Dubai free zone company formation allows you to take advantage of the “pass-through income” offered by our tax code. The term pass-through income refers to dividends that a corporation receives. In some state, companies are not required to pay corporate taxes if they receive dividends. But they are entitled to collect taxes on these dividends, just as you would if they were paid in person.
Limited Liability Company (LLC)
Free Zone company formation in Dubai requires the completion of an authorized license application by a corporate resolution committee. A licensed Limited Liability Company can only carry out its activities within the state where it has its registered office.
If the company formation is done, it must have its registered office in the state where it intends to conduct business. Once the license application is completed, the corporation can now file with the Corporation Commission of the country where it has its registered office. The above is the formal process for company formation in the free zone.
Business Visas –
There are three types of visas that can be obtained when conducting business in the free zone. First is the entrepreneur visa. Entrepreneur visa is strictly for individuals coming to the states to start a business. Second is the non-immigrant visa, which is available to individuals who are interested in establishing a business but do not intend to enter the states.
What are the Kind of Legal Fees Involved?
In addition to paying the annual corporate income tax, there are some specific fees that companies in the free zones are required to pay. The fee for incorporating a limited liability company is generally much less than what an outside company setup would be required to pay. For this reason, many investors prefer the convenience of forming a limited liability company in the free zones. As well, the ability of having limited liability protects investors from lawsuits that might arise in the case of an accident or injury to an employee of the business.
At the End
To conclude, we have looked at the advantages and disadvantages associated with 3-year international business ownership and the various requirements needed to incorporate in the free zones. The three-year period of foreign ownership is the only time period during which an individual can legally become a corporation. However, there are no other restrictions or taxes beyond this period.