Company Formation in Dubai, UAE

Company Formation in Dubai, UAE

Bank Account Set Up

The account opening procedures in the UAE are lengthy and include a lot of documentation. The paperwork required varies depending on the kind of account and the bank. Opening a bank account in the UAE takes about 2-3 weeks.

A maintenance fee is not charged by the majority of banks. However, payment is required to use internet banking services. In most circumstances, physical presence is also required.

The main advantages of opening a bank account in the United Arab Emirates are as follows:

  1. The financial and banking system in the United Arab Emirates is stable and reliable.
  2. Payment processing fees are low.
  3. The account holder’s information is kept private.
  4. Capital is free to flow in any direction.
  5. The national currency rate remains constant, at 3.67 AED per US dollar.

Business Set Up in the UAE
The following are some of the advantages of establishing your business in the UAE:
1. Businesses wishing to reach new markets in the Middle East, Africa, Europe, and Asia will benefit from the UAE’s geographic location.
2. You can trade with key international marketplaces because of the beneficial time zone.
3. In terms of air transportation and air freight, the UAE has a lot to offer.
4. There are numerous alternatives for Free Trade Zones from which to choose.
5. The UAE has some of the best infrastructure and communication technology in the world.
6. Reasonable taxation policies are put in place that benefit both business owners and economies.

The UAE offers investors three alternative operating environments in which to conduct business, as listed below:

Mainland / Onshore

The UAE Commercial Companies Law governs all mainland (also known as onshore) UAE legal companies (CCL). The main benefit for foreign investors establishing a business on the mainland of the UAE is that, unlike the Free Zones, there are no territorial restrictions on business activities or location of offices/premises. As a result, a mainland business can trade anywhere in the UAE or the wider Gulf Cooperation Council (GCC), including all Free Zones.

Most distinguishing features of onshore companies is that they can only be established in collaboration with a UAE national, who must either be a company shareholder (holding 51 percent of the company’s stock) or act as a local service agent.

Free Zones

Free Trade Zones are special economic zones established with the goal of providing tax breaks and customs duty exemptions to foreign investors. The UAE now has 45 free zones, with nearly 30 of them in Dubai alone.

Free Zones (also known as a free trade zone, a free economic zone, or a tax-free zone) are designed to boost international trade by allowing 100% foreign ownership and a single point of administration.

The Free Zones were created to make the process of forming a business easier inside its confines, and they have rules and infrastructure in place to ensure that they stay investor-friendly.

All free zones in the UAE, including Jebel Ali Free Zone (JAFZA), Dubai International Financial Center (DIFC), Dubai Airport Free Zone (DAFZA), and others, are subject to the Free Zone Audit rule.

Offshore

Offshore companies in the UAE should not be confused with companies in the UAE Free Zone. An Offshore Company is a legal business entity formed with the intention of conducting business outside of its registered jurisdiction and/or ultimate ownership location.

Ras Al Khaimah (RAK), Ajman Offshore, and the Jebel Ali Free Zone are the main jurisdictions in the UAE that offer Offshore Companies (JAFZA).

In addition to mainland, freezone, and offshore registration, Zaidi Accounts can help you compile and submit all of the necessary documents to register your company in the UAE. Among our services are the formation of a corporation and the opening of a bank account. In addition, we assist our clients in securing their assets and limiting their liabilities.