Opening a business in the United Arab Emirates (UAE) offers many advantages, especially for foreign investors. There are several options for setting up a company, such as setting up in free trade zones or on the mainland. Each of these options offers different benefits depending on the type of company and the scope of its activities.

Registering a company in a free trade zone (FTZ)

Free Trade Zones are special economic zones where companies are exempt from taxes, including income tax, value added tax (VAT) and customs duties. Free zones attract foreign investors mainly because they offer 100% foreign ownership, a simplified company registration process and favourable conditions for international trade and exports.

One of the most popular free zones in Dubai is IFZA (International Free Zone Authority), which offers a wide range of activities and low start-up costs. Companies operating in these zones can also benefit from 100% "repatriation" of profits and capital, as well as being exempt from currency restrictions.

Registering a company on the mainland

Companies wishing to trade within the UAE may choose to register on the mainland. This enables them to trade both within the UAE and internationally. This option also gives access to modern infrastructure and certain commercial and industrial activities with 100% foreign ownership in certain sectors.

Choice of legal form

When choosing the legal structure of a company, it is important to consider the type of business, the capital and the number of partners. The most popular legal forms are Limited Liability Company (LLC) and Free Zone LLC in free zones, as well as wholly foreign-owned companies (without the need for a local sponsor).

Documents required for registration

To successfully register a company in the UAE, a number of documents are required, including a certificate of incorporation, copies of the shareholders' passports and, if the company is registered in a free zone, a memorandum of association (MOA) and other required documents.

The process of setting up a company in the UAE is relatively straightforward, but it is advisable to take professional advice to ensure a successful registration and to choose the best legal form for your company. Legal Point Ltd can help you with everything from preparing the paperwork to advising you on the best place and form of incorporation.

If you want to know more about the possibilities, contact us for a consultation! Email us and come for a consultation: dubai@legalpoint.eu