Registration of the company on the territory of the United Arab Emirates may be performed with a partner - resident of the country in case of onshore registration and with full foreign ownership when registering a company in free trade zones. For doing business in the UAE you will need a license from government authority of relevant Emirate.
Furthermore, there are various activities subject to license, including, for example:
- Trading companies;
- Various productions processes;
- Transportation and logistics services;
- Tourism;
- Provision of variety of services to businesses and the public.
In order to perform such activities, if the business is performed in the UAE, it is required to register a company on the domestic market of the Emirates with permanent establishment.
In case of availability of local agent the laws of Arab Emirates allow performance of operations through such specialized agent, authorized to represent the interests of the company.
When registering Permanent establishment in the UAE such entity constitutes an integral part of the company and performs actions for the benefit thereof. All contracts are entered into on behalf of the parent company or establishment. The establishment is not required to form authorized capital and file financial reports.
When registering establishment or subsidiary in the UAE no risks arise in terms of tax consequences, since Emirates system of taxation exempts virtually all types of business from taxes, regardless of their status - permanent establishment whether or not doing business in the UAE or subsidiaries and branches.
