Question 1

How quickly can I receive my business license after starting the application?

Accepted Answer

The timeframe to receive a business license from a Dubai-based Free Zone varies depending on several factors, such as the type of license, the completeness of the application, and any additional approvals required. Generally, once the documents are uploaded and the signatories sign the application form, the process usually takes between 4 to 6 working days.
    For a Sharjah-based Free Zone, the process is typically faster. After submitting the required documents and obtaining the necessary signatures, you can expect to receive your license within 2 to 4 working days.
    In both Free Zones, along with the license, you will also receive the Certificate of Incorporation, Memorandum of Association (MOA), Articles of Association (AOA), and the Office Lease Agreement.

Question 2

What documents are required by Instacorp to establish a business in the UAE?

Accepted Answer

Passport copy and Emirates ID copy for Shareholders who are UAE residents

Question 3

What types of taxes are relevant in the UAE?

Accepted Answer

1. **Value Added Tax (VAT)**:
    - **Introduced**: January 1, 2018
    - **Rate**: 5%
    - **Application**: Almost all goods and services, with some exemptions
    2. **Corporate Tax**:
    - **Effective**: June 1, 2023
    - **Rates for Qualifying Free Zone Persons**:
      - 0% on Qualifying Income
      - 9% on Non-Qualifying Income
    3. **Excise Tax**:
    - **Applicable Goods**: Tobacco products, carbonated drinks, energy drinks
    - **Rates**: Vary by product
    4. **Withholding Tax**:
    - **Overview**: No withholding tax on dividends, interest, or royalties to non-residents
    5. **Tax Treaties**:
    - **Overview**: Double taxation avoidance agreements (DTAs) with several countries
    **Additional Considerations**:
    - **Municipal Fees**: May apply in some emirates
    - **Customs Duties**: Typically, 5% on imports/exports
    - **Tourism Fees**: For hotels and hospitality services

Question 4

How is a Free Zone different from the Mainland?

Accepted Answer

1. **Ownership**:
    - **Free Zone**: 100% foreign ownership, no local sponsor needed.
    - **Mainland**: 100% foreign ownership allowed in many sectors due to recent reforms.
    2. **Business Activities**:
    - **Free Zone**: Limited to free zone or international operations; needs local distributor in mainland for certain activities.
    - **Mainland**: Can operate freely across the UAE and with other mainland companies.
    3. **Office Space Requirements**:
    - **Free Zone**: Must lease office space within the free zone.
    - **Mainland**: Can lease office space anywhere in the UAE, subject to licensing.
    4. **Taxation**:
    - **Free Zone**: Offers tax incentives, such as exemption from corporate tax for Qualifying Free Zone Persons.
    - **Mainland**: Subject to UAE's federal tax policies, including new corporate tax regime.
    5. **Customs Duties**:
    - **Free Zone**: Exempt from customs duties unless goods enter mainland UAE.
    - **Mainland**: Customs duties apply as per federal regulations.
    6. **Regulatory Environment**:
    - **Free Zone**: Operates under its own rules; generally, more lenient compliance.
    - **Mainland**: Regulated by UAE federal and emirate-specific laws, typically stricter compliance.
    7. **Visa Quotas**:
    - **Free Zones**: Linked to license fee and office space size.
    - **Mainland**: No strict limits on visas; influenced by office size.

Question 5

Are there any benefits to setting up a company in the UAE?

Accepted Answer

Yes, setting up a company in the UAE offers numerous advantages, including:
    1. **Strategic Location**: Access to over 2 billion people within a 4-hour flight radius; excellent trade and logistics.
    2. **Economic Stability**: Diversified economy with strong sectors and high rankings for ease of doing business.
    3. **Tax Benefits**:
    - **Corporate Tax**: 9% on profits exceeding a threshold; 0% for Qualifying Free Zone Persons on qualifying income.
    - **No Personal Income Tax**: Attractive for individuals and expatriates.
    - **VAT**: Low rate of 5%; certain Free Zone companies may be VAT exempt.
    - **No Withholding Tax**: On dividends, interest, or royalties for non-resident entities.
    - **Tax Treaties**: Agreements to mitigate double taxation.
    4. **100% Foreign Ownership**: Allowed in many mainland sectors and always in Free Zones.
    5. **World-Class Infrastructure**: Advanced telecom, transport networks, ports, airports, and specialized Free Zones.
    6. **Free Zones**: Over 40 Free Zones offering tax exemptions, 100% profit repatriation, and simplified import/export procedures.
    7. **High Quality of Life**: Excellent healthcare, education, recreation, low crime rate, and a safe environment.
    8. **Ease of Business Setup**: Streamlined registration processes, support services, and government initiatives.
    9. **Access to Skilled Workforce**: Diverse pool of skilled professionals and flexible labor policies.
    10. **Innovative Environment**: Strong focus on innovation with initiatives like Dubai Future Foundation, incubators, and accelerators.

Question 6

What are the benefits of starting your business through Instacorp?

Accepted Answer

Instacorp offers many advantages for new entrepreneurs and foreign investors looking to start a business in the UAE:
    1. **Efficiency and Speed**:
    - Accelerates the business setup process, significantly reducing the time required.
    2. **Cost-Effective**:
    - Eliminates costly consultancy fees with a digital solution that guides you through each step.
    3. **Convenience**:
    - Manages all necessary processes and paperwork from a single platform.
    4. **Expert Guidance**:
    - Provides comprehensive guidance and support to ensure compliance with regulations.
    5. **Transparency**:
    - Offers real-time updates and clear information on your application's status.
    6. **Customized Solutions**:
    - Tailors services to fit your specific business needs and industry requirements.
    7. **Access to Additional Services**:
    - Available services include accounting, legal advice, and marketing support.
    8. **Regulatory Compliance**:
    - Ensures your business setup complies with UAE laws, reducing risk.
    9. **Wide Network**:
    - Leverages a broad network of local and international partners for valuable business connections.

Question 7

Can I open a bank account for my business in the UAE?

Accepted Answer

Yes, you can open a bank account for your business in the UAE. Here’s a quick overview:
    1. **Initial Requirements**: Obtain a valid trade license from the Department of Economic Development (DED) or the relevant Free Zone authority.
    2. **Gathering Documentation**: Prepare documents like your Certificate of Incorporation, Memorandum and Articles of Association, board resolution, and passport copies and Emirates IDs of all shareholders and authorized signatories.
    3. **Choosing the Bank**: Research and select a bank that fits your business needs in terms of services, account features, fees, and online banking facilities.
    4. **Submitting Your Application**: Submit the completed application with all required documents. Some banks offer online applications, while others may require an in-person visit.
    5. **Verification and Approval**: The bank will review your application, which may take a few days to a few weeks. Stay responsive for any additional information requests.
    6. **Post-Approval**: Once approved, you’ll receive your account details and possibly a checkbook, debit card, and access to online banking.

UAE Company Formation and Management

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Why Choose Instacorp for Your Business Setup in the UAE?

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Apply online

Submit documents for KYC

Company registration

Bank account setup

Start operations

Industries we work with

Frequently Asked Questions

How quickly can I receive my business license after starting the application?

What documents are required by Instacorp to establish a business in the UAE?

What types of taxes are relevant in the UAE?

How is a Free Zone different from the Mainland?

Are there any benefits to setting up a company in the UAE?

What are the benefits of starting your business through Instacorp?

Can I open a bank account for my business in the UAE?

Launch Your UAE Business in Minutes

UAE Online Business Setup in Minutes | Instacorp

UAE Company Formation and Management

Start Your UAE BusinessIn Just Days

Effortless Business Setup

Control at Your Fingertips

Transparent Pricing

Trusted by Leading Government Authorities

Get UAE Residence Visa free for life

Why Choose Instacorp for Your Business Setup in the UAE?

Setup from Home

All-in-one Dashboard

Insta-support

No Hidden Fees. Ever.

Empowering Your Business, Anytime, Anywhere

Launch Your UAE Business in 5 Simple Steps

Apply online

Submit documents for KYC

Company registration

Bank account setup

Start operations

Industries we work with

Frequently Asked Questions

How quickly can I receive my business license after starting the application?

What documents are required by Instacorp to establish a business in the UAE?

What types of taxes are relevant in the UAE?

How is a Free Zone different from the Mainland?

Are there any benefits to setting up a company in the UAE?

What are the benefits of starting your business through Instacorp?

Can I open a bank account for my business in the UAE?

Launch Your UAE Business in Minutes

Start Your UAE Business
In Just Days