Question 1

What does Aurion do?

Accepted Answer

Aurion is an 18-year-old, award-winning business setup consultancy in the UAE. We help global investors choose the right company formation package from 45+ free zones, and we provide end-to-end company formation and allied services — designed to fit each investor's exact requirements.

Question 2

How much does it cost to set up a company in the UAE?

Accepted Answer

The cost of company formation in the UAE depends on the jurisdiction (free zone, mainland, or offshore), the business activity, the office type, and the visa quota required. There is no one-size-fits-all number. Aurion assesses your specific requirements and recommends the most cost-effective package. Contact us for a tailored quote.

Question 3

Why should you set up a company in the UAE?

Accepted Answer

The UAE offers a uniquely attractive environment for global investors: political stability, zero personal income tax, a Double Taxation Avoidance Agreement with 137 countries, a Comprehensive Economic Partnership Agreement (CEPA) with several countries, and the busiest international airport and one of the largest seaports in the world. It is the trading hub of the Middle East, with a robust banking sector and easy company registration procedures.

Question 4

How can I pay the fees for company setup?

Accepted Answer

Fees can be paid via Pay By Link — an invoice is sent and you can pay instantly by debit or credit card. We also accept online bank transfer, cheque, and point-of-sale payment at our office.

Question 5

Do I need to rent a physical office to set up a company?

Accepted Answer

No. In the mainland, virtual offices are available at minimal cost. In free zones, options include virtual offices, shared desks, physical offices, and warehouses. A physical office is not a mandatory requirement for most business types.

Question 6

What type of business license should I choose?

Accepted Answer

There are three types: Commercial (for trading companies), Professional (for consultancy and service companies), and Industrial (for manufacturing companies). The right license depends on your business activity.

Question 7

What are the steps in UAE company formation?

Accepted Answer

The process typically involves: choosing a business activity → selecting a jurisdiction → reserving a trade name → submitting required documents → applying for a trade license → applying for a residence visa and bank account → obtaining any additional clearances (customs, chamber of commerce, etc.)

Question 8

Whom should I contact to register my company in the UAE?

Accepted Answer

Because licensing authorities vary significantly in cost and requirements, it is always best to work with a credible business consultant like Aurion to get current, accurate advice and end-to-end support.

Question 9

Why should I choose Aurion for company formation?

Accepted Answer

Aurion has 18 years of experience and a team including dedicated Agents in 8 Countries. We don't just file paperwork; we design the right formation strategy for your business goals and handle the entire process, including compliance and accounting.

Question 10

What are the types of companies in the UAE?

Accepted Answer

There are three broad types: Free Zone Companies (100% foreign ownership, operating within a designated zone), Mainland Companies (registered with the Department of Economic Development, trading across UAE and GCC), and Offshore International Business Companies (IBCs — non-resident, no visa quota, cannot operate within UAE but can hold a UAE bank account).

Question 11

What are the main differences between free zone, mainland, and offshore companies?

Accepted Answer

Free zone companies are onshore, 100% foreign-owned, and exempt from import/export duties within their zone. Mainland companies (typically LLCs) can trade freely across the UAE and GCC. Offshore IBCs are non-resident entities — they cannot rent premises or obtain residence visas, but they can hold UAE bank accounts and are commonly used for international invoicing and asset holding.

Question 12

What are the advantages of setting up in a Dubai free zone?

Accepted Answer

Key advantages include 100% foreign ownership, 100% repatriation of profits, zero corporate tax, no import/export duties within the zone, straightforward company incorporation, and access to world-class infrastructure.

Question 13

What types of business entities are available in UAE free zones?

Accepted Answer

Free zones permit: Free Zone Limited Liability Companies, branches of international companies, branches of existing UAE companies, Free Zone Establishments (single shareholder), and Free Zone Companies (2–5 shareholders).

Question 14

How quickly can a free zone company be registered?

Accepted Answer

Depending on the business activity, legal form, and documentation, a free zone company can be registered within 3–4 hours on the same day documents are submitted.

Question 15

How do I set up a trading company in a UAE free zone?

Accepted Answer

Select the trading activity from the free zone's approved list → reserve a trade name → submit an application with shareholder details and documents (passport, visa copy) → rent an office or desk space → apply for any additional clearances such as customs registration or chamber of commerce membership.

Question 16

Can a free zone company trade with the UAE mainland?

Accepted Answer

Yes, but with conditions. A free zone company can appoint a DED-registered local agent for mainland distribution, open a mainland branch, or set up an LLC. All trade between a free zone and the mainland is treated as import/export and UAE customs regulations apply.

Question 17

Can a free zone company rent office space outside its jurisdiction?

Accepted Answer

No. Each free zone is governed by its own authority and companies registered within a specific free zone are restricted to office space within that zone.

Question 18

Is customs duty applicable to free zone businesses?

Accepted Answer

Free zone companies are exempt from import/export duties within their zone. However, a 5% VAT applies to all domestic transactions conducted inside the UAE.

Question 19

Which are the most affordable free zones in the UAE?

Accepted Answer

The lowest-cost option is the International Free Zone Authority (IFZA), with packages from AED 11,500 (virtual license, no visa included). Other cost-effective zones for startups and entrepreneurs include Sharjah Media City (SHAMS), Ajman Free Zone, and RAKEZ.

Question 20

What are the advantages of mainland company formation in Dubai?

Accepted Answer

Mainland companies can trade freely across Dubai, the rest of the UAE, and GCC countries. They can open unlimited branches, hire larger teams, participate in government tenders, and take on contracts with government entities — advantages not available to free zone companies.

Question 21

How long does it take to register a mainland company?

Accepted Answer

In an ideal scenario, with all documents in place and no pre-approvals required, a mainland trade license can be obtained within 3–4 working days.

Question 22

What is the most common legal form for a mainland company?

Accepted Answer

The Limited Liability Company (LLC) is the most common mainland business structure. It offers flexibility, security, and the ability to expand across the UAE market. As per recent updates, there is no longer a requirement for a local Emirati shareholder when setting up an LLC.

Question 23

Does a mainland company require a physical office?

Accepted Answer

No mandatory office space is required for service-based companies in the mainland. Requirements vary by business activity.

Question 24

Do I need a local sponsor for a mainland company?

Accepted Answer

No. The UAE has removed the local sponsor requirement. A corporate sponsorship option is also available for foreign investors who prefer it.

Question 25

What is a Civil Works Company?

Accepted Answer

A Civil Works Company allows foreign nationals to own 100% of a professional services business in the mainland — covering consultancies, legal advisories, medical practices, chartered accountancy firms, and similar. A Local Service Agent (LSA) must be appointed for a yearly fee to liaise with government departments. The LSA holds no shares and has no involvement in company management.

Question 26

Is VAT applicable to mainland companies?

Accepted Answer

Yes. A 5% VAT applies to all mainland transactions, payable to the Federal Tax Authority (FTA). Certain zero-rated categories are exempt.

Question 27

What are the steps in mainland company formation?

Accepted Answer

Formation happens in three phases. Phase 1: select a business activity and submit trade name choices for approval. Phase 2: submit all legal documents (application form, passport, educational certificates, financials) for authority assessment. Phase 3: the authority authenticates the entity, issues the trade license and required clearances, and the investor proceeds with the residence visa application.

Question 28

How do I close an LLC company in Dubai?

Accepted Answer

There are 9 steps: appoint a registered company liquidator → prepare a board resolution for liquidation → obtain clearance from the Ministry of Labour and Immigration → obtain a bank closure letter → clear all financial liabilities → publish a newspaper advertisement for stakeholder no-objection → conduct an audit and obtain a non-liability certificate → submit the cancellation form, documents, and fees to the DED → receive the license cancellation certificate.

Question 29

What are the limitations of an offshore company in the UAE?

Accepted Answer

Offshore companies cannot obtain UAE residence visas, cannot trade within the UAE, and cannot lease or rent premises in the UAE. They are designed for international business, asset holding, and tax planning — not for conducting business on the ground in the UAE.

Question 30

Can an offshore company open a bank account in the UAE?

Accepted Answer

Yes. An offshore company can hold a UAE corporate bank account. The company owner must visit the UAE to complete the bank's compliance process. UAE banks apply strict Know Your Customer (KYC) norms for offshore accounts, assessing business activity, company profile, fund flow, and transaction nature.

Question 31

How long does it take to register an offshore company?

Accepted Answer

An offshore company can typically be incorporated in less than 2 working days. Registration is completed online and, in most cases, does not require the physical presence of the company owner.

Question 32

Can an offshore company purchase property in Dubai?

Accepted Answer

Yes, but only through specific jurisdictions. Offshore companies registered in RAKICC or Jebel Ali Free Zone (JAFZA) may purchase residential property in designated freehold areas in Dubai under the company's name. Commercial property purchases are not permitted for offshore entities under UAE law.

Question 33

How can I obtain a UAE residence visa?

Accepted Answer

A UAE residence visa can be obtained through: employment (sponsored by an employer), company ownership (through your own business), property purchase (above a certain value), spouse sponsorship, or a freelance permit.

Question 34

What is the UAE long-term residence visa?

Accepted Answer

The UAE offers 5-year and 10-year long-term residence visas for entrepreneurs, investors, scientists, academics, outstanding students, high-income executives, and creative professionals. These were introduced to attract and retain top talent and business contributors to the UAE economy.

Question 35

Why should I hire a PRO agent for my company?

Accepted Answer

A PRO (Public Relations Officer) handles a wide range of government-facing tasks: visa applications (new, renewal, cancellation), document attestation, liaison with authorities such as the Chamber of Commerce and Ministry of Foreign Affairs, and various legal paperwork for business activities. It removes a significant administrative burden from business owners.

Question 36

How long does it take to process a UAE residence visa?

Accepted Answer

If all documents are submitted correctly from within the country, the e-visa is typically issued within 4–5 days. Including the in-country status change and visa stamping, the full process takes approximately 8–10 working days.

Question 37

How do I open a corporate bank account in the UAE?

Accepted Answer

Once your company is incorporated, you can apply for a corporate bank account. UAE banks have their own compliance requirements, and a minimum monthly balance (typically AED 50,000–200,000) is required depending on the nature and risk profile of the business activity.

Question 38

What documents are required to open a corporate bank account?

Accepted Answer

Standard requirements include: company trade license and certificate of registration, share certificate, board resolution authorising the signatory, business profile with expected annual turnover and supplier/transaction details, and passport copies of all shareholders and authorised signatories. The bank may request additional documents based on the business activity.

Question 39

Can a foreign company open a corporate bank account in the UAE?

Accepted Answer

Yes, but the process is complex. It requires document attestation from the UAE embassy in the home country and from the UAE Ministry of Foreign Affairs. A simpler alternative is to incorporate a UAE branch or subsidiary and apply for the bank account under the UAE-registered entity.

Question 40

Does the authorised signatory need to be present at the bank?

Accepted Answer

Yes. The authorised signatory must be physically present during the bank account opening with full documentation. Shareholders can appoint any one of their number as the authorised signatory via a company board resolution.

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