COMPANY STRUCTURING
Corporate structuring in Dubai is crucial for better company resource management and providing access to comprehend rules across limited legal liability and jurisdictions. A well-processed corporate structure strategy predicts forthcoming risks concerned with cash distributions, tax structures, cash funds, progression plans. As well as, employs ground-breaking measures to safeguard the interests and productivity of business owners and investors.
The significance of a corporate structure reveals when trying to sell a business entity, a company, or a bunch of companies. Generally, the buyer bases his decisions on lucid and transparent corporate structuring. An intricate structure makes regulators and buyers suspicious, resulting in an extended assessment procedure, lower offer prices, or deal cancellations.
Once you decide to ensue corporate structuring, you're required to fill an application mentioning the potential corporate structuring. Here you state the shareholders, or owner, the full names of the company director(s), and ultimately, someone who will be posted as the company manager.
Procedure for corporate structuring in Dubai
- Recognizing the correct structure
- Recognizing the documentary needs linked with the structure.
- Several licenses have diverse licensing needs initiating from DED (Dubai Economic Department) Initial Licensing and across diverse departments
- A well-read Probity Corporate Business Structure consultant can steer your vehicle in the right direction by recommending to you the proper departments to be included in the procedure of company structure.
For example -
- DIFC & ADGM - for holding companies, Special purpose vehicles, investment companies, and Family offices,
- RAK ICC & JAFZA - International Business Company Setup for Holding Real Estate or IPs and International Business,
- Free Zone or Mainland Companies structure to capture the local and International Market,
- MOSA/ KHDA for Nurseries, Training Centers, and Schools
- DTCM - For Tourism / Hotel Apartments / Hotels etc.
- RERA - For real estate companies
- Dubai Municipality - For Food and Beverages etc.
- DHA / MOH - For Drug Stores/ clinics and Hospitals / Medical Equipments
- MOE - for the Branch office of Foreign Companies
- The subsequent stage includes commencing the above to avail the conformities and approvals.
At Probity Corporate, we embrace our clients' long-term goals from the onset. We imperatively assess the company structure of the organization in order to reform the group & fulfill subsequent predetermined objectives. Our proficiency in the free zone, mainland, and offshore authority company laws facilitate us to bestow accurate solutions to corporate structuring problems that give support to our client’s long-term goals.
Advantages of Corporate Structuring in Dubai
The following are the advantages of corporate structuring in Dubai. Let's understand each one of them in detail.
· Authoritarian Environment Accessible
The courts in Dubai follow the footsteps of the common law system. Nevertheless, examples from court cases are managed by lawyers in Dubai who have UK and US lawful qualifications. There is an exceptional manner of regulation in Dubai.
· 100% Foreign Ownership Permitted
- The foreign ownership enabled for a company that is registered in the Dubai DIFC is 100%. Therefore, a shareholder or a foreign investor can possess complete justice ownership of the company.
· Ease of conformity
- There is less conformity in Dubai in comparison with other types of jurisdictions.
· Tax Burden is less
- Indirect taxes like VAT exist in UAE. This is regarded as a value-added tax that is charged at the rate of 5% on the rate of services and goods that are offered in Dubai. There is no sort of entity income tax that is charged on employees who are working in Dubai.
Several kinds of company structure employed in Dubai
· The company which is restricted by shares
- Generally, this type of company is called the private limited company that is restricted by a particular number of shares.
· Limited Liability Company
- The legal responsibility of such companies is generally restricted to the measure of shares capital.
· Branch Office
- Generally, this type of company is incorporated outside Dubai. Nonetheless, the office is initiated in Dubai to demeanor operations.
· DIFC relocated Company
- Generally, this company is relocated from the non-free-zone to a free zone. An instance of this can be the relocation from a non-DIFC centre to a DIFC centre.
· Limited Liability Partnership
- The limited liability partnership also called an LLP is a partnership unit that is handled by diverse partners. The legal responsibilities of the partners are quite limited.
· Foreign Limited Liability Partnership
- This kind of partnership unit is generally a foreign-owned company that is managed by shareholders who are mostly foreign residents.
