UAE ‘s business friendly environment attracts investors from all around the world. Free zone companies and limited liability companies are some of the most popular types of company formation investors/entrepreneurs opt for.
With free zone business setup, you can setup your company in one of the many free zones in UAE and also benefit from zero corporate and personal tax rates and enjoy 100% foreign ownership and 100% repatriation of profits. While with an LLC you can setup a company in UAE mainland and enjoy full access to the local UAE market – which is something free zone business setup doesn’t offer. The only catch is that you will have to hand over a 51% stake in your company to a local sponsor.
Other than the above, there”s another type of company formation in UAE and that is civil company formation.
Why start civil company in dubai, UAE?
Civil company formation is a type of company which offers 100% foreign ownership and full access to UAE’s local market but also involves unlimited liability. Civil companies also commonly known as professional companies, can be setup by investors /entrepreneurs who provide professional services in specialist sectors such as doctors, lawyers, engineers, accountants and consultants.
A civil company is established as an association wherein two or more professionals, holding professional qualifications in their field of expertise agree to carry out professional /consultancy activities and also be liable to third parties against payment of consideration.
While with civil company setup in UAE, companies can benefit from 100% foreign ownership, teaming up with dubai local service agent (LSA) is still required to trade from the mainland. Local service agent (LSA) do not hold a stake in your company, unlike local sponsors. The role of LSA is to liaise with the governmental departments on your behalf and assist you with all the legal procedures such as getting your license approved, processing work permit and visa application, etc. The local service agent is paid an agreed fee and does not have a percentage of company profits to assist you with the above mentioned tasks.
To know more about the process of starting a civil company in UAE and how you can benefit from it, give our expert business consultants contact 00971504649313 or email us info @multibusinesscare.com.