Business Consultancy FAQ

1. What type of establishments can be formed in UAE?

In UAE, a company can be formed in any of the following three jurisdictions;

  • Mainland
  • Free Zone
  • Offshore

2. What are the types of companies that can be established on UAE Mainland?

Companies on UAE mainland can be categorised into;

  • Joint liability company
  • Limited Liability company
  • Public Joint Stock Company
  • Private Joint Stock Company
  • Civil company
  • Branch of a local or GCC company
  • Branch of a foreign company
  • Branch of a free zone company
  • Sole establishment

3. How can a foreigner establish business on UAE mainland?

Non-UAE nationals seeking to establish an entity in UAE mainland need to team up with a UAE national. The UAE national will own 51 percent of shares and the non-UAE national will own the remaining 49 percent. But of late, the UAE government has announced a new law that will permit complete foreign ownership in certain sectors selected by the government.

4. What are the special features of UAE free zones?

  • Complete foreign ownership
  • No constraint on capital repatriation
  • No import or re-export duties
  • 0% personal income tax
  • No currency restrictions
  • No restriction on foreign talent or employees

5. Which are the prominent free zones in UAE?

There are numerous free zones in UAE. Jebel Ali free zone, Dubai Multi Commodities Centre, Dubai Airport Free Zone, etc are some of the prominent ones.

6. Which are the offshore jurisdictions in UAE?

Ajman, Jafza and RAK offshore.

7. What are the benefits of offshore company?

Offshore companies promise absolute privacy, confidentiality and protection of assets and information.

8. Which are the types of business licences in UAE?

Commercial, professional and industrial are the major license types in UAE.

9. What is the taxation policy in UAE?

The UAE does not levy income tax on individuals. However, the government had implemented VAT in 2018 at a standard rate of 5 percent. There are other taxes such as corporate, excise and property.

10. Are Directors mandatory for business formation in UAE?

Directors are mandatory for any type of business setup and their numbers vary from one jurisdiction to another.

11. What is tax residency certificate in UAE?

TRC is a certificate issued for eligible government entities, companies and individuals to take advantage of agreements of double taxation avoidance on income signed by the UAE.


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