Differences Between Dubai and Abu Dhabi

Comparison of Dubai LLC and Abu Dhabi LLC Companies

Summary at a Glance	Dubai Trading Company	Abu Dhabi Company
Total 1st-year setup and commitment costs?	US$28,187	US$22,633
Total year 2 costs (including audit and tax)?	US$9,850	US$12,180
Does our client need to travel for the engagement?	Yes	Yes
Total engagement timeline?	3 months	4 months
Corporate tax rate on net profit (click link)?	0%	0%
Average monthly salary for skilled workers (click link)?	US$3,500	US$3,500
Average monthly office rent per square meter?	US$61	US$45
Average monthly warehouse rent per square meter?	US$30	US$20
Population's literacy rate?	90%	90%
Percentage of population proficient in English?	78%	50%
Is a lease agreement required before incorporation?	Yes	Yes
Is a resident UAE shareholder required for trading companies?	51%	51%
Can consulting firms be 100% foreign-owned?	Yes	Yes
Can sign sales contracts with local customers?	Yes	Yes
Are you permitted to invoice clients within the UAE?	Yes	Yes
Is it required to lease office premises?	Yes	Yes
Average annual lease cost for a 100 sq. m. office?	US$79,700	US$54,400
Expat perception of the city	Exciting	Family-oriented
Is the import of raw materials allowed?	Yes	Yes
Is it allowed to export goods?	Yes	Yes
Can the business employ staff from abroad?	Yes	Yes
Incorporation Requirements
How long to secure a company registration number?	2 months	6 weeks
Minimum number of shareholders?	2	1
Are individual and corporate shareholders permitted?	Yes	Yes
Minimum number of directors?	1	2
Is a resident director required?	NO	NO
Minimum paid-up capital?	US$1	US$1
Is a fast turnkey solution available (click link)?	Yes	Yes
Are corporate director(s) permitted?	Yes	Yes
Public record of shareholders and directors?	Yes	Yes
Tax and Accounting Considerations
Corporate tax payable	0%	0%
Withholding tax on dividends paid abroad	0%	0%
Are annual financial statements required?	Yes	Yes
Is a statutory independent annual audit required?	Yes	Yes
Export taxes on goods and local GST or VAT?	0%	0%
Number of tax-free zones available	31	4
Access to global double taxation treaties?	66	66
Is it a GCC member (click link)?	Yes	Yes
Corporate Bank Account Considerations
Preferred bank of World Company Setup Consultants?	SCB Dubai	SCB Dubai
How long does it take to open a corporate bank account?	5 weeks	4 weeks
Do I need to travel to open the bank account?	Yes	Yes
Multi-currency corporate bank account?	Yes	Yes
Multi-currency corporate Visa debit cards?	Yes	Yes
Is a corporate ATM card available?	Yes	Yes
Bank soundness rating by World Economic Forum?	23	23
Ease of obtaining credit rating by WEF?	3	3
Employment Considerations
Average monthly salary for a skilled worker?	US$3,500	US$3,500
Average monthly salary for an unskilled worker?	US$800	US$800
Average pension/insurance benefits as a % of salary?	12.5%	12.5%
Are labor unions mandatory?	NO	NO
Minimum notice period to terminate employees?	30 days	30 days
Quotas for foreign workers?	Yes	Yes
How long for a work permit to be approved?	4 weeks	3 weeks
Office space required to secure each new work visa	8 sq. meters	12 sq. meters
Percentage of population with a degree	10%	13%
Logistics Considerations
Proximity to the seaport in kilometers?	43 km or 45 min. drive	34 km or 30 min. drive
Proximity to the airport in kilometers?	12 km or 25 min. drive	35 km or 30 min. drive
Internet connectivity rating	Strong	Fair
Population (in millions)	2.1	1.4
Percentage of population with computer literacy	71%	80%
UAE purchasing power (GDP per capita)	$64,500	$64,500
UAE market size (in billion US$)	401.6	401.6
Average annual inflation rate in 2014-15?	4.30%	5.0%
Average unemployment rate in 2014-15?	0.30%	4.1%
Ease of Doing Business Index (click link)	31	31
Country credit rating (S&P)	AAA	AAA
Percentage of expatriates living there	88.5%	75%
Number of international schools	62	24
Number of nightclubs and bars	271	35
Number of golf courses	11	7
Number of global annual events	19	24
Government debt	US$142 billion	US$104 billion
Government sovereign wealth fund	US$70 billion	US$875 billion
Mercer cost of living rank	67	68
Estimate of Engagement Costs	US$	US$
World Company Setup Consultants company registration fees	7,950	7,950
Corporate bank account opening	4,950	4,950
Estimate of government fees	5,350	6,700
Resident director fees (0 if not required)	0	0
Project management fee	3,950	3,950
Estimate of total expenses in Year 1	28,187	22,633

Doing Business in Dubai - Company Formation

World Company Setup assists our Clients with;

Company registration in Dubai (UAE),
Business/trade licensing,
How a UAE national sponsor can assist in their operations,
Dubai banking solutions,
Visa options and staff recruitment strategies, and
Office space solutions.

Summary	Trading LLC	Professional Services LLC	Turnkey Solution LLC	Offshore LLC	Free Zone LLC	LLP	Representative Office	Branch
Specifically	Dubai LLC	Dubai Services LLC	Dubai Nominee LLC	Jebel Ali Offshore	DMCC Free Zone	Dubai LLP	Dubai RO	Dubai Branch Office
Best use for the company?	Trading	Professional services	To close a client deal now	International Trading	Global trading	Professional services	Market research	Specific project
Does our client need to travel to this country for company setup?	NO	NO	NO	NO	NO	NO	Yes	NO
How soon can you issue sales invoices to UAE customers?	2 months	2 months	3 weeks	Cannot trade locally	2 months	6 weeks	2 months	3 months
How soon can you issue sales invoices to global customers?	2 months	2 months	3 weeks	2 weeks	2 months	6 weeks	2 months	3 months
How soon can you sign legal contracts in Dubai?	2 months	2 months	3 weeks	Cannot	2 months	6 weeks	2 months	2 months
How soon can you hire staff in Dubai?	2 months	2 months	3 weeks	Cannot hire locally	2 months	6 weeks	2 months	2 months
Can it be wholly foreign-owned?	NO	Yes	Yes	Yes	Yes	NO	Yes	Yes
Is a resident director/partner/manager/agent required?	Yes	Yes	Yes	NO	NO	Yes	Yes	Yes
Minimum paid-up capital?	US$1	US$1	US$1	US$1	US$14,000	US$1	US$1	US$1
Can it bid for government tenders?	Yes	Yes	Yes	NO	NO	Yes	NO	Yes
Corporate bank account location?	Emirates NBD	ADIB	First Abu Dhabi Bank	Emirates NBD	First Abu Dhabi Bank	Mashreq Bank	ADIB	Emirates Islamic
Can it secure trade finance?	Yes	Yes	Yes	Yes	Yes	Yes	NO	Yes
Is it a limited liability entity?	Yes	Yes	Yes	Yes	Yes	Yes	NO	NO
Average total engagement cost?	US$28,187	US$22,980	US$38,500	US$18,300	US$28,786	US$21,980	US$26,200	US$35,450
Average total engagement duration?	3 months	3 months	1 month	2 months	3 months	3 months	3 months	4 months

Accounting and Tax Considerations	Dubai LLC		Dubai Services LLC		Dubai Nominee LLC		Jebel Ali Offshore		DMCC Free Zone		Dubai LLP		Dubai RO		Dubai Branch Office
Is statutory corporate tax payable?	0%		0%		0%		0%		0%		0%		0%		0%
Group Headquarters tax incentives?	Yes		Yes		Yes		NO		Yes		Yes		NO		NO
Must an auditor be appointed?	Yes		Yes		Yes		NO		Yes		Yes		NO		NO
Access to double taxation treaties?	Yes		Yes		Yes		NO		Yes		Yes		NO		Yes
Does this entity benefit from Government grants?	Yes		Yes		Yes		NO		Yes		Yes		NO		Yes
GST/VAT payable on sales to local customers?	5%		5%		5%		None		5%		5%		5%		5%
Must it file quarterly tax returns?	Yes		Yes		Yes		None		Yes		Yes		Yes		Yes
Do you have to file annual financial statements?	Yes		Yes		Yes		NO		Yes		Yes		Yes		Yes
Company Registration	Dubai LLC		Dubai Services LLC		Dubai Nominee LLC		Jebel Ali Offshore		DMCC Free Zone		Dubai LLP		Dubai RO		Dubai Branch Office
Is a resident director/partner/manager/agent required?	Yes		Yes		Yes		NO		NO		Yes		Yes		Yes
Minimum number of shareholders/partners?	2		1		1		1		1		2		Parent company		Parent company
Maximum shareholding for foreigners?	49%		100%		100%		100%		100%		99%		100%		100%
Minimum number of directors/managers?	1		1		1		2		1		1		1		1
Minimum legal paid-up capital?	US$1		US$1		US$1		US$1		US$14,000		US$1		US$1		US$1
Will a security deposit be held with the Government?	NO		NO		NO		NO		NO		NO		NO		US$13,650
Do I need to sign an office lease agreement?	Yes		Yes		Yes		NO		Yes		NO		Yes		Yes
Will shareholder and director documents be translated?	Yes		Yes		Yes		NO		NO		NO		Yes		Yes
Will shareholder and director documents be attested?	Yes		Yes		Yes		NO		Yes		Yes		Yes		Yes
The business will likely be regulated by?	DED		DED		DED		JAFZA		DMCC		DED		DED		DED and MoE
Are shelf companies available?	Yes		Yes		Yes		Yes		Yes		Yes		NO		NO
Time to incorporate a new entity?	3 months		3 months		1 month		2 months		3 months		3 months		3 months		3 months
Can it have preferred shareholders?	Yes		Yes		Yes		Yes		Yes		Yes		NO		NO
Business-Related Considerations	Dubai LLC		Dubai Services LLC		Dubai Nominee LLC		Jebel Ali Offshore		DMCC Free Zone		Dubai LLP		Dubai RO		Dubai Branch Office
Is sponsorship by a local citizen required?	Yes		NO		NO		NO		NO		NO		NO		NO
Does the foreign director need a residence visa?	NO		NO		NO		Yes		NO		NO		NO		NO
Can customers be invoiced in your company's name?	Yes		Yes		Yes		Yes		Yes		Yes		NO		Yes
Maximum number of staff allowed?	NO		NO		NO		NO		NO		NO		5		NO
Can I obtain a residence visa for the business owner?	Yes		Yes		Yes		NO		Yes		Yes		Yes		Yes
Is it a good entity for trademark registration?	Yes		NO		Yes		NO		Yes		Yes		NO		Yes
Can I obtain an import and export license?	Yes		NO		Yes		NO		Yes		Yes		NO		NO
Can the company hire local staff?		Yes		Yes		Yes		NO		Yes		Yes		Yes	Yes

Restrictions on the nature of business activities

Corporate tax rate on annual net profit?	0%
Legally tax-exempt if properly structured?	Yes
How soon can you sign a lease agreement?	1 month
Withholding tax on payments to shareholders?	NO
Are dividends received in the UAE legally tax-exempt?	Yes
Do you need a local resident as a bank signatory?	NO
Are temporary physical office solutions available?	Yes
Does the foreign director need a tax number?	NO
Can it be easily converted to a PLC?	NO
Public record of shareholders and directors?	NO
Is government approval required for foreign owners?	NO
Are government incentives available?	NO
NO
Foreign / local staff ratio?	NO
Can the company lease local office space?	Yes
Other useful information
Has this country signed free trade agreements?	Yes
Is this country a member of WIPO / TRIPS?	Yes
Is this country a member of ICSID?	Yes
Average customs duties experienced?	5%
Is government approval for foreign investment required?	NO
Average monthly office rent? (US$ per sq. m)	US$150
Minimum legal annual salary?	None
Average monthly US$ salary for qualified employees?	US$2,595
AED deposit interest rate? (1-year average)	1%
US$ deposit interest rate? (1-year average)	1%
Foreign exchange controls on overseas remittances?	NO
Banking Considerations
Are multi-currency bank accounts available?	Yes
Are corporate visa debit cards available?	Yes
Quality of the e-banking platform?	Good
Is crowdfunding available in this country?	Yes

Dubai Company Formation Processes and Costs

Our clients see Dubai as a gateway to the vast Middle East and African markets,
The most popular business vehicles for foreign company registration in Dubai include the LLC, free zone company, and branch,
In Dubai, only a free zone company can be wholly foreign-owned. An LLC must be 51% owned by a local shareholder,
A Dubai LLC can trade within the UAE. However, a Dubai free zone company can only trade within the UAE throug