Company Registration in UAE
Important Facts you shall know :
Registration of a company enables the business owner to obtain a two-year Dubai residency visa (renewable as long as the company remains registered in the country) for himself, his family, and employees (pay attention - visa is not an obligatory requirement for company formation).
Contrary to what many companies advertise in order to attract customers, it should be known that starting July 2023, most companies registered in the United Arab Emirates and Dubai are required to pay a 9% tax rate on their profits (including companies registered in the free trade zone), subject to several exemptions and exceptions – see further elaboration below.
However, there is no tax on dividends in the United Arab Emirates so the final tax rate is usually 9% in the country (a relatively low tax rate compared to most countries in the world). It is possible to withdraw equity capital and profits without restriction and without tax.
It is allowed to own 100% of a company's shares regardless of whether the company is registered in a Free Zone or on the UAE mainland. Having a local Emirati partner is generally not required, with the exception of companies operating in specific restricted sectors
It is very important to make the right decision on whether to register the company as a Free Zone company or as a Mainland icompany. The differences are substantial in several aspects including: the ability to work in the UAE itself versus local businesses, taxation, the number of visas obtainable, the need for a local partner, opening a bank account, and more.
If the company operates in the UAE Mainland itself or with local businesses, it is advisable to establish a Mainland company since a Free Zone company will greatly restrict your activity.
if freezone company as the right choice - It is very important to choose in which Free Zone to register the company. This is not an easy decision, especially considering that the country has numerous Free Zones across all the Emirates participating in the United Arab Emirates federation. There are differences between the various zones and Emirates in several aspects, including the cost of establishing the company, the annual maintenance cost, permitted business activities in that particular Free Zone, the minimum share capital of the company (the extent of personal liability), the cash amounts required to deposit in the company's bank account (in most Free Zones such an obligation does not exist)
It is possible to establish the company remotely without needing to travel to the country. However, if you want to obtain a residency visa, then issuing the visa requires being present in the country at the time it is issued
There is no need for a local director. However, it is mandatory to have a local office and address. In most cases, it is sufficient to have a shared office with a lower cost.
- low company taxes: 0%-9%
- no wealth tax
- tax residency certificate
- no tax on salary and Private investments
- Visa for 2 years (renewable)
Taxes in Dubai and UAE - The Complete Guide
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