BCA Middle East
BCA Middle East
Company Formation in UAE (Mainland & Free Zone)
The UAE is one of the most popular destination for business in GCC. It offers favorable business environment and competitive taxation making it attractive for investors looking to expand their operations or enter new markets.
Why choose UAE?
In recent years, the UAE has become an attractive destination for international businesses due to its high reputation, digitized business environment, and continuous legislative liberalization aimed at attracting foreign investments.
One of the key advantages of conducting business in the UAE is its strategic location. Situated at the crossroads between Europe, Asia, and Africa, the country serves as an ideal hub for businesses seeking access to international markets. Moreover, the UAE is positioned at the center of major global trade routes, making it an important global trading hub.
The UAE offers an appealing environment for businesses aiming to maximize profits, thanks to its low corporate tax rate and absence of personal income tax. The country also boasts numerous free economic zones that offer 100% foreign ownership and exemption from corporate tax.
Furthermore, the UAE government has entered into multiple double taxation avoidance agreements with other jurisdictions, further enhancing the efficiency of doing business in the country.
One of the key advantages of conducting business in the UAE is its strategic location. Situated at the crossroads between Europe, Asia, and Africa, the country serves as an ideal hub for businesses seeking access to international markets. Moreover, the UAE is positioned at the center of major global trade routes, making it an important global trading hub.
The UAE offers an appealing environment for businesses aiming to maximize profits, thanks to its low corporate tax rate and absence of personal income tax. The country also boasts numerous free economic zones that offer 100% foreign ownership and exemption from corporate tax.
Furthermore, the UAE government has entered into multiple double taxation avoidance agreements with other jurisdictions, further enhancing the efficiency of doing business in the country.
The process of setting up a company in the UAE can vary depending on the type of company and the location. However, here are some general steps that are typically involved in setting up a company in the UAE:
Determine the type of company
There are different types of companies that can be set up in the UAE, such as a mainland company and free zone company. We will help you choose the type of company that suits your business needs and objectives.
Choose a unique trade name
Choose the business activity that you want to engage in and select a unique trade name for your company. When filling out the form we will expect you to provide us with 3 alternatives.
Decide on the location
Decide on the location of the company and obtain a lease agreement or a tenancy contract. Depending on the type of business and location there may be different requirements, but we will provide you with the legal address.
Obtain initial approvals
Obtain initial approvals from the relevant authorities, such as the Department of Economic Development, the Ministry of Economy, or the relevant free zone authority.
Prepare the legal documents
Prepare the legal documents required to set up your company, such as the Memorandum of Association (MOA) and Articles of Association (AOA).
Submit the application
Apply for a license from the relevant regulatory authority, such as the DED, Free Zone Authority, or the Department of Tourism and Commerce Marketing (DTCM).
Obtain the applicable license
Once the application is approved, obtain the trade license from the relevant authority.
Apply for a bank account
Apply for a corporate bank account with a local bank, such as Emirates NBD, CBD, MISR, Sharjah Islamic bank.
Plan your visit to UAE
We will finalise all procedures such as opening a bank account, medical check and obtaining an Emirates ID.
Launching a project in the UAE?
Shall we discuss the details? Make an appointment for a zoom meeting or contact us by email
Documents required to establish a company in the UAE
The documents required to set up a company in the UAE may vary depending on the founder, type of company, business activities and location. Nevertheless, we have prepared a list of common documents required to set up a company in the UAE.
Required Documents for Individual shareholder:
- Passport / ID copies of all shareholders and directors are required for registration.
- Passport size photo (digital);
- Proof of address for all shareholders and directors. This can be in the form of a utility bill or tenancy agreement.
- Power of attorney (POA): A power of attorney is required if the business owner is not present in the UAE and needs to appoint a representative to act on their behalf.
- Bank reference letter: A bank reference letter is required to confirm the financial standing of the business owner and shareholders.
- Bank statement for the past 6 months: required for all shareholders.
- Lease agreement: A lease agreement is required if the company is renting an office or commercial space.
- Business plan: A business plan is required for certain types of companies, draft will be provided.
Required Documents for Corporate shareholder:
- Certificate of incorporation: A certificate of incorporation is required from the parent company.
- Extract from the register of companies
- Articles of association of the parent company
- List of shareholders of the parent company
- Board resolution: A board resolution from the parent company authorizing the establishment of a subsidiary in the UAE is required. We will provide the draft.
- Passport / ID copies: Passport copies of all shareholders and directors.
- Bank reference letter: A bank reference letter is required to confirm the financial standing of the parent company and shareholders.
- Bank statement for the past 6 months of the parent company;
- Audited financial report for the past financial year;
- Lease agreement: A lease agreement is required if the subsidiary is renting an office or commercial space.
- Business plan: A business plan is required for certain types of companies, such as those applying for a trade license or an industrial license.
- Power of attorney (POA): A power of attorney is required if the business owner is not present in the UAE and needs to appoint a representative to act on their behalf.
Ready to take the first step towards your UAE company? Just fill out the application form
How companies are taxed in UAE?
Due to recent international tax developments, the UAE Government has introduced Federal Decree No. 47 on Corporate and Enterprise Taxation, effective from July 1, 2023, which establishes a new taxation system introducing a corporate tax of 9%. However, freezone companies will be able to continue to enjoy zero taxation if certain conditions are met
- 0%on taxable income not exceeding AED#375,000
- 9%on taxable income exceeding AED#375,000
- 5%VAT on sales within the territory of the UAE
What we do
- Company formation
Our services encompass providing guidance and assistance for conducting business operations in the UAE. We offer comprehensive support throughout the registration process, which involves selecting the optimal location (freezone or mainland), preparing incorporation documents, obtaining licenses and permits, and providing ongoing business support.
Bank account openingWe offer comprehensive support in opening a bank account in the UAE, which includes preparing all the required documents, filling out banking forms, arranging meetings with bank representatives, and providing on-site guidance throughout the process.
Tax advice and complianceWe assist businesses with complying with relevant tax and regulatory requirements in the UAE and ensuring that the business practices are in line with local laws and regulations.
Drafting and reviewing of contractsWe provide assistance with the drafting, reviewing, and negotiating of various types of commercial contracts.
Intellectual property protectionWe advice on the registration, protection, and enforcement of intellectual property rights, including trademarks, copyrights, patents, and trade secrets.
Wills and succession planningWe provide guidance to expats and investors who own property in the UAE regarding the process of passing it on as an inheritance.
If you wish to learn more about conducting business in the UAE, please visit our frequently asked questions (FAQ) page.FAQ: Doing business in the UAEWhat is the legal system in the UAE?
The legal system in the UAE is predominantly based on civil law and Sharia law, with the exception of the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM), which apply common law. The courts in these free zones hear cases that fall under applicable English law.What are the legal forms of business entities in the UAE?
The most common legal forms of business entities in the UAE include a Limited Liability Company (LLC) and Free Zone Company (FZ-LLC).Is foreign ownership allowed in the UAE?
Yes. Free-zone and mainland companies may be 100% owned by a foreign national. However, in some cases, depending on the business activity, it may be required to have a local partner who owns a majority share in the company.Can a company be established remotely without the need to physically come to Dubai?
Yes, it is possible to remotely set up a company via Power of Attorney, although certain tasks such as opening a bank account and obtaining an Emirates ID will require physical presence in the country. We will prepare the necessary documents and schedule the required appointments prior to your visit.How long does it take to set up a company in UAE?
The duration for establishing a company typically takes approximately 14 business days, although this may vary depending on the workload of authorities and the specific free zone involved.What are the benefits of setting up a business in a UAE mainland?
Setting up a mainland company in the UAE offers more flexibility and access to a larger market compared to a free zone company. However, it ultimately depends on the specific needs and requirements of each business.What are the benefits of setting up a business in a UAE free zone?
Setting up a business in a UAE free zone offers several benefits, including 100% foreign ownership, no corporate tax, no personal income tax, and streamlined procedures for setting up a business.What free zone would be most suitable for my business needs?
Choosing a free zone in the UAE largely depends on the nature of your business, the services you require, and the location that would best suit your needs. Each free zone is specialized in certain types of business activities, so you should choose a free zone that aligns with your business activity. For example, Dubai Healthcare City is focused on healthcare and medical services, while Dubai Internet City is focused on technology and IT businesses.
Prior to incorporation our team will help you choose the most suitable free zone for your business.Can I perform several types of business activities under one license?
In general, UAE authorities allow up to three business activities to be combined under one license. However, for companies with a significant level of investment, it is possible to combine up to 20 different business activities.What are the capital requirements in the UAE?
The minimum capital requirements for mainland companies in the UAE depend on the legal entity and the business activity. For example, a limited liability company (LLC) with commercial activities may require a minimum capital of AED 300,000, while a professional LLC may require a minimum capital of AED 150,000. However, the UAE government has abolished the requirement for a minimum capital for new business setup in mainland.
Free zones in the UAE generally do not have a minimum capital requirement, but some free zones may have specific capital requirements for certain types of businesses. Typically, a minimum capital of AED 50,000 is required to be declared but not fully paid up.What banks can I open an account with?
We have established strong relationship with the leading banks in the UAE region, such as Emirates NBD, Abu Dhabi Commercial Bank (ADCB), Dubai Islamic Bank (DIB), First Abu Dhabi Bank (FAB), Mashreq Bank, Commercial Bank of Dubai (CBD), and Sharjah Islamic Bank. The specific bank that would be most suitable for your business will depend on the nature of your operations and the anticipated volume of transactions.What is the tax system like in the UAE?
Starting from June 1, 2023, the Federal Decree-Law No. 47 of 2022 mandates that corporate tax will be levied on the taxable net profit earned by juridical persons and businesses in the UAE. The corporate tax rates applicable to UAE businesses are 0% for taxable income up to AED 375,000 and 9% for taxable income exceeding AED 375,000. Meanwhile, for Qualifying Free Zone Persons, the corporate tax rates are 0% for qualifying income and 9% for income that does not qualify.What is the value-added tax (VAT) rate in the UAE?
The VAT rate in the UAE is 5%. This is applicable to most goods and services, with some exemptions and zero-rated items.When should I file VAT return?
One of the obligations of taxable businesses is to submit VAT returns to the FTA regularly, usually within 28 days after the end of the 'tax period,' which varies for each type of business. For most businesses, the standard tax period is quarterly if their annual turnover is below AED 150 million and monthly if their annual turnover is AED 150 million or more.Couldn't find an answer? Reach out to our team. We will do our best to provide you with the information you need.Explore other options in GCC region
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