FAQ

Can I establish a limited liability, public listed, or incorporation in UAE / Dubai?

Yes, in the UAE you can establish similar as in any other country organizations which follow different liability rules. However, there are 2 main ways in which area you can establish a company. Local-based companies are established under local UAE law. In Dubai for example they are established in the Mainland of Dubai (Mainland License – DED) to operate a business inside of the UAE. While Freezones follow a set of own regulations, bare in some cases limitations where business relations can be established (most exclude the possibility of making business with mainland companies and federal governments). An exemption is also the establishment of a company in the DIFC (Dubai International Finance Center) free zone which follows its own two courts, the Court of First Instance and/or the Court of Appeal. In some of the Emirates, you can also establish an offshore company, for example, in Ajman or RAK. One of the main differences is that offshore companies’ shareholder’s identities are kept secret by law and can be owned 100% by foreigners. Please contact our team which can advise you on the proper company formation which fits your business.

What are the requirements to open a company?

Every company formation has a different set of requirements. But equality is for all of them to have proof of identity of the owners/shareholders. Also in most cases, shareholders are not required to be in-country for the formation. You can easily delegate this task to a local partner like “1stop Connect” who helps with all formalities, regulations, and requirements.

What are the costs of a business setup? 

“1stop Connect” follows a none hidden costs policy. While other companies are not explaining costs and hiding costs we have an open policy to share details on Government Fees, Mandatory expenses to stay on legal grounds, Optional expenses, and Consulting fees. Furthermore, we focus on helping you to avoid extra costs which are not necessary.

Is UAE a tax-free country?

Yes, currently in 2022 UAE is known as an income TAX-free country. This type of TAX is in 99% of cases referred to as a tax. However, the UAE implemented a VAT (Value Added Tax) like many other countries worldwide of 5%. Also, there are a lot of government fees that are related to tourists or municipalities where TAX is applicable. The UAE introduced a profit tax which will come into motion middle of 2023, the details are still unclear, but we will keep you posted on the development.

Is it easy or difficult to open a company?

Yes, we can say it is easy. However, two main elements make it sometime not so easy for foreigners to process successfully and manage to follow the legal boundaries. First is the Arabic language which most of the forms and procedures are documented. There is no legal translation to English from the government, most of the translations are from third parties who make interpretations during translation. Having a native speaker as Advisor is essential to avoid surprises later on. “1stop Connect” has chosen wise partnerships in many areas that advise local laws, procedures, and knowledge. Also, constant changes can happen overnight and are hard for entrepreneurs and business owners to keep track of.

Am I the 100% owner of my company? 

Yes, the UAE allows 100% ownership of all companies established in a Freezone. Mainland established companies do still have in some business activities a limitation which requires a local partner as majority owner (min. 51%). Typical activities are related to financial services or the oil and gas industry and some other exceptions. Also in many areas are special approvals and allowances required. One example is the education sector or activities around sports.