The UAE is a hub of diverse business opportunities and welcomes entrepreneurs from all around the world. In the UAE, businesses can be categorized into different types depending on their legal structure and ownership. We’ll talk about the several company varieties in the UAE, their characteristics, and the advantages they provide to business owners.
Limited Liability Company:
The most typical company structure in the UAE is an LLC. It is a separate legal entity, and the shareholders are only partially liable for its debts. Depending on the emirate and the type of business, an LLC must have a minimum amount of capital, which often ranges from AED 150,000 to AED 300,000An LLC can have up to 50 shareholders, and each shareholder’s part of the company’s income is allocated according to their ownership stake.
Free Zone Company:
A free zone company is an independent legal entity that is 100% owned by foreign investors. It is established in a free zone, which is a designated area in the UAE that offers tax exemptions, customs duty benefits, and 100% repatriation of profits. A free zone company can be established with a minimum capital requirement, which varies from one free zone to another. It is not allowed to conduct business outside the free zone unless it has a local partner or a branch office.
READ MORE : 5 Steps to set up business in a Free Zone in the UAE
More Types of companies in the UAE:
Offshore Company:
A corporation registered outside of the UAE that is exempt from taxes is known as an offshore company. It is not permitted to carry a business inside the UAE, but it is permitted to store assets, make share investments, and possess real estate there. An offshore company does not require a local sponsor and is owned by foreign investors. For business owners who desire a global presence and access to markets, it is a desirable alternative.
Sole Proprietorship:
A sole proprietorship is a business in which one person owns the entire business and is liable for all of its liabilities. It is the simplest and most straightforward type of business to establish, and there is no minimum capital needed. The owner’s personal assets may be utilized to pay off any outstanding obligations because of the owner’s unlimited accountability for the company’s debts.
Set up your business with M.A Middle East Legal Consultancy
The UAE provides a wide range of possibilities for business establishment, and the kind of company an entrepreneur chooses will depend on their kind of business, their ownership, and their legal structure. M.A Middle East Legal Consultancy can provide all the necessary details and legal assistance to help entrepreneurs make informed decisions about their business setup in the UAE. Contact us today to learn more about the options available to you.
