International (offshore) company is the most simple and low cost type of company that may operate only outside UAE. No need for office in UAE. Residential Visa is not available. Free Zone Company (FZE or FZC) may operate both outside UAE as well as only within Free Zone in which it has been incorporated. Office in UAE is a prerequisite. Residential Visa could be obtained. LLC Company presupposes existence of local Sponsor with at least 51% in share capital of the company. For professional companies 100% capital is permitted for foreigners. Company may operate everywhere in the world. Office in UAE is a prerequisite. Residential Visa could be obtained.
Color copy of valid passport Letter from the bank confirming existence of operating personal account Confirmation of residence (cell phone bill is fair enough) Brief CV in arbitrary form (for information)
The issue is solely about minimum registration cost and best practice of the Company Registrar in Ras Al Khaimah. Actually, Ras Al Khaimah offers the lowest registration costs and further extension costs; and registration of the company takes 2-3 days as compared to 20-30 days in other emirates.
No. Lawful age in UAE starts from 21 years. In such a case, it is worth thinking about nominal service until attainment of at least 21 years old.
Insurance, reinsurance, financial, and banking activity, as well as gambling and realization of so-called goods for adults is prohibited within all Emirates without special permission. Sale of ammunition and double purpose goods is under the strictest control. Often, in order to occupy certain managing positions within a company you may need special qualification: diploma, confirmation of diploma for health service officers, at least 3 year work experience in UAE, for instance, for operation in cosmetic or massage salon.
It is true that each company in Free Zone or LLC shall have license corresponding to activity for which it has been incorporated. There are nearly 50 TRADE FREE ZONES in UAE. Each zone has its own specifics related to types of licenses issued by such zones. If a company deals with CERAMICS production, such company could NOT be registered in every zone, but in a zone in which a license shall be issued for such type of activity. There are certain exceptions: International companies registered in UAE have no license. In lieu of license they have Certificate of Incorporation, whereas types of activity are listed in the Memorandum and Articles of Association that corresponds to Articles of Association of the Company.
The issue is about that companies within UAE are not incorporated for an unlimited term. License is valid one year since company’s registration. By the end of year license shall be extended. For that purpose state duties and fees shall be settled through registration agent. Company shall also confirm its current address. Usually, no audit is performed in such a case; however, certain types of activity require audit.
It may only within the scope of the General Trading license which permits carrying out of no more than five types of related activity. For such companies size of share capital is increased by 1 million dirham.
In LLC companies sponsor (UAE resident) owns at least 51% of share capital. In professional LLC companies (doctors, lawyers, etc.) foreigner may own 100% of share capital; in such a case Sponsor acts as an Agent of the company. 51% of share capital is rudimental statutory indicator of UAE law. Amendment cancelling such restriction is under discussion for years. Sponsor often play nominal role (except for reception of annual fixed remuneration). Sponsor fee comprises (15000 – 20000 AED), that is 4000-5500 USD per annum. Sponsor does not interfere in management of the company. Sponsor shall also close business is foreign investor decides not to extend term of company activity.
Natural persons and ordinary companies DO NOT pay taxes within UAE. However, more specifically, direct taxes are imposed on companies operating in oil processing and producing industry and credit organizations. There are custom duties imposed, for instance, on import of transportation means within UAE. There is municipal tax imposed on hotel residents. There is tax imposed on sale of real estate.
It is necessary to decide WHAT TYPE of activity would you like to perform and in which emirate. Perhaps, there is NO such FREE ZONE in chosen emirate for such type of activity. In such a case, you should change emirate or select LLC COMPANY. It is necessary to presume WHERE ACTUALLY would you render services or sell goods. If it is supposed to be done WITHIN Emirate, for Emirate residents, then it is surely LLC COMPANY. If it is possible to manage solely FREE ZONE territory or territory outside UAE, FREE ZONE COMPANY may suit you well enough. For one and the same type of activity FREE ZONE COMPANY as compared to LLC COMPANY is obliged to apply for annual AUDIT from time to time. Office lease is also a forcible argument; FREE ZONE always means limited number of office premises. Moreover, small offices are leased more often. It may appear that there are no small offices of 50 sq. meters, and that there are offices of only over 500 sq. meters. For LLC COMPANY it is easier to select office as selection IS NOT RESTRICTED by FREE ZONE territory. Sponsor fee is from 15.000 to 20.000 AED, i.e. from 4000 to 5500 USD a year.
Formally. It is possible. It should be noted that there is no such term “NOMINAL” in UAE legislation. Therefore, subject to local law, shareholder of the company would be considered as ultimate “BENEFICIARY”. The same is true about nominal Director of Emirate company. From the other side, TRUST document with real Beneficiary may be executed for nominal Shareholder and Nominal Director, if law effective within jurisdiction of nominal contains provisions of Trust Law.
Such activity is under strict control upon incorporation of a company as well as at carrying out transactions by credit institution. However, curiously enough, there is no direct embargo on inclusion of “ammunition” and “military equipment” activity in articles of association of the company. However, registration authority from time to time waives registration of companies with such specification.
Professional Company is a company with Professional license. As a shareholder, such companies may have Foreigner with 100% shareholdings. Nevertheless, structure of the company presupposes presence of local Sponsor operating as an Agent and not having any shareholdings in capital of the Company. Such foreigner shall confirm its professional status. Companies of such type are companies of professional LAWYERS, practicing DOCTORS, etc.
Yes, it is. Charity Society License Type Professional Activity Description Includes charity societies founded for collecting donations, grants and alms, and spending them on the charity works and projects either inside or outside the country, expenditure aspects include in particular grants for the needy muslims, students, orphans, preachers, building mosques, schools etc.