Trading Company SetupPacking and Packaging Materials Trading

No additional approvals are required to register a company conducting this business activity.

The minimum share capital required for DUQE company is AED 50,000. Its contribution is optional.

• If a sole shareholder plans to obtain an Investor visa, his/her share in the share capital must be AED 100,000. 
• If there are two or more shareholders, each must have a share in the share capital of at least AED 50,000.

The DUQE company registration provides various benefits and opportunities for entrepreneurs:

• Access to local and global markets. Companies registered in the free zone can conduct business within the free zone and beyond the UAE. This helps to expand business, create and strengthen partnerships and and enables interaction with clients and partners worldwide.
• Strategic location. The free zone is located on the legendary Queen Elizabeth 2 liner docked at Port Rashid. Port Rashid is one of the major seaports in Dubai, providing easy access to international markets via sea and air routes.
• Remote company registration. The free zone enables entrepreneurs to establish their business remotely, without the need for physical presence in the UAE, providing convenient access to the registration process from anywhere in the world.
• Full profit control. The free zone enables foreign entrepreneurs to retain 100% ownership of their company, granting full control over profits and unrestricted capital repatriation outside the UAE. This fosters an optimal environment for strategic financial planning and efficient business management, free from limitations on economic activities.
• Wide range of business activities. The free zone offers an extensive list of business activities, enabling entrepreneurs to develop projects in various industries, including trade, e-commerce, and services.
• Infrastructure. The Queen Elizabeth 2 liner attracts entrepreneurs not only due to its modern office spaces but also because of its hotel, restaurants, cafés, and leisure areas. This provides a comfortable environment for work, relaxation, and networking, fostering a productive and convenient business atmosphere.

Various rental property options are available within DUQE, provided upon preliminary request and subject to availability:

• Virtual Office (AED 0/year). An official registered address without the need to rent a physical office solution. Included in the registration packages. The Virtual Office doesn't afford any visa quotas.
• Flexi Desk. DUQE provides complimentary access to the coworking for the first 6 months, after which the following rates apply:
  • Bronze (AED 2,500/3 months). A workspace in the coworking with access for 60 hours over three months.
  • Silver (AED 3,750/6 months). A workspace in the coworking with access for 120 hours over six months.
  • Gold (AED 5,000/year). A workspace in the coworking with access for 240 hours over a year.
• Dedicated Desk (AED 12,000/year). Dedicated workspace in a coworking with unlimited access during working hours and six hours of conference room use per month.
• Private Office:
  • Office view (AED 55,000/year). A furnished office with a view of office premises, access during business hours, and 10 hours of conference room use per month.
  • Star board view (AED 45,000/year). A furnished office with a view from the starboard side of the ship, access during business hours, and 10 hours of conference room use per month.
  • Port view (AED 65,000/year). A furnished office with a view of the seaport, access during business hours, and 10 hours of conference room use per month.

The UAE imposes a variety of taxes and fees that regulate the financial activities of both legal entities and individuals. Below are the main ones:

1. Value Added Tax (VAT):
   • Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
   • A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are:
     • Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
     • Goods tranferred between or within Designated Zones are not subject to VAT.
     • The export and import of goods between a Designated Zone and a foreign company are also VAT-exempt.
   • For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.
     • Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
     • Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.
     • Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.
     • Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.
2. Corporate Tax:
   • As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
   • A 0% rate is applied to taxable income not exceeding AED 375,000.
   • Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.
3. Excise Tax:
   • Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives.
   • The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy and carbonated beverages.
   • Excise tax rates vary by product category:
     • 50% on carbonated drinks (excluding mineral water)
     • 100% on tobacco products
     • 100% on energy drinks
     • 100% on electronic smoking devices and related liquids
     • 50% on products containing added sugar or sweeteners.
   • Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.
4. Customs Duties:
   • Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Some product categories, such as pharmaceuticals and food items, may be exempt from duties or subject to reduced rates.
   • Goods imported into the UAE's free zones are generally not subject to customs duties as long as they remain within these zones. However, once such goods are moved to the UAE mainland, standard duties apply.
5. Personal Income Tax:
   • In the UAE, personal income is not subject to taxation.
   • UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.
6. Other Local Taxes and Fees:
   • Individual emirates may impose specific local taxes and fees in line with their economic and social needs.
   • These taxes and fees are aimed at supporting public services and implementing infrastructure projects.

DUQE offers the following main types of UAE resident visas for foreign investors and company employees:

• Investor Visa:
  • Issued to foreign investors and entrepreneurs who invest in or acquire companies.
  • Allows for business management, living, and working in the UAE.
  • Grants the right to sponsor family visas.
  • Valid for two years but can be canceled if the investor is absent from the UAE for more than six months.
• Employment Visa:
  • Issued by the company for its foreign employees.
  • Permits residency and employment in the UAE.
  • Depending on the job position, education and specialization may need to be verified.
  • Valid for two years but can be canceled if the employee is absent from the UAE for more than six months.
  • Can be renewed alongside the employment contract.
• Dependent Visa (for family members and domestic staff):
  • Issued to the sponsor's family members and accompanying domestic staff (nannies, housekeepers, caregivers, etc.).
  • Permits residency in the UAE.Valid for two years.