FREQUENTLY ASKED QUESTION
We are happy to answer any specific questions that you may have for your company setup. (Please fill out the above form to contact us). Please find answers to common questions that most entrepreneurs thinking about setting up a UAE company / Dubai Free Zone company below.
Q1. WHY SHOULD I START A COMPANY IN THE UAE ?
Being one of the most advanced, forward looking, and business oriented states in the world, the United Arab Emirates has a number of factors that makes it an attractive destination to foreign investors such as: • State-of-the-art infrastructure
- Regional hub for trade and business with a stable government
- Regional leader in health, education and government services
- Dubai was awarded the right to host Expo 2020
Q2. WHAT ARE THE LAWS CONCERNING COMPANY SETUP / COMPANY FORMATION IN THE UAE ?
Federal Law No. (8) of 1984 or the Commercial Companies Law, is the law which details the rules for company incorporation in the UAE. The provisions of this law apply to commercial establishments that are either incorporated in the UAE or have their activities based in the country. The UAE Commercial Companies Law requires that each company established in the UAE have one or more UAE national partner(s) who hold at least 51% of the company's capital. Companies established in Free Zones, which are governed by special rules and regulations related to special economic zones are exempt from the provisions of this law.
Q3. WHAT IS A FREE ZONE ?
A Free Zone is a clearly defined area located in the UAE with a special legal, customs and imports regime, with a status of extraterritoriality.
Q4. HOW QUICKLY WE CAN HELP YOU GET YOUR DUBAI FREE ZONE COMPANY / AJMAN FREE ZONE COMPANY / HAMRIYAH FREE ZONE COMPANY SETUP ?
This greatly depends on the jurisdiction and the business activity that you choose. We currently incorporate companies in a Free Zone jurisdiction in which you can receive your business license in as little as 2 business days.
Q5. WHAT ARE ADVANTAGES OF STARTING A COMPANY IN A FREE ZONE ?
Streamlined and investor friendly process and procedures make free zones a preferred option for foreign investors. In addition to the aforementioned, the benefits of setting up in a free zone are the following: • 100% foreign business ownership
- Zero personal and corporate tax rate
- 100% capital repatriation and no currency restrictions
- Unique industry clustering and purpose built infrastructure
- Comprehensive client relationship management providing efficient service for processing of all documentation
Q6. IF I OR MY EMPLOYEES HAVE A RESIDENCE VISA ISSUED FROM A FREE ZONE, ARE WE RESTRICTED TO LIVING ONLY IN THE FREE ZONE ?
Any person whose residence visa is issued from a Free Zone is allowed to reside anywhere in the UAE.
Q7. IF I HAVE A FREE ZONE COMPANY, CAN I DO BUSINESS OUTSIDE THE FREE ZONE?
Yes, your company may conduct business outside of the UAE without restriction, provided it is legal. If you wish to trade within the UAE (known as “Onshore”) there are two main methods for doing so. The first one is to trade directly with an LLC company that has an import/export license. As part of the terms of trade they would need to clear any goods through customs. Secondly, you may enter into an agreement with a logistics company that would clear the goods and deliver them to the mainland. For services companies wishing to provide services to a company outside the free zone, the general rule is that the services must be provided within the Free zone. There are certain exceptions, such as recruitment services where stricter rules apply.
Q8. WHAT IS AN OFFSHORE COMPANY ?
An offshore company is a firm which is incorporated in an offshore jurisdiction (such as RAKIA) and pays no tax in that jurisdiction. It is not allowed to do business within the United Arab Emirates but can do business worldwide, open bank accounts, and conduct all legal enterprise activities it is licensed to do.
Q9. WHY INCORPORATE A RAK OFFSHORE COMPANY ?
Individuals and corporate entities interested in minimization of costs and/or tax liabilities incorporate an offshore company. Clients include high net worth individuals, international traders, entrepreneurs, and property owners.
Q10. AM I ENTITLED TO ANY RESIDENCE VISAS WITH AN OFFSHORE COMPANY / RAK FREE ZONE COMPANY ?
No residence visas are issued for an offshore company