Business consultancy FAQ
What are the ideal business activities for a Free Zone company? The ideal business activities for a Free Zone company include import and export, technology and IT services, consulting, manufacturing, e-commerce, media and creative industries, healthcare and pharmaceuticals, financial services, and logistics. Each Free Zone is tailored to specific industries, offering specialized infrastructure and benefits aligned with these activities. What are the advantages of setting up a business in a Free Zone compared to a Mainland company in the UAE? Setting up a business in a Free Zone offers several distinct advantages over Mainland company formation. These benefits include full repatriation of profits, allowing complete transfer of earnings out of the UAE. Additionally, Free Zone companies enjoy various tax exemptions, including no corporate or personal income taxes, and often benefit from simplified and faster setup processes. What are the documents Required for Company Formation in the UAE For Individual Shareholders Completed Application Form Passport Copy Visa Copy Proof of Address No Objection Certificate (NOC) Photograph Business Plan Memorandum of Association (MOA) Articles of Association (AOA) Lease Agreement (if applicable) For Corporate Shareholders Completed Application Form Certificate of Incorporation Board Resolution Passport Copies (of directors and authorized signatories) Proof of Address Legal Representative’s Power of Attorney Business Plan Memorandum of Association (MOA) Articles of Association (AOA) Lease Agreement (if applicable) Auditor’s Certificate (if required) What are the benefits of choosing a mainland business setup ? Mainland businesses have the flexibility to trade anywhere in the UAE and can bid for government contracts. They also have no restrictions on the number of visas they can apply for, depending on the size of the office space. Can I switch from a freezone to a mainland setup later? Yes, it is possible to convert a freezone company to a mainland setup, but the process involves certain legal procedures, and specific requirements must be met, such as obtaining approvals and licenses. What are the cost involved in setting up a business in mainland or freezone? Costs vary depending on the location, business activity, and other factors. Mainland setup costs might include license fees, local sponsor fees, and office rental costs. Freezone setups generally include license packages, office space costs, and visa fees. What type of license are available for mainland and freezone businesses? Mainland businesses can obtain commercial, industrial, and professional licenses. Freezone licenses typically include trading, service, industrial, and specific types related to the freezone’s focus (e.g., media, logistics). What advantage do freezone companies offer ? Freezone companies benefit from 100% foreign ownership, full repatriation of profits, and exemption from import/export taxes. They also have streamlined processes for setting up and lower operating costs. Can an Offshore company do business within the UAE? No, an Offshore company is not permitted to do business within the UAE. It can only conduct international business activities. How do a business choose the right Freezone for the business? The choice of Freezone depends on your business activity, target market, proximity to ports/airports, and the specific benefits each Freezone offers. Consulting with a business setup expert can help determine the best fit.
STEPS WHICH ARE FOLLOWED BY OUR PROFFESSIONALS TO GUIDE YOU
At NAB Consultants, we offer expert guidance to help you successfully set up and form your company in the UAE. Our structured approach ensures you make informed decisions about the best setup options based on your business needs. Here’s how we assist you: Initial Consultation and Needs Assessment: Our management will engage with your team to understand your business type, activities, and objectives. We’ll discuss whether your business involves retail, manufacturing, professional services, construction, technology, logistics, education, media, or hospitality. Business Activities and Purpose: We gather information about the nature of your business activities and the overall purpose of your business. This helps us determine the most suitable setup options and regulatory requirements. 2.Evaluation of Setup Options: Free Zone vs. Mainland:Based on your business activities and purpose, our experts will advise whether a Free Zone or Mainland setup is more advantageous. Free Zone Setup:Ideal for businesses with a focus on international trade, technology, or specialized industries. We help you choose the most suitable Free Zone based on factors such as cost-effectiveness, industry-specific facilities, and business needs. Jebel Ali Free Zone (JAFZA):Ideal for businesses involved in trade and logistics, offering extensive warehousing and logistics facilities. Dubai Internet City:Perfect for technology and IT companies, providing state-of-the-art infrastructure and a technology-driven environment. Dubai Media City:Suited for media, marketing, and communication businesses, with dedicated resources and networking opportunities. Mainland Setup:Suitable for businesses aiming to operate directly within the UAE market, including those involved in import and export. For Mainland setups, we recommend locations near key ports to minimize transportation costs and enhance logistical efficiency. Jebel Ali Port Area:Ideal for businesses requiring easy access to a major international port, reducing logistics and transportation costs. Sharjah Port Area:Suitable for businesses operating in or near Sharjah, providing convenient access to another major port. Assessment of Warehousing Needs .Determining Warehousing Requirements: Depending on your business activities, we assess whether you require warehousing facilities. If Warehousing is Needed:For businesses involved in manufacturing, distribution, or retail, we help you find appropriate warehousing solutions either within a Free Zone or independently if you choose a Mainland setup. If Warehousing is Not Needed:For service-based businesses or those that do not involve physical goods, we can assist you in setting up without the need for warehousing facilities. Implementation and Setup: Action Plan:We develop a comprehensive action plan that includes the steps required for company formation, such as obtaining licenses, registering with relevant authorities, and setting up infrastructure. Regulatory Compliance:Our team handles all regulatory and compliance requirements, including documentation and coordination with governmental agencies. Ongoing Support and Monitoring: Regular Updates:We provide continuous updates on the progress of your setup and ensure that all milestones are achieved. Performance Monitoring:We monitor the performance of your business setup and offer support to address any issues and optimize operations. Review and Optimization: Periodic Reviews:We conduct regular reviews to assess the effectiveness of your business setup and identify areas for improvement. Strategic Adjustments:Based on the reviews, we recommend adjustments to enhance efficiency, reduce costs, and meet your business objectives. At NAB Consultants, our mission is to provide expert guidance and comprehensive support throughout the business setup process. We ensure that your company is established efficiently and positioned for success in the UAE market.
STEPS FOR COMPANY FORMATION IN UAE
Determine the Type of Company: Decide between an onshore, free zone, or offshore company based on your business needs and location preferences. Choose a Business Activity: Define the activities your business will undertake to determine the appropriate license. Select a Company Name: Pick a name that complies with UAE naming conventions and is not already in use. Choose a Business Location: Decide on a physical or virtual office space depending on the type of company you’re setting up. Prepare and Submit Documents: Gather and submit necessary documents, including passports, proof of residence, and legal forms, to the relevant authorities. Obtain Initial Approval: Secure initial approval from the relevant authority to ensure your business activity is compliant with UAE regulations. Draft Legal Documents: Prepare and finalize the Memorandum of Association (MOA) and Articles of Association (AOA) for your company. Register the Company: Register your company with the Department of Economic Development (DED) for onshore companies, or with the free zone or offshore authority, as applicable. Obtain Business Licenses: Acquire the necessary business licenses based on your company’s activities. Set Up a Corporate Bank Account: Open a corporate bank account by providing the required documents and resolutions. Arrange for Visas and Permits: Apply for residency visas and any required permits for yourself, employees, and dependents. Comply with Local Regulations: Ensure compliance with UAE labor laws, health and safety regulations, and other legal requirements. Begin Operations: Start your business operations once all registrations and licenses are in place. Maintain Compliance: Continuously adhere to UAE regulations and stay updated with any legal changes.
FREEZONE COMPANY FORMATION
A Free Zone in the UAE is a designated area where businesses can benefit from a range of advantageous conditions designed to foster economic growth and attract foreign investment. These zones are strategically located across the country and are designed to cater to various industry sectors, including technology, media, healthcare, and manufacturing. Each Free Zone provides tailored infrastructure and services that align with the specific needs of its designated industry. Businesses within these zones benefit from simplified administrative procedures, including easier registration and licensing processes, which help facilitate quicker setup and operation. Advantages of Freezone Company formation.- Full Repatriation of Profits: Complete freedom to transfer all profits and capital out of the UAE. Tax Exemptions: Exemptions from corporate taxes, as well as import and export duties. Simplified Setup Process: Streamlined and efficient registration and licensing procedures for faster business setup. Licensing Flexibility: Availability of various types of business licenses tailored to specific business activities and industry requirements. High-Quality Logistics Support: Access to advanced logistics infrastructure and services, including efficient transport and warehousing system. Regulations for Immigration and Labor Recruiting: Streamlined and clear regulations for hiring employees and managing immigration processes. Major freezones in Dubai- Jebel Ali Free Zone (JAFZA) Dubai Multi Commodities Centre (DMCC) Dubai Internet City (DIC) Dubai Media City (DMC) Dubai Silicon Oasis (DSO) Dubai Healthcare City (DHCC) Dubai South Dubai Design District (d3) Dubai Airport Freezone (DAFZA) Dubai Maritime City
MAINLAND COMPANY FORMATION
A Mainland company in the UAE refers to a business entity established in the UAE’s mainland territory, operating outside the designated Free Zones. Mainland companies are subject to UAE federal laws and regulations, which differ from those applied in Free Zones. These companies can conduct business across the UAE and internationally, offering broader market access and operational flexibility.The three types of mainland companies include Limited Liability Company, Branch of Foreign Office, Proffessional firms. Advantages of Mainland company formation in uae- Broader Market Access: Mainland companies can conduct business across the entire UAE, including interactions with local companies and government entities, without geographical restrictions. Wide Range of Business Activities: They have the flexibility to engage in a diverse array of business activities and industries, including those not permitted in Free Zones. Direct Client Interaction: Mainland companies can directly interact and transact with local clients, government bodies, and businesses, enhancing their market reach and operational efficiency. Eligibility for Government Contracts: They are eligible to bid for and secure government contracts, providing opportunities to participate in public sector projects and tenders. Flexibility in Office Location: Mainland companies have the freedom to establish their office anywhere in the UAE, allowing them to choose locations that best suit their business needs. 100% Foreign Ownership: Recent regulatory changes allow for 100% foreign ownership in specific business sectors, eliminating the need for a local partner in certain cases. Tax Benefits: Mainland companies benefit from UAE’s favorable tax environment, including a relatively low corporate tax rate, which, as of 2023, is 9% for profits exceeding AED 375,000, and no personal income tax, contributing to an attractive business climate.
OFFSHORE COMPANY FORMATION
Offshore company formation in the UAE involves setting up a business entity that operates outside the local jurisdiction but benefits from the UAE’s favorable regulatory and tax environment. Offshore companies in the UAE are typically established in specific offshore jurisdictions, such as Ras Al Khaimah International Corporate Centre (RAK ICC) or Jebel Ali Free Zone (JAFZA), designed to attract international businesses by offering a range of advantages.
