The economy of UAE has been soaring high with its GDP exceeding expectations. The United Arab Emirates nurture a fertile ground for startups and young entrepreneurs. Investors from all around the globe are being tempted to invest in the country to set up businesses of the future.
The government of the UAE has also supported and encouraged this migration through welcoming policies and incentives that cut diminish bureaucracy, offer tax exemptions, and reduce the procedures involved in setting up a company.
Here in Savvy setup, we are going to discuss the different types of business setups in the UAE in order to familiarize you with the business nature in UAE.
1- Limited Liability Company [LLC]
A limited liability company, also referred to as Onshore company is the most common type of business setup in the UAE. This license gives the possibility of acquiring a resident visa for owners as well as employees.
The perks of setting up an LLC is that there are no annual financial statements required and the license gives you the power to operate a business in the local market.
2- Free Zone Company
The UAE has over 40 Free Trade Zones that have a set of policies and regulations that allow any type of business to thrive. Free Zone Companies have the authority to operate in the UAE however, limited to the Free Zone Border.
The advantage of setting up a Free Zone company is that it allows absolute 100% foreign ownership. Furthermore, it gives you the edge of having 100% return on revenue, meaning that if your business makes $100,000, you pay ZERO taxes and retain a $100,000 pure profit.
Setting up a Free Zone Company in the UAE is relatively easy, as the licensing requirements demand that the business has a physical office or a storage warehouse. Within the territory of the designated Free Trade Zone.
3- Off-Shore Company
Offshore companies are outfits that allow an efficient setup process that allows investors seeking to operate outside their country an establishment.
The Advantages of having an Offshore Company are boundless. Firstly, Offshore Company does not require any license. It also has a huge advantage as it doesn’t require an actual physical office. It can be incorporated with virtual offices and doesn’t actually have to have an actual presence.
Offshore Companies have a park, as they are exempted from corporate taxes which means no required annual financial statements or taxes on profit. Setting up an OffShore Company is the smartest solution for investors willing to operate outside their country