U.A.E.

Company Formation in U.A.E.

United Arab Emirates (UAE) ideally located to cater to the fast growing market with a large population in Asia. YourGlobalPro can assist in UAE for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval and Trademark Registration.

About the Country

The United Arab Emirates (UAE) is a federal absolute monarchy in Western Asia at the southeast end of the Arabian Peninsula on the Persian Gulf sharing land border with Oman to the east and Saudi Arabia to the south & maritime borders with Qatar to the west and Iran to the north. Established on 2 December 1971 Is a federation of seven emirates – namely Abu Dhabi (which serves as the capital), Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah and Umm al-Quwain. The below content will explain you in detail about the requirements for the company formation in United Arab Emirates, know more about the process of trademark registration in United Arab Emirates and understand the United Arab Emirates Legal Compliance requirements.

U.A.E.

Doing Business Introduction

The Country’s as the second largest economy in the GCC after Saudi Arabia.  As per Doing business report of The World Bank –United Arab Emirates ranks 26 for 2017 survey. It has the most diversified economy in the GCC. YourGlobalPro professionals are able to assist with any type of company formation in United Arab Emirates, trademark registration in United Arab Emirates and other recurring services for your business in United Arab Emirates.

Incorporation - Types of Business Entities

There are several types of entities that can be incorporated in United Arab Emirates are as mentioned below:

  • Through an agent / distributor
  • Limited Liability Company (LLC)
  • Branches and Representative Offices of Foreign Companies
  • Professional Firms
  • Free Zone Entity
  • Joint Venture
  • Merger & Acquisition

Time Frame for Incorporation of Company in United Arab Emirates varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimates the time required for the process of Company formation in United Arab Emirates to be completed is 7-10 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in United Arab Emirates:

  • No corporate taxes on the profits for entities
  • No income taxation for business owners or individual
  • Protection of the interests of the foreign business owners.
  • No restrictions at the legislative level on the currency exchange
  • Leading international transport hubs
  • International trade flow with the minimal costs
  • Free trade zones in different parts of the United Arab Emirates
  • Strategic location in the heart of the crossroads of the trade routes of East and West, Europe and Asia
  • Free repatriation of the invested capital and gained profits

Tax Registration and Filing

In United Arab Emirates, Taxes are currently imposed at the Emirate level only on oil and gas producing companies in accordance with specific government concession agreements, and on branches of foreign banks under specific tax decrees or regulations or in accordance with agreements with the Rulers of the Emirates in which the branches operate.

Corporate Income Tax Rate 0%
Capital Gains Tax Rate 0%
Branch Tax Rate 0%
Withholding Tax 0%
Branch Remittance tax 0%
Value Added Tax (VAT) 5%
Imports Customs Duty 5%
Free Zones Offer Tax and Business Incentives
Transfer Pricing Policy Not practiced
Stamp Taxes Not levied
Tax Only on Corporate Entities engaged in the production of Oil and Gas or the extraction of other natural resources in the UAE.

Double Tax Treaty

Double Tax Agreements (DTA) regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. United Arab Emirates has double taxation treaties with over 50 countries.

Trademark registration

For trademark registration in United Arab Emirates, an application needs to be made to the Ministry of Economy. It takes approximately 10-12 months’ timeframe to complete the trademark registration process. The Trademark Registration in United Arab Emirates is valid ten years from the date of filing trademark and is renewable for ten years period by paying the renewal fee by the expiration date for an unlimited number of times.

YourGlobalPro professionals are fully equipped to assist you with the trademark registration process for your business in United Arab Emirates. For assistance or advise in the matter of the trademark registration or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in United Arab Emirates:

  • Obtaining Trade Licenses and Permits as required under law before commencing business.
  • Maintain proper books of accounts and a special register of the partners as required under the UAE Commercial law.
  • Before carrying out any changes to the constitution in the company such as change of company name, registered office, business objects, financial year, etc the prescribed procedure with the Regulatory Authority needs to be followed.
  • To have preparation of the financial statements (i.e. balance sheet and profit & loss account) and annual report on activities and financial position of the LLC
  • The Annual General Meeting agenda shall be prepared in advance for the meeting as per the requirement and guidelines of the UAE commercial company law
  • Companies are required to prepare the minutes of meeting after every meeting sessions in a special register.
  • The Board of Directors shall prepare the minutes of the board meetings which should be entered in a special register

Accounting Services

The Entities in United Arab Emirates are required to maintain proper accounting records. However, there is no national GAAP in the UAE and no specific language requirement for the purpose of keeping books and records, although English is widely used. International Financial Reporting Standards (IFRS) are mandated by the Emirates Securities and Commodities Authority (SCA) and the Central Bank of the UAE and adopted as the default GAAP by other companies.

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your United Arab Emirates Business Set up as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts 

Auditing service

In United Arab Emirates, most authorities ask for audited statutory financial statements (SFS) at the time of the renewal of the annual trade license. The requirement to prepare SFS varies within each regulatory authority.

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals provide auditing services as required by your business.

Banking

The Central Bank is the central bank in United Arab Emirates regulating the Banks and insurance companies in United Arab Emirates. The accounts can be opened and maintained in multi-currency and is available for all major currencies with the Banks.

The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening.  The major banks in United Arab Emirates are Mashreq Bank, RAK Bank, Emirates NBD, ADIB, CBD, Citibank, ADCB, Dubai Bank, HSBC, Islamic Bank, Standard Chartered. All banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals can facilitate all the paper work in relation to banking need and can assist you in opening bank account for your business plan in United Arab Emirates.

Legal and Compliance

In United Arab Emirates, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various United Arab Emirates legal and compliance requirement to be followed by incorporated entities:

  • The UAE Ministry of Human Resources and Emiratization requires all registered employers to use the Wages Protection System (WPS) for the transferring of wages to employees. In practice, this requirement is not enforced in all Free Zones in the UAE.
  • Neither the federal government of the UAE nor the individual Emirates impose foreign-exchange controls.
  • Ensure compliance with all applicable anti-bribery and corruption legalization (not just in the UAE), especially where the business has operations/ presence in other jurisdictions which have well established (and far-reaching) anti-bribery and corruption legislation (e.g. UK Bribery Act and the U.S. Foreign Corrupt Practices Act).
  • UAE employment laws and visa requirement to be complied.
  • Doing annual renewal of the companies with the regulatory authority by submitting the prescribed documents
  • Annual Review and comparison of company and registry records, to ensure full compliance with regulations;
  • Filing of annual accounts and annual returns

HR and Employment Law and Immigration / VISA

In United Arab Emirates, the foreigners are allowed to work on work visas and work permit. Below are some of the important points in relation to HR & employment law in United Arab Emirates:

  • All foreign nationals wishing to visit the UAE on business must have a valid visa status to enter the UAE, with the exception of nationals of GCC countries and passengers in transit who do not leave the airport.
  • Companies wishing to sponsor foreign national employees must apply for employment residence permits for the individuals and must be eligible to sponsor foreign nationals and have available quota.
  • For companies located in mainland jurisdictions, the applications need to be made to the Ministry of Human Resources and Emiratization and the General Directorate of Residency and Foreigners Affairs (GDRFA) and for companies located in Free Zone jurisdictions, application is made to the Free Zone authority and the GDRFA for the Visa processing.
  • Residence permits are granted to dependents of foreign nationals who have residence permits sponsored by a UAE company and who satisfy certain income and status conditions.
  • The maximum number of normal working hours for adult workers is 8 hours a day or 48 a week. Employers are not allowed to exceed the maximum number of working hours.
  • The worker does not work more than five consecutive hours without intervals for rest, meals and prayer, whose total period shall not be less than one hour.
  • Overtime by the employees beyond the normal work hours – entitles the employee for remuneration corresponding to normal working hours, plus an additional pay of not less than 25% of that remuneration.
  • Friday is ordinary weekly rest for all workers with the exception of the daily worker.
  • During the Holy Month of Ramadan, the normal working hours are reduced by two hours daily.

Country Statistics

Capital Abu Dhabi
Largest City Dubai
Area Total 83,600 Sq. Km.
Population 5,927,482
Density 99/ Sq. Km.
Currency UAE Dirham (AED)
Government: Federal Absolute Monarchy
Official language: Arabic
Recognized National languages Arabic, English, Persian, Urdu, Hindi
Religion Islam
Government Offices Hours Sun to Thu - 7:30 to 15:00. In the month of Ramadan, the working day is reduced to six hours
Business Offices Hours Sun to Thu - 8.30 or 9.00 am to 5.30 or 6.00 pm. In the month of Ramadan, the working day is reduced to six hours.
Banks and Exchange Houses Hours Sun to Thu - 7:30 to 15:00. In the month of Ramadan, the working day is reduced to six hours

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