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| 1. |
What
is the most economical way to set up company
in the free zone? |
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A-
Cost to set up a company depends upon the
office space & number of visas required.
However, Free zones in Ajman, Ras Al Khaimah,
Sharjah (SAIF Zone, Hamariya Free Zone)
& Fuzairah free zones are economical
compare to free zones in Dubai .
Following are the details:
-
Cost $ 5,500 to $ 6500/-
(1-2 visas) With office desk - This is
annual rent & has to be paid every
year at the time of renewal.
-
Cost Approx. $11,000
(for up to four visas) With office desk
- This is annual rent & has to be
paid every year at the time of renewal.
-
Capital $ 27,000 to
$ 50,000/- has to be deposited (depends
upon the free zone).In some free zones
capital has to be deposited and in some
cases within 90 days the deposit has to
be done.
-
In case of Local shareholder
must be present at the time of incorporation
or POA can be presented, duly notarized
in the country of origin.
-
Time to set up co.
depends upon free zone to free zone (from
2-3 days to 5-6 working days).
-
Visa Cost - Investor
visa will cost $450/- in some free zones
& Visa cost for Employees will be
$1,500/- approx+Labour Guarantee of One
salary + one way return ticket. Visa is
valid for three years. Visa stamping requires
7-8 working days.
-
General trading license
can be obtained in some free zones.
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| 2. |
What
will be the cost of Accommodation for Family
or Bachelor? |
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A-
Accommodation cost for family in Dubai .
|
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- Studio flat $ 7000
to $9000/- p.a
- 1 bedroom $ 11,000/-
to $ 15,000/- p.a
- 2 bedroom $ 19,000/-
to $ 26,000/- p.a
- ¾ bedrooms
& Villas $ 28,000/- to $ 55,000/-
|
| |
For
Bachelors, cost of accommodation as a paying
guest will be around $ 250 to $4,00/-.
Accommodation cost in Sharjah will be almost
2/3 of Dubai cost & Accommodation cost
in Ajman & Ras Al Khaimah will be 50%
of the Dubai cost. |
| 3. |
What
will be Average cost of vehicle? |
| |
A-
For small cars like Nissan/Hyundai &
Toyota Corrola,with 1.3 to 1.6 liter capacity
cost will around $11,000/- to $ 15,000/-.For
medium luxury vehicles,Totota Camry &
RAV4/PRADO,Nissan Maxima etc cost will be
$ 17,000/- to $ 27,000/-.For Luxury vehicles,Totota
Land cruiser/BMW/Mercedes cost will range
from $40,000/- to $ 95,000/-. |
| 4. |
How
we can set up educational institute for
training & migration of students to
Canada & Australia for further studies? |
|
A-Most
Ideal place will be Dubai Knowledge Village
Free Zone, if you want to educate the students
but as you want to migrate the students
to different countries, and then they will
not encourage such institutes. To set up
educational institute outside free zone,
requires approval from Ministry of higher
education. |
| 5. |
Can
foreigner buy land in UAE & develop
the property on it for residential or commercial
purpose? |
|
A-Dubai
Government has started giving the land to
foreigner on lease (35 years to 99 years).
Also property can be developed on land in
Dubai Silicon City , Dubai Land etc and,
marketing company can be set up in the free
zone or outside free zone etc.
Most popular free zones are Jebel Ali, Hamariya,
Ajman , and Fujairah & Ras Al Khaimah
Free Zone & Dubai Investment Park. Land
can buy on lease for long term depends upon
free zone to free zone. |
| 6. |
How
we can set up the Industry (Glass or Oil
Processing etc) in UAE. |
|
A-
As setting up industry in the Free Zones
or outside free zone requires the permission
of the government, we suggest to provide
us small project report(with technical aspects)
to guide you properly in this regard,
For setting up Industry outside free zones
require permission from the Ministry of
Finance & Industry.NOC & Permission
also requires from Municipality & Civil
& Defense depts. Most recommended areas
for setting up industries are Al-Quos &
Aweer in Dubai & Sharjah Industrial
Area in Sharjah & Ajman Industrial Area
In Ajman.Care should be taken, that Raw
material items to be imported, should be
mentioned with customer codes to get the
duty exemption. |
| 7. |
How
can we start business of consultancy on
Share market, investment in securities ,Finance
& Trade online etc. |
|
A-All
Financial Companies including Consultants
& Banking are subject to approval from
UAE Central Bank. |
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| 8. |
Can
I set up shipping company in Free zone with
100% ownership? |
|
A-Some
business like Shipping, Insurance &
Money exchange cannot be started directly
in the Free Zones, it requires local license
(outside free zone) as well. |
| 9. |
Can
I sell directly to local market in UAE,
if I have a company based in Free Zone? |
|
A-Normally
you cannot, You can sell through a dealer
or agent in order to sell the goods in the
local market. |
| 10. |
Why set up a Company in the Free Zone? |
| |
In
Free Zone, you will be 100% owner and outside
Free Zone Local Partner will hold 51% share
& Foreign Partner will hold 49% share
in the capital. |
| 11. |
Which
Free Zone is more economical to set up a
Company? |
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Reply
to above depend upon, the following factors.
|
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- Nature & Size of
the operations.
- Budget ( cost to set
up the Company)
- Visa required ( depending
upon the rent and size of the office)
- Requirements of the business
( customer / suppliers wants to visit
to the office or retail business)
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| 12. |
Can
I operate business from Dubai , if the Company
is set up in any other Emirates? |
|
Yes,
you can operate business from Dubai and
open a bank account also in Dubai , but
the Certificate of Origin, if required,
has to be obtained from the Chamber of Commerce
where the company is set up, for export
proposes. |
| 13. |
Can
I apply for driving license in Dubai , if
I have visa from another Emirates? |
|
No,
Driving License File has to be opened in
the same Emirate from where the visa is
stamped. However, in special cased, If NOC
is issued by the Traffic Dept. of other
Emirates then driving license can be applied
in Dubai. |
| 14. |
After
Setting up of Company? What other immediate
formulates have to be done to start the
business? |
|
- After setting up of Company ( after
getting trade license ), Bank Account
has to be opened
- Visa of investor / staff has to processed
( Six months validity of the passport
required)
- P.O.Box has to be obtained
- Rubber stamp has to be made
- Telephone connection has to be applied
- For Import & Export from Dubai
Port , exporter's code (custom code)
has to obtained.
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| 15. |
What
will be legal status of the Company outside
the Free Zone & in the Free Zone? |
|
Outside
Free Zone following are the most popular
form of companies: |
|
- Limited Liability Company(L.L.C
Partnership) Establishment ( Owned by
local) and branch In Free Zone Following
are the most popular form of companies:
- FZC (Free Zone Company,
this is proprietorship company )
- FZE(Free Zone Establishment.
This is proprietorship company )
- Branch (branch of a Local
Company or Foreign Company
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| 16. |
How
will the initial capital be generated and
deposited in the bank to set up the Company?
|
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Cash
being your personal saving can be deposited
in any bank in the U.A.E. as a capital on
Issue of letter from the Free Zone. |
| 17. |
Are
there any income taxes or corporate tax
levied in UAE? |
|
No,
there is no income tax or corporate tax
as such, however 5% custom duty has to levied
on import, if the Company is outside Free
Zone also the same can be claimed refund
upon the re-export. |
| 18. |
How
can we sponsor the family? |
|
Once
residence visa is stamped on the passport
family (wife and children) visa can be processed.
For an Employee, to sponsor his family a
minimum AED 3000/- + Accommodation or AED
4000/- + salary is required. |
| 19. |
What
is the terminal benefit laws concerning
Employees? |
|
As
per UAE labor laws, Leave salary and Air
passage has to be paid to the employee every
year, however gratuity is payable only if
employee completes one year. |
| 20. |
Do
we have to submit the audit reports to the
government? |
|
Audit
report is mainly required by the banks to
get the bank facilities also to renew the
license, some Free Zone has made it compulsory
to submit bathe audit report, in some other
case it is statutory requirements. |
| 21. |
What
is the advantage of buying free hold property
of EMAAR or Nakheel in the name of Offshore
Company in jewel Ali Offshore Free Zone? |
|
Transfer
fees and Sharia Laws can be avoided if property
is bought in the name of the Offshore Company
in Jebel Ali. |
| 22. |
Is
it possible to liquidate or close the Company
immediately? |
|
No,
liquidation of Company outside Free Zone
and in some Free Zone is time consuming
and also expensive. |
| 23. |
Can
tax authorities or any other "third
party" get information about the beneficial
owner of the Offshore Company? |
|
To
preserve the confidentiality of the beneficial
owners we recommend using the nominee services
of director and shareholder, which we proved.
You can also consider using bearer shares.
Government Authorities can request the information
from the agent only with a courts order
but they would have to present very strong
evidence of your illegal activates in court
for such order to be granted.
If is always advisable to incorporate an
IBC by using offshore incorporators, rather
than using the services of your domestic
incorporators. We are not under any obligation
to cooperate with your county's tax authorities,
but incorporators can be. |
