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Frequently asked questions (FAQ)

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Limited Liability Company (LLC)

What is a Limited Liability Company?

A limited liability company is a company registered with the department of economic development of an emirate, which requires 51% of the shareholding owned by a local UAE citizen. A limited liability company operates its business under a trade license issued by the department of economic development of the respective emirate, which is renewable every year.

What is the shareholding pattern possible in an LLC?

Local UAE citizen (s) must own 51% shares of the issued capital of the company and any foreign citizen (s) / foreign company (s) can own the balance 49% of the issued share capital.

Who controls the bank account of an LLC?

The Memorandum of Association can be drafted in such a manner that only the foreign owner can open, operate and close the bank account(s).

Can an LLC import / export / trade internationally and locally?

Yes an LLC can trade locally and internationally and also with any free zones in UAE through local dealer or agents.

Who arranges local partner (sponsor) for incorporation of an LLC?

If you do not know any local UAE citizen we can arrange local partner for you at a reasonable fixed annual fee.

Is local sponsor involved in the day-to-day operations of the business of an LLC?

No they are not involved in the day-to-day business operations of the company; they only help in visa and immigration processing for the company.

Is physical office required to open an LLC?

Yes, you are required to have a local office in the emirate you want to open an LLC.

Can an LLC open its branches in UAE and internationally?

Yes, an LLC can open its branches all over the UAE, including free zones and internationally.

In which emirates an LLC can be incorporated?

An LLC can be incorporated in all the seven emirates of UAE namely Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Ajman, Fujairah and Umm al Quwain.

What is the minimum capital required to open an LLC?

It depends upon the emirate you open the LLC and the business activity you opt for your trade license.

What kind of visa shareholders get in an LLC?

Shareholders get investor visa from the department of immigration directly. No labor approval is required for investors.

How many people can be employed in an LLC?

You get approval for number of employment visas based upon the size of the office space.


FREE ZONE COMPANY

What is a Free Zone Company? Do I need a UAE citizen as a partner to open a Free Zone Company?

A free zone company is registered with a free zone authority and does not require any local UAE citizen shareholding. Foreign citizen(s), company (s) can own 100% shares in the company.

What is the difference between Free Zone Establishment (FZE) and Free Zone Company (FZC / FZCO)?

A free zone establishment has only single shareholder whereas a free zone company generally has 2 to 5 shareholders.

How many employees can be employed by a Free Zone Company?

It normally depends on the free zone where you register the company and the office space you lease from the respective free zone. Some times this is also governed by the packages you opt for.

What kinds of facilities available in free zones? Can I open an industry in a free zone?

Most of the free zones have offices, warehouses and open land for light industrial units.

What are the advantages of opening a Free Zone Company?

Mainly it is 100% ownership to foreigners and 100% tax exemptions apart from various other exclusive facilities.

Can I register any activity in any free zone?

Every free zone has its own set of approved activities.

Which free zone should I open a company?

This decision is mostly based on the cost factors, no. of visas required, business activity you choose for trade license, distance from other emirates and finally personal choice.

Can a Free Zone Company trade internationally and locally?

Yes it can trade internationally on its own and also locally through a registered dealer or agent under the rules and regulations of the respective free zones.

How many companies can I open?

You can open as many companies as you want in one or more free zones.

Can a Free Zone Company open a bank account with any bank?

Yes, as per the choice of the investor.

What is the minimum capital required to open a Free Zone Company?

Every free zone has its own requirements but generally it varies between AED 100,000 to AED 1 Million (approx. US $ 27,250 to US $ 272,500).

What are the numerous advantages of opening a Free Zone Company?
  • No personal income taxes in the UAE
  • 100% ownership of the business
  • No corporate taxes
  • Up to 100% repatriation of capital and profits
  • Modern efficient communications facilities
  • Direct visa approvals from free zone authorities
  • Attractive working environment
  • No restrictions on currency of trade
  • Outstanding support services
  • Land is available on lease for light industrial units
  • Pre-built warehouse / factory / office accommodation units available for lease
  • On-site accommodation for company staff

Offshore Company

What is an Offshore Company?

A company incorporated with certain offshore jurisdiction to operate worldwide but without any tax liability at the incorporated jurisdiction. An offshore company is a very important tool to operate and control wealth management.

Do I get residence visa when I open an Offshore Company in UAE?

No, for that you need to have a limited liability company or a free zone company.

Can an Offshore Company open a bank account in UAE?

Yes, within the limits of central bank rules and regulations.

What are the commonly used jurisdictions in UAE?

Jebel Ali Offshore, RAK Offshore and BVI.

Can an Offshore Company become a shareholder of an LLC or a Free Zone Company?

Yes an offshore company can hold shares in an LLC or a free zone company.

Can an Offshore Company trade in UAE?

No it cannot conduct business in UAE.

What is the purpose of incorporating an Offshore Company?

Generally offshore companies are opened for the purpose of holding company, holding investments, real estate protection, tax savings and to own intellectual property.


Business Support

Can a shareholder sponsor his family to UAE on residence visa?

Yes, Investors with a minimum capital investment in the business can process their family visas.

Can an employee sponsor his family to UAE on residence visa?

Yes, employees with a prescribed minimum salary and prescribed profession can process their family visa.

If I have visa of one Emirate, can I stay and move in any other Emirates?

Yes, you can stay at any emirate and freely move to other emirates.

I am on a visit visa and holding a valid international driving car license of my country, can I drive in UAE?

Yes visitors holding valid international driving licenses can drive in UAE when they are on visit visa.

I am, on residence visa, can I use car driving license issued in my home country, in UAE?

No, you have to have a valid UAE driving license to drive in UAE. Citizens of certain prescribed countries can exchange their driving license with the UAE driving license.

Are the employees taxed in UAE?

No, all the employees get tax free salary in UAE and their income is not taxable in UAE.

For how many days, can I stay outside UAE if I am on a residence visa?

You cannot stay for a continuous period of more than 180 days.

Can you check my P O Box and deliver my posts on a periodic basis?

Yes, we do this for many of our clients at a nominal annual fee.

Can you help me changing the shareholding structure / activity / manager of my company?

Yes, we do all kind of simple and complex restructuring and trade license amendments.

Can you help me getting exchange my valid driving license issued in my home country to UAE driving license?

Yes, if you have valid UAE residence visa and your country is in the list of prescribed countries.

Can you help me getting chamber of commerce registration and import export code for my company?
Yes, we generally do it for most of the companies we incorporate.
Can you help me closing / liquidating / winding up my company?

Yes, we can do it by following the proper rules and regulations of respective emirate or free zone.

What if my question is not answered above?
You are always welcome to contact us by e mail or phone, we will be happy to answer your questions.


Have a question? Feel free. Get in Touch

Our Offices:
  • DUBAI
  • Address: P O Box 232004
    Office no. 1504 -1505
    Burj Al Salam
    Opp. World Trade Centre
    Sheikh Zayed Road
    Dubai, UAE
  • Phone:+ 971 4 355 9993 (7 Lines)
  • Fax: + 971 4 355 9996
  • Sunday to Wednesday – 09:30 AM to 07:00 PM.
    Thursday – 09:30 AM to 04:00 PM.
    Saturday – 12: 00 PM to 07:00 PM.
    Friday – Closed.
  • Mail: info@sundubai.net
  • Web: www.sundubai.net
.
  • Hamriyah Free Zone Authority (HFZA)
  • Address: P.O.Box no: 42453
    Leased Office Bldg 1
    Office No. 1G – 12
    HFZA
    Sharjah, UAE
.
  • SHARJAH Airport Free Zone (SAIFZONE)
  • Address: P.O.Box 124959
    Executive Suite L1 – 56
    SAIFZONE
    Sharjah, UAE
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