COMPANY FORMATION BUSINESS SETUP
Today,Businesses across the world, face unprecedented market place competition like never before with rapidly evolving technology changes, globally situated customers and an experiential economy. Stability and Sustainable Growth have become the “Wish-ion” of Organisations and Innovation has become the gateway to economic development.
The UAE has long since proven to be a steadily growing economic hub with its state of the art infrastructure, tax free income, Fair Policy and Regulatory Framework, Government Initiatives like Expo 2020, connectivity to all countries and a potential growth in economic development. From ambitious start-up techpreneurs to offshore companies of large Corporate Giants, UAE has become a prime choice to setup businesses. The World Bank report of 2016 states that UAE has ranked 31st in the global index of ease of doing Business and the Global Entrepreneurship and Development Index(GEDI) report ranks UAE 19th in Entrepreneurial attitude, activity and aspiration marking UAE’s focus on encouraging Entrepreneurship and economic diversification.
However, it could be quite daunting to understand the Entrepreneurial Ecosystem of the country like the local policy and regulatory framework, visa process, culture, government legislations, finance and human capital, the existing network and platforms for innovation for a new Venture.
As pragmatic Business Consultants with an eye on execution, we help you implement your dream of setting up a Business in UAE with ease.
How we help your business and professional growth in UAE?
- Experts at Business Setup and Company Formation guide you on the type of the business license suitable for your Business.
- AxiomMark’s Experienced Consultants with a keen eye on the GCC Market Business Growth advise you on the precise way to implement your Business either as a Mainland Company or a Free Zone Company.
- AxiomMark’sConsultants provide comprehensive solutions right from the initiation of business setup, choosing the right name for your company, procuring trade license, identifying the right sponsors, arranging visas for partners, dependents and employees, to helping you get your residence visa and emirates id.
- With a vast network of successful Business Setups in the UAE, AxiomMark is well connected with SMEs and PROs in the UAE to help you kick start your business in top gear.
We provide fast, reliable and adept professional services to setup companies in Mainland,Freezone and Offshore.
The UAE Government has strict and fairly positioned regulatory frameworks to govern new and existing Businesses in the UAE. Contact our Business Consultants to understand the commercial laws that govern your specific business.
The first step of Setting up a Business in UAE is identifying the type of license that is appropriate for your type of Business, like
- Commercial License – For Companies with activities related to trade, like consumer supplies, dry goods etc
- Industrial License – For Companies related to Manufacturing or other types of Industrial activities.
- Professional License – For Individuals or groups that offer their expertise as a service to the general public, like professionals, artists etc.
All Business licenses will be approved and issued by the Department of Economic Development in Dubai(DED).
The next crucial step is to identify the legal form of your Business, if it has to be registered as a Mainland Company or a Freezone Company. AxiomMark’s Business Consultants will lay out varied options pertaining to your business, explain elaborately on the pros and cons of each legal form and help you choose the right location to setup your company.
Once you have selected the activities and legal form of your Business, you proceed to identify a unique Trade name which distinguishes your Business from others. Contact AxiomMark’s consultants to help you identify a unique trade name and register a trade license for your business.
Easy, Reliable Mainland Company Formation in UAE.
Limited Liability Company (LLC)
A Limited Liability Company can be formed by a minimum of two and a maximum of fifty shareholders whose liability is limited to their shares in the company’s capital.
Under the Commercial Companies Law or CCL (Federal Law No. 8 of 1984 Concerning Commercial Companies as amended by Federal Law No 1 of 1984 and Federal Law No 13 of 1988, Federal Law No. 15 of 1998), foreign investors are permitted to hold up to 49 % equity ownership in UAE companies, whereas 51 % of the equity must be owned by UAE National(s). Such companies are recognized as offering a suitable structure for foreign individuals or Organisations interested in developing a long term relationship with the local business community.
AxiomMark Business Consultants have the professional expertise to help you incorporate your LLC from the seed idea to getting approvals and clearances from the Government Departments, Finding the right local partners or sponsors, banking recommendations, identifying business centers and office location, and handling other documentation formalities.
Benefits of LLC
- Access to clients both in the UAE and Free Zones.
- No restriction of Office Location
- Unlimited employee visas.
- 100 % Tax Free Income
- No minimal Capital Requirement.
- Investor can manage the business without interference from the local partner.
- Easy access to local/ global bank accounts and loan facilities.
Professional License is usually awarded to Companies that provide a professional service to the general public like artists, writers etc. The Firm/Company shall be regarded as a Professional Company. For example, Management Consultancy, Marketing Consultancy etc.
A 51% local equity like Limited Liability Companies is not necessary for Professional Firms. However, a UAE national has to be appointed as LSA(Local Service Agent) but the LSA will not have a direct involvement in the business. LSAs will be paid on an Annual Basis as a fixed sum or a percentage of the profit.
Benefits of Professional Firms
- 100 % ownership of the firm.
- Access to the wider UAE economy unlike Free Zones.
- Tax Free Income.
- No restriction on employee visas.
Under Articles 313 to 316 (inclusive) of the CCL, foreign companies are permitted to establish wholly owned branch and representative offices in the UAE. Representative offices is limited to promoting the parent company’s activities like gathering information and soliciting soliciting orders and projects to be performed by the company’s head office. Representative offices are also restricted as to the number of employees they can sponsor and as a result, representative offices tend to act as administrative and marketing centers for their foreign parent company’s head office.
Provided that approval is received from the Ministry of Economy and the DED, and the appropriate trade license is obtained, a company may establish a branch or representative office in the UAE. The office must be registered on the Registry of Foreign Companies at the Ministry of Economy before it commences trading.
A UAE national must be appointed as Local Service Agent(LSA) while starting a Branch Office in UAE.
Benefits of Branch/Representative Offices of Foreign Companies
- Global Branding and a wider exposure to the UAE economy.
- This Business Structure reduces the need for national participation.
- Retain Brand Loyalty and offer services to existing customers thereby retaining the brand loyalty.
Business Setup or Company Formation in UAE Free Zones
UAE Free Zones are designed according to different business or industry categories and offer licenses based on specific categories and have been a huge success in the UAE commerce. Dubai’s self sustainable Free zones have attracted a large number of companies and foreign direct investments, expanding net non oil export revenues.
An Independent Free Zone Authority (FZA) governs each free zone, and is responsible for issuing FTZ operating licenses and assisting companies with establishing their business in the FTZ.
Investors can establish their company in any Free Zone either as
- a Free Zone Establishment (FZE),
- Free Zone Company (FZCO) or
- as a branch of their parent company based within the UAE or abroad.
Such companies can be solely owned by the foreign investors with no involvement of a UAE National or sponsor. Some activities may require prior approvals from the competent authorities depending on the product / activity required by the investor.
BENEFITS OF ESTABLISHING A FREEZONE COMPANY
- 100 %Foreign Ownership
- 100% repatriation of capital and profits
- 100% free transfer of funds
- 100% exemption of import and export duties
- Staple and clear regulation
- No Personal Income Tax
- No corporate Tax for 50 years, a concession that’s renewable
- State of the art infrastructure
- No recruitment problems
- No Currency restrictions