UAE Onshore

An Onshore company is a fully-fledged company registered with the Department of Economic Development (DED). It is the legal entity required to operate within any of the seven Emirates. For clients who wish to conduct business with UAE mainland, both a DED-license and a local partner will be required.

 

When incorporating an Onshore company, it is mandatory that 51% of company shares are held by a UAE national who is often referred to as the local partner or sponsor. For a predefined annual fee, the local sponsor will pass all management, operational and financial control back to the 49% shareholder.

 

Many foreign investors are concerned by the foreign ownership restrictions and are uncomfortable about relinquishing control of their company to a local partner. To ease these concerns, Loggerhead Corporate Services can assist with the implementation of a “corporate shareholder structure” that allows clients to effectively maintain 100% ownership and control of their business while remaining in full compliance with UAE company law. Special purpose entities formed by prominent law firms can also assume the role of local sponsor for an annual sponsorship fee.  This sponsorship fee ranges substantially depending on the profile of the sponsor and the type of business.

On May 20, 2018, the UAE approved a new investment law allowing 100% foreign ownership of companies. Government departments have been told to work on implementing these changes by the end of 2018 and further information is expected when the UAE Ministry of Economy submits a report to the UAE Cabinet in Q3 2018.

Frequently Asked Questions

What documents are required to setup a company in the UAE?

The documents required depend on the type of entity established. Loggerhead Corporate Services advises clients on the most appropriate entity according to their needs and then simplifies the entire process by providing a comprehensive list of the documents required.

 

Please contact us for more information or to arrange an initial private consultation.

What documents are required to setup a company in the UAE?

The documents required depend on the type of entity established. Loggerhead Corporate Services advises clients on the most appropriate entity according to their needs and then simplifies the entire process by providing a comprehensive list of the documents required.

 

Please contact us for more information or to arrange an initial private consultation.

How long does it take to setup an Onshore Company?

A UAE Onshore LLC company takes between 6-8 weeks to incorporate. Loggerhead Corporate Services has developed strict procedures for company formation, combined with strong relationships with local authorities, ensuring our clients a smooth and timely business setup.

 

Please contact us for more information or to arrange an initial private consultation.

Is it necessary to visit the UAE to set up a company?

This will depend on the type of entity selected.

 

· Freezones – each Freezone has their own company formation requirements and, as such, there is no one-size-fits-all answer to this.
· Offshore – Offshore companies require each shareholder and director to have visited the UAE at least once (proven by an entry stamp in their passport).
· Onshore LLC companies require all shareholders and directors to visit the UAE to sign the company’s articles of association

 

For clients who are unable to travel to the UAE, Loggerhead Corporate Services can prepare a Power of Attorney which allows us to incorporate the company on behalf of the client.

 

Please contact us for more information or to arrange an initial private consultation.

Are companies taxed in the UAE?

Although the UAE introduced 5% value added tax (VAT) on January 1, 2018, the UAE remains free from all other taxes, including income and corporate taxes.

 

Please contact us for more information or to arrange an initial private consultation.

Are companies taxed in the UAE?

Although the UAE introduced 5% value added tax (VAT) on January 1, 2018, the UAE remains free from all other taxes, including income and corporate taxes.

 

Please contact us for more information or to arrange an initial private consultation.

Can Loggerhead Corporate Services help open a corporate bank account?

Yes, Loggerhead Corporate Services can help clients open corporate and personal bank accounts in the UAE or offshore through our network of contacts across all major local and international banks. We are also well networked with top Swiss Private banks should additional wealth management be required.

 

Please contact us for more information or to arrange an initial private consultation.

How often does an Onshore company need to be renewed?

All legal entities in the UAE are issued with trade licenses by their respective authority which allows companies to operate in the UAE. Company trade licenses must be renewed on an annual basis (applies for Onshore, Offshore and Free Zones) on their anniversary.

 

Please contact us for more information or to arrange an initial private consultation.

Does Loggerhead Corporate Services provide any additional services to support a UAE business?

Yes, Loggerhead Corporate Services provides a comprehensive list of services to support our clients UAE companies, including: accounting and bookkeeping, payroll services, attestation and legalization of corporate documents, treasury services and bank account opening services.

 

Please contact us for more information or to arrange an initial private consultation.

Related Services

UAE Offshore

 

Offshore companies are the ideal choice for businesses who do not require any physical office space.

 

The UAE offers the formation of International Business Company’s (IBC) through the offshore registries located in Jebel Ali Free Zone (JAFZA) and Ras Al Khaimah through the RAKIA Free Zone and RAK Free Trade Zone.

 

From its Dubai office, Loggerhead Corporate Services will facilitate the entire process for incorporating and maintaining Offshore companies.

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UAE Freezone

 

Free trade zones are isolated areas with special tax, customs and import regimes. Free Zones are governed by their own distinct framework of regulations (except for UAE Criminal Law).

 

Free Zone companies can only trade within the boundaries of its Free Zone or internationally and not directly with the UAE market.

 

This means that FZ companies maintain 100% foreign ownership and permits them to issue residency visas and tax residence certificates for the UAE as office space and local staff are required.

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Dubai International Financial Centre (DIFC)

 

The Dubai International Financial Centre (DIFC) is one of the largest and prestigious Financial Centre’s in the Middle East, Africa and South Asia (MEASA) region.

 

The DIFC offers a secure and efficient platform and regulatory environment for businesses and financial institutions to operate in the emerging markets of the region.

 

The DIFC is governed by its own independent regulation, common law framework, supportive infrastructure and tax-friendly regime governed by the Dubai Financial Services Authority (DFSA).

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Cyprus Holding Company (CHC)

 

A Cyprus Holding Company does not produce goods or services but rather manages or owns the outstanding stock of other companies.

 

This allows their owners to control more than one company across a variety of business activities whilst benefitting from the favorable tax regime.

 

A Cyprus Holding Company can be classed as either a private limited or public limited company. The private limited liability (LLC) entity is the most commonly used structure from a foreigner perspective.

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Swiss Public Limited Company (AG)

 

The public limited company (AG) is the most widely used legal form in Switzerland. The formation of a public limited company requires a minimum share capital of CHF 100,000, of which 20%, or at least CHF 50,000 must be paid-in by either cash or with a contribution in kind.

 

For companies whose share capital exceeds CHF 1 million, the authorities charge a stamp duty of 1%.

 

Swiss AG companies must pay taxes on capital and income. The corporate income tax rate in Switzerland varies significantly between the different Cantons, ranging from 12% to 23%.

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