The Rules And Regulations For A Foreign Company To Start And Operate A Business In The UAE

Paper Type: Research paper

Pages: 2

Wordcount: 470 Words

Date: 2022-10-25

Categories:

Introduction

The United Arab Emirates, free trade zones, give foreign investors a chance to establish a business in the Middle East region with total ownership. Companies that operate in the free trade zones do not require UAE national partner or agent, which is in contrast to other entities. When a foreign investor intends to invest in the United Arab Emirates by starting an international company and operating in the free trade zones, it will be governed by the free zone authority (the United Arab Emirates. (n.d.). The laws that apply to businesses in the free zones include the General business/commercial laws except the Federal Law No. 2 of 2015 regarding Commercial Companies Law apply (Government.ae. (n.d.). However additional rules will be based on specific activities regarding practice, compliance to the property rights, QHSE submission and regulations relevant to the free zone authorities.

A company is required to determine the type of legal entity that needs one to select between Free Zone Company (FZ Co.) or Free Zone Limited Liability Company (FZ LLC) and Free Zone Establishment (FZE) and select name by the free zone authorities (Government.ae, 2018). A suitable operating license is required that is renewed annually from relevant authorities. Moreover, the majority of the documents outside the United Arab Emirates needs to be notarized and legalized before submitting to UAE authorities (Abuljebain, 2017).

Taxes, Subsidies and Non-Tariff Barriers Faced By These Foreign Companies in the UAE

The existence of exceptions regarding foreign banks and oil companies, there are no corporates or individual tax levied in the United Arab Emirates. Moreover, restrictions are not imposed by the UAE authorities concerning the return of profits. The licensing authorities' collects fee annually to be issue renewed licenses. The free zones usually levy yearly licensing tariff that is computed at a flat percentage as extra charges are imposed on the sponsors (the United Arab Emirates, 2018). Currently, a 5% customs duty for goods and products imported to UAE. However, in selected instances, taxes are charged, and special permissions are required for the importation of alcohol, agricultural pesticides, and firearms (U.S. Embassies Abroad, 2018).

References

Abuljebain, R. (2017). A guide to setting up a business in the UAE - the legal requirements. Retrieved from http://www.hfw.com/A-guide-to-setting-up-a-business-in-the-UAE-the-legal-requirements

Government.ae. (Aug 2018). Starting a business in a free area Zone. Retrieved from https://www.government.ae/en/information-and-services/business/starting-a-business-in-a-free zone

Government.ae. (n.d.). Business Regulations. Retrieved from https://www.government.ae/en/information-and-services/business/business-regulations

U.S. Embassies Abroad. (2018). United Arab Emirates - Customs RegulationsUAE. Foreign Trade Regulations. Retrieved from https://www.export.gov/article?id=United-Arab-Emirates-customs-regulations

United Arab Emirates (2018). Trade BarriersUAE - Trade Barriers. (n.d.). Retrieved from https://www.export.gov/article?id=United-Arab-Emirates-trade-barriers

The United Arab Emirates. (n.d.). Retrieved from https://www.state.gov/e/eb/rls/othr/ics/2012/191258.htm

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