Incorporation services in UAE and Visa

Business without borders and income tax: register company in UAE and obtain residence permit

The business in UAE is a business in respective international jurisdiction that grant the right to apply for a long term residence visa.

Benefits of company formation in UAE

  • Zero corporate tax for free zone registered companies, 9% for mainland company for domestic income

  • No tax for dividends & royalties, income repatriation, capital gain etc.

  • The company owner has a right for long term Residence Visa in Emirates with a right of constant stay

  • Zero tax for individual income (salary, interest gain, dividends, etc)

  • No custom duties for Export-Import for free zone companies

  • Stable exchange rate AED to USD

  • You can own real estate Title in UAE

The business in UAE is a business in respective international jurisdiction that grant the right to apply for a long term residence visa.

  • Residency visa in Dubai, processing time up to 20 days. Visa is valid for 2-3 years with a right to extend.
  • After 6 months of constant stay in UAE you can apply for tax residency
  • 0% of rejections
  • You can easily open a personal account in a reputable UAE bank

Why the clients chose SOWA?

SOWA Consulting is an authorised partner of most popular Free Zones of UAE

We cooperate with DMCC, IFZA, Ajman Media City, ADGM, Meydan, RAKEZ, Dubai Airport Free zone and others.

It gives us a right to incorporate companies in UAE Free zone directly, without intermediaries.

We successfully open corporate and private accounts in reputable Emirates banks

Our service fees are very attractive

What are the peculiarities of the Company registered in a free zone and onshore?

A free trade zone is a special territory with tax preferences for business. UAE accounts more than 40 free zones. The requirements and cost of business registration vary for each free zones. Besides, some free zones have specialization in particular business, for instance, those for EXIM business provide warehouses at airports and seaports, others are focused on consulting, IT, financial sector. . Companies registered in a free zone are exempt from income tax and can conduct business within a free trade zone or globally.

Mainland company in UAE.  Mainland company is a local (onshore) company regulated and licensed by DED (Department of Economic activity) of Emirate of registration. Starting from June 2023, income of Mainland company is subject to 9% income tax on operations within UAE. Mainland company can conduct operations within UAE.

SOWA Consulting is an authorised partner of most popular Free Zones of UAE

We cooperate with DMCC, IFZA, Ajman Media City, ADGM, Meydan, RAKEZ, Dubai Airport Free zone and others.
Being an authorised partner of a free zone give us a right to conduct company registration directly without any intermediary, this reduce the cost for our clients.

Important information you should know about company registration in UAE

Yes, the company registration in Emirates can be done remotely. You do not need to be there for company formation in UAE. Depending on the chosen free zone it may take from 5 to 15 days to complete the process. The director and shareholder can be the same person. A foreigner can own 100% shares of the free zone company.

It depends on a free zone requirements. Nevertheless, even if there is a requirement to pay up the capital in full, afterwards the company can use it.

Incorporation of a company in UAE or purchase of shares in the existing one gives a right to its shareholder to apply for residency visa. To be eligible you need to own shares with a value at least 50 000 AED and pay it in full. The Visa is valid for up to 3 years and can be extended as long as you still own the shares. With this visa you can stay in UAE as long as you want or visit a country at least once in 6 months. You can also open corporate and private bank accounts, obtain driving license, medical insurance etc. You can also sponsor your family’s visas to stay in UAE.

Yes, Company in UAE can employ foreigners but the company should sponsor an Employment Entry visa for foreign workers, within 60 days on arrival to UAE foreigners should obtain residence permit and Emirates ID. The company should also pay at least minimal salary, cover medical insurance and allowance for accommodation, travelling etc.

There is no accountancy reporting obligations in UAE, however companies registered onshore (mainland companies) and most of free zone companies should prepare and submit audited financial statements to its free zone at the end of the financial year.

The company registered in a free zone is exempt from corporate income tax, dividends, royalty, repatriation tax, capital gains etc.

 The mainland company starting from July 2023 is subject to income tax of 9%. The same is true for free zone companies that generate their income from operations on the internal market. The tax is due if the income amount exceeds 375 000 AED (aprox. 100000 USD) within the financial year. The business whose financial year starts in January should not pay tax from income received before January 2024.  Multinational companies, whose income is 750 mil EUR and more are taxable at 15% tax rate.

A holder of Residence visa in UAE and has been staying in UAE not less than 183 days has a right to apply for Tax Residency Certificate (TRC). Although in order to take advantages of Double Tax Avoidance Agreements, the person should stop being tax resident in his/her previous country.

VAT rate is 5% in UAE, it is applicable to all operations on the local market including but not limited to rent (applicable for non-residents also), sale-purchase, service provision to local companies and individuals. More details on VAT should be requested from qualified VAT advisor or auditor.

The expenditures for company incorporation in UAE depend on many factors. 1. The cost of the license. Every company in UAE must obtain license(s) for chosen business activity(is). License prices vary in Free Zone and Department of Economic Development of the relevant emirate (for mainland company) starting from 2500 USD to 5500 USD per year and subject to annual renewal. Non-related additional activities may require additional license. 2. Additional expenses include DED & Free zone fees and charges for set of documents, Establishment card, emirates channel fee, fee for every additional shareholder, and others. 3. Requirements to the office premises. Some business activities can be done only in normal office premises based on the conditions of the licensing. Other activities, mostly related to provision of services that can be supplied online may allow usage of a flexi-desk. Flexi-desk is much cheaper. The price for office rent depends on chosen location, size, etc. Please, note, that companies registered in free zones are allowed to be seated in the buildings dedicated to the free zone. Mainland companies should have an officer. 4. Some activities may require obtaining of a special permission form governmental authorities that will lead to some extra expenses.

As it was explained in the paragraph above for some business activities a separate office space is a must. Mainland companies are obliged to have a separate office premises. Companies registered in  free zones should follow the rules of the free zone, but in major cases companies that are planning to have a shop or employ workers will need an office. However, you should also keep in mind that many banks are more loyal to those companies who use an office space instead of a flexi-desk.

No, in order to open corporate or personal account in UAE bank you should visit a bank branch in person. The pre-application can be done remotely.

Yes, it is obligatory to obtain residence visa and emirates ID if the shareholder wants to open a bank account in a local bank in UAE or plans to stay in UAE for a long time.

To open a bank account in UAE bank will take 1-4 months. The term is depend on company’s owners and director personality and reputation, business profile and associated risks. 

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