Company Formation across UAE & GCC (Onshore, Offshore, Free zones, Mainland etc.)
UAE is a collection of 7 emirates which have their own business and free zones and attract foreign investors from all over the world. The Emirates provides a platform for different types of business entities to be incorporated. After the incorporation they need to obtain a trade license based on the business establishment, and initiate the process of holding a corporate bank account and the various visa processes. Let’s have a look at how Company Formation Services can help your business grow.
Offshore Company Formation in Dubai
What is an offshore/ Free zone company?
These offshore companies are often set up as acting or holding companies aiming for the consolidation of a group of entities in the UAE and internationally. These companies are as well allowed to carry commercial and professional business activities. Offshore companies registered in Dubai (JAFZA) / RAK (RAKICC) do not have permission to engage in business operations within the UAE and they are restricted to carry certain activities. You may find more information here. The main benefits of an offshore company in the UAE are:
- No taxes
- Confidentiality of director names and financial information
- No accounting or auditing requirements
- Simple incorporation process
- Asset protection
- Stable and transparent laws
An offshore company is a business entity that is formulated in a low-tax or no-tax jurisdiction for the purpose of legally minimizing the tax payment and improving the investor‘s wealth management. Primarily one would open an offshore company to gain confidentiality over one’s financial affairs and grow wealth without intrusion. Going offshore is the most modern popular way of managing the business as they offer excellent and tax-efficient strategies for entrepreneurs. Important prima facie benefits are freedom of operations, confidentiality, and ease of running the business. As “tax-free” business territory, Dubai, UAE, is one of the well- known jurisdictions for offshore company formation.
Onshore Company Formation in Dubai
What is an Onshore or Mainland company?
The new Commercial Company Law also allows foreign companies to establish a mainland branch in Dubai without it needing to be a separate legal identity. Although this is possible, this does not enable the parent company to be entitled to limited liability legal protection and onshore branches are restricted to carry out the same activities as their parent company. A mainland company in Dubai is registered under the UAE Department of Economic Development and there are multiple licenses types a business can obtain after the formation is complete. The main benefits of a mainland company in the UAE include:
- The freedom to choose a premise in any area of Dubai
- The ability to conduct a wide range of business activities
- The freedom to trade internationally, including inside the UAE
- Residential visa for you, family members and employees
- Access to skilled professionals
- Stable and transparent laws
An onshore or mainland business entity in Dubai is a company that is established anywhere within the limitation of commercialized geographical areas of Dubai. These areas come under the jurisdiction of the Emirati Government, which have a mandatory requirement of a UAE national to hold at least 51% of the total equity of any commercial business registered as a Limited Liability Company (LLC), making the maximum foreign shareholding allowed for a foreign national to be 49%. On the 23rd of November 2020, a new Federal Decree-Law No. (26) Of 2020 has been introduced to amend foreign ownership restrictions and allowing foreign investors to own up to 100% of the share capital for the majority of commercial companies. This new Decree is expected to come into force during 2021.