SHAMS Free Zone Company Setup FAQ

Can I live and have a bank account in Dubai if I register a company in a free zone outside of Dubai?

Yes, you can establish a corporation outside of Dubai but reside in Dubai or another Emirate. You are not need to live in the same Emirate as your visa. You can also open a bank account with any UAE bank of your choice in a Dubai branch.

Is it possible to open a bank account from afar?

No, you must travel to the UAE yourself. It is a requirement of the UAE Central Bank, which must be followed by all local banks. A personal visit is required to ensure that the bank recognises the client.

Do banks offer debit or credit cards, as well as loans?

If there is only one shareholder, you can usually receive a debit card for your freshly formed company. You can also get a credit card, but only if you put down a deposit. It is feasible to obtain a loan, but you must demonstrate your company’s activities and profits to the bank. A bank may issue a loan after reviewing your company’s turnover and profitability. We recommend applying for it once the company has been in existence for at least one year.

Is it possible for a free zone corporation to have offices outside of the free zone?

A free zone firm’s official office must be located exclusively within the free zone where the company was registered. If you require an office in Dubai, you can rent a space at a business centre and use it on a monthly or daily basis, depending on the package you select. The free zone’s minimum necessary space (flexi desk) cannot, however, be removed.

Why do I require a movable desk or office?

Any company that wants to apply for resident visas must have a flexi desk. The UAE government requires it because it is the bare minimum of physical office space that any company with a visa must have. Aside from that, the flexi desk is useful for opening bank accounts. The bank’s compliance department has to see that a company has an office or at the very least a tiny physical seat where it can work.

If our company is registered in the Free Zone, do we have to pay VAT?

The company’s VAT duties are defined not only by where it is incorporated, but also by where it currently operates. To begin, VAT becomes applicable when your taxable turnover exceeds 375 000 AED. The term “taxable turnover” refers to business conducted in the United Arab Emirates. Because the transactions are taking place outside of the UAE, if your firm is registered in a Free Zone but your trade takes place outside of the UAE (for example, you sell goods from India to Africa), your turnover is not taxable. It implies that you are exempt from paying VAT.

Do I owe any additional taxes?

Income and corporate taxes are not levied in the United Arab Emirates. It only has a 5% import tax on products that you bring into the nation and a 5% VAT on any trading or service activities that take place in the UAE.

What makes a free zone company better than an offshore or a mainland company for me?

Everything is dependent on your business model and requirements, but for the most part, a free zone structure is the best option. In contrast to mainland companies, which require a local partner or agent, a Free Zone company can have 100 percent foreign ownership, be eligible for resident visas, conduct business both in and outside of the UAE, be treated more favourably by banks than offshore companies, and have a flexi desk space rather than an executive office. A Free Zone is an excellent method to create a business for a low charge and with no strings attached.

Can you guarantee the activation of a bank account?

When we set up your firm, we try our hardest to make it as simple as possible for you to open an account. We can provide you an estimate of the odds of a successful account opening based on your background and business style. The bank is solely responsible for the account’s approval. Before an account can be opened, each case must be approved by a few different divisions inside the bank. If the bank has any questions or requires additional information, it will contact you personally. The more information you provide about your company to the bank, the better your chances of getting an account opened.

Should I keep my business? When? How much does it set you back?

Yes, the business should be renewed on an annual basis. The renewal fee is usually lower than the setup fee. It is determined by your company’s bundle. By downloading the Estimate from this page, you may acquire the pricing. Renewal does not necessitate the owner’s presence and can be handled by your agent. The new licence must be presented to the bank after the company has been renewed in order to prolong the bank account.

Originally posted 2021-09-29 05:11:10.