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UNITED ARAB EMIRATESUNITED ARAB EMIRATESUNITED ARAB EMIRATESUNITED ARAB EMIRATES
• established in December 1971 - capital city Abu Dhabi, the most known city Dubai
• 10 million of inhabitants, only 15% of them localEmirates citizens - huge expat community
• most millionaires in Middle East together with Qatarliving in UAE
• member of GCC (Gulf Cooperation Council – SaudiArabia, Oman, Bahrain, Kuwait, Qatar)
• local currency AED (Dirham), pegged to USD, 1 USD -3,67 AED
• 0% corporate and 0% personal tax
COMPANY FORMATIONCOMPANY FORMATIONCOMPANY FORMATIONCOMPANY FORMATION
3 main options:• non-resident company (offshore), similar system
like IBC companies in BVI, Seychelles or Belize, possible to form in RAK ICC, AJMAN FREE ZONE and JEBEL ALI FREE ZONE
• free zone companies, deemed to be onshore companies with possibility to provide tax residency status
• “mainland” companies or LLCs/Civil Companies
Non-resident companies:• most popular setup in RAK ICC• 0% tax• 100% foreign ownership • no capital controls, no dividend tax • not possible to do business with UAE residents
or UAE resident companies (only with banks, agents)
• opening of the bank account possible, but could be problematic and limited options in local banks only
Free zone companies: • the most popular setup for expats to do
business • 100% foreign ownership allowed • each company has to have annual licence for
its activities (trading, services the most popular licences)
• currently there is over 40 different free zones in UAE
some of the most popular ones:
Abu Dhabi free zones:• Masdar City Free Zone• ABGM (Abu Dhabi Global Markets)
Dubai free zones: • Dubai Airport Free zone• DIFC (Dubai International Financial Centre) • DMCC (Dubai Multi Commodity Centre)• Dubai Silicon Oasis
• Jebel Ali Free Zone• Dubai Media City • Dubai Sport City • Meydan Free Zone• Dubai Internet City • Dubai South (ex-DWC)
Ajman free zones:• Ajman Free Zone
Umm Al Quwain free zones: • UAQ Free Zone
Sharjah free zones: • Sharjah Airport Free Zone• Hamriyah Free Zone
Ras Al Khaimah: • RAK Free Zone
Main differences among UAE Free zones:• Licence in a free zone gives you opportunity to
do business inside the free zone, so the licences are usually grouped together with similar activities, f.e. media, commodities, sport, high-tech.
• Options to do business inside of UAE are limited for trading companies (5% duty tax to import goods inside UAE from a free zone), for services it is not limited, but there are limited options to open real office outside of the free zone.
Prices: vary • cheap and fast options to setup business in
Northern Emirates (Ajman, UAQ, RAK)• more expensive in Dubai and Abu Dhabi, longer
process to get approval, could be several weeks • different conditions about permanent office,
different conditions about number of available resident visas, different conditions about annual renewals
*new option in several free zones, START UP LICENCE, cheaper licence for period of 2 years, then it has to be transformed to normal licence package
“Mainland” companies:- various licences not allowed for free zone
companies- to do business inside UAE:
1. LLC company 2. Civil Company
1. LLC company (Limited liability company): • 51% of shares owned by UAE citizen or company
owned by 100% by UAE citizens• side agreement for annual fee instead of
profit/loss sharing
2. Civil company: • 100% shares owned by foreign investors,
could be used for professionals like lawyers, doctors, consultants
• necessary to appoint LSA (local service agent) for annual fee
OPENING OF BANK ACCOUNT IN UAEOPENING OF BANK ACCOUNT IN UAEOPENING OF BANK ACCOUNT IN UAEOPENING OF BANK ACCOUNT IN UAE
• personal current account possible for UAE residents only
• saving account or wealth management account possible for non-residents, min 100.000 USD initial deposit
Corporate bank account: • very easy to open for “mainland” companies • quite easy for free zone companies • compliance approval necessary
Necessary documents to open account for free zone company:
• proof of similar business activity in home country of the expat
• English translated statements for 3-6 months of the company in home country with interesting turnover
• English translated statements for 3-6 months for the expat, positive balance necessary
• CV • short business description
RESIDENCY IN UAERESIDENCY IN UAERESIDENCY IN UAERESIDENCY IN UAE
• very attractive option for Europeans • 0% tax of the income• no dividend tax • more than 60 double tax treaties, OECD
standard • possibility to get tax residency certificates• residency visas and emirates ID enough for
UAE banks for CRS/AEOI
How to get it?
1. setup a company in free zone/mainland 2. get a job in UAE 3. buy a real estate in UAE (value has to be over
1 million of AED, various other conditions apply)
4. depended visa for family members
Process:
• documents submission to Immigration office • medical test and fingerprints for Emirates ID • 5 day long process (different conditions for
company owners, employees, real estate owners, family members)
Security check for Emirates residency:
• different immigration system in Dubai and the rest of UAE (Abu Dhabi, Ajman, Fujairah, RAK, Sharjah and UAQ)
• Dubai is more friendly than other emirates• there is not problem for European citizens to
get residency, could be a problem for single females under the age of 30 from Ukraine, Russia, Kazakstan (conditions apply)
MARTIN BELOBRADManaging [email protected]
World Assets Middle East LLCCorporate Services ProviderThe Binary by Omniyat, Office 1402, Business Bay, Dubai, UAE
+971 55 765 [email protected]
