Types of Companies You Can Set Up in the UAE
In the UAE, you can establish several different types of companies. Some of these are offshore, while others are located on the mainland. Here are the main types of companies you can set up in the UAE. Limited Liability Company (LLC) and Private Shareholding Firm (PSF) are the most common. Each has its pros and cons. Listed below are the benefits of each. If you want to learn about a company setup in Dubai, keep reading this article.
Private Shareholding Firms:
The Commercial Companies Law of the UAE defines a Private Shareholding Company as a non-governmental organization with a capital of negotiable shares of equal value. The company can have no more than a hundred shareholders and must adhere to certain conditions to remain in business. In addition, it can only hold shares that can be traded with the public. This means that it cannot engage in professional activities.
Limited Liability Companies:
Unlike a typical corporation, an LLC has no taxes or fees. Generally, there are no capital gains, income, withholding, or dividends taxes. There is also no VAT for companies, but the oil companies must declare their profits to the appropriate tax agencies. As a foreign investor, you can get confused with the legal requirements, especially when getting all the necessary documents. You can hire a business setup consultant or lawyer to help you navigate the legalities.
A limited liability company is a type of corporation that operates in a free zone. 100% foreign investors can own it. You do not have to partner with a UAE national during the formation process. However, you will have to be present in the country to act as a local partner or service agent. You may choose to register a free zone corporation if you plan to start a business in the UAE.
Setting up a representative office is the same process as establishing a company on the mainland of the UAE. You’ll need to select a Local Services Agent (LSA), who will act as your representative to deal with government agencies in the UAE. If you don’t know how to choose a Local Services Agent, a company formation specialist can help you do so. After selecting a Local Services Agent, you’ll need to choose a business activity, choose a company name, and submit your application to the Department of Economic Development (DOED) for approval.