FAQ-Your company in Dubai

An individual residing in the United Arab Emirates can indeed obtain a Tax Residence Certificate from the Ministry of Finance of the United Arab Emirates to prove their resident status in the UAE.

There are many reasons why you might choose to establish your free-zone company in Dubai: the United Arab Emirates has a highly attractive economy! Setting up your company in one of the world's most economically attractive countries offers many advantages: unlike in other countries, stability is the rule. If you choose Dubai to launch your business, you can be sure to benefit from an extensive network of tax treaties. Establishing your company in Dubai offers many advantages to its director! Once your company has been established, you, your family, and your employees will benefit from a work visa that only needs to be renewed every 3 years. You will also be sure to enjoy the country's many tax advantages: no taxes to pay, as well as the possibility of buying from and selling to companies based in the United Arab Emirates. In addition, registration is easy and quick and does not require the involvement of a local partner. You can use a recruitment agency to hire your future employees. Like other French companies in the Persian Gulf, seize the opportunities available to you! Working in Dubai also means living there year-round! The quality of life is excellent in this Muslim country, and the many French people in the Emirates appreciate the optimal weather conditions year-round and the excellent school system. It is easy to travel throughout the world from the United Arab Emirates, and the real estate market is competitive, despite the sometimes high cost of living. Many neighborhoods, such as the Marina, the Palm, or the area near the Burj Khalifa (the tallest tower in the world), offer their advantages: business districts, huge shopping centers (malls), proximity to the sea with its fine sandy beaches, and opportunities for excursions in the Middle Eastern desert. A very safe country, the United Arab Emirates offer expatriates, above all, tax advantages: no income tax, wealth tax, or property tax, and no social security contributions.

A free-zone company should not be confused with an offshore company. In fact, the latter will not allow you to work on Arab soil. 2 things in common: – Neither of these statuses requires you to pay any tax – You are not required to have an Emirati partner In the case of an offshore company, you will not leave France to settle in the Middle East. You will not be able to hire employees or own an office in the Emirates. You will also be unable to obtain work permits and residence visas or work with suppliers from the Emirates. Therefore, to own an office, hire employees, work with suppliers in the country, obtain visas, and pay yourself a salary, you will need to choose a free-zone company. The latter should also be distinguished from local companies, as the applicable rules are not the same.

If you want to start your business in Dubai by setting up your free-zone company, you will need to follow a strict procedure. However, if you follow all the steps and gather the right documents, the process is relatively quick. Naturally, our firm can prepare all the steps involved in registering your company. Once there, you can use a recruitment agency to hire your employees. Please note: first, make sure that you meet the requirements for opening a free-zone company in Dubai! Not all activities can be launched in the United Arab Emirates through a free-zone company: only consulting, trading, and holding activities are accepted.

Once you have assembled your file, you will simply need to submit it to the Dubai registration office. In approximately 3 weeks, you will receive the documents confirming the creation of your free-zone company: the original incorporation certificate, your license, the articles of association (if there are several partners), and your company stamp. If you would like to learn more about the registration process in the United Arab Emirates, visit this page! Please also feel free to contact us to learn more about our support packages.

To work in the United Arab Emirates, you have chosen to set up your free-zone company in Dubai. However, for your business to operate normally, you will need to open a business bank account. This step is essential. To save time, we recommend pre-filling the account-opening documents even if your company has not yet been registered. Of course, throughout the process of setting up your bank account, our business setup firm will be available to assist you with all your procedures.

An international tax treaty

is a bilateral agreement that establishes the tax rules applicable between two states, concerning all or part of their tax relations. These treaties are designed to prevent the double taxation of income, allowing expatriates and businesses to avoid being taxed both in their country of origin and in their country of residence. In the context of the France-United Arab Emirates tax treaty, this agreement plays an essential role for individuals and businesses operating between France and the United Arab Emirates. It determines how income should be taxed, thereby reducing the risk of double taxation and providing greater tax certainty. The France-United Arab Emirates tax treaty also facilitates cooperation between the tax authorities of the two countries, ensuring better management of tax obligations for expatriates and companies. It is crucial to understand that if a tax treaty is in place between your current country of residence and France, that treaty will take precedence over French domestic tax laws. This means that the provisions of the France-United Arab Emirates tax treaty must be applied to determine tax obligations, rather than the general tax rules of each country. This hierarchy ensures that the treaty's specific rules are respected, thereby optimizing tax benefits for expatriates and cross-border businesses.

In summary, the France-United Arab Emirates tax treaty is a valuable tool for preventing double taxation and simplifying tax procedures for individuals and companies with ties to both countries. Make sure you fully understand the terms of this treaty to take full advantage of its benefits and avoid tax complications.

Would you like to relocate, find a job, and work in the UAE (United Arab Emirates)? If you are seriously considering setting up a free-zone company but have many questions, discover all the essential questions and answers on the subject. Otherwise, feel free to contact our business setup firm; we will help you with the steps to find work in Dubai.

We provide a shared telephone number (with an answering service in English, Arabic, and French) and fax number (forwarded to email) for our clients, included in our package. If you would like a telephone number (with an answering service in English, Arabic, and French) and a private fax number (forwarded to email) exclusively for your company, this is also entirely possible. If you have your own offices within the Free Zone, we will assist you with Etisalat and DU to install your telephone, Internet, and fax lines. This service is included in our package.

Whenever we receive mail for your company, we will notify you by email. We can scan it and/or send it to you by post at the address of your choice, with forwarding fees charged at the carrier's rate. Mail is kept for 3 months before being disposed of.

You can pay our invoices: - By bank transfer to our account in Dubai; - In cash (in USD, AED, or EUR) at our offices in Dubai and Hong Kong.

The Certificate of Incorporation and the company's articles of association (“Memorandum of Association”) are written in English and Arabic. All communication with our company is in French. If you have difficulty understanding a document, we remain entirely at your disposal to explain it to you in French (our team speaks French, English, Arabic, Chinese, Spanish, German, and Farsi). Can a Free Zone company hold shares in other companies (a holding company)? A Free Zone company may hold shares in any other companies, whether located in the United Arab Emirates or abroad, and may therefore act as a holding company - parent company. It also benefits from the network of double-taxation treaties signed by the United Arab Emirates. Only the DWC Free Zone (Dubai World Central, located in Dubai South) does not permit this.

We provide you with 2 addresses as part of our package: – A registered office address for your company located with the Registry; – A correspondence address for your company located in Dubai. For these 2 addresses, a mailbox will therefore be set up for your company to receive its mail there (express, air mail, etc.). Our clients have access to our offices for their meetings and to work there whenever they wish (workspace available for a reasonable period of use). This use is included in our package. If necessary, you can rent an office within the Free Zone (not included in our package). What are the working days and weekend in Dubai? The weekend is Friday and Saturday. Working days are therefore Sunday through Thursday inclusive. Working hours are usually from 9 a.m. to 6 p.m., with a 1- to 2-hour lunch break. Public administrations and banks close earlier (before 4 p.m.). Public holidays are as follows: – New Year's Day (January 1) – Mawlid (the Prophet's Birthday) – Laylat al-Mi'raj (the Prophet's Ascension) – Eid al-Fitr (end of Ramadan) – Arafat Day (Hajj) – Eid al-Adha (Feast of the Sacrifice) – Al-Hijra (Islamic New Year) – National Day (December 2)

A Free-Zone company has resident status in the Emirates. Consequently, unlike an Offshore company, a Free-Zone company benefits from the advantages of double taxation treaties signed by the United Arab Emirates. Companies established in Dubai’s free zones must ensure that they meet the conditions required under tax treaties to benefit from double taxation relief, such as reduced tax rates or exemptions. If you are French and decide to open a company in Dubai, you may benefit from the France-United Arab Emirates tax treaty.

5 types of licenses are available for a Free Zone: – Industrial activity (“Industrial”) – Trade and sale of goods (“Commercial / Trading”) – Import-export (“General trading”) – Consulting and services (“Consulting / Services”) – Media A single company may have several licenses (for example, General Trading and Consulting / Services).

In the event of late renewal of your annual license, the late renewal penalties are as follows (starting from your company's registration anniversary date): - Less than 1 month: AED 4000 (due from the first day of delay!) - From 1 month onward: AED 4000 + AED 2000 per month of delay starting after one month of delay. Attention: after 3 months of delay, the Registries may dissolve the company. We therefore cannot guarantee that it will be possible for us to recover it by paying the penalties.

We are a “Corporate Service Provider,” meaning that we represent your company before the Registries. Please note that our role is purely administrative (liaising with the Registries for the incorporation and ongoing administration of your company, forwarding/scanning mail, assistance with opening your bank account, etc.) and that we are not authorized to act on your bank account or manage your company’s operations.

The cost of dissolving a company is AED

AED 10,500 (including Registry fees and our fees).

Please note: the liquidator's fees (as a "liquidation report" from an accredited Auditor is required) and, where applicable, the accountant's fees must be added to these costs.

If applicable, cancelling residence visas incurs an additional cost of AED 3,150 per visa.

The annual renewal fees for your Free-Zone company must be paid 1 month before the company's incorporation anniversary date (this date is indicated on the company's Certificate of Incorporation). We will send you our renewal invoice approximately 1 month before this date.

We will send the following documents to you by FedEx or hand them to you in person when you come to Dubai after your company is registered: – Original Certificate of Incorporation – Original license – Original Articles of Association (Memorandum of Association) - only if the company has multiple shareholders – Your company stamp If you are not present in the UAE, we will send them to you by express courier anywhere in the world, to the address of your choice.

The total processing time (license issuance and bank account opening) is approximately 3 weeks (from receipt of your complete application at our Dubai office).

It is now possible to register a Free Zone company remotely. It is also possible to grant power of attorney; you can send us by mail a power of attorney certified by the Embassy of the United Arab Emirates, authorizing a person of your choice, including someone from our team. This is not possible for a Mainland company.

The registers of directors and shareholders of a Free-Zone company in the Emirates are not public.

The minimum capital is AED 100,000. It does not need to be deposited into the company’s bank account (so it is not blocked). It is not required to be deposited at a later date.

It is mandatory to maintain accounting records, which must be kept for 7 years, but it is not necessary to file these records with the Authorities. If you wish, we can handle your accounting and issue your balance sheets and income statements. This service is not included in our package, but we offer competitive pricing (starting from AED 2000 per year).

The annual operating costs of a Free Zone company in the Emirates include: – The license renewal fee payable to the Emirate authorities. – Your company’s registered office. – The agent representing your company before the Registries. We offer a package that includes these elements as well as other services and products.

Your company in the United Arab Emirates can open as many bank accounts as you wish in the UAE and abroad. In the UAE, you can always open 2 bank accounts: – An AED account. – An account for each currency of your choice: EUR, USD, GBP, etc.

You can choose any name you like, provided that:

• the name is not already taken (we check its availability with the Authorities for you).
• it does not contain any word referring to the following activities/entities: Assurance, Bank, Building Society, Co-operative, Fund, Municipal, Chamber of commerce, Trust, Royal, Chartered, Insurance, Finance, Mutual Fund, Emirate and Emirates.

Two possibilities:

• Nothing has been planned: in this case, the transfer of the company's shares is handled as part of the deceased person's estate;
• Transfer of shares: you can arrange a transfer of the company's shares at any time, with the buyer(s) being the person(s) of your choice. From a banking perspective, as the company's new shareholder(s), this person or these persons will have authority over the balance of the company's bank account.

We always invite you to provide us with the name and contact details of a trusted person of your choice in case we can no longer reach you, to ensure the continuity of your company.

No social security or employer contributions need to be paid for an employee hired by your Free-Zone company. This means that the salary you pay them is “net,” both for your company and for them. If they receive benefits in kind (health insurance, housing, etc.), no social security contributions need to be paid.

The updated law on commercial transactions in the United Arab Emirates allows any mentally competent person over the age of 18 to legally start a business.

Customs duties are 5% of the value of the goods entering the Emirates. They are payable when the goods enter the United Arab Emirates. Please note that if the goods are subsequently re-exported, this 5% will be refunded to you.

A Free Zone company can hold shares in (and therefore act as a holding company - parent company of) other companies located in the Emirates and outside the Emirates. It also benefits from the network of double tax treaties signed by the United Arab Emirates. Only the DWC Free Zone (Dubai World Central, located in Dubai South) does not allow this. Can a Free Zone company obtain a Tax Residence Certificate? A Free Zone company, regardless of its license, can obtain a Tax Residence Certificate from the Ministry of Finance of the United Arab Emirates to prove its resident status in the Emirates.

A Free Zone company can hire personnel located in and outside the Emirates. For personnel located outside the Emirates, this usually requires registering the company as an employer in the country concerned and paying the local social security contributions there.

A special license, sometimes also called a Premium license, is a license that requires authorization from the Authorities to be issued. It is therefore usually necessary to prepare a business plan explaining in detail the partners' activities and experience. We can assist you in obtaining special licenses for the following activities: – Aviation Consultancy – Investment Consultancy – Mortgage Consultant – Legal Consultants – Real Estate Consultancies – Tourism Consultants We are not qualified to assist you in obtaining banking, insurance, fund management, or similar licenses.

VAT was introduced on January 1, 2018, in the United Arab Emirates. Its rate is 5%. It works quite similarly to VAT in France, Belgium, etc., with the principles of collected VAT and deductible VAT. All companies with more than AED 375,000 in turnover must register. We invite you to visit this official website, which explains how it works. We remain at your disposal if you have any questions about it.

Setting up a Free Zone company in Dubai allows you to have offices and employees there and obtain residence visas. If you wish to work in Dubai, learn about the differences between these two types of company and an offshore company.

FREE ZONE - MAINLAND - OFFSHORE

Use of the company? - This type of company can have offices in the UAE, hire local staff, obtain residence and work visas, and have suppliers and clients (companies only, not individuals) in the UAE. - Can carry out any activity in the UAE and sell to individuals in the UAE. This is the only type of company that benefits from an “importer code,” allowing it to complete customs clearance procedures for imports into the UAE. - For all activities outside the UAE: no physical office, no employees, no suppliers in the UAE, and it does not allow you to obtain a work or residence visa in the UAE.

Main permitted activities? - Trading, consulting, holding. - Any activity - Import-export, consulting, investment.

Foreign ownership? - 100% foreign-owned - 100% foreign-owned - 100% foreign-owned

Company taxation? - No taxes (neither on profits nor capital gains, and no withholding tax on distributed dividends). In the event of selling goods in the UAE, a 5% customs duty is charged. - No taxes (neither on profits nor capital gains, and no withholding tax on distributed dividends). A 5% customs duty is charged upon importation. - No taxes (neither on profits nor capital gains, and no withholding tax on distributed dividends).

Hiring employees? - Allows foreign staff to be hired in the UAE without any restrictions. Allows the company director, its employees, and their families to obtain residence and work visas. - Local labor regulations apply. - No employees in the UAE

If you wish to work in Dubai, learn about the various France-United Arab Emirates tax treaties.

Note also that there is indeed a France-United Arab Emirates tax treaty, which was signed on May 26, 2008, and entered into force on January 1, 2009. This treaty aims to avoid double taxation and prevent tax evasion by defining the tax rules applicable to cross-border income and gains between the two countries.

LIST OF TAX TREATIES

The United Arab Emirates have signed several double taxation treaties with the following countries: Algeria Germany Armenia Austria Azerbaijan Belgium Belarus Bosnia and Herzegovina Bulgaria Canada China Cyprus South Korea Egypt Spain Estonia Finland France Georgia Hungary Mauritius India Indonesia Italy Kazakhstan Latvia Lebanon Lithuania Luxembourg Malaysia Malta Morocco Mexico Mongolia Montenegro Mozambique New Zealand Pakistan Panama Netherlands Philippines Poland Portugal Czech Republic Romania Russia Serbia Seychelles Singapore Slovenia Sudan Sri Lanka Syria Tajikistan Thailand Tunisia Turkmenistan Türkiye Ukraine Venezuela Yemen

UNDERSTANDING A TAX TREATY

An international tax treaty is an agreement linking two states concerning all or part of their tax matters. International tax treaties prevent taxpayers from being taxed twice as a result of the simultaneous application of the tax legislation of the two contracting states (in this case, France and the UAE). Each international tax treaty concluded between two states concerns: – individuals (income tax, inheritance tax, etc.) and legal entities, – and a period of application, with retroactive effect when the income to which it applies relates to years preceding its entry into force. Each treaty provides, in particular: – for the allocation of taxing rights, – and for procedures to avoid double taxation.

1. Concept of residence

The taxpayer's country of tax residence, where the taxpayer is an individual, generally makes it possible to determine the applicable taxation rules. It is determined according to certain criteria, in order of priority: – permanent home, – center of vital interests (personal and economic ties), – habitual place of residence, – nationality, where applicable, etc.

2. Allocation of taxing rights

International tax treaties generally provide, for each category of income, three methods of taxation, as follows: – either exclusive taxation in the state of residence (capital gains on securities, for example, subject to exceptions), – or exclusive taxation in the source state (public-sector remuneration, for example, subject to exceptions), – or non-exclusive taxation in the source state (real estate income and capital gains, for example).

Methods for avoiding double taxation

Two methods make it possible to prevent income from being taxed a second time in the taxpayer's state of residence: the exemption method and the credit method. 1. The exemption method has two variants: – Full exemption, which consists of disregarding income that has already been taxed, – Exemption with progression (or the “effective rate method”), whereby the amount of income already taxed is taken into account to determine the tax rate to apply to other income. 2. The credit method also has two variants: – Full credit, consisting of calculating tax on the total amount of income that has been taxed, regardless of its source, and then deducting the tax paid in the other state, – Ordinary credit (the most widely used), which consists of deducting tax already paid up to the amount of tax in the state of residence attributable to the income taxed abroad (application of a tax credit).

For further reading on the France-United Arab Emirates tax treaty, click here:

Avoiding double taxation between France and the United Arab Emirates (merritt.ae)

Establishing a company in Dubai is highly attractive from a financial and tax perspective when it is located in a free zone. If you are unfamiliar with the concept of a free zone, consult the experts at our UAE business setup consultancy.

What is a free zone?

A free zone is a geographical area that offers tax benefits to people who choose these tax exemptions when establishing a company. Entrepreneurs who set up their business in a free zone benefit from a reduced tax rate. This type of tax regime was introduced to develop the region's economy by encouraging financial investment. Some free zones therefore allow companies to set up in the area with an exemption from corporate tax (tax on economic activities abolished by the law of January 1, 2010) or income tax. In addition to benefiting from tax reductions, companies established in an urban free zone may benefit from certain social advantages. Of course, tax privileges and social benefits are not necessarily identical from one free zone to another. In general, free zones are created to revitalize economically unattractive urban areas. However, by granting tax and social benefits to companies, some free zones have become highly attractive. This is the case, for example, with Dubai's free zones.

Dubai Free Zone, United Arab Emirates

In the United Arab Emirates, it has been possible to establish a company in a free zone since 1985, in a geographical area called Jebel Ali. Following the success of this free zone, the country quickly developed other free zones or urban free zones, particularly in Dubai, the city that concentrates the country's economic activity. Today, there are around twenty free zones in the city alone. These include Gold & Diamond Park, Silicon Oasis, Customs & Free Zone Corp, Metal & Commodity Center, and Palm Island Development. For the United Arab Emirates, the aim of developing these economically attractive zones was to attract foreign entrepreneurs and, consequently, investment. Owning a company in a Dubai free zone offers the following advantages:

• You can be 100% foreign-owned.
• You benefit from tax exemptions and advantages: you are not subject to corporate tax (although you are subject to VAT).
• The company can obtain residence and work visas for its directors, employees, and families, which is essential for living and working legally in Dubai.
• Last but not least, free zones offer tax benefits for individuals, not just for the company. The free zone provides exemption from income tax, wealth tax, and social security contributions.

These undeniable tax and social benefits, combined with the appeal and stability of the United Arab Emirates, have made Dubai a preferred city for foreign investors. In addition, in the city's various free zones, the infrastructure provided to entrepreneurs is modern and well equipped, thereby facilitating a smooth start under good conditions.

More information about Dubai Free Zone

Are you considering establishing your company in a Dubai free zone? Do not hesitate to contact our UAE business setup consultancy so that we can explain in detail the tax and social benefits you may access if you meet all the country's requirements. We can also offer support tailored to your specific situation, so that establishing your company in one of Dubai's free zones proceeds smoothly.

In the United Arab Emirates, entrepreneurship is highly valued. For this reason, everything is done to facilitate the establishment of businesses in the Persian Gulf:

• The procedures are quick and accessible to foreigners/expatriates
• There is no corporate tax or VAT
• In the United Arab Emirates, there are no social security contributions or income tax

It is therefore entirely possible and advisable for a foreigner to set up a business in Dubai. There are 3 ways to do this:

• The offshore company: this allows executives to establish an import-export, consulting, or investment business without requiring an Emirati partner. However, the executive cannot open offices, hire employees, or work with local suppliers. No tax is payable in the case of a Dubai offshore company, but it ultimately cannot operate directly in the country. The main purpose here is therefore to benefit from the country's tax advantages.
• The local/mainland company: this is available to foreigners provided that at least 51% of the capital belongs to an Emirati. This type of company allows any activity to be established in the United Arab Emirates and makes it possible to deal directly with individuals. However, even if no tax is payable, a 5% customs duty is still charged on imports. With this solution, it is possible to hire employees, but local employment law takes precedence.
• The free-zone company: this final solution is a good compromise between an offshore company and a local company. It is ideal for foreigners wishing to live and do business in Dubai. It involves opening and establishing a business in a free zone, thereby benefiting from all the country's tax advantages.

A free-zone company must be established within a defined geographical area. Within this geographical area, tax benefits are offered, allowing for highly favorable economic development. The UAE (United Arab Emirates) offers advantageous opportunities for establishing a company; nevertheless, a tax haven should not be confused with a free zone. If you choose this option, you will be able to establish a trading, consulting, or holding company in Dubai without the involvement of an Emirati. It entitles you to office space, the hiring of foreign employees, and the development of relationships with suppliers and customers (companies) in the United Arab Emirates. The director and their employees obtain residence and work visas for themselves and their families. Our firm assists you with all the administrative procedures involved in establishing your business in the Middle East, such as opening a bank account or applying for a work visa. Naturally, the director benefits from the country's favorable tax conditions and only has to pay a 5% customs duty when selling goods in the UAE.

An onshore company established in a non-free zone is simply a local company. The latter is also called an LLC or DED. A non-free zone company does not offer the same opportunities as a free zone company. The same applies to tax and social benefits, even though some overlap.

Are you planning to set up a company in Dubai? Take the time to consider the solution that best meets your needs. Free-zone, local, and offshore companies are not established for the same reasons. Whatever your questions, please feel free to contact our firm: we will answer all your questions about setting up free-zone companies in Dubai and the United Arab Emirates.

Given the tax benefits available to foreign investors in free zones in the United Arab Emirates, you may wonder why some choose instead to establish a local company. In reality, in certain situations, foreign entrepreneurs have no choice but to set up an LLC or DED company. The major difference? While a free-zone company in Dubai cannot carry out certain activities, particularly those involving individuals, this is not the case for a local company. A so-called non-free-zone company is free to choose its business activity (provided it is legal in the country and the necessary permits are granted) and can even deal directly with individuals. Thus, a foreign entrepreneur who wants to open a restaurant in Dubai must choose an LLC. Similarly, while a non-free-zone company is restricted to certain geographical areas, this is not the case for a DED company, whose location is unrestricted. Finally, some benefits available in free zones are also available to local companies. Indeed, in the United Arab Emirates, there are no corporate or personal income taxes. Likewise, with a local company, it is possible to obtain a residence and work visa.

One point to find out about before launching a DED is the local employment laws that apply. That is why it may be worthwhile to have a lawyer assist you when setting up the company to avoid disputes.

Both solutions offer undeniable advantages. We recommend choosing the one that best suits your current situation. Therefore, if you want to open a business targeting individual customers in the United Arab Emirates, the only available solution is an LLC. However, if you want to sell your services to local businesses, are keen to retain 100% ownership of your company, and the location of your business is not important to you, a free zone is the most suitable solution. For personalized advice, please feel free to contact our firm: we have been helping businesses establish themselves in Dubai for over 10 years!

No, it is not possible to conduct every type of business through a free-zone company in Dubai. This solution does not give you the right to sell directly to individuals in the United Arab Emirates: you may do so only with companies in the country. To be able to choose your business activity freely, you would need to create a local company owned at least 51% by an Emirati. To put it simply, there are 3 possible activities in a free zone: - Consulting - Trading - Holding

A Free-Zone Consulting Company

By creating your free-zone company in Dubai, you can obtain a Consultancy license, that is, a consulting license. This allows companies to sell intangible goods (services and advice) to other companies in the country. Please note: we recommend contacting us before starting the initial procedures if you wish to launch a consulting business in Dubai. Depending on your business sector, you may be required to obtain additional permits. This is, for example, the case for banking and airline companies wishing to establish themselves in Dubai.

A Free-Zone Trading Company

Let us now discuss the trading license that can be obtained when setting up a free-zone company in Dubai. This license gives you the right to conduct import-export activities in the United Arab Emirates or between 2 foreign countries, provided there is no transit through Dubai. Before starting the initial setup procedures, please contact us so that we can check whether you need to obtain specific licenses or special permits to begin your import-export activity. Indeed, if you plan to import or export gold objects, you will need to obtain an additional license: without it, you will be unable to operate legally in the United Arab Emirates.

A Free-Zone Holding Company

Setting up a free-zone company in Dubai gives you the opportunity to establish a holding company, that is, the parent company of a group. This is a very wise strategy, because since the parent company is established in the United Arab Emirates, your business will benefit from numerous tax advantages.

Whether you are interested in launching a holding, trading, or consulting company, it is preferable to seek guidance from a firm like ours. Indeed, although conditions are favorable in the United Arab Emirates, it is essential to verify that the activity you wish to launch is not prohibited in the country. Likewise, we can tell you whether your activity must comply with specific regulations, as is the case, for example, with the import and export of alcohol or cigarettes. Depending on your situation, we can advise you on the most suitable solution. We also guide you through the various administrative procedures relating to your business project in a free zone, such as questions concerning money and opening your bank account, as well as establishing your business in the UAE and living in Dubai.

Contact us to obtain further information about free zone activities in Dubai!

There are a large number of free zones in Dubai: just under twenty in total for now, but this figure will undoubtedly increase in the years to come. The very first has existed since 1985. It is Jebel Ali, a free zone launched to attract foreign investment and which remains just as attractive nearly 30 years later. Among the most popular centers for foreign investors, we can also mention Dubai Auto Zone, Healthcare City, International Financial Centre, Media City, Gold and Diamond Park, Silicon Oasis, and World Central Business Park.

Setting up a company in a free zone in Dubai, United Arab Emirates, offers a number of tax and social benefits. Let’s first look at the tax benefits. Companies established in a Dubai free zone simply do not have to pay corporate tax. On a personal level, it is worth noting that there are also no social security contributions, income tax, or wealth tax. What about the social benefits? When a foreigner decides to launch a company in a Dubai free zone, they immediately obtain a residence and work visa for themselves and their employees, valid for 3 years and renewable indefinitely. Their family can also benefit from it. Tax benefits, social benefits, simplified administrative procedures: free zones in Dubai certainly have a lot to attract foreign investors. This is a success for the United Arab Emirates, which currently represents one of the most attractive destinations for launching a company in a free zone. Would you like assistance with your administrative procedures in Dubai, obtaining your visas, and opening a bank account for your company, as well as a personal bank account? Please do not hesitate to contact our firm: we have been helping companies establish themselves in Dubai for more than 10 years!

Emiratisation measures apply

only to private-sector companies.

The United Arab Emirates Cabinet adopted a series of measures called NAFIS

aimed at increasing the emiratisation rate (the percentage of Emiratis) in private-sector establishments.

What is the new emiratisation rate for private-sector companies?

The minimum emiratisation rate was set at 2% per year for highly skilled jobs. This applies only to establishments with more than 50 employees. The UAE's objective is to increase this rate to 10% by 2026. Ultimately, this will create more than 12,000 job opportunities per year for Emirati citizens across all economic sectors. Starting in January 2023, companies that do not comply with the new rules will have to pay

a fine of AED 6,000/month for each vacant position that has not been filled by an Emirati.

Example

: If your Emirati quota is 10 and you have hired only 7 Emiratis, you will have to pay a monthly fine of

AED 18,000 = 3 (vacant positions) * AED 6,000.

Massive reductions in service fees

An 80% reduction in the service fees of the Ministry of Human Resources and Emiratisation is also being considered. This reduction will be offered only to companies that "achieve major accomplishments in terms of recruiting and training Emirati citizens."

Wage subsidy

The NAFIS program offers a wage subsidy scheme for Emiratis. They will receive a one-year wage subsidy of up to AED 8,000 per month during their training. University graduates will receive a monthly subsidy of up to AED 5,000 for five years. The program provides Emirati coders, nurses, and accountants with additional support on top of their basic salary.

Retirement support

The NAFIS program provides for a five-year government subsidy paid on behalf of the company to cover the cost of retirement plans for Emirati employees.

Family allowances

NAFIS also offers a monthly subsidy of AED 800/child/month - for up to 4 children, or a maximum monthly amount of AED 3,200 - exclusively for Emiratis working in the private sector.

The Establishment Card is an official document issued by the immigration authorities of the Emirate where your company is registered. The Establishment Card serves as proof that a company is duly registered and authorized to operate. It contains information about the company, such as the company name, card number, and expiration date. The Establishment Card is required for all visa applications for you and your employees. When applying for a visa, you must provide a copy of your immigration card. You will also need this card to connect your office to the internet, water, and electricity.

If a company's license in the UAE is not renewed within the prescribed deadlines, this can have significant consequences for the business. Generally, failure to renew the license results in the existing license becoming invalid, making the company illegal and unauthorized to conduct its commercial activities. The authorities (Registries and Immigration Services) impose fines and may even forcibly close the company if the license is not renewed on time. Since failure to pay a company's license fees (or its dissolution fees) creates a liability with the Authorities, it is possible to be arrested when passing through a UAE airport/port. Finally, it is important to remember that the company and its partners will have a negative record, which may subsequently have consequences when creating a new company, applying for a residence visa, or opening a bank account, whether in the UAE or elsewhere (remember that databases are now online and accessible worldwide). We therefore invite you to renew your license on time or proceed with dissolving your company if you no longer need it.