NEWS Fiscal & legal

How to conduct business in Uae

According to UAE federal law there are three main legal structures to choose from. Companies can also operate by setting up a branch of a foreign company, a representative office, a private or public joint stock company

Under UAE federal law, foreign businesses have three main entities to choose from in order to conduct business in the UAE: a local limited liability company (“LLC”), a free zone entity (“FZE”), and an international business company (“IBC”).
Companies can also operate by setting up a branch of a foreign company, a representative office of a foreign company, a private or public joint stock company.

Limited Liability Companies (LLCs)
A LLC can be formed with a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. Companies with expatriate partners typically opt for this form of company.

Free Zones Entities (FZEs)
If there is no need to sell goods directly to the UAE market, but office space and local staff are required, then setting up in a Free Zone is often more attractive than using a local company. Free Zone companies also meet the growing necessity in international tax planning of having necessary substance.

International Business Companies (IBCs)

Dubai, through its Jebel Ali Free Zone, and Ras al Khaimah, through the RAKIA Free Zone and then RAK Free Trade Zone, offer an International Business Company (IBC) regime. These companies are ideal for any type of business that does not require a local office.

 
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