DUBAI

Doing business in UAE

Business can be done in UAE either within the various Free Zones in UAE or outside the Free Zone. Within Free Zones, 100% foreign ownership is possible whereas in non-Free Zone areas, 51% local ownership is mandatory. Any movement of goods from the Free Zone into non-Free Zone area is deemed to be imports into UAE and subject to customs duty. Imports into Free Zone are not subject to customs duty. Presently, excepting foreign bank branches and oil companies, there is no corporate income tax in UAE. Further, there is no personal income tax in UAE.

In non-Free Zone area, a limited liability company (LLC) can be established with 51% local ownership and 49% foreign ownership. In Dubai, a minimum paid up capital of AED 300,000 (One US$=AED 3.67) is required. For obtaining trade licence physical office is a must.

Business can be established in a Free Zone with 100% foreign ownership. Physical presence is a must. Following options are possible

		First option is to set up a branch of an existing overseas foreign Company
		Second option is to set up a Free Zone Establishment (“FZE”) in which the
		sole shareholder is an individual or corporate
		Third option is to set up a Free Zone Company (“FZC”) in which there are two
		or more shareholders who could be individuals or corporate

             Please note the minimum capital varies from Free Zone to Free Zone

Another option is to set up an offshore company within JAFZA. This can be 100% foreign owned, does not require physical presence and no visa is issued. Such offshore company cannot do business either in UAE or with residents in UAE. It can own properties in Dubai in designated areas where foreign ownership is permitted

To know more about LLC, please click here.

To know more about Free Zones, please click here.