A Comprehensive Guide for Foreign Entrepreneurs
Options for Business Setup:
1. Free Zones:
– Benefits: Zero corporate and personal tax rates, 100% repatriation of profits, and 100% foreign ownership.
– Limitations: Restricted access to the local UAE marketplace.
2. Mainland LLC:
– Advantages: Full access to the local market.
– Conditions: Requires a 51% local sponsor ownership.
3. Civil Company Formation:
– Ownership: 100% foreign ownership.
– Liability: Unlimited liability.
– Eligible Sectors: Professional fields like doctors, accountants, lawyers, consultants, and engineers.
– Requirement: Must work with a Local Service Agent (LSA) who assists with governmental processes without holding a stake in the business.
Key Considerations for Civil Company Formation:
1. Liability:
– Civil companies have 100% liability, meaning personal assets could be at risk in case of business debts.
– LLCs offer limited liability, protecting personal assets.
2. Setup Process:
– Quick and straightforward. Apply to the Department of Economic Development (DED).
– Possible to complete registration within 90 minutes if eligibility criteria are met.
3. Cost:
– Affordable setup with a professional license costing around AED 17,000.
– No requirement for upfront share capital.
4. Local Service Agent (LSA):
– Required to handle administrative interactions with government bodies.
– LSAs do not hold business stakes or influence business decisions.
5. Visa Applications:
– Ability to apply for multiple visas, with no upper limit.
– Office space requirements may apply (generally 100 sq. ft. per visa).
6. Sponsoring Dependants:
– Shareholders can sponsor dependents for residence visas, provided application criteria are met.
7. Multiple Shareholders:
– Civil companies can have multiple shareholders (minimum of two, typically up to 50).
8. Corporate Bank Account:
– Easy to open a corporate bank account post-company formation.
Why Choose Civil Company Formation?
Civil company formation is ideal for professionals seeking full market access and complete ownership. It showcases the owner’s expertise and qualifications, though the risk of unlimited liability requires careful consideration.
Need Assistance?
UAE Freezone Finder offers comprehensive support for setting up businesses on the UAE mainland. For a consultation, please call +971 50 786 4823
