Frequently Asked Questions

How long does it take to register a company in the UAE?

The timeline varies based on the place of registration. It can range from 3 days in the Mainland to 2 weeks and longer in a Free Zone.

Can foreigners have 100% business ownership in Dubai?

Yes, foreign investors can have 100% ownership in many business setups in Dubai. Here’s how:

• Free Zone Companies: All businesses established in Dubai’s free zones allow full foreign ownership. Examples include JAFZA, DWTC, RAKEZ, and DMCC.
• Mainland Companies: Recent amendments to the UAE Commercial Companies Law allow 100% foreign ownership in many sectors, eliminating the need for a local sponsor. However, some industries still require local participation or a service agent (e.g., oil & gas, telecom, banking).
• Offshore Companies: Offshore entities, such as those registered in Jebel Ali or RAK ICC, allow full foreign ownership but cannot conduct business within the UAE.

Mainland vs. Free Zone: Which is better for my business?

Choosing between a mainland and a free zone setup in Dubai depends on your business goals and operational needs. Here’s a comparison of the key differences:

• Market Access: A mainland business allows you to trade directly within the UAE market, while a free zone business is typically restricted to international trade unless a local distributor is involved.
• Business Activities: Mainland companies can engage in over 3,000 activities, whereas free zones focus on specific industries and clusters.
• Ownership: Free zone businesses offer 100% foreign ownership, while mainland companies may require a local service agent for certain activities.
• Visa & Sponsorship: Mainland businesses can apply for unlimited employee visas and sponsor family or domestic staff, whereas free zone visa quotas depend on office space.
• Expansion & Flexibility: Mainland setups provide more flexibility for scaling within the UAE, while free zones are often more suited for international operations.
• Cost Considerations: Free zone setups are usually more cost-effective due to lower registration fees and tax benefits, while mainland businesses may have higher initial costs but offer greater long-term opportunities.

What is the minimum capital requirement for business setup?

Requirements vary by free zone, with many requiring no minimum capital for service licenses.

Is a physical office mandatory for company registration?

Requirements vary by free zone, with some offering virtual office options for certain license types.

What are the ongoing compliance requirements?

Key requirements include annual license renewal, maintaining proper accounting records, VAT compliance if applicable, and visa renewal for employees.

Do I need to be in Dubai during the setup process?

While most documentation can be handled remotely, physical presence is required for the residence visa process, bank account opening, and certain types of licenses.

How much does it cost to start a business in Dubai?

Costs vary based on jurisdiction, activity, and setup type. Complete packages start from AED 15,000 for free zones and AED 25,000 for mainland businesses.

How long does it take to set up a free zone company?

Standard setup takes 5-10 working days after document submission, varying by free zone.

Which free zone is best for my business?

The best choice depends on your business activity, budget, and operational needs. We provide detailed comparisons during consultation.

Can I open a bank account remotely for my company?

Yes, we can assist with remote bank account opening for most jurisdictions, though some banks may require one in-person visit for final verification.

Is my information kept confidential in an offshore company?

Yes, UAE offshore companies offer complete confidentiality. Shareholder information is not publicly accessible and is protected by strict privacy laws.

Can an offshore company do business inside the UAE?

RAK offshore companies cannot conduct direct business operations within the UAE domestic market, including local trading, property ownership, or service provision to UAE customers. For UAE domestic operations, a mainland company or free zone entity is required. However, RAK offshore companies can maintain UAE bank accounts, hold shares in UAE companies (subject to specific regulations), and engage in permissible activities with other free zone entities. Our advisors provide clear guidance on permitted activities and appropriate structural solutions if UAE domestic operations become necessary.

How long does visa processing take?

Standard processing takes 3-5 working days, while express service can be completed in 24-48 hours. Complex cases may require additional time.

Can you help with urgent visa requests?

Yes, we offer express and VIP services for urgent cases, with same-day processing available for certain visa types.

What happens if my visa application is rejected?

We provide free resubmission support and guidance on addressing the reasons for rejection. Our pre-screening usually prevents most rejection scenarios.

Do you handle visa renewals and status changes?

Yes, we manage all types of visa services including renewals, status changes, and cancellations with the same efficiency.

Can I sponsor family members with my business visa?

Yes, once your company is established, you can sponsor employees based on your office space and visa quota allocation. As a company owner, you can also sponsor your family members under your residency visa.

Can non-residents open business bank accounts?

Yes, some banks offer non-resident accounts, but requirements are stricter and may require additional documentation.

What is the minimum deposit required to open a corporate account?

Minimum deposits vary by bank and account type, ranging from AED 3,000 for personal accounts to AED 50,000 for corporate accounts.

What happens if a bank application is rejected?

We provide free resubmission support and guidance on addressing the reasons for rejection. Our pre-screening usually prevents most rejection scenarios.

How often do VAT returns need to be filed?

VAT returns are typically filed quarterly, but some businesses may qualify for monthly filing based on their turnover.

What happens if I miss a VAT filing deadline?

Late filing results in penalties starting from AED 1,000 for the first offense, with additional penalties for late payment.

How long does the VAT refund process take?

Standard processing time is 20-30 business days from complete submission. Complex cases may require additional time for FTA review.

Are free zone companies subject to corporate tax?

Free zone companies may qualify for certain tax incentives, but specific conditions apply. We can help determine your free zone company’s tax obligations.

What is the corporate tax rate in the UAE?

The standard corporate tax rate is 9% for taxable income exceeding AED 375,000. Income below this threshold is subject to a 0% rate.

Can I combine multiple business activities under one license?

Yes, related business activities can be registered under a single license. However, combining vastly different activities may require separate licenses.

How long does an FTA tax audit typically take?

The duration varies based on complexity, but typically ranges from 2-8 weeks. Our involvement can help streamline the process and reduce the timeline.

What triggers an FTA tax audit?

Audits can be triggered by various factors including the size of the business, industry sector, tax return discrepancies, random selection, or specific risk indicators identified by the FTA.

What are the penalties for non-compliance with UAE regulations?

Penalties can range from AED 20,000 to 50,000 for failure to maintain documentation, with additional penalties up to 40% of the tax advantage for non-arm’s length transactions.

How do I prepare for an external audit?

Effective preparation involves several critical elements:

• Timely financial closing, completing all period-end adjustments and account reconciliations;
• Documentation organization ensuring ready access to supporting materials;
• Transaction substantiation, preparing evidence for significant or unusual activities;
• Variance analysis, understanding and explaining significant financial changes;
• Accounting policy documentation, establishing treatment consistency;
• Technical position preparation, addressing complex accounting matters;
• Personnel coordination, ensuring key staff availability during critical periods;
• Prior issue resolution, addressing previous audit findings before current examination;
• System access arrangement, establishing appropriate security protocols;
• Workspace preparation, providing suitable facilities for audit team operations.

Our client preparation guidance provides comprehensive checklists tailored to your specific organizational characteristics, enabling efficient preparation without unnecessary effort or resource misallocation.

Which businesses need to comply with AML regulations?

Financial institutions, DNFBPs (Designated Non-Financial Businesses and Professions), and regulated entities must maintain AML compliance programs.

What are the key components of an AML compliance program?

Key components include risk assessment, customer due diligence, transaction monitoring, reporting procedures, and staff training.

How often should AML compliance procedures be reviewed?

AML procedures should be reviewed at least annually and updated whenever regulations change or new risks are identified.

Can I register multiple business activities under one company?

Yes, related business activities can be registered under a single license. However, combining vastly different activities may require separate licenses.

Can I open multiple branches under one company?

Yes, mainland companies can open multiple branches across all UAE emirates after obtaining necessary approvals.

Can foreigners own property in Dubai?

Yes, foreigners can own freehold property in designated areas of Dubai, with full ownership rights including the ability to sell, lease, or develop the property.

How long does the property transaction process take?

Ready property transactions typically take 7-10 working days from agreement to transfer. Off-plan purchases have immediate reservation but follow the developer’s construction and payment schedule.