Company Formation in India
✓ Incorporation of all entity types-LLP, OPC, Private Limited Company, Public Limited Company
✓ Handling all application formalities leading to obtaining Certificate of Incorporation
✓ Registration under Startup India program (DPIIT Registration)
Company Formation in UAE
✓ Set up business in the freezone (s) or mainland in any of the 7 emirates of UAE
✓ Licence, Visas, UAE ID, Insurance, Bank Account
✓ Assistance in office /factory/warehouse premises leasing
Other Services
✓ Auditor Appointment, Accounting set up
✓ Bank Account opening
✓ VAT/GST, Income Tax/Corporate Tax registration
✓ Patent and Trademark registration
✓ Developing JDs, HR Policies/Performance Review process/Training guidelines, assistance in Staff
recruitment, onboarding and training
✓ Setting up Enterprise Governance frame work
✓ Managing Compliances under different laws
Company formation made easy
✓ Fill in the pop-up form & receive a call back from us
✓ Receive the cost estimate and sign off
✓ Submit the documents & make payments
✓ Receive License, Visas, UAE ID
Why Delay, Act now…..Contact CMBC
Why set up business in India
✓ World’s fastest growing economy- 5th largest GDP in the world, targeted to reach 3rd position soon
✓ Best Digital Infrastructure, Availability of highly talented and well qualified human resources
✓ Low cost of operations
✓ 1.4 billion population offering huge domestic consumption of products and services
✓ Stable political, legal, banking and financial landscape offering fast growth opportunities
Why Invest in UAE ?
Excellent infrastructure- Ports, Roads, Power, Communication, Technology
Top ranking in ‘Ease of doing business’
1/3rd world population live within 4 hours flying
Easy availability of manpower at all levels
100% Ownership
Marginal ( 9%) Corporate Tax, unrestricted repatriation of capital and profit
Stable Political and economic environment
Liberal visa options for Investors, dependents, Staff and visiting clients and business associates
Best of the world living conditions
Business set up in mainland as well as free zones each with its own attractions
Excellent infrastructure- Ports, Roads, Power, Communication, Technology
Top ranking in ‘Ease of doing business’
1/3rd world population live within 4 hours flying
Easy availability of manpower at all levels
100% Ownership
No Corporate or Profit Tax, unrestricted repatriation of capital and profit
Stable Political and economic environment
Liberal visa options for Investors, dependents, Staff and visiting clients and business associates
Best of the world living conditions
Business set up in mainland as well as free zones each with its own attractions
FAQs relating to business set up in UAE
1. Why should I choose Dubai as my investment destination?
Dubai stands out as a target investment destination in many ways. World class Infrastructure facilities, prime geographical location with excellent connections to all the major cities around the globe, large market reach to huge customer base with high purchasing power, ease of setting up and doing business, straight forward tax laws with minimal tax rates, unrestricted repatriation possibility, exceptional working and living conditions offering variety of educational institutions, health care facilities, places of worships, public entertainment facilities etc are some of the attractions for any investor to get attracted to this amazing City.
2. How do I decide what business should I setup?
There are more than 2000 business activities that you can choose from. Before deciding on the specific business activity carry out an assessment of its viability by following the below listed steps:
- Identify the target customer segment and geography
- Understand the competition
- Assess the availability of goods to be traded and the cost of acquiring them
- Assess the requirement of skilled/unskilled labor and its availability
- Estimate the setting up cost (cost associated with leasing of premises, procurement of /contracting for Equipment/Machinery, Furnishing etc. included) and pre operative expenses
- Estimate working capital requirements (fund required to operate the business without disruption during the working capital cycle. This should include procurement cost for the goods to be traded and expenses of running the establishment)
- Profitability of the business, cashflow and sources funding
3. How do I select an appropriate location for setting up the business in UAE?
Main deciding factors for deciding about the location for setting up the business are:
- Catchment area (target customer base)
- Logistics – both Procurement and Sales and or distribution
4. What are the various Licensing Jurisdictions existing in UAE?
There are more than 50 free zones (Dubai 30 plus) and 7 Mainland jurisdictions in UAE. Besides there are three Offshore Company Licence Authorities as well.
Choosing appropriate jurisdiction is important for the success of any business. There are advantages and disadvantages of choosing a Free Zone or a Mainland jurisdiction. Whilst Free Zones have restricted area of operations Mainland businesses have more freedom. The decision about the right jurisdiction has to be taken taking into account various factors such as type of business, facilities required (shop, factory shed, warehouse etc), locational spread of the target customer base, tax treatment in different jurisdictions, ownership pattern, restrictions if any within each jurisdiction etc. Listed below are the key features different Licensing jurisdictions:
Free Zone Company
- 100 % Ownership
- 100% repatriation of capital and profits
- 0% corporate and income tax, as well as 0% customs duties applied on imports and exports
- Visas for Investor, dependents and employees
- Leasing a physical office space is not required always
- Some free zones do not require paid up capital
- Some Free Zones grant permission to operate certain types of businesses outside the Free Zone Area
Mainland Company
- 100% Ownership (with few exceptions)
- Freedom to trade anywhere in the UAE and abroad
- Get access to more than 3,000 business activities
- Apply for an unlimited number of visas
- Have the ability to submit tenders for government projects and contracts
- Set up your office anywhere
Offshore Company
- 100% Ownership
- Tax Benefits
- Confidentiality
- Reduced operating costs
- No Audit requirements
- Easy to establish
5. What are different Legal Entity Structures allowed under the Mainland licences?
Sole Establishment
A Sole Establishment is a mainland company structure that allows 100% ownership by a single individual. The individual will have full control over the Sole Establishment’s operations, profits and liabilities. A sole Establishment can carry out professional and commercial activities in the Emirate where it is registered. Sole Establishments require Local Service Agents (LSA).
Civil Company
Similar to a Sole Establishment, a Civil Company allows 100% foreign ownership jointly by two or more individuals (maximum 50). A Civil Company can conduct professional activities in the Emirate where it is registered, including consultancy, healthcare and training services. A partner in a Civil Company need not be an individual. It can be a foreign company, provided the foreign company operates in the same field as the Civil Company set up in the UAE. A company incorporated in the UAE cannot be a partner in a Civil Company. Civil Company requires a Local Service Agent (LSA). The partners owning the Civil Company will be responsible for 100% of the liabilities of the business.
A Civil Company is not a Limited Liability Company (LLC), where the liability of the company is limited by law. However, it is preferred over LLCs as there is no limit to the number of visas that can be issued in the case of a civil company. The only precondition is that one needs to acquire more office space if he/she needs more work visas. As a general rule of thumb, one needs about 100 square feet of office space for every additional visa. However, there are restrictions on the number of Managers a Civil Company can have.
Limited Liability Company (LLC)
A Limited Liability Company (LLC) is a business venture which is commercial in nature with a maximum of 50 shareholders. Each shareholder’s liability is limited to their respective shares in the Share capital. LLCs are permitted to trade anywhere in the UAE (including 50 plus free zones) and the GCC region. They are also eligible for getting unlimited number of employee visas.
Branch
A branch office of a foreign company can be established with 100% ownership and acting as an extension of the parent company. Branch offices can only engage in business activities that are similar to that of their parent company. A Local Service Agent (LSA) is required to be appointed for a Branch Office Licence.
Representative Office
Foreign companies, including those wholly owned by non-UAE nationals, are allowed to establish a Representative Office in the United Arab Emirates. A representative office also acts as an extension of an existing company, except that it is not licensed to generate profits. It can however, hold a bank account for its operating expenses. In addition, its activities are limited to promotions, marketing and research for the parent company. A Local Service Agent (LSA) is required for obtaining a Representative Office Licence
6. What are different Legal Entity Structures allowed under the Free Zone Licences?
Free Zone Establishment (FZE): A FZE registration allows for a single shareholder to form a company. This shareholder can be an Individual or a non-Individual. A Free Zone Establishment has the liabilities of the shareholders limited to the paid up share capital. A FZE is a separate legal entity from its owner shareholder.
Free Zone Company (FZCO): A FZCO registration allows for multiple shareholders to form a company. These shareholders can be Individuals or non-Individuals. There can be 2 to 50 shareholders in a FZCO. A FZCO is a limited liability Partnership within the Free Zone has the liabilities of the shareholders limited to the paid up share capital. A FZCO is a separate legal entity from its owner shareholders.
Branch: A branch is a legal entity of its parent Company. The Branch company should be fully owned by its parent. It should operate under the same name as its parent and conduct same business.
7. What are the permitted structure for an Off-shore Company?
Offshore company requires one or more share holders, individual or non-individual or combination of both. There is no restriction on maximum number of shareholders. It is a limited liability partnership within the Free Zone.
8. Which are the Jurisdictions under which an Off shore company can be formed?
There are three jurisdictions offering Offshore Companies in the UAE. They are RAK International Corporate Centre (RAKICC), Jebel Ali Free Zone (JAFZA) and Ajman Free Zone ( AFZ)
9. Am I free to select any Trade Name for the new business to be set up in UAE?
A Trade name has to be chosen complying with the guidelines stipulated by the Government. Some of the important guidelines with regards to selecting a Company Name are:
- The Trade name should not be similar to an existing trade name or if it does not comply with the established terms and conditions.
- The trade name should be among the appropriate names that do not contain obscene words and that it should not be among the names that offend modesty and contradict public decency.
- A trade name cannot include words as Allah’s name and all Its synonyms, countries, regions, areas, sects and organizations, already registered and known names of brands and establishments.
- It is not allowed to reserve a name starting with words like “Universal”, “Middle East”, “International” and/or translate them into Arabic.
- The trade name may include specific words like Gulf, abbreviations, and foreign words and will be considered as premium trade name category A and will attract a higher fee
- The trade name may include a trademark, an Arabized name or a region, which will be considered as premium trade name category B and will attract a higher fee
- The primary activity name will be added to the trade name, but the trade name cannot be the same as the activity name
- The name should not bear any of the names of countries, capitals or governments, except with the approval of the embassy of the country.
- The company has the right to use a trade name for another company that granted it the franchise right
- The trade name is valid for a period of six months. The trade name, if not used, will be automatically canceled upon expiry of the reservation period
10.What are the different Trade Licenses available in UAE?
A trade license is issued by the Department of Economic Development (DED) or a Free Zone. It states the business activities that the firm is licensed to be engaged in.
There are four types of trade licenses in Dubai based on the type of business activity:
- Professional license: Medical, clinical, marketing services, Consulting etc
- Commercial license: Trading like commercial stores, retail, etc
- Industrial license: For Industrial and Manufacturing activities
- Tourism Licence: Inbound Tour Operators, Outbound Tour Operators, Travel Agents etc
11.What are various Visa types available for a business Investor?
a. Investor or Partner Visa: An Investor or Partner visa is meant for foreign nationals seeking to establish their own business or to invest in an existing business, in the UAE. This visa entitles the holder to live and work in the UAE for up to 3 years.
b. Employee Visa: A private company can apply for new employment entry permits for its employees. A mainland company can issue employment visas with a two-year validity. Free Zones allow 3 years Visa Validity
c. Family Sponsorship Visa: A family sponsorship or residence visa applies to the spouse, parents and/or children of UAE Residents. Family members of a UAE resident can apply for this visa if they wish to visit the UAE.
d. Housemaid or Nanny Visa: For sponsoring a housemaid in the UAE, there are certain formalities one must abide by. One of these is the requirement of a housemaid or nanny visa for a foreigner employed as domestic help
12.What is meant by PRO Services and what are the services offered by PROs?
PRO is the acronym for ‘Public Relations Officer’. PROs liaise with different government departments for filing applications and obtaining approvals for the following:
- Trade/Copy right/Intellectual Property Right/Commercial Licence,
- Trade Mark: Ministry of Economy
- Visa, Immigration Card : Immigration Department
- Labour Card: Labour Department
- Other Approvals/NOCs as required: Municipality, DHA, KHDA, Sports Council, Media Council and other Government department.
- Attestation of documents: Public Notary
- Translating legal documentation to Arabic: Legal Translators
- Industrial Licence: Ministry of Industry
- Ejari (for commercial and residential tenancy contract): RERA
- Dubai Chamber of Commerce: Membership Registration
- Opening Bank Accounts: Banks
CMBCs PROs do handle all the above listed activities on behalf of the Clients.
13.Is Booking Keeping and Auditing Mandatory for the newly formed Business?
As per the UAE Commercial Companies Law 2015 as amended to date, all companies incorporated in the mainland are required to have their books of accounts maintained and have the same audited every year. The audited accounts have to be retained for 5 years at the Head Office of the Company. Some Free Zones also insist the companies licensed by them to have the accounts audited every year.
From the Financial year starting from July 2023 onwards all businesses registered in Free Zones will have to have their accounts maintained and audited in order to avail the Corporate Tax exemption. Similarly all businesses in the mainland also will have to maintain their books of accounts following appropriate accounting standards. Although audit is not mandatory, in order to prove the accuracy and authenticity of the transactions during tax assessments it will be beneficial to have the accounts audited for all the businesses regardless of their tax status.
14.What is ‘Value Added Tax’ (VAT) and what are the relevant guidelines and requirements associated with the same?
The Federal Decree-Law no.8 of 2017 on Value Added Tax (VAT) lays down tax rates, scope of transactions, the supply of goods and services etc. VAT is a consumption tax, as it is borne finally by the end consumer. It is levied at each point in the supply chain, for the subject product or service. The rate of VAT in the UAE is 0% and 5%.
Who should we apply for VAT Registration?
Application for Tax Registration Number (TRN) shall be taken in 2 scenarios:
i) Mandatory Registration: When any business engaged in the supply of taxable goods or services, must register for VAT mandatorily when the turnover is AED 375,000 in the past 12 months or the threshold will be crossed in the next 30 days.
ii) Voluntary Registration in Dubai: When any business engaged in the supply of taxable goods or services, may register for VAT voluntarily if the turnover is more than AED 187,500 or if the business expects to cross said limit within the next 30 days.
When is De-Registration for VAT is required?
i) Mandatory De-registration: Mandatory De-registration is required when either a business has stopped making taxable supplies OR if the turnover did not exceed AED 187,500 in the 12 months after registering with the FTA. Such deregistration has to be carried out within 20 days of meeting either of the above conditions, to avoid penalty.
ii) Voluntary De-registration: Voluntary De-registration is required when either the business has not made supplies or expenses above the threshold of AED 375,000 in the past 12 calendar months or 12 calendar months have passed since the entity was registered with FTA under voluntary registration.
On deregistration, the entity has to submit the Final VAT Return and clear all outstanding tax Liabilities
When should a VAT Return be filed?: A VAT return summarizing the value of the supplies and purchases a taxable person has made during the tax period has to be filed with Federal Tax Authority (FTA) on a regular basis which is usually within 28 days of the end of their ‘tax period’. Failure to file a tax return within the specified time frame will attract Fines.
15.Is there Income Tax or Corporate Tax (CT) in UAE?
Corporate Tax (CT) has become effective in UAE from financial years starting after 1st July 2023. It is applicable on the Net Profit generated from Business income only.
CT is charged on the annual taxable income of a business at the following tax rates:
• 0% Tax for taxable income not exceeding AED 375,000;
• 9% Tax for taxable income exceeding AED 375,000; and
• A different tax rate (not yet specified) for large multinationals {with consolidated global revenues in excess of EUR 750m (c. AED 3.15 bn)} that meet specific criteria set with reference to Pillar II of the OECD Base Erosion and Profit Shifting (BEPS) project.
CMBC Services
CMBC offers ‘end to end’ services to ensure your business set up process is carried out smoothly. The host of services include reviewing the business plans, selection of the right jurisdiction (from the 7 Emirates Mainland or the from the 45 plus Free Zones), handling all the paperwork and formalities required for company formation, obtaining the Trade License and visas for the investors/dependents/employees etc.