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The United Arab Emirates is a federation of seven emirates, each of which is a separate state - an absolute monarchy. The country`s capital – is the city of Abu Dhabi, which is also the capital of the eponymous emirate. State of the United Arab Emirates is located on the Arabian Peninsula, bordering with Oman and Saudi Arabia, has an outlet to the Persian Gulf and Gulf of Oman. Financial sector has received the rapid development in recent years. The interest of the international business to UAE is due to the favorable conditions created for foreign investors. There are about 40 free trade zones across the country, where companies are exempt from paying any kind of taxes.
There are a number of good reasons for offshore company’s registration in UAE:
- Geographical position of the country, through which passed the most important trade routes in Asia, Africa and Europe;
- Well-established transport infrastructure (an extensive network of road, sea and air communication);
- Compliance with high level of confidentiality (non-disclosure of information about the company`s beneficiaries);
- Ability to attract highly qualified specialists (huge market of highly qualified professionals);
- Possibility of fully ownership of the company owner;
- Absence of taxation;
- English is the main language for business communication and documentation.
The basic forms of company registration in the UAE:
- Offshore International Business Company (Limited).
- Onshore Company registered in FEZ (FCS or FCE).
- Local Limited Liability Company (LLC).
Offshore Companies UAE Limіted or Ltd operate on the basis of the Law on International Business Companies Act from 2006, which assume 100% foreign ownership. The company can not carry out activities across the UAE. There are no requirements to the authorized capital. Directors and shareholders of the offshore companies registered in the UAE can be both physical and legal persons of any residence. One can issue only nominal shares; shares to bearer is prohibited. There are no special requirements for the post of Secretary, (s)he may be private or legal person - resident of any country.
Company registration in the UAE involves the use of nominee service. There are no requirements for the delivery of financial statements and the annual meeting of shareholders.
Information about directors and shareholders of the company are confidential and shall be made public only by court order. To open a company in the UAE, one must have a bank account (it is permitted multi-currency account). The time of company`s registration in the UAE is minimum (1-2 business days).
Onshore company in UAE is a tax resident of the country. It also allows 100% foreign ownership of the company. For opening of such company, one must have a registered office and staff who obtained the resident visa. Such visa is also available to owners, directors of companies and members of their families. It should be noted, that sometimes the goal of onshore company opening in the UAE is visa. The company may conduct the business across the UAE.
It is not enough just the foreign participation for the establishment of a local company with a limited liability company (LLC), which may be engages in activities outside the FEZ in the domestic market of the Emirates. A minimum of 51% of the shares must be owned by a resident of the United Arab Emirates (or it is assumed his 100% participation). Foreign ownership is provided within a maximum of 49% of the shares. It is necessary two shareholders for company’s registration and management. The minimum authorized capital shall be approximately $ 40 000. Such company may engages in the UAE in those activities that haven’t been licensed in the FEZ.
Open a company in the UAE - is ability to be free from the payment of profit taxes, income tax, tax from the sale of the property and tax on exports. States have signed more than 47 agreements on avoidance of double taxation
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