade Zone Authorities, which allow to set up an offshore entity with the following features:

  • The purpose of setting up the offshore company is typically to make business overseas as general trading in UAE is not permitted, however IC can own shares of local LLC and offshore companies, real estates in UAE, have its bank account in UAE,
  • 100% foreign ownership and repatriation of capital and profits with no currency restrictions,
  • 100% corporate and personal income tax exemption,
  • No reporting requirements and publishing of annual accounts, nor to rent any office space,
  • Strict confidentiality,
  • Don’t hesitate to contact us for a company formation in UAE.

Company Formation In The United Arab Emirates

Do you need to establish a company in UAE? Then to administer it?

Are you looking for a safe place to keep your business affairs confidential? 

Are you interested in becoming a resident of UAE?

Do you need to register your will/testament in UAE regarding your UAE assets and business?

Do you look for a reliable lawyer to do legal work for your UAE business?

You do not know yet what do you actually need?

We are ready to give you the right answers and workable solutions for you.

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