Company Registration in Dubai Science Park (DSP) Free Zone, Dubai, UAE. Service offer

1) Selecting:

• company name to be checked for availability (at least two names), which name:

1. must not be identical or similar to the name of an existing company;
2. can use Latin letters.

• company structure (director, shareholders, and manager);
• type of licence.

DSP Free Zone has two main types of licences, which are divided into separate business segments:

• Manufacturing licence – allows the holder to manufacture products within the business segment specified in the licence.
• Non-manufacturing licence – allows the holder to import, export, sell, distribute and store goods, or provide services within the business segment specified in the licence.

2) Paying fees for services

3) Providing documents for directors / members / attorneys (either originals or notarized copies):

• internal and international passports;
• proof of address (unless the internal passport contains an address stamp);
• CV.

The shareholders need to additionally provide personal data in the form of a letter:

• phone,
• email,
• residential address,
• country of residence,
• mother’s name,
• marital status,
• religion,
• citizenship.

The following documents are prepared for submission to the registration authority:

• Application for company registration (signed by the shareholder);
• No Objection Letter (from the sponsor) – where there is a valid UAE visa issued by another company;
• Memorandum & Articles of Association.

Once the check is done, the company is registered. Upon registration, the Free Zone authority issues the following documents:

• Certificate of Incorporation indicating the registration number and date, type of licence, details of the shareholder and share capital of the company;
• Licence for the company’s declared type of business (valid for 1 year);
• Office lease agreement (for 1 year);
• Share Certificate;
• Memorandum & Articles of Association.

A company seal is also issued.

The total time to register a company in DSP is 15 business days, on average.

After the registration of a company, you can proceed with visas and bank account opening.

The fees for translation, notarization, legalization and apostille are charged additionally.

The UAE does not have such a concept as a residence permit. The UAE migration rules require the issuance of residence visas which in practice are similar to a residence permit.

A residence visa can be obtained on the following grounds:

• based on owning a UAE onshore company – investor visa;
• by making an employment contract with a UAE onshore company – work visa.

The number of residence visas depends on the business package chosen during the registration of a company.

An investor visa or a work visa is normally issued for 2 years. Upon expiration, a visa can be renewed.

The application for residence visas includes the following steps (a visa can only be applied for after the registration of a company):

1. Opening an Establishment Card (the migration file of the company) – 3-5 days. This document is necessary for the company to be able to apply for residence visas in the future.

2. Submitting documents for a residence visa and obtaining an Entry Permit (permission to enter the country) – 5-7 days.

To obtain a residence visa, an individual must enter the UAE with an Entry Permit.

If at the time of issuing of Entry Permit the applicant is already in the UAE, then in order to complete the issuance of a residence visa without leaving and re-entering the country, it is necessary to change the status of the visa. The service of changing the status of a visa is provided upon request and is subject to additional charges.

3. Visiting the UAE to obtain a residence visa – in most cases, a visa can be obtained within 5 business days.

The applicant needs to:

• undergo a medical examination (blood test and chest X-ray);
• submit biometric data (retina and fingerprints scan).

After receiving a passport with a residence visa inserted into it, one can leave the country.

4. Obtaining a resident’s ID card – ID Emirates

The card is issued a few days after the issuance of a visa. Personal presence is not required to receive it.

The director can be an individual over 21 years of age. There are no requirements as to the residence of the director. A corporate director can only be appointed subject to approval of the Registrar.

The minimum number of directors is 1, the maximum number is not set by the Free Zone.

The details of directors are not accessible to public.

The secretary can be either an individual (over 21 years of age) or a legal entity.

There are no requirements as to the residence of the secretary.

The maximum number is 1 and it can be the same person as director.

The details of the secretary are not accessible to public.

The manager can only be an individual over 21 years of age.

There are no requirements as to the residence of the manager. It can be the same person as director / shareholder.

The details of managers are not accessible to public.

Both individuals and legal entities can be shareholders. There are no residence requirements.

The standard minimum share capital of a DSP company is AED 10 000 (~ USD 2 750); however, some types of licences may require a higher share capital.

The share capital must be paid into the company’s bank account in the UAE within three weeks of issue of the company’s licence. It can be subsequently withdrawn at any time.

A company may issue different classes of shares.

Bearer shares are not permitted.

The share capital can be denominated in AED only.

Upon registration, the company and the Free Zone authority sign an office lease agreement; the address of such office is considered the official registered office address of the company.

DSP offers various office packages depending on the needs of clients in terms of type and number of licences, number of visas, and the need for substance and placement in the Free Zone: from Shared Desk (a separate room or workstation in first-class business centres) to warehouses.

The company must annually renew the licence, by paying a relevant fee, and the lease agreement.

Companies registered in UAE free zones are exempt from capital gains tax, property tax and other taxes, except corporate tax and VAT.

A federal corporate tax was introduced in the UAE on 1 June 2023. Free zone companies may be subject to both the standard rate of corporate tax (9%) and a zero rate. The application of a particular rate depends on a number of factors such as the company’s income, the types of its activities (whether they are excluded or qualifying, or not), counterparties, whether the company maintains adequate economic substance in the UAE, and other aspects.

From 1 January 2018, the UAE introduced a Value Added Tax.

VAT as a general consumption tax applies to all transactions with goods and services, unless such transaction is exempted or taxed at 0% rate.

The standard VAT rate in the UAE is 5%.

There is no obligation to register for VAT unless the sales turnover within the country exceeds the registration threshold, which is AED 375 000 (~ USD 100 000) in the UAE.

Registration for VAT is required in the following cases:

• there is reason to believe that the taxable turnover in the next 30 days will exceed the registration threshold (for example, a contract has been made);
• at the end of the month, the taxable turnover for the previous 12 months actually exceeded the registration threshold;
• the company receives services to be included in the return using the reverse charge method, in excess of the registration threshold.

Upon registration with the Federal Tax Administration and allocation of the VAT number, a company must prepare and file a quarterly (or monthly in the case of an annual turnover exceeding AED 150 000 000 (~ USD 40 830 900)) VAT return and pay the resulting VAT within 28 days of the VAT period end.

Every company registered in DSP must keep accounting records sufficient to confirm its financial position and reflecting up-to-date information about the assets and liabilities of the company. It is also necessary to prepare annual financial statements of the company and have them audited.

The company’s first accounting period begins on the date of incorporation and lasts not less than 6 months and not more than 18 months. Every subsequent accounting period lasts exactly 12 months from the end-date of the previous period.

At each reporting date, the company directors must prepare financial statements of the company, including the auditor’s report, and present them to the annual general meeting within three months of the financial year-end.

A company must annually renew its licence, by paying a relevant fee, and its lease agreement.

The company’s renewal date is the anniversary of the issue of the licence. To avoid penalties, payment must be made two weeks prior to the renewal date. In the case of late payment, the Free Zone authority reserves the right to charge fines, as well as suspend the licence.

Upon renewal, an updated licence is issued.

Assistance with opening corporate and personal bank accounts, including[6]:

[1] 5% VAT applies.

[2] The cost of the package may vary depending on the number of shareholders, type of licence, and size of office (the office size dictates how many residence visas a company can have).

[3]The description of the account opening stages and the conditions for charging an additional success fee can be found below, in the Fees section.

[4] 5% VAT applies.

[5] The cost of the package may vary depending on the number of shareholders, type of licence, and size of office (the office size dictates how many residence visas a company can have).

[6] For more details on how fees for account opening assistance are charged, please contact your GSL consultant.

[7] The fees for preparing financial statements and conducting an audit are charged based on the time spent at hourly rates ranging from USD 100 to USD 400, depending on the type of work and qualification of a specialist involved, but are not less than USD 2 200 – fees for audited financial statements with a minimum number of transactions.