The United Arab Emirates

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.