How to set up your company in Dubai?

You can give it any name you wish, provided that two conditions are met:

• 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-opérative, Fund, Municipal, Chamber of commerce, Trust, Royal, Chartered, Insurance, Finance, Mutual Fund, Emirate and Emirates.

Two possibilities:

• Nothing has been arranged: in this case, the transfer of the company’s shares falls within the scope of the deceased person’s estate.
• Share transfer: you can arrange a transfer of the company’s shares at any time, with the person or people of your choice as the buyer(s). From a banking perspective, as the company’s new shareholder(s), this person or these people 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 employee or employer social security contributions are payable for an employee hired by your Free-Zone company. This means that the salary you pay them is “net” for both your company and the employee. If they receive benefits in kind (health insurance, housing, etc.), no social security contributions are payable.

The minimum age to be a partner in a company in the Emirates is 21. It is not possible to obtain an exemption for a child under 21.

Customs duties are 5% of the value of 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 may hold interests in other companies (and therefore act as a holding company - parent company) located in the Emirates and outside the Emirates. 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 allow this.

A Free Zone company, regardless of its license, can obtain a Tax Residence Certificate from the United Arab Emirates Ministry of Finance to prove its resident status in the UAE.

A Free Zone company may have a foreign legal entity (company) as a shareholder. Please note that, in this case, all of this company’s incorporation documents must be certified, and you must provide us with a copy of the passport and proof of address dated within the last 3 months for all of its shareholders. A “board resolution” authorizing the creation of this subsidiary must also be signed. We will prepare it for you (the cost is included in our package).

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.

A Free-Zone company can hire staff located in the Emirates and outside the Emirates. Regarding staff 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.

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

The same 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 (from the anniversary date of your company's registration):

• 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 Registrar may dissolve the company. We therefore cannot guarantee that it will be possible to reinstate 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, assisting with opening your bank account, etc.) and that we are not authorized to act on your bank account or manage your company’s operations.

“Voluntary dissolution” is the simplest, fastest, and least expensive way to close a company. The cost of dissolving a company is AED 5,000.

If a company does not pay its renewal fees or complete the dissolution procedure, the Authorities reserve the right to pursue the debtors in their country of origin.

The annual renewal fees for your Free-Zone company are payable 1 month before your 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.

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 activity and the partners’ 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 a banking, insurance, fund management, or similar license.

VAT was introduced in the Emirates as of January 1, 2018. Its rate is 5%.

It operates in much the same way as VAT in France, Belgium, etc., with the concepts of output VAT and deductible VAT. All companies with turnover exceeding AED 375,000 must register.

We remain available if you have any questions about this.