Lexon Incorporations: Corporate, accounting, trust
Lexon Incorporations: Corporate, accounting, trust
United Arab Emirates

General information about the country

The United Arab Emirates is a federal state consisting of seven emirates. Each emirate is an absolute monarchy with the head of each emirate being the emir. The emirs together constitute the Federal Council which is the main legislative body of the United Arab Emirates.

A certain percentage of the income of each emirate is transferred to the general budget of the country.

The United Arab Emirates derives much of its profit from oil production but due to the diversification of the economy, in recent years also the role of the United Arab Emirates as an international trade centre has become increasingly important. Such globally recognized free trade zones as Jebel-Ali, Ajman and Fujairah operate in the country.

Corporate characteristics:

Main:
Company typeInternational Company
Corporate legislationRAK Free Zone Authority IBC regulations 2006
Language of company documentsArabic
Corporate endingLimited, Ltd.
Authorised capital:
Minimum amountAED 1
Standard amountAED 100.000
Standard currencyAED
Permitted currenciesAny
To be paidIssued shares considered as paid
Shareholders:
Minimum number1
Maximum numberNo restrictions
Publicly accessible recordsNo
Directors:
Minimum number1
Local directorNo requirements
StatusAn individual or a legal entity
Publicly accessible recordsNo
Secretary:
Minimum number1
Local secretaryNo requirements
Publicly accessible recordsNo
Reports:
Filing an Annual ReturnNo requirements
Fiscal yearEstablished by the company
Financial StatementsYes
Publicly accessible Financial StatementsNo
AuditorNot required
Filing a Tax ReturnNo requirements
Corporate taxation:
On trading income0%
On passive income0%
Double Tax Treaty network:Not applicable for International Companies

Legislation

The United Arab Emirates legislation was established on the basis of both Islamic laws and European civil law concepts. Significant influence on the United Arab Emirates legal system was induced by the legislation of Egypt, which in turn borrowed much from the United Kingdom and French legal enactments.

There is no uniform federal tax legislation in the United Arab Emirates as each emirate implements its own tax laws.

The local legislation of some emirates makes it possible to register companies in the free trade zones. Such companies, unless they operate in the United Arab Emirates, are fully exempt from tax.

Additional information on taxation

Ras Al Khaimah Free Zone Authority IBC Regulations 2006 provides that RAK International Companies are entitled to carry out operations only outside the United Arab Emirates. Provided that this condition is met RAK International Companies are not subject to any type of tax in the United Arab Emirates.

Conclusions

The United Arab Emirates is a trade jurisdiction that is well known in the world and a recognized venue of international business operations. A United Arab Emirates company is therefore a reputable, prestigious and advantageous corporate instrument especially with regard to business transactions involving the Middle or Far East countries.

When opening a bank account, it is important to note that the United Arab Emirates is not a member of the Hague Convention 1961 and, accordingly, does not certify documents by issuing the Apostille. Accordingly, if the corporate documents of the United Arab Emirates company are to be used abroad then they need to be legalized by the standard consular legalization procedure.

http://lexcorp.com/en/jurisdictions/emirates/ - United Arab Emirates

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