Establishing an onshore company implies the possibility of obtaining residence visas for shareholders/employees, as well as their families, which is an indisputable advantage. Moreover, economic substance for onshore companies is created by renting an office or a workstation at Flexi desk / Flexi office.
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Services
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Fees (USD)
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Company registration in UAQ FTZ, including license, rent of Flexi Desk office, stamp, and company formation services*
This fee is applicable in the case of company with a single shareholder and eligible for 1 residence visa (minimum package) |
9 400
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Obtaining a residence visa
(cost of one visa – investor visa), including: - payment of all government fees (Entry Permit, Medical Fitness Report & Emirates ID, Visa Stamping on the Passport); - preparing and submitting applications and necessary documents; - accompanying the applicant (trip to the hospital and migration authority). *If applying for 2 visas or more, please check the cost with your consultant. |
4 200
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Local bank account opening
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2 500
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Total:
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16 100
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Company registration in UAQ FTZ includes the following steps:
The UAQ FZT can issue the following types of license to companies:
Industrial license – enables the holder to carry on business related to manufacturing of goods, which includes importing raw materials, processing, manufacturing, assembling and packaging products, and exporting the finished product.
General Trading license – enables the holder to trade in goods, which includes importing, storing, warehousing, supplying and exporting various categories of permitted goods.
Commercial license – enables the holder to trade in goods, which includes importing, storing, warehousing, supplying and exporting permitted goods.
Service license – enables the holder to provide the type of services specified in the licence (for example, business consulting, marketing consulting, insurance, etc.).
Some licences require approval from the relevant regulator: for example, opening a clinic will require approval from the UAE Ministry of Health.
for directors / managers / secretaries / shareholders / attorneys:
having documents signed by the company's officers and shareholders.
Upon registration of the company, the following documents will be issued:
A company seal is also issued.
The total time to register a new company is around 10 days.
The UAE does not have such concept as a residence permit. 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:
The number of residence visas depends on the business package chosen during registration of the company.
An investor visa is normally issued for 3 years, a work visa – for 2 years. Upon expiration, a visa can be renewed.
Application for residence visas includes the following steps (a visa can only be applied for after registration of the company):
To obtain a residence visa, an individual must enter the UAE with an Entry Permit.
3. Visiting the UAE to obtain a residence visa – in most cases, a visa can be obtained within 5 working days.
The applicant needs to:
After receiving a passport with a residence visa inserted into it, one can leave the country.
4. Obtaining a resident 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.
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- minimum number:
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- one
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- individual / legal entity:
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- individuals only
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- residence:
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- no requirements
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- minimum number:
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- one
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- maximum number:
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- 50
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- individual / legal entity:
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- individual / legal entity
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- residence:
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- no requirements
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- number:
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- only one
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- individual / legal entity:
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- individual
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- residence:
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- no requirements
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UAQ FTZ companies must also have a secretary that can be either an individual or a legal entity. One person can simultaneously act as shareholder, director, secretary, manager and authorized representative of the company.
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- minimum share capital:
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- AED 300,000
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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.
UAQ FTZ offers various office packages depending on the needs of clients in terms of type and number of licences, number of visas, the need for substance and placement in the Free Zone: from flexi desk and flexi office (a separate room or cell in the open space of first-class business centres) to warehouses and land plots.
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 corporate tax, capital gains tax, property tax and other taxes, except VAT.
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 sales turnover within the country exceeds the registration threshold, which is AED 375,000 (~ USD 100,000) in the UAE.
Registration as a VAT taxpayer 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.
It is possible to initiate a voluntary registration after exceeding the threshold of taxable transactions in the amount of AED 187,500 (~ USD 50,000).
Upon registration with the Federal Tax Administration and allocation of the VAT number, a company must quarterly (or monthly in the case of annual turnover exceeding AED 150,000,000 ~ USD 40,830,900) prepare and file a VAT return, and pay the resulting VAT within 28 days of the VAT period end.
Every company registered in UAQ FTZ must keep accounting records sufficient to confirm its financial position and reflecting up-to-date information about the assets and liabilities of the company.
At each reporting date, company directors must prepare financial statements of the company, including auditor’s report, and circulate them to the shareholders for the annual general meeting within 4 months of the financial year-end. However, there is no requirement for audit or submission of financial statements to state authorities.
The company’s first accounting period begins on the date of incorporation and lasts at least 6 months but not more than 18 months. Every subsequent accounting period lasts exactly 12 months from the end-date of the previous period.
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Services
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Fees (USD)
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Company registration in UAQ FTZ, including license, rent of Flexi Desk office, stamp, and company formation services.
This fee is applicable in the case of company with a single shareholder and eligible for 1 residence visa (minimum package). The cost of package may vary depending on the number of shareholders, type of license, and size of office (the office size dictates how many residence visas a company can have). Other options – upon request. Constitutive documents legalization costs are not included in the cost of registration and are determined separately, depending on the prices of the consulate of the country where the company documents will be used |
9 400
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Annual renewal of the company, including license, rent of Flexi Desk office, P.O. Box, and company renewal services.
This fee is applicable in the case of company with a single shareholder and eligible for 1 residence visa (minimum package). Other options – upon request |
8 200
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Obtaining a residence visa (cost of one visa – investor visa), including:
- payment of all government fees (Entry Permit, Medical Fitness Report & Emirates ID, Visa Stamping on the Passport); - preparing necessary documentation; - accompanying the applicant and transport costs (trip to the hospital and migration authority) |
4 200
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Assistance with bank account opening (irrespective of the outcome of application).
Corporate account (for legal entity)/Personal account (for individual) |
2 500/2 500
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Compliance fee
Payable in the cases of: - renewal of a company, - liquidation of a company, - transfer out of a company, - issue of a power of attorney to a new attorney, - change of directorshareholderbeneficial owner, except the change to a nominee directorshareholder) |
250 (standard rate – includes the check of 1 individual);
+ 50 for each additional individual (director, shareholder, or beneficial owner) or legal entity (director or shareholder) if such legal entity is administered by GSL; + 100 for each additional legal entity (director or shareholder) if such legal entity is not administered by GSL; 350 (check for High Risk companies, including the check of 1 individual) |
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Keeping company’s accounting records.
Maintaining a systematic archive of company documents and providing them to the client upon request |
200/hour***
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Preparing financial statements, conducting audit and submitting financial statements to the Free Zone authorities
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400/hour
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VAT registration
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1 200
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Preparing and submitting VAT returns
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200/hour
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Tax advice on VAT and other matters
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300/hour
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*The cost of package may vary depending on the number of shareholders, type of license, and size of office (office size and type of license dictate how many residence visas a company can have).
**The fees are valid as at August 2022.
***The fees for preparing financial statements and conducting audit are charged based on the time spent at hourly rates ranging from USD 100 to 400, depending on the type of work and qualification of a specialist involved, but not less than USD 1900 – fees for audited financial statements with a minimum number of transactions.