FAQ

Pre Incorporation

Setting up a company in UAE will vary depending on business type and the location (main land or freezone). Setting up the company is very easy and fast. The incorporation cost could be in the range of USD 5,000 to USD 15,000

  • 0% Corporate Tax and 100% Profit retention

The companies can retain the profit and repatriate back to the investor country without much hassle

  • Numbers of Airports and Seaports

Dubai acts as the regional business and operation hub with a number of airports and seaports. Jebel Ali is the larger man made seaport with the freezone.

  • Latest Technology

Dubai is the silicon valley of the middle east and all latest technology in all industries immediately available in Dubai after US and Canada. 

  • Event and Exhibition throughout the year

Dubai host number of exhibitions and events all around the year for business to exhibits and meet new customers and ventures

The main incentive of doing business in UAE is 0% corporate tax incentive and business friendly environment. Especially to the companies who would like to set up a regional business hub and expand the business in other regions.

The following point should be considered when companies wants to set up companies in UAE

  • Are you planning to save on corporate taxes in the home country?
  • Are you planning to expand business out of your home country?
  • Are you planning to retain your profits out of your home country?

Yes, OCS Dubai can provide a Market research facility with our partnering market research company for your needs.

UAE is a safe country to live in. According to the Global Peace Index, UAE ranked 53rd most peaceful country in the world. 

Dubai is a high standard of living country mostly famous for luxury living. However, there are plenty of options for economic living.

  • Automobile
  • Electronics
  • Construction 
  • Machinery

The National Language of UAE is Arabic. However, English is widely understood and spoken at the workplace and is a compulsory subject in schools. Investors can take advantage of multi-cultural society in UAE, where expats make up 89% of the total population.

Dubai is expected to grow by four per cent next year following a quick economic recovery due to effective policy measures introduced by the government to contain the Covid-19 pandemic, says a report. Economic growth in Dubai declined by 10.8 per cent during the first half of 2020 and is expected to end the year with a 6.2 percent contraction due to the government’s swift response to the pandemic and its strong economic fundamentals that have paved the way for rapid recovery. During the period between March and October 2020, the Government of Dubai launched four stimulus packages worth Dh6.8 billion to mitigate the impact of confinement measures in the Emirate that ultimately helped offset the shock and repercussions in the form of job losses or disruptions to businesses.

The ongoing initiatives, in addition to the Expo 2020 scheduled to be hosted next year, will drive increased investment inflows and job creation in the coming years.

Company Formation

In Dubai, there are few types of companies foreign investors may set up. The usual form of Company is Limited Liability Company and Free Zones Company

  • Limited Liability companies MUST have 51% Local nominee shareholder and there is no restriction on business activities
  • Freezone companies are fully owned by foreign and ONLY allowed to operate from the freezone. Additionally, NOT all activities are allowed to operate under free zone licence. Example Hospitals cannot be formed under freezone licence. 

Limited Liability Company
Advantages :

  • Limited liability feature – shareholders not personally liable for debts and losses of the Company. Shareholders’ liability are limited to the amount of shares subscribed.
  • Shares are transferable – transfer is easy through sale of shares
  • Separate legal entity – A company does not cease to exist if one or more of its shareholders die.
  • Easier Access to funding – it added business credibility and good image. Thus, increase the potential of loans from financial institutions.
  • Tax advantage – profits tax at corporate tax rates zero
  • Audit Report NOT required to submit to government 

Disadvantages :

  • Compliance Requirement – governed by rules and regulations stipulated in Companies Act of the government entities and it varies based on the emirate company operates. Violation of the rules will result in penalties and company closure.
  • 51% local nominee shareholder appointment is mandatory

Free Zone Company

Advantages :

  • 100% owned by the foreign investor
  • Shares are transferable – transfer is easy through sale of shares
  • Separate legal entity – A company does not cease to exist if one or more of its shareholders die.
  • Easier Access to funding – it added business credibility and good image. Thus, increase the potential of loans from financial institutions.
  • Tax advantage – profits tax at corporate tax rates zero

Disadvantages :

  • NO Limited liability feature – shareholders are personally liable for debts and losses of the Company. Shareholders’ liability are NOT limited to the amount of shares subscribed.
  • Compliance Requirement – governed by rules and regulations stipulated in Companies Act of the government entities and it varies based on the emirate company operates. Violation of the rules will result in penalties and company closure.
  • Yearly Audit Report submission is mandatory to the freezone authorities.
  • Limited business activities allowed under freezone licences
  • Allowed ONLY to  operate from Freezone and not allowed to open branch in the main land

Limited Liability Company

  1. Minimum 1 shareholder with authorized limit of capital based on each location
  2. Depending on type of business activity Minimum 1 UAE resident manager. OCS is able to provide nominee manager services with Power Attorney notarized in UAE.

Free Zone Company

  1. Minimum 1 shareholder with authorized limit of capital based on each location
  2. Depending on type of business activity Minimum 1 UAE resident manager. OCS is able to provide nominee manager services with Power Attorney notarized in UAE.

Limited Liability Company

  • Documents of the shareholders
    • If shareholder is an individual, then attested and notarized passport copy and notarized address proof from country of origin
    • If shareholder is an entity, the attested and notarized trade licence and company registry stating the Ultimate Beneficial Owner and authorized signatures
  • Proposed Company name
  • Activity of the company and brief explanation of business in a letter format

Freezone Company

  • Documents of the shareholders
    • If shareholder is an individual, then attested and notarized passport copy and notarized address proof from country of origin
    • If shareholder is an entity, the attested and notarized trade licence and company registry stating the Ultimate Beneficial Owner and authorized signatures
  • Proposed Company name
  • Activity of the company and brief explanation of business in a letter format

Yes it must be in English and Arabic. If Shareholder country does not have option to do arabic translation, OCS will provide service to be translated in Arabic in UAE with attestation in Ministry  of Justice. 

Depending on the location and business activity the government entity

  • Limited Liability company – Ministry of economy and trade
  • Freezone company – relevant Freezone authority. Examples DMCC, JEBEL ALI, AIRPORT FREEZONE

Limited Liability Company
Once the required documents are submitted to OCS, it takes about 7-14 working days to complete the incorporation process. 

Free Zone
Once the required documents are submitted to OCS, it takes about 7-14 working days to complete the incorporation process.

Yes, possible by appointing a manager in UAE and providing powers to the manager. Additionally, a person can appoint a legal representative via Power of attorney to carry out the legal tasks in UAE. OCS is providing service for appointing legal representatives in UAE via Power of Attorney. 

Yes, via online portal of any government entity in UAE, you will be able to see the progress.

There is no restriction as such. As long as the business activity is allowed in the land of UAE, then any foreign investments are welcomed. There is no restriction in taking profit out of UAE. All investors must make sure that these investments are free of money laundering and terrorism financing. 

  1. Contact our Japanese Guest Relation team at H.I.S. Co., Ltd. 
  2. We will define on your business nature and activities to match your objective in UAE
  3. Decide your shareholding structure with minimum one Shareholder 
  4. Decide the key positions of Directors with minimum one Director
  5. Fill in our Incorporation Form and provide the required documents
  6. Sign our Client Service Agreement and make payment

After Company Formation

It is highly recommended to incorporate a company in Dubai. However, if you require less costly incorporation then it is recommended to incorporate in Ras Al Khaimah. OCS can provide services in any part of UAE for corporate services.

1.Appointment of Auditor

The Board must appoint an auditor who is a licensed practitioner in UAE before the financial year ends.

2.Open Bank Account

In the UAE, different banks have different requirements and documents required. You are advised to speak to the respective bank for opening a local bank account. 

In the UAE currently there is no Japanese bank. With shareholder resolutions and power of attorney, the company manager can open the bank accounts in UAE, without physical presence of shareholders.

The UAE is filled with foreign expatriates. Companies can approach local recruitment agencies to hire expats or place job advertisements. Minimum Salary of AED 1,500 is required to apply for employment permit.OCS can provide whole services on Human Resource functions and Payroll, such as recruitment, employment visa handling and visa cancellations at time of end of service.

Generally, Companies who wants to apply for foreign expatriates visa need to go through with Immigration Department of Malaysia. The Company must be registered under the Companies Act 2016 and meet the minimum paid up requirement set based on percentage of foreign equity. For more information, please refer to our customer booklet.

VAT has been set at zero from 1 June 2019, The rates for the standard sales tax are 5% of the sales amount.

In general, the UAE has adopted a GCC common tariff, and customs duties are fixed at 5% of the CIF value of most products. However, alcoholic, carbonated, and sweetened beverages products have a 50% duty, and e-smoking devices (tools and liquids used in them) and tobacco products are assessed a 100% customs duty. Certain goods are exempt from customs duties, such as pharmaceuticals and agricultural products. For detailed tariffs, please visit the Unified Customs Tariff webpage.

The UAE has set up a number of ‘free zones’, where customs duties are not payable. Any company registered in one of the free zones can import goods into that free zone without having to pay customs duties. Goods produced in countries that are party to the Greater Arab Free Trade Agreement 1998 are exempt from customs duty. For further information, visit the UAE Ministry of Economy and Dubai Customs.

Yes, OCS provides one stop solution for tax consultation, audit and legal services.

Yes, our Japanese Relationship Manager in Japan and in UAE is able to assist you with your needs and inquiry.