Which type of company is better to choose: Free Zone, Mainland or Offshore?
Answer:
Dubai@Whatox.com | Concierge Business Consulting in Dubai and UAE | Your Path to Success in the Emirates!
- Free Zone:
- Suitable for businesses focused on export or international operations.
- 100% foreign ownership:
- No need for a local sponsor.
- Limited access to local UAE market (requires intermediary).
- Mainland:
- Suitable for businesses targeting the UAE market.
- Local sponsor required (51% ownership).
- Full access to the UAE market.
- Opportunity to participate in government tenders.
- Offshore:
- Suitable for asset ownership, international trading and tax planning.
- 100% foreign ownership:
- It is not possible to conduct business in the UAE.
2. How much does it cost to open a company in RAK or Dubai?
Answer:
- RAK Free Zone:
- License: from 15,000 AED.
- Visa: from 3,000 AED per person.
- Office: from 10,000 AED (or virtual office).
- Total: from 25,000 AED.
- Dubai Mainland:
- License: from 25,000 AED.
- Visa: from 5,000 AED per person.
- Office: from AED 20,000 (physical office required).
- Total: from 40,000 AED.
3. What documents are needed to register a company?
Answer:
- Founder's passport (copy).
- Proof of residential address (e.g. utility bill).
- Business plan (in some cases).
- Application form for obtaining a license.
Russian clients may also require translation of documents into English and their notarization.
4. How to open a bank account in the UAE?
Answer:
- Select a bank (eg Emirates NBD, Mashreq, or international banks such as HSBC).
- Prepare the documents:
- Company license.
- Office lease agreement.
- Passports of founders and managers.
- We will help you with preparing documents and arrange a meeting with the bank.
5. How much does it cost to obtain a visa and residence permit?
Answer:
- Cost of visa: from AED 3,000 per person (including medical insurance).
- Visa validity period: 2-3 years (with possibility of extension).
- Residence permit for family: You can sponsor visas for your spouse and children.
6. What taxes do you need to pay in the UAE?
Answer:
- Corporate tax: 0% in most cases (except oil and banking companies).
- VAT: 5% (applies to most goods and services).
- Customs duties: 5% for import of goods.
7. Do I need to rent an office?
Answer:
- Free Zone: It is possible to rent a virtual office (from 5,000 AED per year).
- Mainland: Physical office is required (from AED 20,000 per year).
8. What type of activities are permitted in RAK and Dubai?
Answer:
- In RAK and Dubai, almost all types of activities are permitted, including trade, services, manufacturing, consulting and IT.
- Some activities (such as finance or medicine) require special licenses.
9. Is it possible to do business outside the UAE?
Answer:
- Free Zone: It is possible to conduct international business, but access to the local UAE market is limited.
- Mainland: You can do business both in the UAE and outside it.
- Offshore: Business can only be conducted outside the UAE.
10. What are the advantages of RAK compared to Dubai?
Answer:
- Lower registration and maintenance costs.
- Less bureaucracy and faster registration process.
- Flexible office solutions (virtual office).
- More affordable prices for visas and licenses.
11. How long does the company registration process take?
Answer:
- In RAK: 1-2 weeks.
- In Dubai: 2-3 weeks.
12. What guarantees do you provide?
Answer:
- We guarantee full compliance with UAE legislation.
- We provide transparent prices without hidden fees.
- We support you at all stages: from registration to obtaining visas and opening an account.
13. What if I want to close the company?
Answer:
- We will assist you with the company liquidation process, including closing bank accounts and cancelling visas.
14. What additional services do you offer?
Answer:
- Accounting services.
- PRO services (document processing and license renewal).
- Search for office premises.
- Consultations on taxes and legal issues.