Business Setup & Formation
Why Incorporate Your Company in the UAE ?
The UAE, particularly Dubai, has rapidly become one of the most attractive business hubs in the world. Its strategic location between Europe, Asia, and Africa offers easy access to global markets, making it an ideal base for international trade and investment. Dubai’s business-friendly policies, zero personal and corporate taxes, and full capital repatriation without currency restrictions create a unique environment for entrepreneurs and investors.
Key advantages of establishing a business in the UAE include:
- A highly liberal and globally integrated economy.
- Strategic central location attracting millions of investors and tourists every year.
- One of the safest cities in the world with a stable socio-economic environment.
- A multicultural population with over 200 nationalities living and working in harmony.
- Strong presence of international and local financial institutions for business support.
- Advanced education system catering to diverse cultures and languages.
- World-class healthcare and modern infrastructure supporting business and lifestyle needs.
Why Choose Riteway Consultant?
Transparency: We prioritize honesty and clarity in every step. Our clients are fully informed about the details of their projects, and all fees and government charges are communicated upfront. There are no hidden costs, markups, or surprises so clients can plan and manage their finances confidently.
Exceptional Service: Our success is measured by our clients’ satisfaction. At Riteway Consultant, we don’t aim for mere satisfaction we strive to delight our clients. We go the extra mile to provide seamless, hassle-free experiences, ensuring every client receives professional, attentive, and reliable support throughout their business setup journey.
Types of Company Structures in the UAE
Free Zone Companies – These entities allow 100% foreign ownership and offer exemptions from corporate and personal taxes for a defined period. Free zone companies, however, are restricted from doing business outside their respective free zones. They are ideal for import/export operations, industrial or manufacturing activities, and many service-based businesses that want a dedicated operational base.
Onshore (Mainland) Companies – Onshore companies are often misunderstood due to the requirement of a local sponsor, who must hold 51% of the shares. This requirement ensures that there is a responsible person in the UAE to provide guidance or accountability if needed. Under UAE law, profit distribution does not have to match shareholding. Typically, the local sponsor receives a fixed annual fee, while the foreign owners and resident directors manage operations and allocate profits as they see fit.
Professional License Companies – This license allows 100% foreign ownership, with the local sponsor acting solely as a local service agent. The agent is entitled to an annual fixed fee for their role. The owner of the professional license must have the necessary qualifications for the professional service they intend to provide, such as consultancy, engineering, or accounting.
Representative Office – A representative office allows a foreign parent company to operate in the UAE for marketing and information-gathering purposes only. A local service agent is required, but they do not hold any shares in the company.
Difference Between Mainland and Free Zone Companies
Major Advantages of a Mainland Company:
- Freedom to conduct business across the UAE Mainland without restrictions.
- Flexibility to set up office premises anywhere in the Mainland.
Major Advantages of a Free Zone Company:
- 100% foreign ownership.
- Company registration possible without a physical office.
- Eligibility for up to 3 residency visas.
- Ability to open a corporate bank account.
- Lower residency visa costs (varies by Free Zone jurisdiction).
Do I Need a Sponsor in the UAE ?
Whether you require a sponsor depends on the type of company structure you choose. A local sponsor can provide valuable support for your business, including guidance, approvals, and local compliance. Their experience and network can help your company navigate operations in the UAE smoothly. With our in-depth knowledge of the region and industry, we can provide tailored advice on sponsorship requirements.
Do I Need a Local Partner for a Free Zone Company?
No, you don’t. Companies registered in a Free Zone can be 100% foreign-owned, giving you full control over your business without the need for a local partner.
Do I Have to Pay Taxes in the UAE ?
The UAE does not impose corporate or personal income taxes. However, a 5% import duty applies when clearing goods through the country’s ports.
Do I Need Office Space in the UAE ?
Yes, having an office is mandatory for company incorporation in the UAE. You can start with a small space to minimize costs or opt for a larger office for your headquarters. Our team will guide you in choosing the most suitable office solution for your business needs.