UAE Emirates comparisons || Comparison of Dubai LLC and Abu Dhabi LLC companies
Dubai RAK Abu Dhabi Sharjah Ajman
Our recommendation in order of preference 1 2 3 4 5
Summary at a glance
Total year 1 engagement set up costs? US$ US$22,000 US$21,400 US$28,740 US$25,225 US$26,075
Total year 2 costs (incl. audit and tax)? US$ 9,850 10,400 15,350 9,850 9,950
Our Client must travel during the engagement? No No No No No
Total engagement period? (months) 3 2 2 3 3
Corporation tax rate on net profits (click link)? 0% 0% 0% 0% 0%
Average monthly skilled labor salary (click link)? US$3,500 US$2,450 US$3,500 US$2,200 US$2,500
Average monthly office rental per sq m? US$61 US$57 US$45 US$57 US$33
Average monthly warehouse rental per sq m? US$30 US$15 US$20 US$17 US$20
Must be a 51% shareholder for trading business Yes Yes Yes Yes Yes
Must be a 51% shareholder for services business No No No No No
English language proficiency % of population? 78% 75% 50% 75% 75%
Incorporation requirements
How long to secure company registration number? 1 month 3 weeks 2 months 1 month 2 months
Minimum number of shareholders? 1 2 2 2 2
Individual and corporate shareholders allowed? Yes Yes Yes Yes Yes
Minimum number of directors? 1 1 1 1 1
Resident director required? No No No No Yes
Minimum paid up share capital? US$1 US41,000 US41,000 US$41,000 US$50,000
Fast turnkey solution available (click link)? Yes No No No No
Fastest time Healy Consultants set up company? 5weeks 2weeks 6weeks 3weeks 8weeks
Special permit or license required? Yes Yes Yes Yes Yes
Corporate director(s) allowed? Yes Yes Yes Yes Yes
Public register of shareholders & directors? Yes Yes Yes Yes Yes
Tax and accounting considerations
Corporate tax payable? 0% 0% 0% 0% 0%
Withholding tax on dividends paid overseas No No No No No
Annual financial statements required? Yes Yes Yes Yes Yes
Statutory independent annual audit required? Yes Yes Yes Yes Yes
Export taxes on goods and local GST or VAT? No No No No No
Tax incentives for manufacturing start-ups? Yes Yes Yes Yes Yes
Access to how many double tax treaties? 66 66 66 66 66
Number of tax exempt free zones available? 31 3 4 2 1
GCC member (click link)? Yes Yes Yes Yes Yes
Corporate bank account considerations
Healy Consultants’ preferred bank? HSBC Emirates NDB Citibank HSBC Ajman Bank
How long to open corporate bank account? 4weeks 4weeks 4weeks 4weeks 4weeks
Do I travel to open the bank account? No No No No No
Can open a US$ or £ or € bank account? Yes Yes Yes Yes Yes
Good internet banking available? Yes Yes Yes Yes Yes
Funds transfer currency controls No No No No No
Bank rating by World Economic Forum? 5.7 5.7 5.7 5.7 5.7
Ease of getting credit by WEF? 89 89 89 89 89
Employment considerations
Average skilled labour monthly salary? US$3,500 US$2,450 US$3,500 US$2,200 US$2,500
Average unskilled labour monthly salary? US$800 US$750 US$800 US$700 US$750
Average pension/insurance benefits % of salary? 0% 0% 0% 0% 0%
Minimum national salary? US$245 US$245 US$275 US$275 US$465
Mandatory labor unions? No No No No No
Minimum notice to dismiss employees? 1 month 1 month 1 month 1 month 1 month
Minimum redundancy indemnity? 1 month 1 month 1 month 1 month 1 month
Quota ratio of foreign workers to local staff? No No No No No
How long to get work permit approved? 3weeks 3 week 3weeks 3weeks 3weeks
Manufacturing considerations
Cost per 100 units of electricity? US$ 6.25 5.25 5.7 10.9 8.15
Rank for getting electricity (click link) 4 4 4 4 4
Warehousing space rental (per sq. m.)? US$30 US$15 US$20 US$17 US$20
Ranking for transport infrastructure (click link) (1-7 best) 6.6 6.6 6.6 6.6 6.6
Ranking for customs procedures out of 10 (click link)? 6 6 6 6 6
Average import duty % on raw materials? 0% 0% 0% 0% 0%
Government incentives for startups? Yes Yes Yes Yes Yes
Computer literacy % of population? 90% 85% 86% 80% 82%
Internet connectivity rating? Strong Strong Strong Strong Strong
Global business efficiency index (click link)? 23 23 23 23 23
Preferred manufacturing city? Dubai RAK Abu Dhabi Sharjah Ajman
Proximity of sea port in kilometers? 44.9 8 14.7 13 2.3
Proximity of airport in kilometers? 44.5 18 20.8 18 26
Proximity of rail in kilometers? 0 0 0 0 0
Literacy % of population 90% 90% 90% 90% 90%
Local purchasing power (GDP per capita) US$24,866 US$14,882 US$61,009 US$15,578 US$14,744
Average annual inflation rate in 2014? 3% 3% 3% 3% 3%
Average unemployment rate in 2014? 2.60% 2.60% 2.60% 2.60% 2.60%
Ease of doing business index (click link) 22 22 22 22 22
Country rating (click link) AA AA AA AA AA
Middle East Zero Tax Companies
RAK Lebanon Jebel Ali Ajman Jordan
Our ranking in order of preference 1 2 3 4 5
Summary at a glance
Total year 1 engagement set up costs? US$11,870 US$11,830 US$22,363 US$10,870 US$31,845
Total year 2 costs (incl. audit and tax)? US$4,470 US$6,800 US$8,129 US$4,470 US$14,620
Minimum paid up share capital? US$1 US$20,000 US$1 US$1 US$1,500
Total engagement period? 2 months 3 months 3 months 2 months 2 months
How long to set the company up? 1 week 1 month 2 months 2 weeks 1 month
Our Client must travel? No No No No No
How long to open bank account? 3 weeks 1 month 3 weeks 3 weeks 2 weeks
Recommended bank account location? Dubai Lebanon Dubai Dubai Jordan
Fast turnkey solution available? No No No No No
Incorporation requirements
Resident director required? No No No No No
National shareholder required? No No No No No
Minimum number of directors? 1 3 2 1 1
Minimum number of shareholders? 1 3 1 1 1
Resident company secretary required? Yes No Yes No No
Individual shareholders allowed? Yes Yes Yes Yes Yes
Corporate shareholders allowed? Yes Yes Yes Yes Yes
Corporate director(s) allowed? Yes Yes No Yes No
Public register of shareholders & directors? No No No No Yes
Tax and accounting considerations
Corporate tax payable? 0% US$700 0% 0% 0%
Annual tax return to be submitted? No Yes No No Yes
Annual financial statements required? No Yes Yes No Yes
Statutory audit required? No Yes Yes No No
Must register for GST or VAT? No No No No No
Access to double tax treaties? No No No No No
Resident company for local tax? No No No No No
Can do business and hire locals? No No No No No
Blacklisted “tax haven” jurisdiction? No No No No No
Corporate bank account considerations
Healy Consultants’ preferred bank? Noor Bank Arab Bank Emirates NBD Mashreq Bank Arab Bank
Do I travel to open the bank account? Yes No Yes Yes No
Can open a US$ corporate bank account? Yes Yes Yes Yes Yes
Good internet banking available? Yes Yes Yes Yes Yes
Funds transfer currency controls No No No No Yes
Bank rating by World Economic Forum? 23 27 23 23 57
Ease of getting credit by WEF? score (1-7) 3 2.8 3 3 3.6
Corporate ATM card available? Yes Yes Yes Yes Yes
How many banks in the country? 46 54 46 46 25
Logistics considerations
Registered address needed to incorporate? Yes Yes Yes Yes Yes
Our fee for registered address services US$1,100 US$1,800 US$1,100 US$1,100 US$2,950
Physical office space needed to incorporate? No No No No No
Virtual office services available? Yes Yes Yes Yes Yes
Allowed to make sales to foreign Clients? Yes Yes Yes Yes Yes
Allowed to make sales to local Clients? No No No No No
Local sales subject to tax? No No No No No
Can the entity hire local staff? No No No No No
Can the entity hire expatriate staff? No No No No No
Estimate of engagement costs US$ US$ US$ US$ US$
Healy Consultants engagement fees US$4,720 US$6,450 US$6,300 US$4,720 US$11,750
Company secretary and registered office US$1,100 US$1,800 US$1,100 US$1,100 US$2,950
Government fees US$1,100 US$630 US$6,263 US$1,100 US$2,300
Project management fees (0 if not required) US$0 US$0 US$5,900 US$0 US$4,645
Corporate bank account opening US$4,950 US$2,950 US$2,950 US$3,950 US$2,950
Estimate of total outgoings in Year 1 US$11,870 US$11,830 US$22,363 US$10,870 US$31,845
Draft sales invoice RAK offshore invoiceRAK offshore invoice Lebanon offshore invoiceLebanon offshore invoice
Comparison of Dubai LLC and Abu Dhabi LLC companies
Summary at a Glance Dubai Company Abu Dhabi Company
Total year 1 engagement set up costs? US$22,000 US$29,690
Total year 2 costs (incl. audit and tax)? US$9,850 US$15,350
Our Client must travel during the engagement? Yes Yes
Total engagement period? 3 months 4 months
Corporation tax rate on net profits (click link)? 0% 0%
Average monthly skilled labor salary (click link)? US$3,500 US$3,500
Average monthly office rental per sq m? US$61 US$45
Average monthly warehouse rental per sq m? US$30 US$20
Literacy % of population? 90% 90%
English language proficiency % of population? 78% 50%
Tenancy agreement required before incorporation? Yes Yes
Resident UAE shareholder required for trading companies? 51% 51%
Consulting companies can be 100% foreign owned Yes Yes
Can sign sales contracts with local clients Yes Yes
Allowed to invoice clients within the UAE? Yes Yes
Must rent office premises Yes Yes
Average annual rental cost for a 100 sqm. office US$79,700 US$54,400
Expatriate perception of the city Exciting Family Oriented
Allowed to import raw materials? Yes Yes
Allowed to export goods? Yes Yes
Can the entity hire expatriate staff? Yes Yes
Incorporation requirements
How long to secure company registration number? 5 weeks 6 weeks
Minimum number of shareholders? 2 1
Individual and corporate shareholders allowed? Yes Yes
Minimum number of directors? 1 2
Resident director required? No No
Minimum paid up share capital? US$1 US$41,000
Minimum paid up share capital? US$1 US$41,000
Fast turnkey solution available (click link)? Yes Yes
Corporate director(s) allowed? Yes Yes
Public register of shareholders and directors? Yes Yes
Tax and accounting considerations
Corporate tax payable 0% 0%
Withholding tax on dividends paid overseas 0% 0%
Annual financial statements required? Yes Yes
Statutory independent annual audit required? Yes Yes
Export taxes on goods and local GST or VAT? 0% 0%
Tax exempt free zones available 31 4
Access global double tax treaties? 66 66
GCC member (click link)? Yes Yes
Corporate bank account considerations
Healy Consultants’ preferred bank? SCB Dubai SCB Dubai
How long to open corporate bank account? 4 weeks 4 weeks
Do I travel to open the bank account? Yes Yes
Multi-currency corporate bank account? Yes Yes
Multi-currency corporate visa debit cards? Yes Yes
Corporate ATM card available? Yes Yes
Bank rating by World Economic Forum? 23 23
Ease of getting credit by WEF? 3 3
Employment considerations
Average skilled labour monthly salary? US$3,500 US$3,500
Average unskilled labour monthly salary? US$800 US$800
Average pension/insurance benefits % of salary? 12.5% 12.5%
Mandatory labor unions? No No
Minimum notice to dismiss employees? 30 days 30 days
Quotas on foreign workers? Yes Yes
How long to get work permit approved? 3 weeks 3 weeks
Office space required to secure each new employment visa 8sq.m. 12sq.m.
Population % with degrees 10% 13%
Logistical considerations
Proximity of sea port in kilometers? 43kms or 45 min. drive 34kms or 30 min. drive
Proximity of airport in kilometers? 12km or 25 min. drive 35kms or 30 min. drive
Internet connectivity rating Strong Fair
Population (in million) 2.1 1.4
Computer literacy % of population 71% 80%
UAE purchasing power (GDP per capita) $64,500 $64,500
UAE market size (in USD billions) 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) AA AA
Percentage of expatriates living there 88.5% 75%
Number of international schools 62 24
Number of night clubs and bars 271 35
Number of golf courses 11 7
Number of global annual events 19 24
Government debt US$142bn US$104bn
Government sovereign fund US$70bn US$875bn
Mercer cost of living 67 68
Estimate of engagement costs US$ US$
Healy Consultants engagement fees 5,950 11,140
Corporate bank account opening 4,950 2,950
Estimate of Government fees 6,200 6,800
Resident director fees (0 if not required) 0 0
Project management fee 3,950 7,850
Estimate of total outgoings in Year 1 22,000 29,690
Draft sales invoice attached
Comparison of Middle East free-zone entities
Middle Easr free zones comparisons UAE-RAK Oman Jordan Lebanon Kuwait
Our ranking in order of preference 1 2 3 4 5
Summary at a Glance
Total year 1 engagement set up costs? US$16,850 US31,000 US$34,595 US$17,860 US$48,665
Total year 2 costs (incl. audit and tax)? US$10,200 US$5,070 US$14,620 US$11,100 US$14,840
Our Client must travel during the engagement? No No No No No
Total engagement period? 2 months 3 months 2 months 3 months 6 months
Corporation tax rate on net profits (click link)? 0 0 0.14 0.15 0
Average monthly skilled labor salary (click link)? US$3,500 US$4,000 US$1,000 US$600 US$4,000
Average monthly office rental per sq m? US$65 US$58 US$25 US$35 US$35
Average monthly warehouse rental per sq m? US$30 US$30 US$7 US$15 US$10
Must be a 51% shareholder for trading business No No No No No
Must be a 51% shareholder for services business No No No No No
English language proficiency % of population? 0.78 0.6 0.45 0.4 0.4
Incorporation requirements
How long to secure company registration number? 1 month 1 month 1 month 1 month 3 months
Minimum number of shareholders? 1 1 1 3 2
Individual and corporate shareholders allowed? Yes Yes Yes Yes Yes
Minimum number of directors? 1 1 1 1 1
Resident director required? No No No No No
Minimum paid up share capital? US$1 US$1 US$70,650 US$3,500 US$36,000
Fast turnkey solution available (click link)? Yes Yes Yes Yes Yes
Special permit or license required? No No No No No
Corporate director(s) allowed? Yes Yes No Yes Yes
Public register of shareholders & directors? Yes Yes Yes Yes Yes
Tax and accounting considerations
Corporate tax payable? 0 0 0.14 0.15 0
Withholding tax on dividends paid overseas 0 0 0 0 0
Annual financial statements required? Yes Yes Yes Yes Yes
Statutory independent annual audit required? Yes Yes Yes Yes Yes
Export taxes on goods and local GST or VAT? 0 0 0 0 0
Best holding company to extract dividends? Marshall Islands Singapore Labuan UAE-RAK Marshall Islands
Tax incentives for manufacturing start-ups? Yes Yes Yes Yes Yes
Access to how many double tax treaties? N/A N/A N/A N/A N/A
Number of tax exempt free zones available? 37 4 8 2 1
GCC member (click link)? Yes Yes No No Yes
Corporate bank account considerations
Healy Consultants’ preferred bank? Emirates NDB HSBC SCB HSBC KFH
How long to open corporate bank account? 4 weeks 3 weeks 4 weeks 4 weeks 5 weeks
Do I travel to open the bank account? No No No No No
Can open a US$ or £ or € bank account? Yes Yes Yes Yes Yes
Good internet banking available? Yes Yes Yes Yes Yes
Funds transfer currency controls No No No No No
Bank rating by World Economic Forum (click link)? 31 22 57 27 50
Ease of getting credit by WEF? score (1-7) (click link) 3 9 25 76 45
Employment considerations
Average skilled labour monthly salary? US$3,100 US$2,900 US$1,500 US$1,200 US$4,000
Average unskilled labour monthly salary? US$1,000 US$800 US$500 US$600 US$1,500
Average pension/insurance benefits % of salary? 0.05 0.105 0 0 0
Minimum national salary? US$400 US$600 US$300 US$450 US$300
Mandatory labor unions? No No No No No
Minimum notice to dismiss employees? 1 month 3 months 3 months 3 months 3 months
Minimum redundancy indemnity? 1 month 1 month 1 month 1 month 3 months
How long to get work permit approved? 3-4 weeks 4 weeks 5-7 weeks 6-9 weeks 6 weeks
Manufacturing considerations
Cost per unit of electricity? US$ 0.04 0.03 0.23 0.02 0.003
Rank for getting electricity (click link) 4 79 44 57 93
Warehousing space rental (per sq. m.)? US$20 US$5 US$7 US$15 US$10
Ranking for transport infrastructure (click link) (1-7 best) 6.6 4.7 3.6 3 3.7
Ranking for customs procedures out of 10 (click link)? 6 4.8 4.5 3.1 3.5
Average import duty % on raw materials? 0 0 0 0 0
Government incentives for startups? Yes Yes Yes Yes Yes
Computer literacy % of population? 0.9 0.85 0.9 0.9 0.85
Internet connectivity rating? Strong Strong Strong Strong Strong
Global business efficiency index (click link)? 23 33 54 - 43
Preferred manufacturing city? Ras Al Khaimah Al Mazunah Zarqa Port of Beirut Kuwait FTZ
Proximity of sea port in kilometers? 8 11 360 0 0
Proximity of airport in kilometers? 97 200 83.4 19.1 16.9
Literacy % of population 0.9 0.814 0.934 0.939 0.94
Local purchasing power (GDP per capita) US$30,122 US$29,813 US$6,115 US$14,845 US$39,706
Local market size (in millions of people) 9 3.2 6.5 4.5 3.9
Average annual inflation rate in 2014? 0.011 0.013 0.055 0.032 0.027
Average unemployment rate in 2014? 0.038 0.08 0.126 0.066 0.031
Ease of doing business index (click link) 22 66 117 104 86
Country rating (click link) AA A- BB- B- AA
Logistics considerations
Monthly warehouse rental (per sq. m.)? US$20 US$10 US$25 US$35 US$15
Manufacturing space rental (sq. m.)? US$9 US$5 US$7 US$15 US$10
Can rent office outside free zones? Yes Yes No Yes No
Can the entity hire local staff? Yes Yes Yes Yes Yes
Average local monthly salary? US$2,500 US$2,900 US$2,600 US$2,200 US$4,000
Can the entity hire expatriate staff? Yes Yes Yes Yes Yes
Free zone work permit fee per person US$3,950 US$3,950 US$3,950 US$3,950 US$3,950
How long to get work permit approved? 3-4 weeks 2-3 weeks 4-5 weeks 3-5 weeks 2-3 weeks
Our recommendation in order of preference 1 2 3 4 5
Summary at a glance
Total year 1 engagement set up costs? US$ US$22,000 US$21,400 US$28,740 US$25,225 US$26,075
Total year 2 costs (incl. audit and tax)? US$ 9,850 10,400 15,350 9,850 9,950
Our Client must travel during the engagement? No No No No No
Total engagement period? (months) 3 2 2 3 3
Corporation tax rate on net profits (click link)? 0% 0% 0% 0% 0%
Average monthly skilled labor salary (click link)? US$3,500 US$2,450 US$3,500 US$2,200 US$2,500
Average monthly office rental per sq m? US$61 US$57 US$45 US$57 US$33
Average monthly warehouse rental per sq m? US$30 US$15 US$20 US$17 US$20
Must be a 51% shareholder for trading business Yes Yes Yes Yes Yes
Must be a 51% shareholder for services business No No No No No
English language proficiency % of population? 78% 75% 50% 75% 75%
Incorporation requirements
How long to secure company registration number? 1 month 3 weeks 2 months 1 month 2 months
Minimum number of shareholders? 1 2 2 2 2
Individual and corporate shareholders allowed? Yes Yes Yes Yes Yes
Minimum number of directors? 1 1 1 1 1
Resident director required? No No No No Yes
Minimum paid up share capital? US$1 US41,000 US41,000 US$41,000 US$50,000
Fast turnkey solution available (click link)? Yes No No No No
Fastest time Healy Consultants set up company? 5weeks 2weeks 6weeks 3weeks 8weeks
Special permit or license required? Yes Yes Yes Yes Yes
Corporate director(s) allowed? Yes Yes Yes Yes Yes
Public register of shareholders & directors? Yes Yes Yes Yes Yes
Tax and accounting considerations
Corporate tax payable? 0% 0% 0% 0% 0%
Withholding tax on dividends paid overseas No No No No No
Annual financial statements required? Yes Yes Yes Yes Yes
Statutory independent annual audit required? Yes Yes Yes Yes Yes
Export taxes on goods and local GST or VAT? No No No No No
Tax incentives for manufacturing start-ups? Yes Yes Yes Yes Yes
Access to how many double tax treaties? 66 66 66 66 66
Number of tax exempt free zones available? 31 3 4 2 1
GCC member (click link)? Yes Yes Yes Yes Yes
Corporate bank account considerations
Healy Consultants’ preferred bank? HSBC Emirates NDB Citibank HSBC Ajman Bank
How long to open corporate bank account? 4weeks 4weeks 4weeks 4weeks 4weeks
Do I travel to open the bank account? No No No No No
Can open a US$ or £ or € bank account? Yes Yes Yes Yes Yes
Good internet banking available? Yes Yes Yes Yes Yes
Funds transfer currency controls No No No No No
Bank rating by World Economic Forum? 5.7 5.7 5.7 5.7 5.7
Ease of getting credit by WEF? 89 89 89 89 89
Employment considerations
Average skilled labour monthly salary? US$3,500 US$2,450 US$3,500 US$2,200 US$2,500
Average unskilled labour monthly salary? US$800 US$750 US$800 US$700 US$750
Average pension/insurance benefits % of salary? 0% 0% 0% 0% 0%
Minimum national salary? US$245 US$245 US$275 US$275 US$465
Mandatory labor unions? No No No No No
Minimum notice to dismiss employees? 1 month 1 month 1 month 1 month 1 month
Minimum redundancy indemnity? 1 month 1 month 1 month 1 month 1 month
Quota ratio of foreign workers to local staff? No No No No No
How long to get work permit approved? 3weeks 3 week 3weeks 3weeks 3weeks
Manufacturing considerations
Cost per 100 units of electricity? US$ 6.25 5.25 5.7 10.9 8.15
Rank for getting electricity (click link) 4 4 4 4 4
Warehousing space rental (per sq. m.)? US$30 US$15 US$20 US$17 US$20
Ranking for transport infrastructure (click link) (1-7 best) 6.6 6.6 6.6 6.6 6.6
Ranking for customs procedures out of 10 (click link)? 6 6 6 6 6
Average import duty % on raw materials? 0% 0% 0% 0% 0%
Government incentives for startups? Yes Yes Yes Yes Yes
Computer literacy % of population? 90% 85% 86% 80% 82%
Internet connectivity rating? Strong Strong Strong Strong Strong
Global business efficiency index (click link)? 23 23 23 23 23
Preferred manufacturing city? Dubai RAK Abu Dhabi Sharjah Ajman
Proximity of sea port in kilometers? 44.9 8 14.7 13 2.3
Proximity of airport in kilometers? 44.5 18 20.8 18 26
Proximity of rail in kilometers? 0 0 0 0 0
Literacy % of population 90% 90% 90% 90% 90%
Local purchasing power (GDP per capita) US$24,866 US$14,882 US$61,009 US$15,578 US$14,744
Average annual inflation rate in 2014? 3% 3% 3% 3% 3%
Average unemployment rate in 2014? 2.60% 2.60% 2.60% 2.60% 2.60%
Ease of doing business index (click link) 22 22 22 22 22
Country rating (click link) AA AA AA AA AA
Middle East Zero Tax Companies
RAK Lebanon Jebel Ali Ajman Jordan
Our ranking in order of preference 1 2 3 4 5
Summary at a glance
Total year 1 engagement set up costs? US$11,870 US$11,830 US$22,363 US$10,870 US$31,845
Total year 2 costs (incl. audit and tax)? US$4,470 US$6,800 US$8,129 US$4,470 US$14,620
Minimum paid up share capital? US$1 US$20,000 US$1 US$1 US$1,500
Total engagement period? 2 months 3 months 3 months 2 months 2 months
How long to set the company up? 1 week 1 month 2 months 2 weeks 1 month
Our Client must travel? No No No No No
How long to open bank account? 3 weeks 1 month 3 weeks 3 weeks 2 weeks
Recommended bank account location? Dubai Lebanon Dubai Dubai Jordan
Fast turnkey solution available? No No No No No
Incorporation requirements
Resident director required? No No No No No
National shareholder required? No No No No No
Minimum number of directors? 1 3 2 1 1
Minimum number of shareholders? 1 3 1 1 1
Resident company secretary required? Yes No Yes No No
Individual shareholders allowed? Yes Yes Yes Yes Yes
Corporate shareholders allowed? Yes Yes Yes Yes Yes
Corporate director(s) allowed? Yes Yes No Yes No
Public register of shareholders & directors? No No No No Yes
Tax and accounting considerations
Corporate tax payable? 0% US$700 0% 0% 0%
Annual tax return to be submitted? No Yes No No Yes
Annual financial statements required? No Yes Yes No Yes
Statutory audit required? No Yes Yes No No
Must register for GST or VAT? No No No No No
Access to double tax treaties? No No No No No
Resident company for local tax? No No No No No
Can do business and hire locals? No No No No No
Blacklisted “tax haven” jurisdiction? No No No No No
Corporate bank account considerations
Healy Consultants’ preferred bank? Noor Bank Arab Bank Emirates NBD Mashreq Bank Arab Bank
Do I travel to open the bank account? Yes No Yes Yes No
Can open a US$ corporate bank account? Yes Yes Yes Yes Yes
Good internet banking available? Yes Yes Yes Yes Yes
Funds transfer currency controls No No No No Yes
Bank rating by World Economic Forum? 23 27 23 23 57
Ease of getting credit by WEF? score (1-7) 3 2.8 3 3 3.6
Corporate ATM card available? Yes Yes Yes Yes Yes
How many banks in the country? 46 54 46 46 25
Logistics considerations
Registered address needed to incorporate? Yes Yes Yes Yes Yes
Our fee for registered address services US$1,100 US$1,800 US$1,100 US$1,100 US$2,950
Physical office space needed to incorporate? No No No No No
Virtual office services available? Yes Yes Yes Yes Yes
Allowed to make sales to foreign Clients? Yes Yes Yes Yes Yes
Allowed to make sales to local Clients? No No No No No
Local sales subject to tax? No No No No No
Can the entity hire local staff? No No No No No
Can the entity hire expatriate staff? No No No No No
Estimate of engagement costs US$ US$ US$ US$ US$
Healy Consultants engagement fees US$4,720 US$6,450 US$6,300 US$4,720 US$11,750
Company secretary and registered office US$1,100 US$1,800 US$1,100 US$1,100 US$2,950
Government fees US$1,100 US$630 US$6,263 US$1,100 US$2,300
Project management fees (0 if not required) US$0 US$0 US$5,900 US$0 US$4,645
Corporate bank account opening US$4,950 US$2,950 US$2,950 US$3,950 US$2,950
Estimate of total outgoings in Year 1 US$11,870 US$11,830 US$22,363 US$10,870 US$31,845
Draft sales invoice RAK offshore invoiceRAK offshore invoice Lebanon offshore invoiceLebanon offshore invoice
Comparison of Dubai LLC and Abu Dhabi LLC companies
Summary at a Glance Dubai Company Abu Dhabi Company
Total year 1 engagement set up costs? US$22,000 US$29,690
Total year 2 costs (incl. audit and tax)? US$9,850 US$15,350
Our Client must travel during the engagement? Yes Yes
Total engagement period? 3 months 4 months
Corporation tax rate on net profits (click link)? 0% 0%
Average monthly skilled labor salary (click link)? US$3,500 US$3,500
Average monthly office rental per sq m? US$61 US$45
Average monthly warehouse rental per sq m? US$30 US$20
Literacy % of population? 90% 90%
English language proficiency % of population? 78% 50%
Tenancy agreement required before incorporation? Yes Yes
Resident UAE shareholder required for trading companies? 51% 51%
Consulting companies can be 100% foreign owned Yes Yes
Can sign sales contracts with local clients Yes Yes
Allowed to invoice clients within the UAE? Yes Yes
Must rent office premises Yes Yes
Average annual rental cost for a 100 sqm. office US$79,700 US$54,400
Expatriate perception of the city Exciting Family Oriented
Allowed to import raw materials? Yes Yes
Allowed to export goods? Yes Yes
Can the entity hire expatriate staff? Yes Yes
Incorporation requirements
How long to secure company registration number? 5 weeks 6 weeks
Minimum number of shareholders? 2 1
Individual and corporate shareholders allowed? Yes Yes
Minimum number of directors? 1 2
Resident director required? No No
Minimum paid up share capital? US$1 US$41,000
Minimum paid up share capital? US$1 US$41,000
Fast turnkey solution available (click link)? Yes Yes
Corporate director(s) allowed? Yes Yes
Public register of shareholders and directors? Yes Yes
Tax and accounting considerations
Corporate tax payable 0% 0%
Withholding tax on dividends paid overseas 0% 0%
Annual financial statements required? Yes Yes
Statutory independent annual audit required? Yes Yes
Export taxes on goods and local GST or VAT? 0% 0%
Tax exempt free zones available 31 4
Access global double tax treaties? 66 66
GCC member (click link)? Yes Yes
Corporate bank account considerations
Healy Consultants’ preferred bank? SCB Dubai SCB Dubai
How long to open corporate bank account? 4 weeks 4 weeks
Do I travel to open the bank account? Yes Yes
Multi-currency corporate bank account? Yes Yes
Multi-currency corporate visa debit cards? Yes Yes
Corporate ATM card available? Yes Yes
Bank rating by World Economic Forum? 23 23
Ease of getting credit by WEF? 3 3
Employment considerations
Average skilled labour monthly salary? US$3,500 US$3,500
Average unskilled labour monthly salary? US$800 US$800
Average pension/insurance benefits % of salary? 12.5% 12.5%
Mandatory labor unions? No No
Minimum notice to dismiss employees? 30 days 30 days
Quotas on foreign workers? Yes Yes
How long to get work permit approved? 3 weeks 3 weeks
Office space required to secure each new employment visa 8sq.m. 12sq.m.
Population % with degrees 10% 13%
Logistical considerations
Proximity of sea port in kilometers? 43kms or 45 min. drive 34kms or 30 min. drive
Proximity of airport in kilometers? 12km or 25 min. drive 35kms or 30 min. drive
Internet connectivity rating Strong Fair
Population (in million) 2.1 1.4
Computer literacy % of population 71% 80%
UAE purchasing power (GDP per capita) $64,500 $64,500
UAE market size (in USD billions) 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) AA AA
Percentage of expatriates living there 88.5% 75%
Number of international schools 62 24
Number of night clubs and bars 271 35
Number of golf courses 11 7
Number of global annual events 19 24
Government debt US$142bn US$104bn
Government sovereign fund US$70bn US$875bn
Mercer cost of living 67 68
Estimate of engagement costs US$ US$
Healy Consultants engagement fees 5,950 11,140
Corporate bank account opening 4,950 2,950
Estimate of Government fees 6,200 6,800
Resident director fees (0 if not required) 0 0
Project management fee 3,950 7,850
Estimate of total outgoings in Year 1 22,000 29,690
Draft sales invoice attached
Comparison of Middle East free-zone entities
Middle Easr free zones comparisons UAE-RAK Oman Jordan Lebanon Kuwait
Our ranking in order of preference 1 2 3 4 5
Summary at a Glance
Total year 1 engagement set up costs? US$16,850 US31,000 US$34,595 US$17,860 US$48,665
Total year 2 costs (incl. audit and tax)? US$10,200 US$5,070 US$14,620 US$11,100 US$14,840
Our Client must travel during the engagement? No No No No No
Total engagement period? 2 months 3 months 2 months 3 months 6 months
Corporation tax rate on net profits (click link)? 0 0 0.14 0.15 0
Average monthly skilled labor salary (click link)? US$3,500 US$4,000 US$1,000 US$600 US$4,000
Average monthly office rental per sq m? US$65 US$58 US$25 US$35 US$35
Average monthly warehouse rental per sq m? US$30 US$30 US$7 US$15 US$10
Must be a 51% shareholder for trading business No No No No No
Must be a 51% shareholder for services business No No No No No
English language proficiency % of population? 0.78 0.6 0.45 0.4 0.4
Incorporation requirements
How long to secure company registration number? 1 month 1 month 1 month 1 month 3 months
Minimum number of shareholders? 1 1 1 3 2
Individual and corporate shareholders allowed? Yes Yes Yes Yes Yes
Minimum number of directors? 1 1 1 1 1
Resident director required? No No No No No
Minimum paid up share capital? US$1 US$1 US$70,650 US$3,500 US$36,000
Fast turnkey solution available (click link)? Yes Yes Yes Yes Yes
Special permit or license required? No No No No No
Corporate director(s) allowed? Yes Yes No Yes Yes
Public register of shareholders & directors? Yes Yes Yes Yes Yes
Tax and accounting considerations
Corporate tax payable? 0 0 0.14 0.15 0
Withholding tax on dividends paid overseas 0 0 0 0 0
Annual financial statements required? Yes Yes Yes Yes Yes
Statutory independent annual audit required? Yes Yes Yes Yes Yes
Export taxes on goods and local GST or VAT? 0 0 0 0 0
Best holding company to extract dividends? Marshall Islands Singapore Labuan UAE-RAK Marshall Islands
Tax incentives for manufacturing start-ups? Yes Yes Yes Yes Yes
Access to how many double tax treaties? N/A N/A N/A N/A N/A
Number of tax exempt free zones available? 37 4 8 2 1
GCC member (click link)? Yes Yes No No Yes
Corporate bank account considerations
Healy Consultants’ preferred bank? Emirates NDB HSBC SCB HSBC KFH
How long to open corporate bank account? 4 weeks 3 weeks 4 weeks 4 weeks 5 weeks
Do I travel to open the bank account? No No No No No
Can open a US$ or £ or € bank account? Yes Yes Yes Yes Yes
Good internet banking available? Yes Yes Yes Yes Yes
Funds transfer currency controls No No No No No
Bank rating by World Economic Forum (click link)? 31 22 57 27 50
Ease of getting credit by WEF? score (1-7) (click link) 3 9 25 76 45
Employment considerations
Average skilled labour monthly salary? US$3,100 US$2,900 US$1,500 US$1,200 US$4,000
Average unskilled labour monthly salary? US$1,000 US$800 US$500 US$600 US$1,500
Average pension/insurance benefits % of salary? 0.05 0.105 0 0 0
Minimum national salary? US$400 US$600 US$300 US$450 US$300
Mandatory labor unions? No No No No No
Minimum notice to dismiss employees? 1 month 3 months 3 months 3 months 3 months
Minimum redundancy indemnity? 1 month 1 month 1 month 1 month 3 months
How long to get work permit approved? 3-4 weeks 4 weeks 5-7 weeks 6-9 weeks 6 weeks
Manufacturing considerations
Cost per unit of electricity? US$ 0.04 0.03 0.23 0.02 0.003
Rank for getting electricity (click link) 4 79 44 57 93
Warehousing space rental (per sq. m.)? US$20 US$5 US$7 US$15 US$10
Ranking for transport infrastructure (click link) (1-7 best) 6.6 4.7 3.6 3 3.7
Ranking for customs procedures out of 10 (click link)? 6 4.8 4.5 3.1 3.5
Average import duty % on raw materials? 0 0 0 0 0
Government incentives for startups? Yes Yes Yes Yes Yes
Computer literacy % of population? 0.9 0.85 0.9 0.9 0.85
Internet connectivity rating? Strong Strong Strong Strong Strong
Global business efficiency index (click link)? 23 33 54 - 43
Preferred manufacturing city? Ras Al Khaimah Al Mazunah Zarqa Port of Beirut Kuwait FTZ
Proximity of sea port in kilometers? 8 11 360 0 0
Proximity of airport in kilometers? 97 200 83.4 19.1 16.9
Literacy % of population 0.9 0.814 0.934 0.939 0.94
Local purchasing power (GDP per capita) US$30,122 US$29,813 US$6,115 US$14,845 US$39,706
Local market size (in millions of people) 9 3.2 6.5 4.5 3.9
Average annual inflation rate in 2014? 0.011 0.013 0.055 0.032 0.027
Average unemployment rate in 2014? 0.038 0.08 0.126 0.066 0.031
Ease of doing business index (click link) 22 66 117 104 86
Country rating (click link) AA A- BB- B- AA
Logistics considerations
Monthly warehouse rental (per sq. m.)? US$20 US$10 US$25 US$35 US$15
Manufacturing space rental (sq. m.)? US$9 US$5 US$7 US$15 US$10
Can rent office outside free zones? Yes Yes No Yes No
Can the entity hire local staff? Yes Yes Yes Yes Yes
Average local monthly salary? US$2,500 US$2,900 US$2,600 US$2,200 US$4,000
Can the entity hire expatriate staff? Yes Yes Yes Yes Yes
Free zone work permit fee per person US$3,950 US$3,950 US$3,950 US$3,950 US$3,950
How long to get work permit approved? 3-4 weeks 2-3 weeks 4-5 weeks 3-5 weeks 2-3 weeks
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