Alfa Management Consultancy FZE

COMPANY INCORPORATION AND BUSINESS CONSULTING IN UAE

Introduction

Who we are?

Registered management consultants, Business consultants and Accounting professionals and Auditors

UAE offshore company formation agents.

Offices in Dubai, Ras Al Khaimah in UAE and associates and counter-parts offices in Abu Dhabi, Sharjah, Chennai, Singapore and Hong Kong having more than one-decade experience.

What is this presentation is all about?

Topics covered:

1. UAE Geography and Economy in nutshell
2. UAE Free Trade Zone Company formation and mainland company formation
3. Key benefits of UAE designated Free Trade Zones and non-designated free trade zones
4. Types of company formation in UAE

1. UAE Geography and Economy

UAE is an Arabian Peninsula located southwestern coast of Persian Gulf and northwestern coast Gulf of Oman.

• Majority of citizens/residents speaks English even though official language is Arabic
• More than 155 nationalities living in UAE, working, doing business and enjoying quality lifestyle
• Federal type of government system- seven emirates namely Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah
• Easy access to all Emirates within range of 15 to 150 km
• Vibrant Economy
• All currencies freely exchangeable in UAE
• Access to Excellent Banking Systems
• FDI department setup for major push for manufacturing sector
• UAE Free Zones plays major role in UAE economy
• Political and economic stability
• Average GDP growth of 8% annually since 2011
• UAE engaged with global treaties to avoid double taxation
• 5% value added tax introduced in UAE from 1^st January 2018 onwards. There are special exceptions for designated free zones inside UAE. Out of 43 free zones, UAE 23 designated free zones which provides tax benefits.
• UAE Economy Recent Fact File

2. UAE Free Trade Zone Company formation

• Special Economic Zones
• 100% ownership for expatriate investors
• Income Tax Free destination
• Free Customs Duty inside free zone areas and customs duty drawback applicable to all manufacturing activities inside with certain exceptions, if you bring goods from free zone to mainland companies for trading purpose attracts duty
• Free Zones necessitates to register 100% free zone ownership companies in industrial activities, commercial, trading and consulting activities. There are industry specific free zones are available in UAE, namely, Textile city, Dubai international financial center, logistics city, maritime city, gold and diamonds parks, technology parks, sports city, media city, media production zone, biotech research parks and facilities etc.
• UAE has more than 40 free zones across the country. Choosing free zone depends on customer’s business model and requirement
• Some free zones having rep offices worldwide
• Special benefits for designated free zones from various taxes
• User friendly rules and regulations
• All govt. departments are under one roof

3. Key Benefits of UAE Free Zones

• 100% Tax free operations
• 100% foreign ownership
• Guarantee against taxes
• No personal income taxes
• No corporate income taxes
• No restriction on repatriation of funds
• No currency restrictions
• Formation of holding companies
• Cost effective solutions to meet your requirement

4. Types of company formation in UAE

Jurisdictions:

• Mainland limited liability companies, private partnership companies, public and private joint stock companies, the companies can be incorporated across seven emirates outside the free zone areas
• Free Zone Companies, the companies can be incorporated across 43 free zones in all the seven emirates with 100% ownership.
• Offshore Companies, IBC companies can be incorporated in Abu Dhabi, Dubai, Ajman and Ras Al Khaimah.

Types of business entities.

There are mainly three types of business entities permitted by law in the UAE and they are:

(a) Professional

(b) Commercial/Trading

(c) Industrial

- Onshore –Mainland companies (LLC companies, most common type of companies) with 51% UAE local Shareholder and 49% Expatriate Shareholder. Public Joint stock companies, Private Joint stock companies and Joint Liability Company

- Onshore-Free zone Companies can be formed with 100% foreign Ownership

- Offshore Free Zone IBC Companies (International Business Companies)

RAKICC

JAFZA Offshore

Ajman Offshore

SPV’s-Abu Dhabi/Dubai/Ras Al Khaimah

(d) Branches –

(i) Branches can be established for Foreign Companies. The branch office shall carry on the activities of the Parent Entity. The Branch Office should have a local agent who shall be a UAE National.

(ii) Branch also includes branch of a UAE based company where the branch is 100% owned by the parent company.

(iii) Branches can also be branch of GCC based company where the branch is 100% owned by the parent company which is headquartered and based in one of the GCC countries.

(iv) Similarly, a Free Zone Company can have a branch in mainland.

(g) Representative Office – office set up in the UAE to represent a Foreign Company which can only perform the liaison function and is not permitted to import or export goods.

For more details, assistance and consulting, please contact us.