Frequently Asked Questions

Things you should know before starting your business in UAE.

A local service agent (LSA) is a UAE national who assists a foreigner in the licensing requirements and other government-related matters in exchange for an annual fee.

Yes, it can after maintaining a certified letter from the parent company and getting the approval of the UAE’s Ministry of Economy.

According to the website of Dubai Multi Commodities Centre, a free zone or free trade zone or free economic zone, is a designated geographical area where certain taxes or restrictions on business, employment or trade do not apply in the same manner that they apply to the country in which the zone is located.

You do not need to tie up with a UAE national. Apart from that, you need minimum paperwork and time to start a business in a free zone. In addition, you are exempt from customs duties.

You can do any business in the fields of financial, educational, retail, hospitality and media to name a few. Check with respective free zone authority for businesses permitted on their premises.

There are many benefits of setting up a business on the mainland. Some of them are:
Flexibility to do business in any part of the UAE
No limit on number of visas
More business activities available for licensing
No business or personal taxes.

LLC companies
Public Joint Stock Companies (PJSC) – it must have at least 5 founding members who are UAE nationals, owning between 30 per cent and 70 per cent of the capital shares
PrJSC Companies
Civil company with an engineering activity

Setting up a business involves raising capital investment, paying for licences and employee visas. The cost of setting up a business depends on:
The nature of the activity and licence required; whether it is commercial, industrial or service-oriented
The legal form of the company; whether it is an establishment, a company, or a branch of a company.

The most prevalent type of company in the UAE is the Limited Liability Company (LLC). LLC Company Formation in Dubai can be implemented by a minimum of 2 shareholders and a maximum of 50 shareholders whose liability is restricted to their company equity shares.
One of the ways to set up a business in Dubai is an LLC Company Setup.

How to Start a LLC Company in Dubai

If you are looking at setting up a business in Dubai or UAE you will need to rent a business office space.

Office Space for Business Setup in Dubai

While a branch has no separate legal standing, a subsidiary company is a separate legal entity and has an identity different from its holding company.

Open a branch
EXPRESS YOUR INTEREST. Decide on your licence type and business activities.
SUBMIT YOUR ONLINE APPLICATION. Complete the form, pay the initial application fee of 1,035 AED and submit your application.

A representative office is an office established by a company or a legal entity to conduct marketing and other non-transactional operations, generally in a foreign country where a branch office or subsidiary is not warranted.

A Branch is a more independent entity that conducts business in its own name but still acts on behalf of the company. A Branch is not legally separate from the foreign parent company and so is also subject to the local laws governing the foreign parent company.

A branch/representative office has limited legal capacity. A representative office is not allowed to generate profit, while a branch office is allowed to perform certain activities of the parent company and may generate profits.

Free-trade zones (FTZs) are special economic zones set up with the objective of offering tax concessions and customs duty benefits to expatriate investors. There are more than 30 Free Zones operating in Dubai. FTZs in Dubai and the UAE are governed pursuant to a special framework of rules and regulations.

Here are the key steps to set up a business in a free zone.
Determine the type of legal entity.
Choose a trade name.
Apply for a business licence.
Choose an office space.
Get pre-approvals, register your business and get your licence.

DMCC is a government entity established in 2002 to enhance commodity trade flows through Dubai. DMCC Free zone perform a range of roles which continue to position Dubai as the preferred destination for global commodities trade and DMCC as the world’s No.1 Free Zone.

UAQ is found to be the cheapest freezone in Uae.
After that Many freeZone is most cheapest area in UAE.
Ajman Free Zone.
RAK Free Zone.
Shams Free Zone.

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