RUSSIAN Businesses in DUBAI

Due to several reasons, Russian business men have a big interest to invest in DUBAI and opening companies in Dubai. We will not discuss the political or economic reasons here nor sanctions or frozen bank accounts. Therefore, the article is just about the Russian Businesses in Dubai and the interest of Russian investors, entrepreneurs in United Arab Emirates. UAE has been always a friendly state for the world to come here and conduct larger business operations.

For Russian entrepreneurs, like other entrepreneurs from all over the world, there are many options available to establish a business, setup a company. Following companies are allowed to be setup by DUBAI or UAE Government;

• Limited Liability Company
• Free Zone Companies e.g. Resident & Onshore
• Branch Companies (Branch of a parent company in
• Offshore Company

LLC or Limited Liability company is one of the company types in Dubai and UAE. You have to open or run a business anywhere without any restriction in the provided area. Therefore, such companies are also called as Main Land Companies. OLD LLC format was as 51% local partner and 49% the expatriate partner. The new format LLC companies do allow, one owner but that is for specific and allowed business categories. LLC companies need business constitution called as MOU, Employment Contracts and Offer Letters to hire the employees.

There is a standard contract for employment recruitment, but companies can also arrange an internal contract. These internal employment contracts are valid and arranged with the support of Lawyers or Legal Consultants. Just make sure that any deal with your partner, investor or employee must be written. The salaries must be paid through WPS system. Everything must be documented and managed by applying the standard principals. Russian Businessmen can open the LLC companies and gain the corporate benefits.

Free Zone provides the opportunity of 100% ownership and many tax relaxations. There are several Free Zones in UAE. DUBAI alone offers around 20 Free Zones. Russian Businessmen can open the Free Zone companies and enjoy the Tax-Free opportunities. One factor needs to be kept in mind that office space is connected with Free Zone location. Check Rental prices in the free zone before entering in to the process.

Sometimes the Free Zone expense and rental fee can be little difficult to be managed by the companies. So, it is recommended to check the rentals first. You can also have more than One shareholders/partner in free zone license. Free Zone company setup procedure is very easy. It is just portrayed that this is very much difficult which is absolutely false.

Offshore companies are also called as Holding Companies. These types of companies have to manage the business operations in other markets (outside the territory or outer markets). But real estate purchase, and dealing in shares will be exempted. Dubai just allows Jebel Ali Free Zone (JAFZA) where offshore companies can be setup.  Offshore companies also allowed to have Bank Account. Such companies can’t have an office/office space. Such companies are provided an address as a registered address, for their identity. One of the examples are Consultant Services/Companies.

Such types of companies are another branch of its international parent company. Branch companies also enjoy a tax relaxation in UAE. Russian companies can also open their UAE branches in order to expand the business and get benefitted from the opportunities available in UAE. It is such a wonderful business option for the Russian Businessmen. LLC and Free Zone both formations are available for opening.

For branch opening, the foreign parent company must have to hire a local agent to act on behalf. This agent can be a UAE Citizen (Emirati National), or must be owning a company with 100% ownership. This agent can be appointed for one year only. But this condition does not apply on Free Zones. The manager is the authorized person in Free Zone. The branch office or the company can only practice the same services in relevance with the parent company.

• When a business is extended to work as, communication office only, for the advertisement, promotions or for the marketing purposes only, then this is called as Representative Office.
• The subsidiary setup is a type of totally independent company. Here, the parent company works as shareholder but will not be responsible for decision making of subsidiary company.

RUSSIAN BUSINESSMEN can avail the opportunity and get benefit from the growing and existing business opportunity available in DUBAI and all over the UAE. The provided details is about the different types of companies for RUSSIAN BUSINESSMEN. Please must consult the Legal Advisers before entering tin to market practically.