Wednesday, August 20, 2014

Company Registration Process in UAE / Foreign Investment (Cost/ Fees/ Charge)

Foreign Company Registration in UAE, Company Registration Process in UAE, Foreign Company Incorporation process in UAE, Doing business in UAE, Foreign Investment in UAE, Company Formation Process in UAE, How to set up business in UAE, Joint Venture company incorporation in UAE, Foreign Investment policy in UAE, Company Formation Procedure in UAE, Starting business in UAE

S & F CONSULTING FIRM LIMITED is an international business/ company registration consultancy firm.

Foreign Company Registration (100% Foreign Investment, Joint Venture, Virtual/ Branch/ Liason Office, Foundation), Taxation, Accounts & Audit, Legal, Company Secretarial & Management Consultancy.

Company Registration/ Formation/ incorporation in UAE, Foreign Direct Investment in UAE-FDI, FDI in UAE, Doing Business in UAE

Foreign Company Branch or Representative Office

The branch will be considered the company’s headquarters in Dubai, and its business shall be subject to the provisions of the laws of Dubai and the UAE.

1. Ownership
The parent company retains 100% ownership of the branch or representative office, which must operate under the same name and conduct the same business as the managing firm. There is no separate legal identity.

A branch or representative office needs to appoint a local services agent, who has no rights, interests or financial involvement in the business. This can be a UAE National, or a company owned by one or more UAE Nationals, who will manage the necessary government procedures and administration.

The branch office must have an independent budget, its own profit/loss statements and must appoint a UAE-accredited auditor.

2. Activities
The requirements for registering a branch office in Dubai differ, depending on whether the parent company and the branch are involved in commercial and industrial activities or professional Activities

3. Commercial and Industrial Activities A foreign company can conduct trade, commercial or industrial activities in Dubai by registering first with the UAE Ministry of the Economy (MOE), then with the Dubai Department of Economic Development (DED).

Foreign company set up info in UAE

Under UAE law, foreign entities interested in establishing a formal presence in the UAE have five options: create a permanent establishment, of which there are seven different types; establish a branch office; create an entity in a UAE free zone; create a civil company (only in Sharjah and Dubai); or enter into a commercial agency agreement.

The UAE Commercial Companies Law (CCL) requires that each company established in the UAE has one or more UAE national partners who hold at least 51 per cent of the company's capital. Companies that undertake certain activities (oil industry, production of electricity and gas, treatment and distribution of water) are exempt from the 51 per cent requirement. Companies established in free zones are also exempt from the 51 per cent requirement, if the relevant free zone has special provisions regulating the company. Foreign banks are exempt from having to appoint a sponsor.

Further information is available on the UAE Ministry of Economy website and through each
Emirate's Department of Economic Development.
Abu Dhabi Department of Economic Development
Dubai Department of Economic Development
Ra's al-Khaimah Department of Economic Development
Sharjah Department of Economic Development
Fujairah Department of Economic Development
Chambers of Commerce
Chambers of Commerce in each emirate are invaluable sources of information and assistance for anyone intending to do business in the country: they keep investment databases, issue and authenticate licences and other documentation, arbitrate on disputes and provide business facilities, such as meeting and conference rooms.

Abu Dhabi Chamber of CommerceDubai Chamber of Commerce and IndustrySharjah Chamber of Commerce & IndustryAjman Chamber of Commerce & IndustryUmm al-Qaiwain Chamber of Commerce & IndustryRa’s al-Khaimah Chamber of Commerce & IndustryFujairah Chamber of Commerce, Industry & Agriculture


Free Trade Zones in UAE

Establishing a business entity in one of the UAE’s Free Trade Zones (FTZs) can be an extremely attractive option for foreign investors. The major attributes of a free zone are:
• 100 per cent foreign ownership of the enterprise
• reduced or different trade barriers,tariffs and quotas
• 100 per cent repatriation of capital and profits
• Corporate tax exemptions for up to 50 years
• No personal income taxes
• Assistance with labour recruitment, and additional support services, such as sponsorship and housing.
• An independent Free Zone Authority (FZA) governs each free zone, and is the agency responsible for issuing FTZ operating licences and assisting companies with establishing their business in the FTZ.
• Investors can either register a new company in the form of a Free Zone Establishment (FZE) or simply establish a branch or representative office of their existing or parent company based within the UAE or abroad. An FZE is a limited liability company governed by the rules and regulations of the Free Zone in which it is established. Except for acquiring nationality in the UAE, the provisions of the CCL do not apply to FZEs, provided that the Free Zones have special provisions regulating such companies.
• However, free zone companies may only operate within the free zone boundaries and are generally limited to performing solely thouse activities listed in their licence.

Laws and Regulations in the UAE for Foreign Investor Companies
There is the Federal Law which applies to all 7 Emirates and supersedes the “domestic” laws of each emirate. In addition within each emirate there are Free Zones which have their own laws and regulations which might be different from UAE laws (and from Free Zone to Free Zone they may differ but many elements are common) as they are structured to facilitate business for foreigners. For example in DIFC (Dubai International Financial Centre – the Financial Services Free Zone) English law was adopted as the prevailing law, in order to facilitate these activities!

Permitted type of activities>
This is not like Malta or Cyprus where the Articles of association / laws allow many activities in ONE company. Activity licensing for each entity mentioned above is as follows:
(a) For a free zone company ONE must get A TRADE license for EACH ONE activity e.g. consulting OR trading etc. and holding shares or participating in ventures is allowed.
(b) For offshore companies many activities are allowed for one company Restricted activities for offshore are:
• Financial – Aviation- Media – precious metals- oil and gas As accepted ones are :
• Business and Management consultancy
• General Trading
• Holding companies and holding shares in other companies in the UAE or outside
• Trading (Shall be specified)
• Owning Free hold properties

Accounting, Reporting, Audit
Offshore Companies need to keep books of account and prepare financial statements but no audited financial statements are required.
Free Zone Companies Companies need to keep books of account and prepare financial statements AND audited financial statements.

Investment restrictions
Islam forbids gambling in any form. Consequentially, derivatives, forwards, options and futures are prohibited. Other forbidden practices include short selling, margin, and scalping trading. Day trading is considered akin to maisir. Marketable securities generally have a multi-day settlement period, during which time the underlying instruments, while cleared, are not formally registered in the name of the purchaser. As day traders do not wait for settlement to complete, they are using a type of credit cushion provided by their broker.[3] Day traders also very commonly rely on a margin account to finance their trading activity.

The payment or receipt of interests are considered usury and unjust. Debt is also disapproved making investments in highly leveraged companies unacceptable. Funds cannot pay fixed or guaranteed return on capital. Instead of borrowing and lending, Islamic finance relies on sharing the ownership of the assets and therefore risk and profit/loss. Companies involved in prohibited business activities cannot be part of a Shariah fund strategy. Prohibited business activities can relate to food (production and sales of alcoholic beverages including pubs and restaurants, pork products, tobacco), gambling (casinos, on-line gambling, betting, lottery schemes), adult oriented (video, magazines, on-line material, strip clubs), dubious, immoral and illicit trades (prostitution, drugs).

Fees: Lower cost/ Fees/ Charge

Email us: contact@sfconsultingbd.com
Abu Dhabi, UAE

S & F CONSULTING FIRM LIMITED

14 comments:

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