Setup Company in UAE – Quick and Easy
Note on filing of income tax return by NRIs
July 11, 2016
Comparison of various types of Companies in UAE
| Particulars | Local company | Free Zone Company | Offshore company |
| Registrar/ Authority | Each of 7 emirates of UAE has a separate registering authority. Eg: In Dubai it is called Dubai Economic Department. | Registered by Free Zone Authorities. There are more than 30 active free zones in UAE. Eg: RAK Free Trade Zone, SAIF Zone, JAFZA, DAFZA, DWC Free Zone etc. | There are 3 free zones in UAE which register an offshore/international company. I.e. RAK FTZ Authority, RAKIA and JAFZA |
| Permitted Activities | Trade, Services, Industrial activities in UAE Local Land and import/export business. | It can do all activities which are allowed to a Local Company expect for selling goods to direct consumer in UAE. | Best suitable for holding assets and /or International businesses without bringing goods to UAE or providing services outside UAE . |
| Ownership | UAE National shall hold minimum 51% shares in a Limited Liability company (LLC). In partnership / proprietorship expats can keep 100% profits with himself with unlimited liability. This is applicable to only few professional licenses. | Shares may be 100% owned by expatriates. | Shares may be 100% owned by expatriates. |
| Licensing | License is to be obtained for specific goods/services in which the company wants to deal. It can also be a general trading license which allows trading in all goods except where specific permission is needed. | License does not restrict any activities except for banking and insurance. | |
| Residence Visa availability | Generally one Visa is allotted per 100 sq ft of office size. | Eligibility shall depend on size of office and rules of free zone. | Residence Visa cannot be obtained. |
| Registered Address | Company should compulsory lease/own a physical office of size minimum 500 sq ft within UAE mainland areas. | Company should compulsory lease/own an office with in Free Zone area limits. Options of Flexi desks / virtual desks are available. | Not required to lease/own office as the company shall be formed through a registered agent. |
| Resident manager | Not required | Required | Not required |
| Audit | Not compulsory | Depends upon which free zone the company is registered | Not compulsory |
| Minimum Share Capital | Not specified however sufficient Capital should be brought in to carry desired activities and to obtain investor residence visa. | Starting from AED 50,000/- | No minimum Capital required however while issuing share certificate the authorities may ask for proof of capital in bank. |
| Funds Repatriability | Capital and profits are fully repatriable | ||
| Cost (excluding our professional charges) | Starting from AED 10,000/- (Yearly office rental shall be extra) | Starting from AED 12,000/- (Yearly office rental included) | Starting form AED 9,000/- |
| Import duty | Import duty of 5% is payable on all goods imported in UAE. For re-exported goods refund of import duty can be claimed. | Import duty of 5% is payable on all goods imported in UAE. For re-exported goods refund of import duty can be claimed. | Cannot import goods in UAE |
| Local Tax | No corporate, personal or capital gains tax (except for banking business and some specific business) | No corporate, personal or capital gains tax | |
| Governing law for inheritance | Islamic Sharia law | ||
