UAE is a great place to start your business venture. With a booming economy, ample support from the government and countless opportunities presenting itself, a lot of people find it very appealing to jump into the bandwagon and start their own business.
With the rising trend, even other nationalities are now thinking of getting their business set up in Dubai and UAE. Good thing the UAE law now allows foreign investors to set up their formal presence in Dubai or any cities in UAE with these types of business establishments.
If you are thinking of setting up your business in Dubai, read on these types of business establishments:
- Civil Company
A civil company is a type of business establishment and partnership amongst professionals. For example a group of doctors, lawyers and accounts who decided to form a business union . It is 100% legal but certain requirements such as the UAE National Local Service Agent. Foreign companies can also partner with a civil company as long as they operate on the same field.
- Limited Liability Company
A limited liability company or LLC is a hybrid of sole proprietorship and a corporation. The main features of this set up is that is has the pass-through taxation which can be found on partnership or a sole proprietorship but with limited liability just like a corporation. LLC companies have much flexibility than a corporation in terms of protection and privacy as they are not required to be publicly listed unlike corporations.
- Free Zone Company
This option is popular amongst foreign investor due to its lenient features. There are no currency restrictions and personal income taxes. This also allows 100% foreign ownership and repatriation of capital and profits. However, they can only operate and lease office space on Free Zone areas.
- Offshore Formation
Offshore business is formed outside the jurisdiction of the principal owners and often set up for the purpose of tax and legal leniency in a tax haven country. These tax haven areas have zero to very low tax rate which is why some investors find this set up attractive. They are also free from state regulations in terms of business operations.
- Branch or Representative Office
If you are planning on expanding your business presence of your company, then this business set up might just be the one for you. UAE allows investors to set up a branch and representative office of a parent company provided that they carry out similar activities and business as their principal or head office.
