Company formation in UAE (Mainland)

The most popular company form in UAE is the Limited Liability Company (LLC)

9%

is the corporate tax rate in UAE

142

countries have signed a double taxation avoidance agreement with UAE

5%

VAT tax

0%

tax on dividends paid to shareholders

Step by Step Description

Step 1. Initial Setup:

  • Initiating a preliminary project assessment
  • Preparation and filing of the package of documents

Step 2. Company registration:

  • Verification and reservation of the company name
  • Trademark registration (optional)
  • Applying for initial approval
  • Obtaining additional government approvals
  • Facilitating the notarial process for the company's official registration
  • Sign legal documents for company incorporation
  • Incorporating the company's data into the register
  • Obtaining the Certificate of incorporation issued by the local registrar, Memorandum and Articles of Association

License obtaining:

There are six types of licenses:

  • Industrial license
  • a commercial license
  • craft license
  • tourist license
  • agricultural license
  • professional license

The issuing authority depends on the type of license, for example: the Department of Economic Development of UAE (DED). DED is a government entity responsible for regulating and supporting economic activities, including the issuance of licenses within the mainland (non-free zone) areas of the UAE. Each emirate has its own DED. This authority issues commercial, industrial and other type of licenses.

A license may include more than one type of activity.

Requirements for a Limited Liability Company in UAE

Before deciding to set up a new company in UAE, read the information below to understand the characteristics of a Limited Liability Company:

The type of company is a Limited Liability Company (LLC).

Number of directors/shareholders – from 2 to 50 shareholders and at least one director.

Number of employees – unlimited.

Obligatory positions – at least one manager, supervision board (If the number of the partners is over 15), general assembly.

Share capital – there is no minimum share capital requirement. But capital must be sufficient to achieve the object of its incorporation.

Liability – a partner in a Limited Liability Company shall be liable towards the Company for any of its properties held by such partner as a trustee or any profits or benefit made through the work or activities of the Company, or by his use of the property, name, or commercial relationships of the Company.

Accounting – the Company shall prepare annual financial accounts including the balance sheet and the profit and loss account.

Document requirements:

Taxation in UAE:

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