SET UP YOUR BUSINESS

G E N E R A L I N F O R M A T I O N A B O U T T H E C O M P A N Y

S E T - U P I N T H E U N I T E D A R A B E M I R A T E S

BEACON Management ConsultancyP R E P A R E D B Y :

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IntroductionThe purpose of this document is to give thorough information about the various options the United Arab

Emirates is granting to its investors. The information given below is a general information about the procedures

and requirements of the various legal entities, however, the individual procedures may differ from the below.

Please, consult our colleagues to see what is the best option for you.

BEACON Management Consultancy has been assisting

private investors and companies to establish their

branches or businesses in the UAE. Our role is to give

guidance to anybody arriving to the country with the

aim of opening a new business. As part of our

methodology we first interview our clients about

their  personal and corporate goals and budget. 

Based on these two we prepare a detailed proposal

which recommends the most suitable business entity

for their needs. 

During the full establishment procedure our

colleagues strive to minimize the procedure time and

thus, to save time and money to our clients.

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No hidden costsOur prices are always quoted in a way that they include all and any of the incurring

costs and charges. Thus, our clients will only have to pay a one time fee which covers

all the costs that may incur during the business set up.

This way our clients will always have a clear budget of what is required and we shall

not exceed our budget.

OUR SERVICES

Business set-up and VISA services

Legal assistance

Business development

Local Sponsorship

Banking facilitation

On top of the above we assist our clients with finding the

suitable office or warehouse, immigration services, Ministry of

Labour services, all kinds of registration services, investor

relations, project financing and general administration.

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Most popular entitiesIn the United Arab Emirates one has the possibility to

choose from numerous legal entities. Below is a list of the

most popular legal forms and their general requirements.

ON SHORE OR MAINLAND COMPANY

The most common form of on shore company is the LLC.

The LLC requires 150,000 Dhs (approx.: 41,000 USD) capital

in Abu Dhabi and 300,000 Dhs (approx.: 82,000 USD)

capital. In order to establish this entity one needs to have

51% local ownership (commonly referred to as "sponsor").

According to the UAE Law of Commercial Companies the

partners may agree in a profit sharing scheme different

from the equity structure, allowing the foreign investor to

be in control of his investment.

This entity is most suitable for those investors who wish to

carry out business activity within the borders of the UAE.

FREE ZONE ESTABLISHMENT OR COMPANY

In the UAE there are several Free Zone Authorities which

provide a unique solution to foreign investors. The

ownership of this company stays with the foreign investor

in 100%, thus eliminating the necessity of involving a local

partner.

This entity however does not allow the investors to directly

deal with the end-users. The company may utilize mainland

entities to act as intermediaries or sell its products and

services abroad. This company can open and manage bank

accounts within the countries borders.

OFFSHORE COMPANY

By establishing an offshore company the foreign investor

shall possess 100% ownership but will not be entitled to

operate within the country nor to open bank account in the

UAE.

B U S I N E S S S E T - U P G U I D E

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TaxationIn the United Arab Emirates there are currently no applicable taxes,

leaving the companies keep 100% of their profits. What this means in

details is:

- Profit Tax: 0%

- Income Tax: 0%

- Withholding Tax: 0%

- VAT: 0%

- Capital gains Tax: 0%

- Dividend Tax: 0%

- Tax on Royalties: 0%

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AdvantagesThere are numerous advantages to opening a company in the United Arab Emirates.

Some of these are:

1. Tax Free Environment

2. Full repatriation of Profit

3. Simple Administrative Procedures

4. World Class Banking Facilities

5. Booming Economic Environment

6. Low Crime Rate

7. Full Protection of Property

Besides all the above mentioned the UAE is NOT an off-shore destination.

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How much does it cost?The cost of establishing a business in the UAE depends on the legal form, activity, number of partners and on

the size of the office the entity is renting. Therefor it is impossible to quote a general price as all cases are

different. Some companies however attempt to promote unreasonable low prices for marketing purposes which

results unhappy clients. Our aim is to find the best solution which fits our clients' budget and which serves their

goals.

Let us however give an example for a Company set-up.

Let us assume that we have a new client who wishes to

protect its assets in his home country. In this case his

main focus is on maximum security. Therefore, we

propose him to open a Free Zone entity, which entitles

him to possess 100% ownership over his company and

solely act as the manager of the Company. The proposed

activity for this company is consultancy.

With this company the client will not be entitled to

directly deal with end-customers inside the country 

nor to register as supplier with any government or semi-

government entities.

The Company however will be able to acquire all the

properties in any countries the client has or is to

purchase at a later date. According to the Laws of the

UAE the property shall thereafter be fully protected and

no one else but the owner has the right to exercise the

ownership rights. This way the assets are protected. 

This Company will cost the client a total of 9,900

EUR/year.

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Contact UsFind out how the UAE companies can contribute to your success and

increase your profitability.

Contact us for more details and our experienced team will be happy to find

the best solution to your needs and budget.

info@beaconuae.com

+971-56-222-7341