Company Setup
When it comes to running a business we understand your top priority is to achieve your goals and deliver for your consumers. That often requires that you have the right talent, you can reach the right audience and you can get the right support. At EER we are dedicated to enhancing your ability to do that through our bespoke relocation, immigration and corporate services.
Offshore Companies
- Some Free Zones offer the option to setup an offshore company, but the companies can only act as a holding company – not as an operational entity.
- There are several benefits to an offshore company though, including the ability to own property (in designated areas), there are no foreign ownership limitations, and no minimum share capital requirement.
- The drawback is that an offshore company cannot sponsor any employees.
Branching Out
- One option to consider is setting up a branch of a foreign company. The advantage here is that the branch can carry out all the activities of the parent firm in mainland U.A.E with the exception of trading.
- To do this you simply appoint a Local Service Agent (LSA). The stipulation is that the LSA has to be a U.A.E national. However, the position is purely procedural, unlike the role he/she would play in an LLC. In this instance the LSA has no interest or right in the business whatsoever. The LSA acts as the middleman between the foreign investor and the government (sorting out the paperwork, visas etc.)
- You would be expected to pay the LSA an annual fee.
Free Zones
- Free Zones provide a business-friendly environment with access to all the necessary services and amenities you would expect. Think of them like a one-stop shop to facilitate the establishment of your entity. They are considered distinct legal jurisdictions from the U.A.E government, operating under their own jurisdiction.
- The main advantage for foreign investors is that most Free Zones offer the option for 100% foreign ownership. They also offer a guaranteed tax-free period for 50 years, and custom duties are waived if imported goods are for the use of the company. The added benefit is that there are zero restrictions on the repatriation of capital and profits! However, there are drawbacks to operating within a Free Zone.
- You cannot conduct business outside of the boundaries of the Free Zone unless you appoint a mainland commercial agent. If you do this, you would have to pay duty on any imports.