Starting a business in Dubai is a dream for many ambitious entrepreneurs not just from Asian countries, but even from the West. Why is it so? For over six centuries, its creek has provided a safe haven for the merchant vessels laden with goods from Dubai’s traditional trading partners in the Far East, the Indian subcontinent and Africa. It is not surprising therefore, that entrepreneurs are flocking to setup business in UAE. Each country has certain rules and regulations that are to be followed while starting a new organization. Company Formation in UAE is also subject to several rules and regulations. Mac & Ross as one of the top professional consultancy companies in Dubai, UAE, assists clients to comply with such laws.
Dubai mainland companies are being governed by the federal law no 2 of 2015. These companies are also governed by Ministry of Labor. In Dubai mainland, to set up Limited Liability Company any foreign national require a local sponsor as partner with minimum 51% shareholding. However for Civil Companies and Sole Proprietorships, only local service agent is required and he is not required to be shareholder. Also, Branch of Foreign Companies or Representative Office of Foreign Company can be opened in Dubai mainland.
Each Free Zone Company is governed by regulations and byelaws of respective Free Zone Authority. There are over 50 Free Zone Authorities spread over all seven emirates in UAE. They provides unique opportunity to prospective investor to set up the company with 100% foreign ownership, 100% import and export tax exemptions, 100% repatriation of capital and profit, no corporate and personal income tax and several other benefits. Even provisions of Federal Law and Ministry of Labor are also not applicable for these companies.
Off Shore Companies are special status nonresident companies formed under various off shore company authorities as per their regulations and byelaws. Offshore companies’ shares may be subscribed by individuals or corporate bodies both residents and non residents of UAE. Such type of companies can be used as special purpose vehicles for commercial investment & owning freehold properties in UAE.