Can a L.L.C. company be incorporated without local Emirati national sponsor?
No, UAE national sponsor is mandatory for all L.L.C. structures. U.A.E National will have 51% shares in the company.
Are there any other parallel agreements with UAE nationals to protect the interest of expatriate shareholders?
Yes, generally a side agreement with local sponsor is followed; however, these are not valid in the court of law and can be used for the internal purpose.
What is the difference between free zone and L.L.C. companies?
Free zone companies can be fully owned by expatriate and no local sponsor is required There are restrictions in providing business services to main land areas of UAE, through a Free Zone company.
Free zone licenses are processed by respective free zone authorities whereas L.L.C. license are being processed by ministry of economic development and municipalities.
What are the features of offshore companies?
100% owned by expatriates
No income tax and 100% profit repatriation
Bank accounts in UAE
Cannot conduct business activities in UAE
Is 100% profits of UAE companies are repatriable?
Yes, subject to the documentation and resolution by board of directors.
Is there any activity not permitted to conduct in UAE?
Activity is approved by the relevant license issuing authorities. Normally almost all activities are permitted, unless prohibited by the ministry.
What is the speciality for branch companies?
Branch companies can conduct the activity in UAE, in line with the activity of parent company. Also this activity should be permitted to conduct in UAE. Branch activities will be consolidated in parent companies books of accounts.
Is UAE is completely tax free?
Yes, UAE is completely free from income tax, vat etc.
Tax is being imposed only on some much selected activities in UAE.