General information
General data
The United Arab Emirates is a state located in the Middle East, with a total area of 83,600 square kilometres.
The population of the UAE is 9,205,651 as of 2013. By its ethnic structure, the population of the UAE includes the following groups:
· 19 % - native Arab population;
· 23 % - other Arabs and Iranians;
· 50 % - South Asians;
· 8 % - others.
The literacy rate of the population is 90%.
The capital is Abu Dhabi..
The official language is Arabic.
The national currency is UAE Dirham (AED), equal to approximately 3.67 USD.
The climate of the UAE can be defined as desert; it is cooler in the eastern mountains; the average summer temperature ranges from +35°C to +48°C; the average temperature in January is +18°C (minimum +10°C, maximum +25°C).
The time zone is UTC+3.
The phone code is +971.
History
The rise of the Arab Caliphate in the 7th century encouraged the spread of Islam among the local population. The cities of Dubai, Sharjah and El-Fujairah were founded.
The eastern side of the Arabian Peninsula was part of the Karmat state and after its collapse fell under the rule of Oman.
English rule of the territory originates in 1820. Oman was divided into three parts and later became known as Trucial Oman. Even under the English protectorate, the population maintained its traditions and religion.
In the beginning of the XX century, rich oil reserves were found in the Persian Gulf. This contributed to the inflow of foreign investments and significantly improved the living standards of the population.
In 1971, six emirates of the Trucial Oman established a federation called the United Arab Emirates. The seventh emirate joined it a year later.
State structure
The state structure of the UAE is a unique combination of republican and monarchical regimes.
Formally, the Supreme Council of the Union occupies the highest place in the hierarchy of the UAE state structure. The Council consists of the heads of all seven emirates. The Council determines the general policy of the state.
The head of state is the president whose post is combined with that of emir of Abu Dhabi capital. Since the Emirate itself is an absolute monarchy, the rule in it, and therefore in the whole state, is inherited. The President of the UAE is the Supreme Commander of the Armed Forces, Chairman of the Supreme Defense Council. The Head of State signs decrees and resolutions approved by the Supreme Council and regulations adopted by the Council of Ministers. In addition, the President appoints members of the diplomatic corps, senior civil and military officials, declares amnesty or confirms death sentences.
The Executive Power belongs to the Council of Ministers, headed by a Chairman appointed by the President and approved by the Supreme Council. The Government's powers include the drafting of bills and the federal budget, the adoption of decrees and guidelines for the implementation of laws and other regulations, the monitoring of the enforcement of judicial decisions, the ratification of international treaties and agreements, and the appointment and dismissal of federal officials, which do not require special regulation by other supreme organs of the State.
The Legislative Power is represented by the Federal National Council, which consists of representatives from each emirate, the number of which is established in the Constitution and is determined according to the population, political and economic situation in a given emirate. The Council currently has 40 members.
The National Council is not a legislative body in the full sense of the word because it does not have a legislative initiative. It has the power only to discuss laws proposed by the Council of Ministers and to amend and supplement them at its discretion. The Council also has the power to reject any bill. In this case, however, the President still has the power to pass a law after approval by the Supreme Council of the Union. Thus, the National Council, although the constitution describes it as a legislative body, is rather an advisory body.
The Judiciary Power is represented by the Supreme Union Court, which is the Supreme Federal Court of the United Arab Emirates. It consists of a president and 4 independent judges. The Supreme Court regulates relations between emirates, members of the Supreme Union, federal and local authorities.
Economy
The main features of the economy of the United Arab Emirates at present are the following:

· economy type: open economy, which implies active involvement in international economic relations;
· high per capita income;
· 31.4% of GDP is based on oil and gas production (2010);
· there are over 30 Free Economic Zones (FEZ) in the UAE, which helps attract foreign investment.

The discovery of oil fields has significantly improved the standard of living in the United Arab Emirates. The UAE is now the third largest oil-producing country in the Gulf, with an average production of 2.2 million barrels per day. The UAE's crude oil reserves are:

· 200 billion barrels of oil;
· 5.600 billion m3 of natural gas.


Abu Dhabi, Dubai and Sharjah are the leading oil producers in the Emirates.
The UAE's 2009 economic report, published at the end of May 2010, recorded a 1.3% GDP growth. The non-oil sector accounts for 71.6% of GDP compared to 66.5% in 2008, demonstrating the effectiveness of economic diversification.

According to the Annual Economic Report for 2010 published in 2011, the UAE economy continues to recover from the global economic crisis, which is reflected in the growth of economic indicators.

In 2010, real GDP was 1.4% compared to the same figure for 2009 (1.6%). This growth was mainly due to the development of the non-oil sector, which accounted for 68.6% of GDP in 2010 compared to 66.3% in 2009. Accordingly, the oil sector accounted for 31.4% of GDP in 2010, compared to 33.7% in 2009.

Free economic zones

In total, there are over 38 free zones in the UAE. Some of them specialize in a particular industry, area (e.g. Internet City, Media City, Healthcare City, Dubai International Financial Center, etc.), others have general specialization.
Free economic zones
In total, there are over 38 free zones in the UAE. Some of them specialize in a particular industry, area (e.g. Internet City, Media City, Healthcare City, Dubai International Financial Center, etc.), others have general specialization.
General corporate information
Law system
The UAE is a mixed legal system which combines:

· The Muslim law;
· The Romano-Germanic law.

In the UAE, codified laws governing labor relations, maritime law relations, trade transactions, civil law transactions, intellectual property, etc. are adopted.



There are two main types of laws in the UAE:

· Federal;
· local legislative acts (at the level of individual Emirates).

The Federal laws are in force throughout the UAE and are adopted by the legislature or the Ministers of a separate Ministry by virtue of their authority.
The local decrees and acts are only valid in the territory of a certain Emirate. A local decree is adopted by the Ruler or Crown Prince of a certain Emirate; a local act is issued by a member of the Emirate's Royal Family.
Legal forms
Companies registered in the UAE can be divided into three categories:

· Onshore companies: types of such companies are defined by the UAE Civil Code as well as the UAE Federal Law on Commercial Companies.
· Companies registered in the free zones
· Offshore companies

Furthermore, a natural person may conduct business through Sole Establishment (the equivalent of an individual entrepreneur). Foreign companies can also open a branch or representative office in the UAE or a free zone.

Currently, all companies in UAE (excluding companies in certain sectors) are exempt from income tax, VAT, repatriation, royalty and other taxes and fees.
Onshore companies
According to the UAE Federal Law on Commercial Companies, the following organizational and legal forms of commercial companies are defined:
· Limited Liability Companies;
· Private Joint Stock Companies;
· Public Joint Stock Companies;
· Joint Participation Ventures (or Private Unlimited Companies);
· Limited Partnerships (or Simple Commandite Companies);
· Partnership Limited with Shares (or Share Commandite Companies);
· General Partnerships (or Joint Liability Companies).
According to the UAE Civil Code, Civil Companies can be established in the UAE. The types of activities of such companies are limited. Such companies can conduct professional activities in technology, law, medicine etc. and do not require a local partner.
Companies registered in the free zones
There are over thirty-eight free zones in the UAE. Companies registered in the Free Zone, along with federal and Emirate legislation, are regulated by special laws adopted in such Free Zones. As a general rule, establishing a company in a Free Zone does not require involving a local partner as a founder.
In order to carry out international operations, the company will need to acquire the relevant license, which is issued in the process of company registration. The company will not be allowed to conduct business in the UAE outside the Free Zone. However, the legislation does not provide for restrictions on the Company's foreign economic activity if such activity complies with the license issued.
The legislation provides for the need to rent a minimum office space in the free zone or a room in a business centre.
Companies in the free zones can be opened in the form of:
· branch or representative office,
· Free Zone Establishment – single-member company,
· Free Zone Company – a company founded by two or more founders.
Each free zone has its own requirements in relation to the charter capital, number of directors, audit of reports and other characteristics of companies.
Offshore companies
The activities of offshore companies, together with the federal law and the laws of certain Emirate, are governed by special laws adopted with respect to such offshore jurisdictions. The establishment of an offshore company also does not require a local partner as a founder.
Such companies were generally not allowed to operate in the UAE, but had no restrictions on the possibility of conducting foreign trade transactions outside the UAE.
There are no requirements for such companies to maintain an office, conduct an annual reporting audit or maintain staff.
The provisions of double tax treaties do not apply to offshore companies.
Registration
Company name
Regarding the company name requirements, imposed by the UAE law, the following should be noted:
· It is forbidden to use in the name such words as: Insurance, Bank, Building society, Co-operative, Fund, Municipal, Chamber of Commerce, Trust, Royal, Chartered, Finance, Mutual Fund, Emirate и Emirates;
· it should indicate the legal form "Limited" or "Ltd";
standard languages - English, Arabic.
Offshore company registration
To register an offshore company in the UAE, you need to go through the following stages:
1. Notify the service provider of the name of the company in English, the purpose of establishing the company, the amount of the share capital (by default the share capital will be 10,000 dirhams) and the address of the recipient of original documents for the company;
2. Send scanned copies of the following documents of both the director and the founder to the service provider: a copy of the passport (it is mandatory to have a copy of the passport page with the signature of the passport holder); a letter from the bank confirming the availability of a bank account; confirmation of actual place of residence (e.g. utility bills);
3. Sign documents electronically;
Obtain a registration certificate, charter and seal to the specified address.
Confidentiality of information
There are no public registers of companies in the UAE that contain information on shareholders and directors. Information on free zone and offshore companies can only be obtained by request of the local court.
Registered office
Offshore companies are registered at the address of the registration agent. Such companies may not have a physical office in the UAE.
Seal
For offshore companies, it is mandatory to have a seal.
Redomiciliation
The redomiciliation of companies in and out of the UAE is not permitted.
Company structure
Director
The UAE companies must have a minimum of one director. A director can only be a natural person. There are no residency requirements.
The information on directors is not disclosed to third parties, as there is no public nor open register of legal entities and their directors for free zone and offshore companies.
Meetings of directors may be held in person and by correspondence.
Secretary
The UAE law makes it mandatory for a Secretary to be present in a company, but does not impose residence and qualification requirements.
Legal entities can't act as secretaries.
Shareholders
The UAE companies must have a minimum of one shareholder. Shareholders can be both individuals and legal entities. There are no residency requirements.
Information about shareholders is not disclosed to third parties, as there is no public nor open register of legal entities and their shareholders for free zone and offshore companies.
Beneficiary
Despite many jurisdictions discussing the establishment of an open beneficiary register, it does not yet exist anywhere, including in the UAE. This means that there is no open access to information on the beneficial owner. It is kept by a service provider, namely companies, incorporation firms, trustees, lawyers, accountants and others, in strict privacy. Information on beneficiaries may only be disclosed to regulatory authorities (e.g. during its presence checks) or by court order.
Charter capital and shares
All companies in the UAE should indicate the amount of their charter capital in their documents. The minimum amount of share capital varies depending on the emirate, the type of company and its legal form. For Ras Al Khaimah offshore companies, the minimum amount of capital is AED 10000.
As with most free zones and offshore companies, there are no requirements to payment of charter capital.
Generally, the amount of charter capital is expressed in AED (local currency) or USD.
The standard amount of capital is 10000 AED.
Taxation
Taxation of individuals
In the UAE, no income tax is charged on individuals.
Income tax
At the federal level, no company taxation is stipulated. At the level of each of the Emirates, decrees have been issued on the taxation of companies, which, however, have not entered into force and are not applicable. An exception is made for some companies that produce oil and gas, petroleum products and foreign bank branches.
Tax holidays for a period of 50 years are legislated for free zone companies.
Capital Gains Tax
In the UAE, no capital gains tax is levied.
Dividends
The dividends are not taxed.
VAT
Since 2018, the UAE has introduced a value added tax of 5%.
Withholding tax
In the UAE, no withholding tax is enacted.
Stamp Duty
In the UAE, there is no stamp duty.
Annual fee
The annual fee for companies is 2000 AED. The fee, as well as the services of a registration agent, are payable at the end of each year of the company registration.
Measures to counteract tax evasion
Transfer pricing: no.
Thin capitalization: no.
Controlled foreign companies: no.
Treaties on avoidance of double taxation
The UAE has entered into tax treaties with 106 jurisdictions through the following mechanisms:
· 99 DTCs: Algeria, Andorra, Armenia, Austria, Azerbaijan, Bangladesh, Barbados, Belarus, Belgium, Belize, Bosnia and Herzegovina, Brunei, Bulgaria, Burundi, Jersey, Egypt, Germany, Greece, Guinea, Hungary, Hong Kong, Georgia, Jersey, United Kingdom, Venezuela, Vietnam, Canada, China, Colombia, Comoros, Cyprus, India, Indonesia, Ireland, Italy, Jordan, Kazakhstan, Kenya, Kosovo, Kyrgyzstan, Latvia, Lebanon, Libya, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Macedonia, Morocco, Mauritius, Spain, Yemen, Mexico, Mongolia, Mauritania, Mozambique, Netherlands, New Zealand, Nigeria, Pakistan, Panama, Paraguay, Poland, Portugal, Romania, Senegal, Seychelles, Saint Kitts and Nevis, Serbia, Singapore, Slovakia, Slovenia, Sudan, Syria, Czech Republic, Ecuador, Equatorial Guinea, Estonia, Ethiopia, Fiji, Finland, France, Japan, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, Uruguay, Uzbekistan, Montenegro, Philippines, South Korea, Sri Lanka, Switzerland, Equatorial Guinea, Estonia, Ethiopia, Fiji, Japan.
· 8 TIEAs: Argentina, Colombia, Denmark, Finland, Iceland, Norway, Faroe Islands, Sweden
Currency control
There is no currency control in the UAE.
Reporting
Financial reporting
According to the UAE Commercial Code, all companies must prepare financial statements. The UAE applies the International Financial Reporting Standards.
There are no financial reporting requirements for offshore companies.
Audit
No audit is required.
Annual Return
No annual return submission requirements.
Tax reporting
The UAE has no tax authorities. There is no need to file tax declarations.
Bank account in the UAE
Advantages
1. High level of bank secrecy (especially in local banks),
2. Flexible rules for the banking sector, which imply less analysis of customer and transaction information than in European jurisdictions. High resistance to applicable regional sanctions, which are not international in nature.
3. No currency control.
4. Stable financial system. The value of local currency is pegged to the dollar rate.
5. Access to financial resources and bank instruments: letters of credit, credit cards, low-interest loans for legal entities and natural persons, access to bank products for asset management, attractive interest rates on deposits (in case of placing significant amounts), etc.
6. Convenient, efficient access to accounts via Internet banking. Internet-banking is free of charge for natural persons.
7. Low tariffs for transactions and possibility to choose a bank with a low minimum balance.
8. The UAE is a member country of the Financial Action Task Force (FATF).
Who can open an account?
· Legal entities registered in the UAE: Free Zone Companies and Offshore Companies
· Legal entities registered outside the UAE (offshore companies in various jurisdictions)
· Individuals that are residents of the UAE. You can open accounts for residents in almost any bank in the UAE.
· Individuals that are not residents of the UAE. Local banks open accounts for non-residents who have real estate in the UAE. Local and international banks can also open accounts for non-residents if a certain balance or minimum balance is maintained.
UAE residence permit
Business Advantages
1. High level of confidentiality with respect to company founders. Absence of a public register of companies. Absence of a mechanism for automatic exchange of tax information with foreign countries.
2 Absence of taxes on profits, dividends, interest, repatriation and other income.
3. Absence of currency control.
4. Access to double tax treaties with 78 countries.
5. The UAE acts as a regional haven for businesses in the Middle East and North Africa, providing access to markets in the region.
6. Access to the banking sector of a country with attractive credit conditions and high levels of banking secrecy.
7. High level of business security and ease of doing business. According to the Doing Business rating compiled by the World Bank and IMF, by early 2013, the UAE ranked 26th out of 185 possible by its overall indicators.
8. Access to major international ports and airlines. Developed infrastructure.
9. Opportunity to open production facilities within the free zones, which will ensure duty-free raw material import, processing and export. The UAE is part of the Customs Area of the Arab Monarchies of the Persian Gulf, which allows for duty-free sales of imported goods to other States in the region.
10. Access to affordable labor and raw material resources in the world.
11. Low cost of energy resources.
The UAE is one of the fastest growing economies in the world, with a GDP per capita of $71637, which is the fifth highest in the world.
Advantages for living
1. English-speaking environment with large communities of speakers of other languages.
2. High standard of living comfort, access to excellent infrastructure and services.
3. A well-developed healthcare system.
4. Access to the international education system: educational institutions in English-speaking and other countries have their own schools and universities in the UAE.
5. High security level.
How to get a residence permit?
Investing in a company
Opening a company in a free zone will enable the business owner and his family to obtain a UAE resident visa. The cost of establishing a company depends on the chosen free zone, the area of activity of the company, the need to rent an office, warehouse and production facilities, staff, etc. In total, there are more than 38 free zones in the UAE. Some of them are specialized in a particular industry or sphere (e.g., Internet City, Media City, Healthcare City, Dubai International Financial Center, etc.), others have a general specialization.

Investing in real estate
Alternatively, it is possible to obtain the right of residence in the UAE as a result of acquiring real estate worth at least $280,000.
RAKEZ
Company name
· May be in English or Arabic
· Should not be identical or similar to the name of an already existing company.
· Must end with a reference to the legal form (FZE).
Company registration
The following steps are required to register a company in the Ajman FEZ
1. Choose a name of the company to check for uniqueness (at least two options), the structure of the company (director, manager, secretary, shareholder, trustee) and the type of license (Production, General Trading, Commercial, Service, Educational, Media, Individual/Professional, E-Commerce);
2. Pay for services
3. Submit documents for directors / managers / secretaries / shareholders / trustees (originals or notarized copies);
4. Prepare and submit a set of documents for company registration, sign documents with the officials and shareholders of the company;
5. Receive the registration certificate, charter and seal to the specified address.
Confidentiality of information
There are no public registers of companies in the UAE that contain information on shareholders and directors. Information on free zone and offshore companies can only be obtained by request of the local court.
The register of shareholders and directors of an offshore company is not available to third parties.
Registered office
The RAKEZ FEZ offers different office packages depending on the client's needs in terms of types and number of licenses, number of visas, need for physical presence and accommodation in the FEZ
· The Flexi desk and flexi office are a separate room or unit in open-space in first class business centers. Types of licenses: commercial, service, general trade.
· The Office is an isolated room from 6.5 m2 to 11.9 m2. Types of licenses: commercial, service, general trade.
· The Administrative office is an isolated space from 12 m2 to 20 m2. Types of licenses: commercial, service, general trade.
· The Service premises is a large office, which can be designed for specific customer requests, from 120 m2 to 170 m2. Types of licenses: commercial, service, general trade.
· The Warehouses are warehouses with offices, heat-insulated, of various sizes, starting from 150 m2. Suitable for all kinds of licences.
· The ground area is a site for development from 2,500 m2. Types of licenses: commercial, industrial, general trade.
Seal
Offshore companies must have a seal.
Redomiciliation
The redomiciliation of companies in and out of the UAE is not permitted.
Company structure
Director
Only an individual may act as a manager, the minimum number is one. He or she must be a resident of the UAE.
Manager
Only a natural person may act as a director, the minimum number of directors is one. There are no requirements for the residency of directors. Information about directors is submitted to the FEZ administration, but is not available to third parties.
Secretary
Companies registered in the RAKEZ FEZ may also have a secretary, in which capacity both an individual or a legal entity may be appointed. One person may simultaneously be a shareholder, director, secretary, manager and authorized representative of the company.
Shareholders
The minimum number of shareholders in the company is one, the maximum is 50. Shareholders can be both individuals and legal entities. There are no residency requirements. Appointment of nominal shareholders is not allowed.
The information about shareholders is not disclosed to third parties, as there is no public and open register of legal entities and their shareholders in the UAE.
Beneficiary
While many jurisdictions are discussing the establishment of an open beneficiary registry, the UAE does not yet have one. This means that there is no open access to the information on the beneficial owner. It is kept by a service provider, namely a company registering companies, trustees, lawyers, accountants and others, with strict confidentiality. The beneficiary information may only be disclosed to regulatory authorities (e.g. during inspections of its existence) or by court order.
Charter capital and shares
The minimum size for companies in the Ras Al Khaimah FEZ is 10,000 AED (approximately 2,750 USD). This may vary for certain activities.
The share capital may only be denominated in a currency other than the AED with the prior approval of the RAKEZ government authorities. The issue of shares of different classes is also possible only with the prior approval of the state authorities of the Emirates authorities. Each share must be issued in the amount of 1,000 AED or a multiple of that amount.
Taxation
Individuals taxation
In UAE, no income tax is imposed on individuals.
Income tax
At the federal level, no company taxation is stipulated. At the level of each of the Emirates, decrees have been issued on the taxation of companies, which, however, have not entered into force and are not applicable. An exception is made for some companies that produce oil and gas, petroleum products and foreign bank branches.
Tax holidays for a period of 50 years are legislated for free zone companies.
Capital Gains Tax
No capital gains tax is levied in the UAE.
Dividends
The dividends are not taxed.
VAT
Effective January 1st, 2018, Value Added Tax was enacted in the UAE.
The VAT, as a general consumption tax, applies to all transactions with goods and services, unless such transaction is exempt or subject to 0% rate.
The standard VAT rate in the UAE is 5%.
VAT registration obligations do not arise as long as the sales turnover in the UAE is below the registration threshold of 375,000 AED (~100,000 USD).
Registration as a VAT taxpayer is mandatory in the following cases:
• it may be assumed that the taxable turnover in the next 30 days will exceed the registration threshold (for example, a contract has been concluded);
• at the end of the month, the taxable turnover for the previous 12 months actually exceeded the registration threshold;
• the company receives services to be included in the reporting on the basis of reverse charge, for the amount exceeding the registration threshold.
There is also a possibility of proactive registration after exceeding the threshold of taxable transactions in the amount of 187.500 AED (~ 50.000 USD).
The registration with the UAE Federal Tax Administration and obtaining a Tax Reference Number (TRN) of a company, on average, takes 20 working days.
After registering with the Federal Tax Administration and receiving a VAT number, a company is required to prepare and submit a VAT return on quarterly basis (and for companies with annual turnover in excess of 150,000,000 AED ~ 40,830,900 USD, monthly), and to pay the resulting VAT not later than 28 days after the end of the VAT period.
Withholding tax
There's no withholding tax in the UAE.
Stamp Duty
There's no stamp duty in the UAE.
Annual fee
The annual fee for companies is 2000 AED. The fee, as well as the services of a registration agent, is payable at the end of each year of company registration.
Measures to counteract tax evasion
Transfer pricing: no.
Thin capitalization: no.
Controlled foreign companies: no.
Treaties on avoidance of double taxation
The UAE has entered into tax treaties with 107 jurisdictions through the following mechanisms:
· 99 DTCs: Algeria, Andorra, Armenia, Austria, Azerbaijan, Bangladesh, Barbados, Belarus, Belgium, Belize, Bosnia and Herzegovina, Brunei, Bulgaria, Burundi, Jersey, Egypt, Germany, Greece, Guinea, Hungary, Hong Kong, Georgia, Jersey, United Kingdom, Venezuela, Vietnam, Canada, China, Colombia, Comoros, Cyprus, India, Indonesia, Ireland, Italy, Jordan, Kazakhstan, Kenya, Kosovo, Kyrgyzstan, Latvia, Lebanon, Libya, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Macedonia, Morocco, Mauritius, Spain, Yemen, Mexico, Mongolia, Mauritania, Mozambique, Netherlands, New Zealand, Nigeria, Pakistan, Panama, Paraguay, Poland, Portugal, Romania, Senegal, Seychelles, Saint Kitts and Nevis, Serbia, Singapore, Slovakia, Slovenia, Sudan, Syria, Czech Republic, Ecuador, Equatorial Guinea, Estonia, Ethiopia, Fiji, Finland, France, Japan, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, Uruguay, Uzbekistan, Montenegro, Philippines, South Korea, Sri Lanka, Switzerland, Equatorial Guinea, Estonia, Ethiopia, Fiji, Japan.
· 8 TIEAs: Argentina, Colombia, Denmark, Finland, Iceland, Norway, Faroe Islands, Sweden
Currency control
There's no currency control in the UAE.
Reporting
Financial reporting
Each company registered in the Ras Al Khaimah Free Trade Zone must keep sufficient accounting records to confirm its financial condition and reflect current information on the company's assets and liabilities. The company's financial statements must also be prepared annually.
The company's accounting period ends on December 31 each year (the date of the first accounting period depends on the date of incorporation). The Company has six months from the end of a period to prepare and submit audited financial statements to the state authorities.
Companies that have subsidiaries (with an ownership interest of more than 50% shares) are required to prepare consolidated financial statements for the group of companies.
Audit
Not necessary
Tax reporting
The UAE has no tax authorities. There is no need to file tax declarations.
Bank account in the UAE
Advantages
1. Stable banking system, high probability of opening an account with the UAE banks.
2. No currency control.
3. The value of local currency is pegged to the dollar.
4. Access to financial resources and bank instruments: letters of credit, credit cards, low-interest loans for legal entities and individuals, access to bank products for asset management, attractive interest rates on deposits (in case of placing significant amounts), etc.
5. Convenient, efficient access to accounts through Internet banking (usually available in English).
6. Possibility to work with US dollars.
7. The UAE is a member country of the Financial Action Task Force (FATF)
Who can open an account?
· Legal entities registered in the UAE: Free Zone Companies and Offshore Companies
· Legal entities registered outside the UAE (offshore companies of different jurisdictions) (in certain banks and under certain conditions)
· Individuals that are residents of the UAE. Accounts for residents can be opened in almost any UAE bank.
Individuals that are not residents of the UAE. Local banks open accounts for non-residents who have real estate in the UAE.
Business advantages
1. High level of confidentiality with respect to company founders. Absence of a public register of companies.
2 Absence of taxes on profits, dividends, interest, repatriation and other income.
3. Absence of currency control.
4. Access to double tax treaties with more than 100 countries.
5. The UAE acts as a regional haven for businesses in the Middle East and North Africa, providing access to markets in the region.
6. Access to the banking sector of a country with attractive credit conditions and high level of services.
7. High level of business security and ease of doing business.
8. Access to major international ports and airlines. Developed infrastructure.
9. Opportunity to open production facilities within the free zones, which will ensure duty-free raw material import, processing and export. The UAE is part of the Customs Area of the Arab Monarchies of the Persian Gulf, which allows for duty-free sales of imported goods to other States in the region.
10. Access to affordable labor and raw material resources in the world.
11. Low cost of energy resources.
The UAE is one of the fastest growing economies in the world, with a GDP per capita of $38436, which is the fifth highest in the world.
Advantages for living
1. English-speaking environment with large communities of speakers of other languages.
2. High standard of living comfort, access to excellent infrastructure and services.
3. A well-developed healthcare system.
4. Access to the international education system: educational institutions in English-speaking and other countries have their own schools and universities in the UAE.
5. High security level.
How to get a visa?
In the UAE, there is no such thing as a residence permit. The UAE Migration Regulations provide for the issuance of residence visas, which are in practice the equivalent of a residence permit.
A resident visa can be obtained on the following basis:
· on the basis of owning a UAE-registered on-shore company - investment visa;
· by concluding an employment contract with an onshore company registered in the UAE – working visa.
The number of resident visas depends on the business package selected at the time of company registration.
As a rule, an investor visa is issued for 3 years, a working visa - for 2 years.
The visa may be renewed upon expiry of its validity period.
The procedure for issuing residence visas is as follows (it is possible to start the issuing process only after registration of the company):
1. 10 days to process the Establishment Card, i.e. to open the migration file of the company. This document is necessary to enable the company to request resident visas in the future.
2. 1-2 weeks for submission of documents for a resident visa and obtaining Entry Permit. To obtain a resident visa, you must enter the UAE under the Entry Permit.
3. Travel to the UAE to obtain a resident visa - in most cases a visa can be obtained within 5 working days. The applicant must: undergo medical examination (blood test and fluorography), biometric data (retina scan and fingerprints).
4. You can leave the country after receiving a passport with a resident visa stamped in it.
5. Obtaining a resident ID card - ID Emirates. The card is issued a few days after the visa is issued. No personal presence is required to obtain it.
IMPORTANT: Permanent in the UAE residence is not required, but a resident visa will be cancelled if away from the UAE for more than 6 months.
Company registration in the UAE
Business advantages
1. High level of confidentiality with respect to company founders. Absence of a public register of companies.
2 Absence of taxes on profits, dividends, interest, repatriation and other income.
3. Absence of currency control.
4. Access to double tax treaties with more than 100 countries.
5. The UAE acts as a regional haven for businesses in the Middle East and North Africa, providing access to markets in the region.
6. Access to the banking sector of a country with attractive credit conditions and high level of services.
7. High level of business security and ease of doing business.
8. Access to major international ports and airlines. Developed infrastructure.
9. Opportunity to open production facilities within the free zones, which will ensure duty-free raw material import, processing and export. The UAE is part of the Customs Area of the Arab Monarchies of the Persian Gulf, which allows for duty-free sales of imported goods to other States in the region.
10. Access to affordable labor and raw material resources in the world.
11. Low cost of energy resources.
The UAE is one of the fastest growing economies in the world, with a GDP per capita of $38436, which is the fifth highest in the world.
Among the advantages of registering a company in the UAE:
The English language is used alongside the official language, making it easier to translate documents and collaborate with local economic representatives.
The local currency is the dirham, but the euro, dollars, rubles and other currencies may be used in the Arab Emirates: there is no control over transactions.
Any company other than those engaged in the banking, oil and gas or hospitality industries can be called an offshore company in Dubai as it is not subject to income tax.
If goods are imported into the domestic market of the Arab Emirates, the company is only required to pay a customs duty of 5 per cent of the amount declared on the import declaration.
With regard to Russia and other CIS countries, there are offshore zones in the Emirates: companies registered in their territory are not subject to taxation abroad and do not pay contributions to a resident State by virtue of the double taxation treaty.
Business in the Emirates: legal form
• The residents of the state have the right to establish LLCs. This form of business in the Emirates allows to conduct open business in the domestic market of the country.
• For non-residents, the company registration in the UAE in the form of limited liability partnership (Limited) is available. This type is most advantageous for tax planning purposes.
• FZE/FZC is the real business in the Emirates, which must have a physical location in the state. Open business may be conducted within the country and abroad. This type implies registration of an offshore company in the UAE due to the fact that FZE/FZC are exempt from taxation.
Lawyers and tax consultants of Law&Trust will help you to choose an advantageous legal form of business. You can apply for an individual review of the situation by phone or on the website.
Ready-made business in the UAE: Is it worth buying?
It is much easier to buy a business in the UAE than to register it yourself through all authorities. Buying takes less time, saves the client money and nerves. The Law&Trust International company provides ready-made business in the UAE. With us, you get:
1. A well-thought-out business idea in one of the most popular fields of activity.
2. Full licensing without lengthy documentation preparation and data double-checking.
3. Availability of an official business registration address without renting an office or other premises, and a minimum number of employees to carry out current tasks are at your disposal.
4. Our marketers study the market and provide you with information about competitors, target audience and other useful data that will help you to quickly gain a certain place in the economic market.
You can buy a business in the UAE after consulting with experts. Leave service requests at any time. We work with clients by phone, mail or personally in the office.
Peculiarities of company registration in the Emirates
A company can be established in the UAE by a legal entity or individual, registration is possible with the name of a local citizen or non-resident. When establishing a company, it is mandatory to confirm the level of income as well as provide information on sources of capital.
After the company is founded, the founder's name will be entered in one or more registers, depending on the business area and economic zone of registration. Data from the register will not be communicated to a wide audience or third parties, which indicates a high level of confidentiality.
Registration of a company in the UAE in the legal form of Limited or FZC does not allow the establishment of a company in the insurance or banking sector.
Doing business in any financial industry requires additional licensing, which is available only to residents of the state. Other types of companies are registered within 3-4 weeks, taking into account the time required to collect and prepare documentation.
All regulations concerning the establishment of companies in the territory of the Arab Emirates are specified in the Registered Agents Regulations and International Companies Regulations of 2006. It is in these documents that the need for all enterprises in the country to submit annual reports is specified, as well as the payment of a fee of no more than $400 for Arab offshore and onshore companies.
The same regulations determine the procedure for opening a bank account of a company for the payment of the charter capital. If the founder is an individual, he must have a residence permit in the UAE. For a legal person it is enough to visit the country on a guest, tourist or business visa.
Special attention should be paid to the name of the company when registering in the UAE. The country's legislation prohibits the use of previously registered names, as well as the presence of a certain group of words in the name.
Details of the jurisdiction of the UAE can be obtained in a private consultation with Law&Trust specialists. Calls from the website and chat are free, as is the consultation itself.
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Shares and charter capital
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