Dubai Overview
Hotline: 86-755-82143348, Email:anitayao@citilinkia.com
Dubai is located on the Eastern coast of the Arabian Peninsula, in the south west corner of the Arabian Gulf. With an area of 3,885 square kilometers,it is the second largest emirate in the UAE.It has become a major business centre with a more dynamic and diversified economy.enjoying a strategic location and serves as the biggest re-exporting centre in the Middle East.
BUSINESS TYPES FOR REGISTRATION
The UAE Commercial Company Law recognizes the following major forms of companies in the UAE:
1) Limited Liabilities Companies
2) Branch Offices
3) Representative Offices
4) Free Zone Companies
Companies located outside of designated Free Zones must be owned from at least 51 per cent by a local UAE national.Companies located in Free Zones are not allowed to trade goods with the local UAE market directly, however - they must use authorized local agents and the import customs duty (usually 5 per cent) has to be paid when goods are released onto the local UAE market. Services and products can be purchased from and within the UAE market may be purchased directly, without an agent.
CORPORATE SHAREHOLDERS, DIRECTORS AND COMPANY SECRETARY
Minimum of one Shareholder, Director and Secretary required. Corporate Shareholders and Corporate Directors are permitted. There is no requirement to appoint a local resident director and the shareholder can be the same person as the director. Directors may be any nationality and may reside anywhere. The foreign shareholder may appoint all the directors, the general manager, may veto major decisions of the company, may be entitled to all the assets of the company on winding up and be entitled to more than 49 percent of the company's profits.
COMPANY NAME OF DUBAI COMPANIES
There is not much limitation in the company names, it can be ended with the word “limited” or “ltd”, while the company name must not contain the following words and must not pursue with listed business activities: BANKING, INSURANCE and REINSURANCE.
BUSINESS SCOPE FOR DUBAI COMPANY
Companies Law stipulates that an International Company may engage in any lawful activity except any banking and the investment of money for others business or undertake the business of an insurance or reinsurance company, insurance agent or an insurance broker. In certain circumstances, the prior consent of a Federal Ministry or competent local authority will be required. These activities include: Oil & Gas, Banking & Investment, Financial Services, Insurance, Media, Transport, Construction, Telecommunications, Real Estate Management, Architectural and Engineering Consulting, Tourism, Shipping, Civil Aviation, Legal Services, Medical Services, Education.
REGISTERED CAPITAL AND PAID-UP CAPITAL
A limited liability company in Dubai is based on a minimum share capital of 300,000 AED in cash or kind.The minimum share capital of a public shareholding company depends on the type of company, for example: 10 millions AED for a simple public company, 25 millions AED for investments companies and insurance,40 millions AED for banks. Arbitrarily determined by the company owners.
Recommended – 1000 AED. However, there is no requirement to pay in the capital. The documents could be notarized by a Notary Public Solicitor (“N”) or could be legalized or attested by a Ministry of Foreign Affairs in the country of the applicant and further stamped by the UAE OR Arab Embassy.
PROCESSING STEPS FOR A DUBAI COMPANY
Fill out an application form→ Payment→ Sign statutory documents personally→ Forward the documents to the Dubai relevant government departments immediately→ Finish within 15-25 working days→ Collect the documents at the designated office within three months.
DOCUMENTS REQUIRED FOR DUBAI BUSINESS SETUP
1. Regular Documents
1.1) Application form duly filled – 'Application for License'
1.2) Business card of contact person
1.3) Passport copies of partners
1.4) Passport copy of manager
1.5) Original bank reference letters of partners (Good Standing Letter)
1.6) License copy of existing company (if any)
1.7) Original bank reference letter of existing company (if any)
2. Additional Documents
2.1) For Industrial license
2.1.1) Business Plan / Feasibility Study
2.1.2) Existing company profile (if any)
2.1.3) 'Investor Project Profile' form duly filled
2.2) For Consultancy license
2.2.1) Copy of Degree / Diploma certificate related to the activities desired in the license (for at least one of the partners)
2.2.2) Experience certificate related to the activities desired in the license.
Note : One of the above documents is must to obtain the license.
2.3) For Branch of companies
2.3.1) Copy of license / certificate of registration / certificate of incorporation – attested
2.3.2) Copy of Memorandum of Association & Articles of association – attested
2.3.3)Original Board Resolution calling to establish a branch. It should guarantee financial commitment of the branch and mention appointment of a legal representative / Manager
2.3.4) Original Power of Attorney of legal representative / manager (as mentioned in Board Resolution)
2.3.5) Passport copy of legal representative / manager
2.3.6) Parent company's bank statements for last three months
Note: all above documents should be translated in English, notarized and attested / legalized through UAE or other suitable GCC or Arab Embassy in the country from which documents originate.
TIME NEEDED FOR REGISTRATION
For a Dubai free trade zone company, we will legally complete Dubai company start-up within a time period of 2-3 weeks on the collection of the required documents.
BANK ACCOUNT OPENING
The creation of a bank account in Dubai depends on the area where the company is located. For example, the following documents must be deposited at the bank before starting a business in the free zone: passport, UAE Visa, original signed legal documents of the company, a mail address. These documents must be submitted in the presence of the manager of the Free Zone Company. The whole process doesn’t take longer than a week. We are offering the opening of a Business Offshore account in many of our Offshore International partner banks. From the order from you will be ale to select the type of bank account you wish to have for your Offshore Dubai Company.
TAXATION IN DUBAI
There is no federal tax legislation in the UAE, instead each Emirate has its own tax law. The following taxes are not applicable in the UAE:
1) Personal income tax
2) Capital gain tax
3) Value-added tax
4) Withholding tax
5) Corporate tax
Only oil, gas and petrochemical companies and branch offices of foreign banks are required to pay taxes.With regards to property tax, in most of the emirates, tax is payable by residential and commercial tenants by reference to the annual rent of residential property at a rate of 5 per cent and for commercial property at 10 per cent of the annual rent.
LICENSING REQUIREMENTS FOR DUBAI COMPANY REGISTRATION
1) Industrial License:
Activities allowed: Import raw materials, manufacturing, processing, assembling, packaging, and exporting finished products.
2) Commercial License:
Activities allowed: Import, export, distribution, consolidation, storage or warehousing of items specified on the License. Maximum limit is seven similar product lines.
3) Consulting and Service License:
Activities allowed: Offering consulting services in management, finance, investment, legal issues, labor relations, economics (including feasibility studies), industrial development, marketing, and related subjects. Other services include logistical support such as: restaurants or food outlets, catering services, travel agencies, leisure and social activities, insurance, cargo & freight forwarding, accounting, and audition services.
4) Commercial - General Trading License:
A General Trading License can be obtained under a Commercial License, which allows for more than seven product lines.
UAE RESIDENCY VISA THROUGH EMPLOYMENT
The UAE requires Visas for all nationalities except for nationals of the Gulf Countries Co-operation Council. Other nationals may enter the UAE on visit/tourist visas, transit visas and employment or residence visas.
Foreign nationals wishing to take up employment in the UAE must obtain employment visas, which are issued by the United Arab Emirates Ministry of Labor, and residence visas which are issued by the UAE Department of Immigration. All Free Zones have their own immigration departments.UAE employment visas are valid for three years - renewable for additional three year periods. Residence visas are granted to dependents of foreign nationals. Currently no quota system is imposed on immigration into the UAE.
WHY CHOOSE DUBAI
1. Hassle free legal and documentation procedures
2. Free zone offshore companies are exempted from legal aspects pertaining to onshore counterparts
3. Single point regulatory body – Free zone authorities are the single point of contact for all matters related to licensing and other regulations
4. Nominal registration fees (as low as 5,000 Dirham currently)
5. 100% foreign ownership of the company and customs privileges
6. Tax free import and re-export on most commodities
7. 100% allowance for repatriation of all profits and gains
8. Corporate tax free operations for 15 to 50 years (renewable)
9. Free foreign manpower recruitment policy
10. No currency restrictions
11. Ongoing administrative assistance from the free zone authorities
12. Attractive Tax Regime: (a) Dubai Offshore Companies are exempted from taxes on profit, capital gains or anything else; (b) Personal income tax exemptions
13. No Tax on offshore companies except oil companies and banks
14. Liberal immigration regulations for offshore professionals
15. No exchange controls.
Contact us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143512, or emailing to anitayao@citilinkia.com.