Akieman Company Registration Type Full Analysis

As a global business hub, the UAE attracts a large number of international investors with its zero personal income tax, low corporate tax rate and free zone policy. However, its unique legal framework and cultural environment require careful planning when registering a business. The following analysis is carried out from many aspects to provide practical guidance for enterprises.

UAE set up company considerations

1. Company name approval: avoid "minefields"

naming rules: the name must end with "Limited", "LLC", etc., and must not contain religious, political or offensive words;

case warning: in 2025, a Chinese enterprise was rejected because its name contained "Global Holdings" and needed to be changed to "[specific name] Trading FZE";

alternative: It is recommended to prepare 3-5 names and submit them in priority order.

2. Document preparation: both accuracy and completeness

core Documents:

copy of shareholder/director's passport and proof of no criminal record (to be certified by UAE embassies and consulates abroad);

business plan (need to clarify the scope of business, market analysis and financial forecast);

lease Contract (Free Zone Company is required to provide proof of address in the zone).

Localization requirements: All documents must be translated into Arabic and certified by the notary office.

3, tax compliance: avoid the "invisible trap"

value Added Tax (VAT): Enterprises with annual turnover exceeding 375000 dirhams need to register VAT at a tax rate of 5%;

corporate income tax: After the end of the free zone company tax holiday, the federal tax rate is 9%, but the emirates may add local taxes;

4, Labor Law Compliance: Balancing Efficiency and Fairness

visa quota: enterprises are required to pay a deposit according to the number of employees (for example, enterprises with less than 50 employees are required to deposit 50000 dirhams);

salary standard: the minimum wage standard varies from industry to industry, and the daily salary of construction workers shall not be less than 120 dirhams;

cultural taboos: Avoid scheduling meetings during prayer times (5 times a day) and respect Islamic customs.

5, registered agent: professional escort

mandatory agent: free zone company must complete the registration through the registration agent, the agent fee due to the specific circumstances;

service content: agents can assist in handling government approvals, bank account opening and visa applications, for example, we provide "registration + annual examination + tax" one-stop service.

Firm Type Selection: Weighing Ownership vs. Market Access

1. Free Zone Company

advantages: 100% foreign ownership, 50-year corporate income tax exemption, zero VAT (some free zones), fast registration process.

Applicable scenarios: international trade, scientific and technological research and development, logistics and warehousing and other cross-border businesses.

Typical free zones:

DMCC (Dubai Multi-Commodity Trading Center): The first choice for bulk commodity trading, providing integrated warehousing and logistics services.

DIFC (Dubai International Financial Centre): Significant advantages in the field of financial technology and asset management, applicable to the common law system.

JAFZA (Jebel Ali Free Zone): manufacturing, industrial core, adjacent to the world's largest artificial port.

Restrictions: The scope of business is limited and cannot directly serve the local market in the UAE.

3, mainland companies (non-free zone)

advantages: can carry out business throughout the territory, suitable for retail, construction and other localized industries.

Requirement: At least 51% of the shares are held by UAE nationals and minimum registered capital (e. g. trading company 30000 dirhams) is required.

Tax: Non-oil, gas and banking industries are subject to 5% corporate income tax, while other industries are subject to very low tax rates or tax exemptions.

4. Offshore companies

advantages: zero tax, high degree of confidentiality, applicable to international asset holding, holding structure.

Restrictions: Do not conduct business locally in the UAE, and the name disables words such as "Bank" and "Insurance.

Typical places of registration: Ras Hippocampus Economic Zone (RAKEA), Ajman Free Zone (AFZ).

Zhuoxin Enterprise provides agency services such as domestic and foreign company registration, bank account opening, annual tax return, agency bookkeeping, trademark registration, ODI Overseas Investment Filing, etc. If you have any business needs in this area, please feel free to consult our online customer service!