GBO’s AUE company formation experts will assist you to incorporate you company and bank account in AUE
An LLC (limited liability company) is a popular business structure in the United Arab Emirates (UAE).
Some of the benefits of an LLC company in the UAE include:
- Limited liability: As the name suggests, an LLC offers limited liability protection to its owners, meaning that their personal assets are protected in the event that the business is sued or faces financial difficulties.
- Flexibility: LLCs offer flexibility in terms of ownership and management, as they can be owned by one or more individuals or corporate entities and can be managed by the owners or by appointed managers.
- Tax advantages: LLCs in the UAE are subject to a flat corporate income tax rate of 55%, which is significantly lower than the rates in many other countries.
- Ease of formation: Forming an LLC in the UAE is relatively straightforward, with a clear process for registering the company and obtaining the necessary licenses and approvals.
- Strong business environment: The UAE is a business-friendly environment with a well-developed infrastructure, making it an attractive location for setting up an LLC.
- International connectivity: The UAE is a hub for international trade and has strong connections with other countries, making it a good location for businesses looking to expand their operations internationally.
Overall, an LLC company in the UAE offers a range of benefits to businesses, including limited liability protection, flexibility, tax advantages, and a strong business environment. It is a good choice for many businesses looking to set up operations in the UAE.
The cheapest company formation in the UAE is typically a Sole Establishment. The types of company formation in the UAE include:
- Free Zone Company
- Mainland Company
- Sole Establishment
- Limited Liability Company (LLC)
- Branch Office
- Representative Office
- Foreign Company Branch Office
The Federal Law No. 2 of 2015 Governing Commercial Companies, which governs the establishment, structuring, and administration of commercial entities in the United Arab Emirates, is referred to as the UAE Companies Law (UAE). It lays out the guidelines for forming different kinds of businesses, such as limited liability companies, joint-stock companies, and branches of foreign corporations. The minimum share capital requirement, corporate management, shareholder rights, and business dissolution are all governed by the Companies Law.
A sole establishment can be incorporated for the least amount of money in the UAE. It is quite simple to set up and has cheap start-up costs, making it suited for small firms and sole proprietors. A Sole Establishment is not required to have a minimum share capital and the proprietor is entirely responsible for all debts incurred by the business.
The costs of setting up a Sole Establishment in the UAE can typically be broken down as follows:
Government Fees: These fees cover the price of getting a trade license, registering the company with the appropriate agencies, and getting the required permissions.
Creating and registering the required legal documents, such as the memorandum of organization and the commercial license, are included in this category of expenses.
Office Space: Depending on the area, renting office space or a physical address for the firm may incur fees. no need for an offshore UAE company.
Additional services that could result in a price increase include:
Professional services: These can include assistance with the formation process and continuing compliance requirements from a lawyer, auditor, or consultant.
Mail handling, telephone answering, and secretarial services are some examples of virtual office services.
A Sole Establishment can be set up anywhere in the UAE, including in free zones such as IFZA (International Free Zone Authority) which is located in Fujairah. Free zones offer benefits such as 100% foreign ownership, tax exemptions, and a streamlined company formation process. However, setting up a Sole Establishment in a free zone may be more expensive than setting it up in the mainland. The choice ultimately depends on the specific needs and goals of the business.
What are the main benefits of a limited liability company (LLC) in the UAE
Many new conditions were introduced recently, like permitting complete foreign ownership of LLC entities and long-term visas for investors. With professional advice from experts in business company setup in the UAE, you can benefit appropriately from all of these new rules and will avoid unnecessary problems and roadblocks.
is a company in UAE considered an offshore company by Europen regulators?
European regulators generally do not classify companies formed in the UAE as offshore companies. A corporation that is incorporated in a jurisdiction other than its principal place of operation in order to benefit from advantageous tax and regulatory regimes is known as an offshore company. Although the UAE is regarded as a tax-friendly country, it is not an offshore country in the conventional sense. Companies in the UAE are allowed to benefit from the hospitable business environment, but they must nevertheless abide by the laws and regulations of the country. To ascertain whether a company formation in the UAE satisfies the unique demands and requirements of the business, it is always preferable to speak with a legal or financial expert.
Company taxes in UAE
The taxes of a company in the UAE varies depending on a number of variables, including as the type of company, where it is located, and the nature of its commercial operations. There is no federal income tax in the UAE, despite having a federal tax system.
Companies from the UAE’s mainland are subject to a number of taxes, including the corporate tax, excise tax, and value-added tax (VAT). Certain businesses and activities are exempt from these taxes, nevertheless.
Companies located in free zones in the United Arab Emirates are often exempt from taxes like company tax, income tax, and VAT. They might also be qualified for additional advantages including 100% foreign ownership, faster company formation procedures, and a helpful business climate.
These reforms changed the field of business setup in Dubai. Other investors have already benefited. Proof of this is that there was a tremendous inflow of foreign direct investments totaling nearly 400 new companies investing 4 billion euros in the first nine months of 2021. From statistics like this, you can see that this is the right time for company formation in Dubai as long as you do it correctly. The benefits of a limited liability company in the UAE can flow only to corporations set up the right way.
New rules for visas
Foreign investors, businessmen and skilled service professionals can now qualify for the long-term Golden visa, which grants residency for up to five years. In the past, the most extended period for foreign residents was two years. For anything longer, getting a UAE citizen to sponsor you was necessary. The same rules held for family members.
Now, with a renewable Golden visa residency in the UAE, investors and skilled workers can also sponsor their own families. Make sure you get the proper visa for your own particular needs with the assistance of GBO’s business setup consultants in Dubai.
The UAE has also introduced a business entry permit for first-time investors seeking business opportunities. This special visa doesn’t require a host or sponsor. Let us here at GBO obtain this permit for you, so you can come to Dubai and learn about the great investment opportunities available.
Digital assets are coming to UAE free zones.
The government of Dubai has recently passed new laws regulating the holding and trading of virtual assets. The new Virtual Assets Regulatory Authority (VARA) can regulate business in cryptocurrencies and other such virtual assets. Suppose you plan to establish your company in Dubai to trade in cryptocurrencies. In that case, you will need an introduction to this aspect of business controlled by VARA, like issuing permits for virtual assets services. This is where using the expert services of GBO will smooth the whole path for you.
The new start-up nation is now the UAE.
The UAE has floated the Entrepreneurial Nation Project which promotes entrepreneurship. Its programmes and projects promote registering a Start-up or Small-Medium Enterprise business in Dubai with tremendous advantages for investors. The government supports UAE-based start-ups and SMEs with a 250 million euros fund that will operate in major sectors.
FAQ
How much does it cost to open a company in the UAE?
The cost of registering a new company in the UAE depends a lot on which emirate you are selecting as your base. In some, a free zone company can cost between 5000 and 8000 euros. In comparison, a mainland corporation will cost 7,000 at a minimum, and probably much more to establish.
Can a foreigner start a company in the UAE?
Depending on the kind of business, your nationality, and the country of your parent company if you are opening a subsidiary, there are some Emirates that allow for 100% foreign ownership. In other cases, you may need to have a local resident as the sponsor, who must hold a majority stake (minimum 51%) in the company.
How can I start a company in the UAE?
We strongly advise getting professional help from consultants like GBO to take you step-by-step through the process. The key steps to starting a new company include:
● Selecting a legal entity (partnership, sole trader, LLC).
● Registering a name.
● Apply for the business licence.
● Applying for visas for yourself, any employees or family members
● Securing a virtual or shared office space.
GBO is here to help you with all of these steps, to get approvals, get your licence and register your company.
