UAE Company Registration – the Best Solution for Doing International Business
The United Arab Emirates is one of the best countries for doing business and the implementation of international commercial projects. Zero tax rates for corporate and personal incomes, the perfect banking system, and good protection of the legal rights and interests of investors are the bases which guarantee the economic stability and profitability of business in the United Arab Emirates. Moreover, the country eliminates control and restrictions on the transactions (withdrawal) of the investment assets and gained profits, so it can be a really profitable solution.
Entrepreneurs from East, Europe, West, Asia and African region have their interests on the territory of the United Arab Emirates. Convenient geographic location and developed infrastructure make this country the most convenient place for international trading. The Government of UAE, in its turn, makes considerable efforts in order to provide private business with the necessary environment: legal norms, tax-free areas, great infrastructure, etc.
The United Arab Emirates takes the fourth place in the "International trade" ranking and the twenty-third place in the "Favorable conditions for doing business" ranking. Such results are also due to the low tax burden and a simplified procedure of a legal entity formation.
It should be noted that there is no single company register in the country. There are more than 40 free zones here, and each of them has its own list of firms. There are both free zones that offer classic offshore formations in the country, and specialized zones that are focused on development in a particular area, as well as multi-profile free zones. Cost and requirements of documents depend on the selected zone.
Why register a company in the UAE?
We can highlight the following possibilities among the key positions, which provide the ideal conditions for carrying out business in this country:
- Ability to perform a wide range of business operations;
- Open access to the domestic and foreign market.
- Customs privileges for legal entities, which operate in the specialized trade zones;
- Zero rates of the corporate and personal income taxes;
- Possibility of opening both real and virtual office in the Emirates.
At the same time, before registering a company in the Emirates, one should pay attention to some points, which will determine the further activities. In particular, it is necessary to determine the type of business activity, legal form of the newly created company and the appropriate jurisdiction for legal entity formation.
UAE company registers
So, we have just shown why to register free zone company in the UAE and now let’s take a look on how to establish a legal entity in this country. The norms of the corporate law of the United Arab Emirates provide for a variety of legal forms for carrying out business both in the domestic market and in the international arena. These can be the partnerships and individual entrepreneurs, local and international firms, branches or representative offices of foreign companies, etc.
According to the experts, one of the keys to the successful entrepreneurial activities is the choice of a suitable jurisdiction for legal entity incorporation. The type of activity and business focus affect directly the choice of the appropriate jurisdiction. Each form has its own possibilities and competitive advantages, whether it is a local company for work in the local market or an international firm on the territory of the free economic zone. Moreover, each legal form has its own requirements and conditions of formation, based on which it is possible to determine the most suitable form for your business scheme.
Legal forms of the legal entities in the country:
- International firms are registered for carrying out activities at the international stage;
- Firms in the jurisdictions of the free economic zones. They allow to carry out entrepreneurial activities both in the international market and in the local one (with some restrictions);
- Local businesses firms are registered for operation in the local market, but they do not exclude the possibility of entering the international market.
The norms of the current UAE law provide the possibility of registering the following legal forms for the legal entities in the Emirates:
- Incorporated, Limited are the international companies;
- Free Zone Company is registered in the jurisdiction of the free trade zones;
- Limited Liability Company is registered in the main jurisdiction of the country;
- Branch of a Local Company is a representative office of the local legal entity;
- Branch of a Foreign Company is a representative office of a foreign legal entity;
- Service Agent provides professional services.
It will be quite difficult for the beginner to estimate all the features of corporate law in UAE in a short time, and to choose a truly beneficial and economically justified solution. But you can always use the services of the professionals. It is important to understand that all the further success and profitability of the project will depend on the first steps when you create the international business solution. That is why it is better to take these steps with the assistance of a qualified professional and to minimize all the existing risks.
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