What is an Onshore company in the UAE?
An “Onshore Company” is a fully fledged Company registered with one of the Emirates Economic Departments. It is required to be a legal entity in order to operate within the UAE and across all 7 Emirates Onshore UAE Companies have two requirements that falsely discourage potential investors.
Need for a local sponsor. In order to set up an Onshore Company in the UAE, it is required that 51% is held by a UAE local citizen (an Emirati citizen) This arrangement is usually reflected in a side agreement where it is stated that the Emirati sponsor” is holding the 51% as a nominee for a yearly fee and that he has no further interest in the business Special purpose entities formed by prominent law firms can also become the 51% “Sponsor” for a fee. This annual fee ranges substantially depending on the profile of the “Sponsor” Need for a physical office. Indeed in order for an Onshore License to be issued, the newly created Company must submit proof of its leased premises.
Why a UAE onshore Company?
An Onshore UAE Company is a fully fledged company that trades and provides services globally It can be used both as an operating company for the UAE and surrounding region, as well as for international operations Such a company is eligible for both Investor and Employee Residency Visas This company operates in the Zero Tax jurisdiction of the UAE. A UAE onshore company can be used both as a local trading entity or as part of a larger structure for international holdings and trading.
How can we help?
Our scope of work on Onshore UAE companies is unique. In addition to the legal establishment and incorporation, and the identifying and engaging of the appropriate local sponsor” we are ideally positioned to offer a fully fledged local setup that spans several disciplines of business.
We can assist you with the legal set up, physical set up, financials, audit and HR recruitment requirements of your UAE onshore company.
Onshore UAE Characteristics
- 5% Import Tax
- 100% Import and Export Tax Exemptions
- 100% Repatriation of Capital and Profits
- Corporate Tax Exemptions for up to 50 years
- No Personal Income Taxes.
Eligibility for Residency and Work visa.
Ease of setting up corporate bank accounts.
Ease of setting up personal bank accounts for investors who acquire an Investor Visa and for employees who acquire an Employee Visa.
The benefit of eligibility for a Residency Visa for investors in UAE Onshore Companies, allows such investors to fiscally domicile in the UAE, where taxes are zero The minimum requirement for maintaining such a visa is a re-entry to UAE once every 6 months 180 days.
Trading Companies: International trading companies are established through an UAE Onshore company Such Companies facilitate trade between local companies (within E) and third party countries. Any profitability would rest with the Company in a zero tax rate jurisdiction.
Holding Companies: Onshore Companies are often used a Holding Companies (for investments and assets) for both tax planning as well as confidentiality purposes This is mostly for investments within the UAE.
Property owning Companies: Similar to Holdings Companies, Onshore Companies can be used as owning entities for local real estate investments. Both for tax planning as well as confidentiality purposes.
Professional Services: Individuals who receive fees in respect of their professional services in capacities such as designers, consultants, authors or entertainers, often assign or contract with this Onshore company the right to receive such fees. Onshore professional services companies can provide services to local UAE entities as well as UAE government entities.