Set Up Onshore Company in Dubai
Setting up an onshore company in Dubai provides investors have the possibility to open three types of companies in Dubai:
Onshore companies, which are corporate entities that are used to operate business activities within the local UAE market. Investors can also set up free zone companies in Dubai, which are usually employed by foreign investors operating within the free zones in Dubai. Foreign investors, on the other hand, may choose to set up an onshore free trade zone company in Dubai. This is the most common types of companies incorporated in Dubai mainly because of the tax benefits derived from onshore free trade zone companies in Dubai.
Types of onshore companies in Dubai
According to the Company Laws in Dubai, onshore companies may be incorporated under different categories namely; Limited liability companies, private shareholding companies, and public shareholding companies. Foreign companies also have the possibility of establishing subsidiary branch offices in Dubai or as onshore subsidiary companies in Dubai. All these types of onshore companies in Dubai have different shareholding structure and share capital requirements including the following
- limited liability companies in Dubai must have at least one partner from the UAE nation partner who holds at least 51% of the paid-up capital.
- Free zone companies In Dubai allows foreign investors to have 100% ownership.
- In all types of companies in Dubai, licensing requirements are applicable Licensing requirements for Dubai onshore companies
There are three types of licenses required for the incorporation of onshore companies in Dubai, these licenses include
- Trade license
- Industrial or manufacturing license
- Professional license
The trade license in Dubai is issued for trading activities within the UAE market. The manufacturing or industrial license for onshore companies in Dubai is provided for the purpose of carrying out investment activities in the manufacturing industry. The professional licenses are provided for onshore companies in Dubai, such as accounting firms in Dubai, Auditing firms in Dubai, educational and medical firms in Dubai.
Advantages of setting up onshore companies in Dubai
The registration of an onshore company in Dubai provides many benefits to foreign investors. This is the reason the Emirate has grown exponentially in the past couple of years. These advantages include:
- The regulatory system for companies in Dubai is simple
- There is 100% ownership by foreigners for companies in Dubai
- Tax residency in Dubai; there is no double taxation in Dubai.
- The lack of capital gains and corporate tax in Dubai
- There is low operating income for companies in Dubai as compared to other countries. The cost of business in the UAE is significantly low.
- Easy to obtain a residence permit, setting up an onshore company in Dubai entitles an investor to have residence permit in the UAE for the shareholders and family
- Having a company in Dubai provides the investor with the possibility of owning real estate,
- There is skilled workforce in Dubai.
For onshore company incorporation in Dubai, we invite you to contact our specialists with Auditing firms in Dubai