Dubai Company Formation, Company Formation United Arab Emirates, UAE, Company formation Abu Dhabi, Tax Dubai- Free Zone UAE Dubai- Dubai Offshore Company, offshore company, limited company
Dubai Company Formation -Company Formation United Arab Emirates (UAE): Abu Dhabi
- Index Company formation United Arab Emirates (UAE)
- Company Act LLC Abu Dhabi
- Free Zone Company RAK
- Offshore Company formation UAE/RAK
- Dubai/VAE Free Zone
- Free Zone Sarah
- Free Zone Jebel Ali
- Company formation VAE: Abu Dhabi
- Dubai E-commerce law
- Dubai Forms of Offshore Operation
- Tax planning via a network of international tax advisers and attorneys
- Offshore Company Formation: Tax haven rankings
- Why form a company in a foreign country with a tax accountant specialized in international tax law?
- Basic Considerations regarding the Formation of Companies in „Zero-Tax Havens“ i.e. in countries that have not entered into Double Taxation Agreements with other countries
- Examples for the legal reduction of corporate taxes
- DTA permanent establishment concept
- Our services and fees
- Parent companies and their subsidiaries in the European Union
- OECD: Articles of the Model Convention with Respect to taxes on income and on capital
- Beware of cheap founders!
Company Formation United Arab Emirates (UAE): Abu Dhabi
Federal Law No. (8) of 1984 LLC:
ARTICLE 218
A company with limited liability is the company where the number of partners may not exceed fifty and should not be less than two.
Each partner shall only be liable to the extent of his share in the capital, whereas negotiable instruments may not represent their shares.
ARTICLE 219
A limited liability company shall have a name derived from its purposes or from the name of one or more of the partners.
ARTICLE 220
Except the businesses of insurance, banking and investment of funds for the account of third parties, a limited liability company may practice any other lawful activity.
ARTICLE 221
The company may not resort to public subscription for the formation or increase of its capital, nor for obtaining required loans. The company may not issue negotiable stocks or securities.
ARTICLE 222
All cash and kind shares must be distributed in the company memorandum amongst the partners, and the value of each share should be fully paid up at the time of incorporation.
Cash shares should be deposited in one of the banks operating in the State. The bank may not release the cash shares except to the company managers upon presentation or proof of the registration of the company in the Commercial Register.
ARTICLE 223
If a partner presents a share in kind, it must be valued in the company memorandum, specifying Its kind, the name of its contributor and the amount it represents in the capital. The contributor of the share in kind shall be liable towards third parties for the accuracy of the estimate of its value in the memorandum. If it is established that the share was valued at more than its real value, the contributor of the share must pay the difference in cash to the company and the founder members shall be jointly liable with their private assets for the payment of this difference.
ARTICLE 224
The founder members shall prepare a memorandum of association mentioning the following particulars:
Name and objects of the company and its main office.
Names of the partners, their nationalities, places of residence and addresses.
The capital amount, the share of each partner and a statement showing the shares in kind (if any), their values names of contributors.
Names and nationalities of the company managers and members of the board of supervisors in the cases where it is a statutory requirement to establish such a board.
- The company dates of commencement and expire.
- Profit/loss terms of distribution.
- The form to be observed in the company notices addressed to the partners.
However, the Ministry may prepare a draft memorandum of association form including the said, and other particulars it deems appropriate.
ARTICLE 225
The company manager shall have to apply for company registration in the Commercial Register. The application should be attached to the company memorandum and other documents indicating that the shares have been distributed amongst partners and their values have been fully paid up and deposited in a bank operating in the State.
The company may not practice any of its activities except after its registration in the Commercial Register.
ARTICLE 226
If, at any time after incorporation, the number of partners exceeds the statutory limit, the competent authority shall notify the company to rectify its situation. If the company does not implement rectification within the six months subsequent to the date of notice, the company shall be deemed dissolved and the partners shall be personally and jointly liable for the debts and liabilities incurred by the company as from the date of exceeding the statutory limit of the number of partners. However, the partners ignorant of such excess shall be excepted from this provision.
On Shares and Capital
ARTICLE 227
The capital of a limited liability company must not be less than one hundred and fifty thousand Dirhams and should be comprised of equal shares of a minimum value of one thousand Dirhams each.
A share shall not be divisible. In the event of more than one person owning the share, they must nominate one of them to be considered the sole owner of the share towards the company. The company may specify a time for the owners to make the nomination, provided that at the expire of this date the company shall have the right to sell the share for the account of its owners. In this case, the partners shall have the priority to purchase it.
Profits and losses shall be equally divided amongst the shares, unless it is otherwise stipulated in the memorandum.
ARTICLE 228
The company shall have to keep at its main office a special register for partners. The register should include the following information:
- Partners’ names and surnames, domiciles, nationalities and professions.
- The number and value of shares owned by each partner.
- Transactions carried out with regard to the shares indicating the date thereof.
- The company managers shall be jointly liable for maintaining this register and for the accuracy of its contents. The partners and any concerned party shall have the right to review the register.
ARTICLE 229
Every January, the company shall provide both the Ministry and the competent authority with the particulars recorded in the register referred to in the preceding article and any developments that had occurred thereto.
ARTICLE 230
A partner may assign his share to another partner or to a third party in pursuance of a formal document prepared in accordance with the provisions of the company memorandum. This assignment shall only be valid towards the company or third parties as from the date of recording it in the company register and the Commercial Register.
The company should not refrain from recording the assignment in the register, unless it is In violation of the stipulations of the company memorandum. In all cases, the assignment must not result in the reduction of the shares of the national partners in the company capital to less than 51% of the total shares, nor to increase the number of partners to be In excess of the number stipulated in article (218).
ARTICLE 231
If a partner intends to assign his share to a non-partner person, whether against or without indemnification, he shall have to notify all other partners via the company manager of the terms of such an assignment. Upon receipt of the notice, the manager shall immediately notify the partners. Each partner may apply to acquire the share at the price to be agreed upon. In case of disagreement on the price, the company’s auditor should evaluate the price as at the time of acquisition. If at the expire of thirty days from the date of notice none of the partners had exercised his right to acquire the share, the partner shall be free to dispose of his share.
ARTICLE 232
With consideration to the provisions of Article (227), if more than one partner exercised his right to acquire the share, the involved share or shares, which are to be sold, shall be proportionately distributed amongst them as per the share of each of them in the capital.
ARTICLE 233
The share of each partner shall devolve to his heirs. A legatee shall be considered as an heir.
ARTICLE 234
If a creditor of a partner commences executive proceedings against an indebted share, he may agree with the debtor and the company on the method and terms of sale. Otherwise, the share should be offered for sale in a public auction.
The company may, within fifteen days from the date of adjudication, acquire the sold share for the benefit of one or more partners with the same conditions that the auction had reached.
These provisions shall, also apply in case of a bankrupt partner.
On Company Management
ARTICLE 235
The limited liability company shall be managed by one or more managers to be selected from amongst the partners or others, provided that their number should not exceed five.
The managers shall be appointed in the memorandum or by a separate contract for a limited or an unlimited period.
If the managers are not appointed in the manner stipulated in the preceding paragraph, they shall be appointed by the partners’ general assembly.
ARTICLE 236
if the company manager is appointed in the company memorandum without a limited term in office, he shell remain as manager for the duration of the company unless the memorandum provides that he may be dismissed, in this case, dismissal of the manager shall be by the same majority required for the amendment of the company memorandum, unless a different majority is stipulated in the memorandum.
If the company memorandum does not provide that the manager may be dismissed, he may be dismissed by a unanimous vote of the partners or by a judicial decree where serious causes justify it.
ARTICLE 237
Unless his powers are specified in the company memorandum, the manager shall have full capacity to manage the company. His actions shall be binding on the company when being corroborated by stating the capacity for his actions.
The manager’s responsibility shall be the same as that of the members of the board of directors In a joint stock company. Any provision in the company memorandum to the contrary shall be void.
ARTICLE 238
The company managers shall prepare the company balance sheet and profit and loss account. They shall also prepare an annual report of the company’s activities, its financial position and their proposal concerning the distribution of profits. All the above should be done within three months before the end of the financial year.
The managers shall, within ten days following the ratification of the balance sheet and profit and loss account, lodge them with both the Ministry and the competent authority.
ARTICLE 239
If there is more than one manager, the company memorandum may provide for the formation of a board of managers, specify the method of operation of this board and the required majority for adopting its resolutions
ARTICLE 240
If the number of partners exceeds seven, supervision must be entrusted to a board formed of at least three partners. The company memorandum shall appoint this board for a specific period. The general assembly may re-appoint the members after the expire of this period, appoint others from amongst the partners, or may dismiss the members at any time for an acceptable reason.
The managers shall not have the right to vote for the election or dismissal of the members of the board of supervisors.
ARTICLE 241
The board of supervisors may inspect the company books and documents, then carry out stocktaking of available funds, goods, financial papers and other documents substantiating the company rights. The board may also request the managers at any time to submit a report on their management. The board will supervise the budget, the annual report, the distribution of profits and submit its report in this regard to the general assembly of partners at least fifteen days before convening it.
ARTICLE 242
The members of the board of supervisors shall not be liable for the actions of the managers unless they become aware of the faults committed and fail to mention these faults in their report presented to the general assembly of partners.
ARTICLE 243
The partners who are not managers in companies having no board of supervisors shall have the same rights of supervision as those accorded to general partners in a general partnership in accordance with the provisions of article (36).
ARTICLE 244
A limited liability company shall have a general assembly composed of all partners. The general assembly shall convene upon a call by the managers at least once every year during the four months subsequent to the end of the financial year at the date and place specified in the company memorandum.
The managers must call the general assembly to convene if so requested by the board of supervisors or by a number of partners holding not less than a quarter of the capital.
Invitations to attend the general assembly shall have to be sent by registered mail, along with an acknowledgment of receipt addressed to each partner at least twenty-one days before the date of convening the assembly. The Invitation letters must Include the particulars of the agenda and the place and time of the meeting.
ARTICLE 245
Every partner is entitled to attend the general assembly irrespective of the number of shares he owns. He may delegate another partner who is not a manager to represent him by proxy at the assembly. Each partner shall have a number of votes equal to the number of shares he owns or represents
ARTICLE 246
The agenda of the general assembly at its annual meeting must include the following matters:
Review the managers’ report on the company activities and its financial position during the year. Also, review the reports of both the board of supervisors and the auditor.
- Discuss and ratify the balance sheet and the profit and loss account.
- Determine the share of profits to be distributed amongst the partners.
- Appoint the managers or the members of the board of supervisors and determine their remuneration.
- Other matters that are within its competence in accordance with the provisions of this law or the memorandum
ARTICLE 247
The general assembly may not deliberate on other matters not included in its agenda unless serious facts were disclosed during the meeting, which requires discussion thereof.
If one of the partners requests a specific matter to be included in the agenda, the managers must grant the request, otherwise the partner shall have the right to appeal to the general assembly
ARTICLE 248
Every partner shall have the right to discuss the items included in the agenda. The managers are obliged to reply to the partners’ questions up to the extent that may not jeopardize the company’s interests. If one of the partners considers the reply to his question insufficient, he may appeal to the general assembly whose resolution in this regard must be enforceable.
ARTICLE 249
Resolutions of the general assembly shall not be valid unless adopted with the approval of a number of partners representing at least one half of the capital, unless the company memorandum provides for a larger majority.
If this quorum Is not achieved at the first meeting, the partners must be called to a second meeting to be convened within twenty-one days of the first meeting. Resolutions at this meeting are adopted with a majority of votes represented at the meeting unless otherwise stipulated In the company memorandum.
ARTICLE 250
The managers may not participate in voting for resolutions relating to absolving them from the responsibilities of management.
ARTICLE 251
Minutes adequately summarizing the discussion of the general assembly should be prepared. These minutes and the resolutions of the general assembly should be recorded in a special book kept at the company headquarters. Any of the partners may review the book personally or through an attorney. They may also review the company balance sheet, profit and loss account and the annual report.
ARTICLE 252
The company memorandum may not be amended or its capital increased or reduced unless approved by a number of partners representing three quarters of the capital, unless the company memorandum provides for a numerical majority of the partners in addition to this quorum. However, the liabilities of the partners may not be increased without their unanimous approval. The resolution to reduce the company capital shall not be valid unless approved by the competent authority.
ARTICLE 253
The company shall have one or more auditors selected each year by the general assembly of partners. The provisions concerning the auditors of public joint stock companies shall apply.
ARTICLE 254
Without prejudice to the rights of boa fide third parties, a resolution adopted by the general assembly of partners in violation of the provisions of this Law or the company memorandum, adopted for the benefit of certain partners or to cause damage to other partners without due consideration to the interests of the company shall be void. In this event only the partners who had objected to the adoption of the resolution or those who were unable for acceptable reasons to object thereto, may request the nullification of the resolution.
The judgment nullifying the resolution will lead to the resolution being considered as nonexistent for all the partners.
A case of nullification is time barred on the expire of one year from the date of adopting the resolution. Initiating the case will not suspend the implementation of the resolutions unless otherwise ordered by the Court.
ARTICLE 255
The company shall allocate 10% of Its net profits each year to create a statutory reserve. The partners may suspend the allocation if the reserve reaches half the capital.

Company Formation Abu Dhabi: Licensing Procedures
Registration of New Membership
- Trade Name Approval issued by the Department of Planning & Economy
- Photocopy of :
- Passport
- Tenancy Agreement
- Specimen Signature duly attested by the Notary Public
- Amendment in the Ownership or Services Agency Agreement
- License & Approval Issued by the Competent Authority ( Department of Planning Economy – Abu Dhabi Tourism Authority – Higher Corporation For Specialized & Economic Zones
Renewal or New Branch
- Photocopy of:
- Passport
- Tenancy Agreement
- Specimen Signature duly attested by the Notary Public
- License & Approval Issued by the Competent Authority Department of Planning Economy – Abu Dhabi Tourism Authority – Higher Corporation For Specialized & Economic Zones
- Original Membership Certificate
Alteration & Modification
Trade Name
- Photocopy of:
- Trade Name Approval issued by the Department of Planning & Economy
- Tenancy Agreement
- Amendment in the Partnership Agreement Modifying in the Capital
- Advertisement in the Newspaper
- License Issued by the Competent Authority with change of Name ( Department of Planning economy – Abu Dhabi Tourism Authority – Higher Corporation For Specialized & Economic Zones
- Original Membership Certificate
Relocation
- Photocopy of:
- Tenancy Agreement for the new Location
- Alteration of Trade Name in the Partnership or Services Agency Agreement ( Department of Planning
Economy – Abu Dhabi Tourism Authority – Higher Corporation For Specialized & Economic Zones - Original Membership Certificate
Ownership Alteration
- Photocopy of:
- Amendment in the Ownership or Services Agency Agreement
- Advertisement in the Newspaper
- License Issued by the Competent Authority with Change of Name Department of Planning Economy – Abu Dhabi Tourism Authority – Higher Corporation For Specialized & Economic Zones
- Original Membership
Capital Alteration
- Photocopy of :
- Amendment in the Partnership Agreement Modifying in the Capital
- License Issued by the Competent Authority with change of Name Department of Planning Economy – Abu Dhabi Tourism Authority – Higher Corporation For Specialized & Economic Zones
- Original Membership Certificate
Foreign Company Branch
- Trade Name Approval issued by the Department of Planning
- Economy Service Agent Agreement duly legalized by Notary Public&
- License Issued by the Department of Planning & Economy
- Approval Letter from Ministry of Planning & Economy
- Decision Board of Directors
- Specimen Signature duly attested by the Notary Public
- Passports of the Resident Representative & Service Agent
- Service Agent Agreement duly legalized by Notary Public
- Documents issued from the Mother Company must be duly legalized by the Concemed Authority & UAE Embassy from the Count
Company formation Dubai /UAE- Introduction/summary
Dubai has a unique set of selling propositions, namely:
- No corporate tax
- No income tax
- No capital gains tax
- No property tax
- No wealth tax
- Low property transaction cost
- Ease of access to home finance
Dubai/UAE has double taxation agreements = DTA with most other countries. EU freedom of establishment is not applicable. For approval of the permanent establishment according to tax laws, a commercially equipped business operation must be installed in Dubai/UAE, and active business must be transacted in UAE/Dubai.
Since only oil companies and banks are subject to taxation in the UAE/Dubai, and any other companies do not pay any taxes, this results in interesting opportunities for investment in Dubai/UAE. In order to be able to use the tax advantages, a permanent establishment according to DTA must be installed in Dubai. On the one hand, a Dubai company is no offshore company in this sense, since the UAE/Dubai also maintain double taxation agreements with many countries – including Sweden and Denmark – but on the other hand, the EU freedom of establishment is not applicable. Therefore, the following prerequisites for approval of a permanent establishment according to tax laws in Dubai must be met:
- Place of management: A manager resident in the UAE/Dubai according to tax laws must – at least on the outside – control the company’s businesses.
- There must be a commercially equipped business operation, i.e. at least one office and one employee.
- It must be demonstrated that the Dubai company does actively transact business in the UAE.
Under the stated conditions, for example the Swedish could be a majority shareholder of the Dubai company, but nevertheless Dubai/UAE has the sole right of taxation, provided that the Articles of Association state that all relevant decisions are made at the shareholders’ meetings, which exclusively take place in Dubai, at which the Swedish shareholder must be present. However, the UAE company law stipulates that 51% of the company shares must be held by persons resident in Dubai. As a rule, the founder will use a “sponsor”. This requirement may be omitted in case of company formations in the free zones. In the free zones, 100 % of the shareholders may be foreigners.
uction
The basic requirement for all business activity in Dubai is one of the following three categories of licence:
- Commercial licences covering all kinds of trading activity;
- Professional licences covering professions, services, craftsmen and artisans;
- Industrial licences for establishing industrial or manufacturing activity.
These licences are all issued by the Dubai Economic Department. However, licences for some categories of business require approval from certain ministries and other authorities: for example, banks and financial institutions from the Central Bank of the UAE; insurance companies and related agencies from the Ministry of Economy and Commerce; manufacturing from the Ministry of Finance and Industry; and pharmaceutical and medical products from the Ministry of Health.
More detailed procedures apply to businesses engaged in oil or gas production and related industries.
Practising some trade activities (e.g. jewellery and insurance) requires the submission of a financial guarantee issued by a bank operating in Dubai.
In general, all commercial and industrial businesses in Dubai should be registered with the Dubai Chamber of Commerce and Industry.
Fifty-one per cent participation by UAE nationals is the general requirement for all Dubai-established companies except:
- Where the law requires 100% local ownership;
- In the Jebel Ali Free Zone, Dubai Internet City, or the Dubai International Financial Centre;
- In activities open to 100% AGCC (Gulf Cooperation Council) ownership;
- Where wholly owned AGCC companies enter into partnership with UAE nationals;
- In respect of foreign companies registering branches or a representative office in Dubai;
- In professional or artisan companies where 100% foreign ownership is permitted.
In the past, each emirate followed its own procedures governing the operations of foreign business interests. In practice, however, Dubai and the other emirates followed the same general system, whereby foreign companies operated in one of three ways: with a local sponsor, through a partnership with a UAE national or company, or through a private limited company or public shareholding company incorporated by Ruler’s decree.
Since 1984, steps have been taken to introduce a codified companies law applicable throughout the UAE. Federal Law No. 8 of 1984, as amended by Federal Law No. 13 of 1988 – the “Commercial Companies Law” – and its by-laws have been issued. In broad terms the provisions of the Law are as follows:
The Federal Law stipulates a total local equity of not less than 51% in any commercial company and defines seven categories of business organisation which can be established in the UAE. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures. It further lays down provisions governing conversion, merger and dissolution of companies.
The seven categories of business organisation defined by the law are:
- General partnership company
- Partnership-en-commandite
- Joint venture company
- Public shareholding company
- Private shareholding company
- Limited liability company
- Share partnership company
- Partnerships
Partnership companies are limited to UAE nationals only. The Dubai government does not presently encourage the establishment of partnerships-en-commandite or share partnership companies.
Joint Venture Company
A joint venture is a contractual agreement between a foreign party and a local party licensed to engage in the desired activity. The local equity participation in the joint venture must be at least 51%, but the profit and loss distribution can be prescribed. There is no need to license the joint venture or publish the agreement. The foreign partner deals with third parties under the name of the local partner who – unless the agreement is publicised – bears all liability.
In practice, joint ventures are seen as offering a suitable structure for companies working together on specific projects.
Public and Private Shareholding companies
The law stipulates that companies engaging in banking, insurance, or financial activities should be run as public shareholding companies. Foreign banks, insurance and financial companies, however, can establish a presence in Dubai by opening a branch or representative office.
Shareholding companies are suitable primarily for large projects or operations, since the minimum capital required is Dh. 10 million (US$ 2.725 million) for a public company, and Dh. 2 million (US$ 0.545 million) for a private shareholding company. The chairman and a majority of directors must be UAE nationals and there is less flexibility of profit distribution than is permissible in the case of limited liability companies.
Limited Liability Company
A limited liability company can be formed by a minimum of two and a maximum of 50 persons whose liability is limited to their shares in the company’s capital. Such companies are recognised as offering a suitable structure for organisations interested in developing a long term relationship in the local market.
In Dubai, the minimum capital is currently Dh. 300,000 (US$ 82,000), contributed in cash or in kind. While foreign equity in the company may not exceed 49%, profit and loss distribution can be prescribed. Responsibility for the management of a limited liability company can be vested in the foreign or national partners or a third party.
The following steps are required in establishing a limited liability company in Dubai:
- Select a commercial name for the company and have it approved by the Licensing Department of the Economic Department;
- Draw up the company’s Memorandum of Association and have it notarised by a Notary Public in the Dubai Courts;
- Seek approval from the Economic Department and apply for entry in the Commercial Register;
- Once approval is granted, the company will be entered in the Commercial Register and have its Memorandum of Association published in the Ministry of Economy and Commerce’s Bulletin;
- The licence will then be issued by the Economic Department;
- The company should then be registered with the Dubai Chamber of Commerce and Industry.
Branches and Representative Offices
The Commercial Companies Law also covers the formation and regulation of branches and representative offices of foreign companies in the UAE and stipulates that they may be 100% foreign owned, provided a local agent is appointed.
Only UAE nationals or companies 100% owned by UAE nationals may be appointed as local agents (which should not be confused with the term “commercial agent”). Local agents — also sometimes referred to as sponsors — are not involved in the operations of the company but assist in obtaining visas, labour cards, etc and are paid a lump sum and/or a percentage of profits or turnover. In general, branches and offices of foreign commercial companies are not licensed to engage in importing activity except for re-export or in the case of products of a highly technical nature.
To establish a branch or representative office in Dubai, a foreign commercial company should proceed as follows:
- Apply for a licence from the Ministry of Economy and Commerce, submitting an agency agreement with a UAE national or 100% UAE owned company.
- Before issuing the licence, the Ministry will forward the application to the Economic Department to obtain the approval of the Dubai government and will forward the application specifying the activity that the office or branch will be authorised to undertake in the UAE, to the Federal Foreign Companies Committee for approval;
- Once this has been done, the Ministry of Economy and Commerce will issue the required Ministerial licence specifying the activity to be practised by the foreign company;
- The branch or office should be entered in the Economic Department’s Co
- The branch or office should also be entered in the Foreign Companies Register of the Ministry of Economy and Commerce;
- mmercial Register, and the required licence will be issued;
- Finally the branch or office should be registered with the Dubai Chamber of Commerce and Industry.
Branches and Representative Offices of Foreign Professional Companies
Branches and representative offices of foreign professional firms may be 100% foreign owned provided UAE nationals or 100% UAE owned companies are appointed as local agents. Such agents are not involved in the operations of the firm but assist in obtaining visas, labour cards etc and are paid a lump sum as remuneration. The Economic Department is the authority in charge of licensing such branches or representational offices.
Sole Proprietorships
In setting up a professional firm, 100% foreign ownership, sole proprietorships or civil companies are permitted. Such firms may engage in professional or artisan activities but the number of staff members that may be employed is limited. A UAE national must be appointed as local service agent, but he has no direct involvement in the business and is paid a lump sum and/or percentage of profits or turnover. The role of the local service agent is to assist in obtaining licences, visas, labour cards, etc.
Offshore-Companies in the United Arab Emirates
Since the year 2003 the United Arab Emirates allow the formation of offshore companies in the Jebel Ali Freezone in Dubai. With this step Dubai is positioning itself as a regional alternative among the worldwide network of offshore locations such as Liechtenstein, Madeira, Malta and the Canal Islands.
The advantages of establishing an offshore company in the United Arab Emirates are obvious: there are no corporate or individual taxes existing in the Emirates as well as no value added tax, inheritance tax or tax on assets. In addition to the tax free environment there is a double taxation treaty existing since 1995 between Germany and the Emirates, which exempts German producers located in the Emirates from taxation according to the German tax law.
Substantial legal regulations for forming and operating an offshore company can be found in the „Jebel Ali Free Zone Authority Offshore Companies Regulations“ (consists of 126 paragraphs). Concerning the activity of the offshore business there is no limitation except for banking or insurance businesses. The offshore company does not require its own personnel or maintain office space in the Emirates. In every case the company has to appoint a local representative (so called registered agent), who acts as the contact person for authorities in the United Arab Emirates.
Due to the low magisterial requirements the formation of an offshore company in the Jebel Ali Freezone offers an interesting alternative for foreign c