The United Arab Emirates is a Middle-East country situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf. It is bordered by Oman and Saudi Arabia, and the Persian Gulf. The state shares maritime borders with Iraq, Kuwait, Bahrain, Qatar, and Iran. The United Arab Emirates comprising of seven emirates Abu Dhabi (capital), Dubai, Sharjah, Umm Al Quwain, Ajman, Ras Al Khaimah and Fujairah covering an area of 32,278 square miles. It has an estimated population of 9.2 million. The country has an average life expectancy of seventy-five years. The United Arab Emirates has the world's highest migration rate, about 21.71. The majority of the population is composed of expatriates. The highest number of migrants is of Indian origin followed by Pakistan, Bangladesh, Sri Lanka, and other South-east Asian nations. Emiratis and other Arabs form less than half of the total population. In recent years, UAE has drawn a number of immigrants from Europe, North America, Asia,
The Dirham denoted by the ISO 4217 code AED is the official currency of the United Arab Emirates. It is normally abbreviated as DH or Dhs. The dirham is subdivided into 100 fils.
Commercial Law applicable:
The Federal Commercial Companies Law No.2 of 2015, fully enforced in 2016, regulates business in the U.A.E. The Law stipulates a company shall take one of the following forms and is either wholly owned by the nationals or at least to the extent of 51% of the share capital.
Joint Liability Company (100% national ownership).
Simple Commandite Company (100% national ownership)
Limited Liability Company.
Public Joint Stock Company.
Private Joint Stock Company.
Exception for the above are in case the company:
Is being formed been formed in free zone.
Activities are open to 100% AGCC ownership.
Where wholly owned AGCC companies enter into partnership with UAE nationals.
Which is foreign company registering its branches or a representative office.
Is professional or artisan company where 100% foreign ownership is permitted
The basic requirement for all business activity is one of the following three categories of licenses
Commercial licenses covering all kinds of trading activity.
Professional licenses covering professions services craftsmen and artisans.
Industrial licenses for establishing industrial or manufacturing activity.
These licenses are issued from the economic department/ministries.
Benefits of forming a company in Free Zone
100% foreign ownership
100% repatriation of capital and profits
100% exemption of import and export duties
A free zone company is not allowed to trade directly with the UAE market
The free zone company can trade within UAE only through locally appointed distributors.Custom Duty of 5% is applicable when the free zone company sells in the local market
Employees with visas from free zone companies are expected to work only from the company’s offices within that free zone.