The UAE company structure has many advantages. It has no corporate and income taxes. It’s the perfect location between the East and the West with perfect access to the international labour market.
RAKICC Companies/ RAK Offshore
This is the most popular structure for international investors who want to establish a company is the UAE. This entity is a perfect option if you don’t want to maintain local office. It can be ideal for these territories: Investment, consulting companies. Holding shares or intellectual properties. Traders for outside the UAE.
It has the following advantages:
0% Corporation tax, 0% VAT and no income tax.
No requirement for the owner or director to visit the UAE in person
100% full foreign ownership
Confidentiality is preserved; there is no public record of shareholders or directors
No audit requirement or requirement to submit financial statements
Possibility to open a solid bank account in Dubai
A registered office in Dubai
Just like local and free zone companies, these offshore companies can benefit from some of the tax treaties concluded by the UAE while still benefiting from the strong client confidentiality rules applicable in the UAE. Using a RAKIC/ RAK offshore as a shareholder of a free zone company can prevent otherwise significant legalization charges.
RAK IC’s cannot rent office space. Nor can they apply for staff visas. They are also not allowed to import goods into the UAE.
Free Zone Entities
If you’d like to set up and maintain a physical office in the UAE, a Free Zone company is the perfect answer for your plans. Some activities are restricted outside of the Free Zone, but a free zone entity can be used to trade with the rest of the world. Emirati shareholder in not mandatory.
With this structure you will have a local presence and do business from the booming UAE. You can rent an office space and can easily obtain visas for you and your staff.
The main advantages of a Free Zone company: 100% foreign shareholders are allowed,you can obtain visas for you and for your staff, you can rent office, no taxes. Guarantee for 15-50 years against the future imposition of corporation tax. Import duty free (duty is 5% on most goods), if the goods are not supplied to the local market
Dubai Mainland and Limited liability companies
A Dubai Mainland LLC can be formed with a minimum of two shareholders. Their liability is limited to their shares in the company’s capital. If you want to trade within the country and Worldwide also, this is the perfect option. 51% Emirati shareholder ratio is mandatory!
Dubai Mainland Companies and LLC’s can trade freely within the United Arab Emirates without any restrictions.
Dubai Mainland Companies and LLC’s main advantages are: No corporate tax and no VAT on most products, efficient government services and rule of Law, no restrictions on hiring expatriates
Branch of a foreign company
Foreign companies can set up a branch office in the UAE. The branch office cannot manage any activity on its own, it can enter into contracts only on behalf of the parent company. Support activities by the branch are allowed.