December 19th, 2018
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What is an OnShore Company in UAE?

One of the most difficult decisions for an investor is to identify the best country in which to create a new company or move a department and choose the best local corporate type.

UAE'S OnShore economy is clearly divided between Mainland and Free Zone area. Each of them, with advantages and limitations that client must know.

The first, ”Mainland ”, is oriented to preserve local commercial interests at level of the shareholding and has restrictions on the foreign ownership, but companies established in Mainland can trade directly within the UAE; the second, the “Free Zone”, consists of a series of zones with specific rules and frequently internal arbitration Court.

Free Zone Vs Mainland

Free Zone

Companies incorporated in the Free Zone are fiscal resident, with access to the DTAAs (Double Taxation Avoidance Agreements), the possibility of obtaining residential VISA, and can have the 100% of foreign ownership. They don’t need a sponsor, but at least one manager with VISA is required. The only limitation of the FZ Companies is at a commercial level, because cannot trade directly with the Mainland.

Mainland

New activities are encouraged by the authorities. Export and manufacturing industries are strongly supported by the government, in particular with regard to the purchase of land on which to build a factory and office spaces.UAE’s Law Nr. 8 of 1984, as amended by Federal Law No.13 of 1988, states that “Commercial Enterprises” out of the Free Zone must have a local partner (UAE citizen) which holds not less than 51%.

difficulties in establishing”40″%
self-management difficulty ”58″%
UAE Trading “Limited – with Agent””20″%
foreign ownership”100″%
corporate form risk”2”%

  • Feedback with this type of company
difficulties in establishing”35″%
self-management difficulty ”78″%
UAE Trading “unlimited and direct””100″%
foreign ownership”48″%
corporate form risk”60”%

  • Feedback with this type of company
Free Zone
Click here if you whant to know more about Free Zone company.
Mainland
Click here if you whant to know more about Mainland company.

Our Management Accounting & Reporting services

Minimise the accounting expenses of your OnShore company and free up precious time.

What’s one of the most efficient, cost-effective ways to run your business, while reducing your operating costs, and freeing yourself and your staff to focus on what’s important, growing and expanding your business?

Outsource your management accounting and reporting work to us.

Your company’s financial reports are one of several vital document that help stake holders and investors gain a better idea of its business and is also important for decision making at the strategy level.

We offer you the expertise in outsourced accounting, bill management and financial services you need to manage your critical business processes more efficiently, and also offer you a business advisory and consultative controllership in the auditing process through pre-selected independent auditors. In addition, when you outsource with us, you won’t have to worry about software, hardware upgrades, maintenance, or security and your financial data and business information is always safe and secure.

Are Auditors necessary?

Audit for entities in Mainland area:

For entities in Mainland, governed by Commercial Companies Law (Federal law no 8 of 1984 and its amendments) audit is mandatory in case of the following entities: – limited liability company – public joint stock company – private joint stock company – partnership with limited shares – branch of foreign company.

For the following entities in the non-free zone area, even though governed by the Commercial Companies Law, audit is not mandatory: – general partnership – limited partnership, Sole proprietorship.

Audit for entities in the Free Zone area:

Regulations pertaining to audit are set by the Free Zone Regulations. Audit is mandatory for entities established under the Free Zone regulations such as Free Zone Establishment (FZE) and Free Zone Company (FZC).

Presently, the Commercial Companies Laws do not specify any accounting standards framework for the preparation of the financial statements. The Central Bank of UAE has made it mandatory for banks to prepare their accounts as per International Financial Reporting Standards (“IFRS”).

Do I have to pay individual or corporate taxes in Dubai?

There is not any personal nor corporate income tax in UAE and Dubai, nor withholding taxes. All businesses operating within the free zones are exempt from income tax for different periods (from 15 to 50 years) which can be renewed by the free zone authority.

Do you want to be the Manager/Director of your Onshore Company?

A Free Zone or a Mainland company must by law appoint on the corporate license a ‘person in charge’ who holds a UAE residency Visa as Manager/Director. The Manager or Director is personally responsible for all corporate actions, obligations and liabilities (including cheques and licence costs), furthermore article 313.1.b of the UAE Civil Code states that a person may be vicariously liable for the acts and omissions of their employees.

YES
I feel comfortable with Dubai legal system and want apply for the Visa and relocate myself.
NO
I do not feel comfortable with the Dubai legal system.
I want professional assistance in management.
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