Company Formation in Dubai UAE
Why choose UAE to start a Company?
Forms of Business Registrations in UAE
Sole Proprietorship
Where the owner is not a local person the appointment of a Local Service Agent is required who shall overlook all license requirements.
Partnership
LLC
This can have minimum 2 members and maximum of 50 shareholders. The UAE Companies Law does not prescribe any minimum share capital for an LLC. The LLC is required to have adequate share capital which can be decided by its shareholders.
Private Shareholding Company
These entities cannot welcome any public shareholding.
Public Shareholding Company
The promoter shareholders may have upto 35% shareholding but can offer 75% to the public. Though most of the management should be UAE citizens.
Free Zone Company in UAE – JAFZA
Free Zone Company
Branch of a Company
Offshore Company
Taxation
The VAT rate varies from 0% & 5% where rate of 5% applies to most goods and services, with some goods and services subject to a 0% rate or an exemption from VAT.
For UAE residents, VAT registration threshold is AED 375,000 whereas voluntary threshold is AED 187,500. Though, no registration threshold applies to non-resident businesses making supplies on which the UAE VAT is required to be charged.
FAQ
Qu. Do Jafza company has to comply with Wage Protection System?
Ans. Yes, all businesses registered with Jafza are required to comply with the WPS system of the United Arab Emirates.
Qu. Can one own multiple business in Jafza?
Ans. Yes, an entity may apply for multiple business formation within the free zone.
Qu. Can a company license be transferred from Mainland to Jafza?
Ans. No, for a company to shift from mainland to Jafza it has to dissolve its mainland entity.
Qu. What is the minimum share capital requirement for a Company in Jafza?
Ans. There is no longer a minimum share capital requirement in Jafza for an FZE or FZCO, but require that a company must have a share capital that is sufficient for the activities for which it is licensed
Qu. Can a foreigner start a company in Dubai?
Yes, foreigners can start a company in Dubai. The United Arab Emirates (UAE), including Dubai, has implemented several initiatives to attract foreign investment and entrepreneurship. Foreign individuals and entities can establish companies in Dubai either in mainland areas or within numerous free zones across the emirate. Free zones offer various benefits such as 100% foreign ownership, tax exemptions, and streamlined business setup processes.
Qu. Can an Indian set up a company in Dubai?
Yes, individuals of Indian nationality can set up a company in Dubai. Dubai, like the rest of the UAE, welcomes foreign entrepreneurs from various countries, including India, to establish businesses in the emirate.
Qu. Is it worth setting up a company in Dubai?
Whether setting up a company in Dubai is worth it depends on various factors, including your business objectives, industry, target market, and budget. Dubai offers several advantages for businesses, such as strategic location, world-class infrastructure, a business-friendly environment, and access to a diverse market. Additionally, the UAE government has implemented various initiatives to facilitate business setup and promote economic diversification.