Expand your business to the Hub of the Middle East…the UAE offers a number of Free zone options, International Business companies and inland UAE entities. There are no income or capital taxes in the UAE (except for certain limited activities), and no withholding taxes. Companies in the UAE can obtain further significant advantages from the absence of foreign exchange controls, trade barriers or quotas, making it an ideal location for business setup and company formation. While Dubai has been particularly attractive over the last few years, Abu Dhabi, the federal capital and the largest of the seven emirates, has also been working hard to increase its global presence as a centre for all commercial activities, not just the oil and gas sector.
RAKEZ (RAS EL KHAIMAH FREE ZONE):
Situated in the heart of Ras Al Khaimah in the United Arab Emirates, Ras Al Khaimah Economic Zone (RAKEZ) is a powerhouse business and industrial hub that offers customisable solutions to free zone and non-free zone businesses in a multinational community flourishing in over 50 sectors.
Established by the government of Ras Al Khaimah, RAKEZ is an authority that supports startups, entrepreneurs, SMEs and industrialists with their business set-up requirements by providing them with a range of licences and customisable facilities as well as first-class support services such as visa facilitation.
RAKEZ offers cost-effective business solutions as below:
- Free zone and non-free zone entity formation
- 100% ownership
- Fast and efficient business set-up processes
- Wide-ranging business and industrial facilities and value-added services
- Provision to build on-site staff and labour accommodation
- One-stop shop, a central location for government services
- Portal 360 – a self-service online client portal
- Connectivity to major logistical hubs and multi-lane superhighways
- Accessibility via an international spread of regional offices
- Easy access to markets across the MENA and Asia regions
Free Zone Entities
- Zero income and corporate taxation
- Access to local market through a local agent
- Freedom to source labour
- 100% ownership & profit repatriation
- no customs duty on re-exported goods
Non-Free Zone Entities
- Zero income and corporate taxation
- Established in association with a uae partner
- Direct sales in local market
- No customs duty on sales in local or gcc markets
- Subject to uae labour law
- Free Zone entity:
- Free Zone Limited Liability Company -FZLLC (1 to 50 shareholders)
- Non Free Zone Entities:
- Individual Establishment (Sole owner);
- Limited Liability Company (2 to 50 shareholders);
- Branch of UAE entity (including UAE Free Zone Companies);
- Branch of Non UAE Entity (located outside the UAE):
Types of Licenses
RAK INTERNATIONAL CORPORATE CENTRE -RAKICC (INTERNATIONAL BUSINESS COMPANIES)
RAK International Corporate Centre (RAK ICC) is a Corporate Registry operating in Ras Al Khaimah, United Arab Emirates.
RAKICC is the consolidation of two company registries in Ras Al Khaimah; namely RAK International Companies (formerly a part of RAK Free Trade Zone) and RAK Offshore (formerly a part of RAK Investment Authority). RAKICC was formed as per the Decree No.12 of 2015 and as amended by Decree No.4 of 2016.
RAK International Corporate Centre is responsible for the registration and incorporation of International Business Companies, as well as providing a full suite of Registry services related to International Business Company activity.
TYPE OF COMPANIES
- Company Limited by Shares
- Company Limited by Guarantee
- Restricted Purposes Company
- Segregated Portfolio Company
- Unlimited Company
- Intellectual Property Holding Company
- Premium Product
- Transfer of Domicile
- Wills & Probate
Features of RAKICC companies:
- State of the art legislation with common law influence
- Robust compliance procedures
- Automated registry services
- Flexible approach to Memorandum and Articles of Association
- No minimum capital requirement
- No requirement to file financial accounts
- Continuation / re-domiciliation of foreign companies is permitted
- Corporate directors are permitted provided at least one natural person as a director
Main Types of RAKICC Companies:
- Company limited by Shares (CLS);
The essential feature of a CLS is that the liability of shareholders is limited to the amount of capital that they have committed or have agreed to commit. A CLS must at all times have at least one shareholder and one director. A CLS may issue bonus shares, partly paid shares or nil paid shares. For succession purposes, shares may be held by more than one person as joint owners.
RAK ICC companies limited by shares are flexible and administratively have simple corporate vehicles that can be used for a number of purposes such as:
- International Business Company
- Holding Company
- Special Purpose Vehicle
- Joint Venture Company
- Project company
- Family office
- Segregated portfolio Company
- Company Limited by Guarantee (CLG)
The essential feature of a CLG is that its guarantee members give an undertaking to contribute to the CLG by a specified amount in the event of its liquidation. The liability of a guarantee member is limited to that specified amount. A CLG must have at least one guarantee member. The membership rights of guarantee members are not transferable. A guarantee member remains liable to the company for one year after it ceases to be a member.
A CLG may be incorporated as a CLG authorised to issue shares or as a CLG that is not authorised to issue shares. Where a CLG is authorised to issue shares, a guarantee member may also be a shareholder.
RAK ICC companies limited by guarantee are flexible corporate vehicles that can be used for a number of purposes. A classic example is to act as an incorporated association or to confer on apartment owners certain membership rights in the company that manages the real estate development for the apartment owners.
- Unlimited Company (UC)
An unlimited company is a company incorporated with or without a share capital where the liability of the members is not limited: that is, its members have a joint, several and unlimited obligation to meet any insufficiency in the assets of the company to enable the settlement of any outstanding liability in the event of the company’s formal liquidation. Similarly to a general partnership, the members of a UC have unlimited liability; unlike a general partnership, the UC is a separate legal person capable of owning assets in its own name.
RAK ICC unlimited companies are flexible and administratively simple corporate vehicles that can be used for a number of purposes.
- An UC may be of use to avoid the need for shareholder guarantees to support the credit of the UC, for example where an UC is dealing with a sole customer, it requires recourse to the shareholders of the UC.
- International Tax Planning
DUBAI MULTI COMMODITIES CENTRE
Dubai Multi Commodities Center (DMCC) was set up in 2002, to create a global market place for commodities and to drive trade flows through Dubai. DMCC master planned and delivered the DMCC Free Zone in JLT, a 200 hectare business and residential community of over 100,000 people living and working across 68 towers including Almas Tower one of the tallest commercial towers in the region. The UAE is now the world’s largest re-exporter of tea with a 60 per cent share of the market.
DMCC offers 100% foreign business ownership, full capital and profits repatriation and 0% personal and corporate tax for 50 years guaranteed.
DMCC offers a very wide range of business activities grouped under 3 types of licenses: Service,Trading and General Trading as well as Industrial. A DMCC Company can have up to 5 business activities from the same category under one license.
DMCC (Dubai Multi Commodity Center) is home to companies trading in commodities including precious metals and stones, as well as rough diamonds. The Dubai Diamond Exchange as well as the Dubai Kimberly office are housed in the ALMAS Tower in JLT.
The minimum share capital required for a DMCC Company is AED 50,000 and should be deposited in the corporate bank account not later than 4 weeks after the approval of the trading license. The share capital can be withdrawn at any time after the registration process is completed. Branches are exempted from capital requirements.
A DMCC company is required to file annual audited Financial Statements and an Auditor should be officially appointed within one month after the trade license is issued.
DUBAI SOUTH FREE ZONE
The Dubai South Free Zone, formerly known as Dubai World Central, was launched in 2006 with Al Maktoum International Airport at its core. Dubai South is located near major trans-emirate road networks in the UAE, the Jebel Ali Port and the Al Maktoum International Airport and serves as a logistics and trade hub in the region. Dubai South falls under the umbrella of Dubai Aviation City Corporation
Dubai South is the host to the Al Maktoum International Airport (which will become the world’s largest airport once completed) and key events such as World Expo 2020 and the Dubai Airshow, Dubai South represents the future face of the emirate.
Dubai South Key Features
- 100% foreign ownership
- 100% repatriation of capital and profits allowed
- No personal income tax
- No corporate tax
- Entitled to Tax Residency Certificate
- No public disclosure of information
- A Dubai South Free Zone Company may apply for shareholder and/or employee residence visas after receiving its licence. The residence permit is valid for three years for the shareholders and for two years for employees.
- No re-domiciliation permitted;
- Tax Rate: VAT at 5%
MAIN LAND DUBAI COMPANY SET UP
Registering a mainland Dubai entity is a straightforward process. We can help you with the set up in its various stages. In Dubai Mainland, you can register under a Commercial License, a Professional License, an Industrial License or a Tourism License. A mainland Dubai entity requires a UAE national as a partner.
A commercial license is is issued to a business involved in any sort of commercial trading activity. General and specialised traders can avail a commercial license in Dubai and trade freely within the UAE and internationally.
A Professional License is a service-oriented business enjoying 100% ownership. Individuals who wish to practice a profession which is depended on their knowledge and skills can attain a professional license in the UAE.
An industrial license in Dubai is attained by those enterprises who transform natural material or natural resources into other final products. Industries & manufacturing units are required to attain an industrial license by the DED.
The tourism sector is undisputedly one of the most profitable industries in Dubai because of which it has a high demand for tourism business licenses in the region. You need a tourism license to start a tours & travel business.
Among other, the most notable advantages of a Mainland Dubai entity are:
- Ability to engage in business with government & semi-government entities;
- Ability to trade freely both within the UAE and around the world.
ADGM – SPECIAL PURPOSE VEHICLE (SPV)
Abu Dhabi Gold Market (ADGM) offers numerous options for business set up. Amongst those are the creation of Special Purpose Vehicles (SPVs) which are passive holding companies established for the purpose of isolating financial and legal risk by ring-fencing certain assets and liabilities. SPVs cannot be used to conduct operational business or hire staff.
ADGM SPVs are mainly used for:
- Holding shares in Companies
- Real estate investment and financing
- Asset transfer
- Risk sharing
- Raising capital
- Assets segregation
- Intellectual Property
- Special Purpose Vehicle tax residency
All ADGM registered entities are eligible to apply for a Tax Residency Certificate from the UAE Ministry of Finance to benefit from the UAE’s Double Tax Treaty network. Entities will need to meet criteria set out by MoF.
- No office space needed
ADGM allows the use of an agent/ corporate service provider to manage the SPV and to provide the registered office address.
- Tax efficient
Access to broad UAE Double Tax Treaty network.
- No attestation required
No attestation required for corporate document and no requirement to file audited financial accounts.
- Limited Information disclosure on Public Register:
A unique ADGM SPV offering-limited information disclosure on the public register but full disclosure to the ADGM Registrar
- Common law Jurisdiction
Common law directly applied an independent jurisdiction with its own civil and commercial laws