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Dubai Company Formation : Dubai Company Formation Guide. Your ultimate guide to company formation in Dubai for investors and businessmen. Explore various options, procedures and requirements. Discover company formation procedure, cost, price, Dubai company formation agents & consultants.
Dubai Company Formation : Dubai Company Formation Guide. Your ultimate guide to company formation in Dubai for investors and businessmen. Explore various options, procedures and requirements. Discover company formation procedure, cost, price, Dubai company formation agents & consultants.

Company Formation in Dubai

Company Formation in Dubai : Dubai Company Formation Guide. Your ultimate guide to company formation in Dubai for investors and businessmen. Explore various options, procedures and requirements. Discover company formation procedure, cost, price, Dubai company formation agents & consultants. Company formation in Dubai has many opportunities for investors and businessmen. The past 15 years have witnessed incredible growth throughout all sectors of the Dubai economy. The emirate’s government is constantly working to improve its commercial transparency and introduce dynamic regulations that aid the formation of small and medium enterprises (SMEs) and have the ability to react to global financial challenges.

Dubai’s economy is no longer reliant on oil, but is more diversified, relying heavily on trade, services and finance sectors. Dubai has also implemented a strategy to make it the capital of the Islamic economy. The seven strategic directions of Dubai as a global leader in Islamic economy include: Islamic finance; halal food; family friendly tourism, Islamic digital economy; fashion, arts & design; economic education; and Islamic standards & certification. In addition, Dubai has already launched plans to be the global centre for issuance of sukuk (Islamic corporate bonds) and the establishment of an Islamic Governance Centre and the Dubai Centre for Islamic Banking & Finance.

With its central geographic location between Asian and European markets, Dubai has worked hard to establish itself as an integral part of the global trade mechanism. Its central location has also allowed Dubai to become a popular and accessible tourist destination. The Department of Economic Development has been exceptionally forward-thinking, and is moving towards a more streamlined electronic services system in which most aspects of the business set up process is conducted through the internet.

Dubai’s many free zones are another aspect of the city’s growing economy. Established as a way of attracting more foreign investment, free zones adhere to unique laws regarding ownership, taxation and labour. Unlike businesses in the rest of Dubai, which require at least 51% ownership by a UAE national, free zone businesses can have 100% foreign ownership. Legally, companies based in free zones are considered “offshore” so they are unable to trade within the city without an agent or distributor. Free zones also tend to assist new businesses in the set up process.

Company Formation in Dubai

Company Formation in Dubai : Dubai Company Formation Guide. Company formation in Dubai has many business opportunities for investors and businessmen. Get the info about various options for company formation in Dubai with methods and law. Dubai company formation can be tedious and the government has set up stringent rules regarding the type of business an individual or a foreign firm can set up as well as ownership guidelines for different types of businesses. Company formation in Dubai is governed by the emirate individually under the guidance of a Federal Government. Within the Middle East, Dubai is one of the most attractive environments for new company formations, and the government of Dubai is making every effort to ensure a business environment that allows owners a fair amount of operational flexibility within a framework of rules and guidelines. Within the emirate, different types of businesses may also need additional approval from specific agencies prior to obtaining a license.

Dubai Company Formation Options

Having a company presence within the region has several advantages: it is much easier to research market prospects, build contacts and establish a relationship with potential clients and customers. Owing to the unpredictable nature of businesses in the UAE, many businessmen prefer to interact with known entities or those that come through recommendations. This is an important aspect of conducting business within Dubai, even more so than in other countries.

There are several types of businesses an individual or a foreign investment company can opt to set up in the region:

  • Direct Trade Company – Where business is conducted directly with dealers and distributors in the region.
  • Branch Office in Dubai – Additional approval required by the Economic Development Department. Representative offices are allowed 100% foreign ownership with the appointment of a local sponsor. Although sponsors are not involved in the day to day running of the company, their primary purpose is to facilitate in obtaining legal documents such as visas and labour cards and they are usually paid a percentage of the company profits.
  • Commercial Businesses in Dubai – Additional approval required by the Ministry of Economy and Commerce. Commercial businesses require a local individual or company appointee.
  • Limited Liability Company in Dubai – Requires local equity of a minimum of 51% with approval from the Economic Development Department. An LLC company formation in Dubai can be set up by a minimum of two and a maximum of fifty persons. Minimum capital investment is currently USD 82,000 or AED 300,000.
  • Free Zone Companies in Dubai – Companies set up and governed by free zone authorities where the company is wholly owned by the person who sets it up without the need for a local sponsor to act as liaison. Free zone company formation in Dubai have many benefits including exemption from import duties, easy recruiting procedures allowing access to competitive skilled labour and a high level of administrative support from free zone authorities.

Licensing requirements

All Dubai company formations need a license to operate legally in the emirate and in general, should be registered with the Dubai Chamber of Commerce and Industry. These licenses fall into three main categories:

  • Commercial licenses – These govern all types of trading activities
  • Professional licenses – These govern professional services, craftsmen and artisans
  • Industrial licenses – These govern industrial and manufacturing activities

Most licenses are issued by the Dubai Economic Development Department. However a few industry specific licenses are issued by other authorities and ministries:

  • Department of Tourism and Commerce Marketing – Issues licenses for all hotel and tourism related businesses
  • Central Bank of the UAE – Issues licenses for all banks and financial institutions
  • Ministry of Economy and Commerce – Issues licenses for all insurance companies
  • Ministry of Finance and Industry – Issues licenses for all manufacturing companies
  • Ministry of Health – Issues licenses to companies dealing in medical and health related products and services

Company Ownership

In general UAE law stipulates that UAE nationals hold a 51% stake in all companies established within the country with a few exceptions:

  • Where local nationals are required to have 100% ownership such as in general partnership companies.
  • In free zone areas where 100% foreign ownership is permitted without the requirement of a local sponsor.
  • In professional companies or those that deal with artisans where 100% foreign ownership is permitted.
  • Where wholly owned GCC (Gulf Co-operation Council) companies enter into a partnership with UAE nationals
  • Where 100% ownership for GCC nationals is permitted
  • When registering a branch or representative office in Dubai

Procedure for Company Formation & Registration in Dubai

Dubai company formation requires the completion of the following steps before a business owner is legally authorized to operate within the emirate of Dubai

  • Determine type of business and categories of activities to be practiced. Each business license can register up to a maximum of ten activities per license.
  • Determine the appropriate legal structure for your business including ownership requirements.
  • Confirm all the requirements required for a new business registration including all approvals from relevant authorities.
  • Establish a trade name for the business. There are some terms and conditions that apply to approved trade names for businesses.
  • Visit the relevant department or apply online for initial approval and registration of selected trade name.
  • Once initial approval is received, the owner can then select a location for the office with approval from the Planning Department of the Dubai Municipality.
  • Apply to the relevant department for a signboard permit displaying the approved trade name

There are several agencies that can facilitate business set-up within Dubai and the Dubai and Jebel Ali Free Zones for a fee. Even though the laws governing Dubai company formation and registration are quite stringent, these have been established to meet the legal requirements of all governing authorities while striving for maximum profits for business owners.

Dubai Company Formation Cost & Company Formation Prices : Dubai Company Formation Cost & Prices : Cost Breakup for LLC Company Formation in Dubai. Explore company formation procedure cost and price

Dubai Company Formation Cost & Prices

Dubai Company Formation Cost & Prices : Cost Breakup for LLC Company Formation in Dubai. Explore company formation procedure cost and prices.

  • Initial approval from economic department cost & prices : 110 AED
  • Trade name approval cost & prices : 210 AED – One time Expense
  • Notary fees for court (depend on company share capital) : 900 AED
  • Typing LLC contract (Arabic & English) cost & prices : 1250 AED
  • Ministry of economic fees and expenses : 3000 AED
  • Trade license fees and cost : 200 AED
  • Owner accommodation fees (per partner) 1000 – Cost Per year
  • Government cultural cost & prices : 10 AED Per year
  • Trade Name Advertisement cost & prices : 500 AED Per year
  • Commercial license – Tejari fees: 150 AED Per year
  • Chamber of commerce Cost : 1200 AED Per year
  • Waste fees municipality: 1000 AED Per year
  • Commercial services improvement fees: 400 AED Per year
  • License fees & Cost : 550 AED Per year
  • Administrative Services Fee & Cost : 50 AED One time Cost
  • Chamber of commerce fees AED 1200 per year is for normal trading company. If it is an industrial company then this fees comes to AED 2200.
  • Waste fees for municipality AED 1000 per year is for normal trading company. If it is an industrial company then this fees comes to AED 2000.
  • For foreign trade name there is an extra fees of AED 2000 per year.
  • For the formation of General trading company one-time fees of AED 15,000 is required.
  • For Contracting License one time fees of AED 10,000 is required.
  • For Real Estate Brokers Company fees for Economic Department of AED 5,000/- is required.
  • 5 % of Amount premises rent to be paid to Government.
Dubai Company Formation : Dubai Company Formation Guide. Your Ultimate Guide to Company Formation in Dubai for investors and businessmen. Explore Various Options and Requirements. Company formation in Dubai has many opportunities for investors and businessmen. Get the info about various options for company formation in Dubai UAE
Dubai Company Formation : Dubai Company Formation Guide

Dubai Company Formation Guide

Dubai Company Formation : Dubai Company Formation Guide. Your ultimate guide to company formation in Dubai for investors and businessmen. Explore various options, procedures and requirements. Discover company formation procedure, cost, price, Dubai company formation agents & consultants. Company formation in Dubai has many opportunities for investors and businessmen. Advantages of Dubai company formation attract many investors and businessmen from all over the world to this vibrant city every year. Favorable business conditions in Dubai is one of the major reasons why investors from various origins and sectors consider company formation in Dubai.

A guide to company formation in Dubai. Explore various options and requirements. There are various options for Dubai company formation. The most ideal choice of course depends on the type of business and its goals. This guide to “Dubai Company Formation and business setup in Dubai“ explains the various options for business registration in Dubai which was originally published in the website of Cross Border Business Consultants.
In order to set up a business in the United Arab Emirates, and hence in Dubai, a foreign investor is required to setup a formal legal presence (directly or through an agent) within the United Arab Emirates through any of the following means:

  • Local business setup in Dubai.
  • Register a branch or representative office in Dubai.
  • Free zone company formation in Dubai.
  • Entering into a commercial agency relationship.

1. Mainland Company Formation in Dubai

A local entity can be formed under either the UAE Civil Code or the Company Law.

Dubai Company Formation under the UAE Civil Code.

Businesses formed under the United Arab Emirates (UAE) Civil Code are restricted from carrying out “non-commercial” or civil activities — these are activities that promote the skills and ability of the people conducting the business. Most consultancy services, the production of works of art or literature and the sale of agricultural products by farmers are examples of activities that may be conducted by a United Arab Emirates Civil Code entity.

A Civil Code entity in United Arab Emirates (UAE) may take one of the following forms:

  • (i) the professional services entity.
  • (ii) the speculative venture partnership.
  • (iii) an Islāmic Shari’a-compliant arrangement known as a Mudaraba.

Although these three entities are generally called companies, legally they are not companies. The only companies which may be formed in the United Arab Emirates (UAE) are those set up under the Companies Law.

The most common form of UAE civil code entity used by foreign investors is the professional business services company. Such entities are only proper for carrying on service businesses.

The primary benefit of a professional business services company is that a foreign person can own 100% of such companies. However, a national agent must be engaged by all such companies. The national agent generally receives a fixed fee. He / she is not liable for the debts and liabilities of the company and has no management authority. The agent is required to sponsor the professional business services company for its license application and interact with government bodies.

A key disadvantage of a professional services company is that it is not a separate legal entity from its foreign owner. So in spite of a great business environment, the foreign owner may face tough legal and economic situations depending on the fate of the UAE Civil Code entity.

Dubai company formation under the Companies Law.

All locally incorporated companies (other than those formed under the UAE Civil Code) must be setup by the Companies Law. The Companies Law requires companies to adopt one of the following forms:

  • Limited Liability Companies (Dubai LLC).
  • Private Joint Stock Companies.
  • Public Joint Stock Companies.
  • Joint Participation Ventures (or Private Unlimited Companies).
  • Limited Partnerships.
  • Partnership Limited with Shares.
  • General Partnerships (or Joint Liability Companies).

Of the entities listed above, most foreign businesses choose the option of Dubai LLC (limited liability company). Foreign partners can exert significant control over a Dubai LLC (limited liability company). Moreover it requires a relatively small amount of capital to start a Dubai LLC.

Such an entity may, however, be inappropriate to meet certain business goals. For example, businesses involving banking, insurance or investment activity for third parties may only be conducted by a public joint stock company and not by a Dubai LLC. Limited liability companies may not offer their shares for public subscription, which is a central feature of the public joint stock company.

The key limitation on entities incorporated under the Companies Law is that 51 percent of the capital of a company must be owned by a national of United Arab Emirates. However, it is possible for the constitutional documents of a Dubai LLC (limited liability company) to contain the following provisions designed to protect the interests of a foreign minority shareholder:

  • The foreign shareholder may appoint all the directors.
  • Foreign shareholder may appoint the general manager.
  • Foreign shareholder may veto major decisions of the company.
  • Foreign shareholder may be entitled to all the assets of the company on winding up.
  • Foreign shareholder may be entitled to more than 49 percent of the company’s profits.

Dubai Company Formation Guide PDF : Dubai Company Formation : Dubai Company Formation Guide

2. Opening a Branch or Representative Office in Dubai

Articles 313 to 316 of the Companies Law let foreign companies to open branches or representative offices within the UAE. A branch or a representative office of a foreign company may be wholly owned by foreigners. However, Article 23(1) of the UAE Commercial Code requires non-UAE nationals engaging in “commercial business” in the UAE to partner with a UAE national who owns 51 percent of the capital of the company.

Accordingly, branch and representative offices which are wholly owned by foreigners may typically only engage in non-commercial business.

Further, a branch office must only engage in those activities that are carried out by its parent company. A representative office is more limited than a branch office in the scope of activities that it is permitted to undertake. A representative office may only conduct marketing and administrative functions such as business services for its foreign parent.

3. Free Zone Company Formation in Dubai

There are many free zones in Dubai where foreign investors can set up their business. It is a fact that the business environment in the country has been benefited and improved with the presence of many free zones. This particular topic will be discussed in our posts later. In this article, we will just discuss the very basic features of a Dubai Free Zone Business Formation.

UAE Free Zones offer an attractive alternative to Dubai mainland business. UAE Free Zones are particularly useful for companies which carry out a major part of their businesses with countries other than UAE. The main benefit of a Dubai free zone company is that it can be wholly owned by a foreigner. A Dubai free zone company can also be granted certain ancillary financial benefits depending on the policies and business environment of the free zone authority. Free zone company formation in Dubai will generally take one of the following three forms:

  • A branch or representative office of a foreign company.
  • A free zone company.
  • A free zone establishment.

The key limitation of a UAE free zone company is that it is generally permitted to conduct business solely within its relevant free zone and is limited to performing solely those activities specified in its license.

A UAE free zone entity must typically hold one of the following licenses issued by the relevant UAE free zone authority:

  • (i) Trading license.
  • (ii) Service license.
  • (iii) Manufacturing / industrial license.

For a UAE free zone entity to engage legally in sales within the United Arab Emirates (and outside of the relevant free zone), the entity will generally have to keep a commercial agent or distributor. However, UAE free zone entities with service licenses have been known to offer services outside of their free zone without any movement of goods, people and assets outside of the free zone.

4. Commercial Agency Relationship

If a foreigner wishes to carry out business in the UAE but does not wish to keep up a physical presence in the UAE, it may enter into a commercial agency relationship with a wholly local owned entity or UAE national. Commercial agents are generally used by foreign manufacturers and traders who are engaged in the large-scale importation of goods into the UAE.

Under a commercial agency, the foreign business and the commercial agent agree to the terms of the sales commission, the territory of the distributorship (at least, this would be one Emirate) and the duration of the relationship. If the commercial agent registers the contract with the Ministry of Economy and Commerce, the agent can get the various protections afforded to agents under the UAE Commercial Agencies Law.

​These protections include:

  • Exclusivity — registered commercial agents have the exclusive right to import the goods which are the subject matter of the agency.
  • Commissions — registered commercial agents are entitled to receive commissions on the sales they make as well as commissions on sales made in the UAE by the principal or any other party.
  • Termination — the principal may only end a registered commercial agency arrangement unilaterally for “material reasons”. Such reasons must be acceptable to the Commercial Agencies Committee. Further, a principal may not refuse to renew a registered commercial agency agreement after its expiry date without the payment of compensation to the registered commercial agent.

Dubai Company Formation Online Resources

Dubai Chamber Economist – Dubai Chamber
Economic Research in Dubai – Dubai Chamber
Economic research and studies from Dubai – Dubai Economic Department
Investing in the UAE – UAE Ministry of Economy
Free Zones in the UAE – UAE Interact
Statistical surveys in the UAE – Dubai Statistics Center
Why invest in Dubai – Dubai Health Authority
Dubai for business – Dubai International Finance Centre

Free Zone Company Formation in Dubai UAE : Dubai Company Formation Guide PDF : Dubai Company Formation : Dubai Company Formation Guide

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Company Formation in Dubai : Dubai Company Formation Guide

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Company Formation in Dubai : Dubai Company Formation Guide. Your ultimate guide to company formation in Dubai for investors and businessmen. Explore various options, procedures and requirements. Discover company formation procedure, cost, price, Dubai company formation agents & consultants. Company formation in Dubai has many opportunities for investors and businessmen.

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  1. Company Formation in Dubai : Dubai Company Formation Guide

    Dubai Company Formation : Dubai Company Formation Guide. Your Ultimate Guide to Company Formation in Dubai for investors and businessmen. Explore Various Options and Requirements. Company formation in Dubai has many opportunities for investors and businessmen. Get the info about various options for company formation in Dubai UAE.

    Ever wondered why Dubai is the destination for the world’s top conglomerates? According to CBRE, more than half of the biggest global conglomerates operating offices are present in this dynamic city. In a very short period of time, it has established its image and reputation as a vibrant and diverse destination offering quality hospitality, first class infrastructure and range of attractions.

    Over the last couple of decades, the growth in financial and business services, trade logistics and tourism activity has played an important role in fuelling Dubai’s emergence as a global hub, showed by Knight and Frank in their Hub Report 2015. The Emirate is among the easiest to establish business globally. IMF suggest that UAE’s economy will outperform UK, Germany, US, Singapore and Hong Kong over 2015-2020.

    In the recent years, the city has become a major tourist destination and air travel hub. Tourists increased their stay in Dubai to catch on the cities attraction. The city has more than 100,000 hotel rooms ranging from five-star luxury to pocket-friendly mid-range options. Since 1999, every year 17 hotels are added to the existing portfolio of hotels in Dubai and estimates suggest that the number of rooms will add up to 160000 rooms by 2020 Expo. This boom shows no sign of slowing down in the coming years.

    Dubai in the last few years has excelled as a destination for meetings, conferences and exhibitions and sporting events. The city has witnessed a plethora of sports personalities flocking the cities sports infrastructure for international standard sports events. The hospitality infrastructure which includes transportations, hotels, restaurants and other facilities are rapidly expanding along with quality service standard for the visitors.

    One of the key factors is Dubai’s strategic location between the Far East and Europe; it becomes the economic center for Asia, Africa, Europe, and Russia.

    Dubai offers opportunities to enterprises of all sizes, in other words, it has a hospitable business climate. The city has recently become home to aspiring multinational companies and entrepreneurial activity. The service sector contributes considerably to Dubai’s GDP and is the fastest growing industry.

    The city has become a center of trade and commerce for the Middle East. Dubai is home to more than 20,000 international companies, including offices from 124 of the Fortune 500. The government is pro-business, with the most transparent business regulations in the region, and provides tax-free zones, first-class physical infrastructure and access to an experienced and skilled labor force.

    Dubai is a growing knowledge hub and has a number of universities and research centers committed to developing technological and scientific advancements. Free Zones such as Dubai Healthcare City is known for more than 4,000 licensed professionals in two hospitals and more than 120 outpatient medical centers and diagnostic laboratories area covering 4.1 million square feet in the heart of Dubai. On the other hand, Dubai Internet City and Dubai Silicon Oasis offer state-of-the-art technology, research and development and industrial facilities, while Dubai Biotechnology and Research Park is the leading life sciences hub in the Middle East.

    Dubai Association Centre (DAC) is a gateway to the world’s fastest growing economies. It offers an ideal setting for global associations to expand within industries across the Middle East and beyond. The DAC has been established by the Dubai Chamber of Commerce & Industry, the Department of Tourism and Commerce Marketing. The Dubai World Trade Centre offers assistance for the establishment of nonprofit, apolitical and non-religious professional associations and trade bodies in the Emirate of Dubai.

    DAC works as a support system for associations to establish themselves in Dubai. It allows practitioners within a common industry or profession who are registered in the Emirate to form a member-based association. Additionally, DAC provides the framework for international associations to open a regional representative office in Dubai in order to conduct business in the UAE and beyond. This has resulted in associations to benefit from economies of scale, experience in the association marketplace, flexibility and adaptability, buying power and getting centralized DAC facilities.

    Dubai has an abundance of tourism opportunities and a huge influx of business travelers. Many economies in the Middle East and elsewhere in the fast-growing emerging markets have faced obstruction by laws that restrict foreign owners and investment. Dubai, to its economic advantage, has set up special zones where the laws encourage international investment and favor particular industries. Thus, utilizing the free trade policies to get an edge over its neighbors. The low taxes, investor network, funding availability, affordable free zone makes Dubai an ultimate destination for new age entrepreneurs, who rely on new technology to establish their startup.

    Service professionals and companies, including expats, neither pay sales nor income tax in Dubai. The city insulated from the declining oil prices and also does not rely on commodities to power its economic growth, based on a report by the Brookings Institute.

    Today, trade and tourism account for more than 28 percent of the GDP; business and finance, which account for more than 27 percent; and transportation, accounting for nearly 14 percent. This makes trade and tourism the biggest sector of Dubai UAE.

    The rise of Dubai from a desert city to being one of the hottest destinations for hospitality and investment has been based on exceptional planning of the founders of Modern Dubai. It’s the foresight of these founders, who realized that the natural resources are the solution for the present day. The Dubai they built will provide for generations even after the natural resource in the Middle East would cease to exist. The forefathers of this nation aimed to build a modern trading hub which would ensure that the resources would continue to flow into the city and generate income just like other major global hubs such as London, New York, and Paris, which have sustained for decades and are business friendly

  2. Company Formation in Dubai : Dubai Company Formation Guide

    Dubai Company Formation : Dubai Company Formation Guide. Your ultimate guide to company formation in Dubai for investors and businessmen. Explore various options, procedures and requirements. Discover company formation procedure cost, price, Dubai company formation agents & consultants. Dubai is one of the most beautiful as well as attracting city in the world for expat; that is to establish their business. Dubai Mainland Companies offers freedom; as well as benefits which are very unique in this part of the world.

    The awarding of Dubai with the Expo 20 20 Dubai mainland company formation; that is become more vital for expat then other options. Because if you setup a mainland company; then you are free to do business in uae local market. A Mainland company setup in Dubai will give you a direct access to UAE local market; that is why mainland company formation is also known as local company formation.

    Mainland company formation in Dubai : Mainland company formation in Dubai has requires a local emirate national; which is also know as local sponsor or local service agent. Local sponsor is require for commercial as well as for industrial license; while local service agent is requires for professional license. In main land 51% share are reserve for local sponsor. And 49% share are for expat. However our local sponsor which we will provide you; will give you full power of attorney and will avoid any involvement; in the operations or in profit sharing.

    DED is the regulatory authority for main land company; and responsible for issuing all licenses related to main land company. DED acts as a one window service center for all mainland company formation.

    Steps for mainland company formation in Dubai

    Select business activity for mainland company in Dubai : There are more than 3000 business activities allow in Dubai; which fall into different groups as well as classes. The selection of activity and it correct class is very important. If you select a wrong class and start your business; you may be stop from doing business under that particular class. And possible to pay fine as well; so the selection of proper class is as important as breath to a soul. If you are going to select an activity which is currently not in practice in D.E.D. Then DED may create a new business activity for you.

    Select legal form for Mainland Company setup in Dubai : A legal form is an explanation of what sort of business you are planning to start. When you choice a legal form for your mainland company setup in Dubai. You must take into account the business activities; business type, the nationality of owners and the ownership options. Mainland company formation in Dubai can take number of legal forms. Following are the some legal form of the mainland company setup in Dubai

    Select trade name for Dubai mainland company : After selecting activity and it class, next step is to select a trade name. You will suggest three trade names. When choosing a name for your company you should follow general trade name selection guidelines. During the application process for dubai mainland company; you will get a payment voucher or a transaction number. Please remember the following points for trade name reservation:

    A Trade Name of Dubai mainland company is valid for 60 days; it has to be renew within one week before it is due to expire; trade Name of Dubai mainland company can be renew online only once; You have pay for your trade name on the same day as you apply for it and a Trade Name that has already expire cannot be renew

    Apply initial approval for Dubai mainland company registration: Next step in mainland company registration is Initial Approval. It is a document which says that the DED has no objection on you to start a business in dubai. It means you can take the next steps to get a business license.

    Depend on the legal form of mainland company formation in dubai; all the partners may need to draft and sign an MOA. In some cases, need to sign a LSA with a local sponsor; who will represent your company with concerns to license.

    Establish your business location Mainland company formation Dubai : Mainland company formation Dubai must have a physical address. Before you finalize the physical address of your company. Let me tell you that the DM has to confirm the location. You can also select to place your business in an authorized business center; and then in this case you do not need to approve your location from DM.

    If one of the partners in the company is a UAE national; that is, he has a license in a specific location; then you can place your new company to the same office; as long as the space is larger than 500 sq. ft. For establishing multiple business licenses to a single location; you will need to take an approval from existing partners to DED counters.

    Finial submission of documents for Mainland Company Setup Dubai : If you have successfully completed the steps above; you need to submit all the documents to the DED for final submission. Depend on your activity, the processing time for your final submission is up to 7 days.

  3. Company Formation in Dubai : Dubai Company Formation Guide

    Dubai Company Formation : Dubai Company Formation Guide. Your ultimate guide to company formation in Dubai for investors and businessmen. Explore various options, procedures and requirements. Discover company formation procedure cost, price, Dubai company formation agents & consultants. Every company has its own merits and as well as demerits. So, it is very important to have knowledge about these businesses, legal form of the company and his main activity. Also, it is important to know the legal aspects of doing business in UAE.

    Let me tell you one thing about our team; that is our team of expert consists of very experience people. Our team has deep knowledge and understanding of Company formation and its structure. UAE is a great choice for company formation. UAE Company formation law is very flexible for new startup companies. If you are planning to start a new company in UAE. Then you are on a right place to get advice of experience consultants.

    License for Company Formation in Dubai : First of all in the first place; to run a company in Dubai; you must have a valid license from the govt of Dubai. License is a legal document which allow a Company to operate their business activity. Another word we can also says that a license is a certificate; that allow a company to practice any type of activity. It this point let me tell you one more thing; that is there are special department in each state of UAE to issue license to companies. In dubai DED is the concern body to issue license. A company register with DED is allow to do business in local market without any restriction.

    First of all in the first place; DED is responsible for issuing these type of license. But some activities require approval from other ministries; also different authorities. For example, medical products from the Ministry of Health. Banks also other financial institutions; require approval from the Central Bank of the UAE etc.

    Company formation in Dubai need an office inside in Dubai. It this point let me tell you one more thing; that is DED do not allow to apply for a virtual office. In addition to all these point; let me tell you one thing more; that is that It is necessary to do a tight analysis before applying for license.

    Local sponsor for Company Incorporation in Dubai
    First of all in the first place; you must need to know that; expat are not allow to hold 100% of company share in an LLC. There must be a local sponsor which will have majority of share in the company. For company formation in Dubai local sponsor will hold fifty one percent (51%) of share. And therefore, the foreign investors will owns the 49%. The profit and loss distribution with local sponsor (UAE National) is a separate contract. It this point let me tell you one more thing; that is Local sponsor is a person or a company of a local. They have no obligation towards the company. However, their duty is to help with all government work; such as getting permits, trade licenses, visas and labor cards. His/her signature are mostly, use on official document.

    Local Service Agent for Company formation in Dubai : In professional form of company formation in dubai expat can hold 100% share of the company. But, it still requires a UAE national known as Local service agent. Local service agent has no share in the company. Local Service Agents are involved in contacts with government department on behalf of principal companies

    Sole Proprietorship form of a Company formation in Dubai : First of all in the first place, if only one person form a company; then it is a Sole Proprietorship form of a company. That is in this type of company formation in Dubai; one person runs the entire show. There for he is not only liable for his share; but also for entire company assets. This type of company can either conduct professional activities or commercial activities in UAE. Furthermore, only UAE local; also GCC nationals can form Sole Proprietorship.

    They can perform commercial activities; as well as professional activities. However, expats can also own a Sole Proprietorship; only for performing professional activities; such as medical services, management consultancy; engineering consultancy, legal consultancy, also IT consultancy. Moreover for Sole Establishment; expat should appoint UAE national as a Local Service Agent; who will represent company in government departments. That is applying for work permits; employment visas and also other approvals.

    Commercial Companies form of Company formation Dubai : Commercial company formation Dubai has several type; these are specified in the Federal Law No. 8 of 1984 (Commercial Companies Law). They are basically setup to operate commercial activities in the local market; also subject to certain exemptions. Under the Commercial Companies Law; the company formation Dubai are normally define as “A contract in which two or more persons; are devoted to contribute in profit making economic project; either by providing cash or work contributions; and also to divide between them profit or loss rising from such project”.

    General Partnership / Joint Liability Company formation Dubai : GP or JLC is yet another type of company formation Dubai; to emphasize on the agreement between two or more parties; in which each of them is equally liable; for the entire company liability. Also according to UAE Company Law Art 23; Only UAE nationals can setup this type of partnership. It this point let me tell you one more thing or you can say one more point; which i think is a key point for all of us; and also i think it will work to understand the whole case; and show all the thing in clear way; that is JLC option is not available to expat; because mostly their assets are locating outside the UAE.

    Simple Limited Partnership (SLP) form of a Dubai company formation : This kind of a company is form under the Art. 47 of Company Law. It is the type of company formation Dubai. In which one or more partner are jointly connected. That is they are liable for the company liabilities to the amount of all their assets. Also note that there are one or more sleeping partner; that is to form this kind of company. That is liable only to the amount of their respective contribution in the capital. It this point let me tell you one more thing; that is this type of partner ship is also limits to only for UAE nationals.

    Joint Venture company formation in Dubai : JV company formation in Dubai is also a contract between two or more partners. They are sharing profit and loss of a commercial company. Also note that in JV the business is run on the name of one partner. In addition to this a local will hold at least 51% of share in JV. But they will agree to profit and as well as on a loss sharing. JV forms of company formation in Dubai; are also fit for to work on short term basis. Joint Venture JV agreement controls the relation ship between partners. It this point let me tell you one more thing; that is in practice, there is no set up for the Joint Venture JV in the real. Joint Venture JV partner ship will operate using the name of one partner.

    Public Joint Stock Company formation Dubai : This kind of company formation Dubai is define as; company whose capital is divide into equal negotiable share value. Partners are liable only; to their share in the capital of the company. PJS company formation Dubai; requires a minimum of 10,000,000 share capital. A minimum of 25% share are available for subscription.

    A minimum of 55% share of a PJS company must offers to the public. In addition to this, it must have at least 10 founding members; except in case where the government body is involve. Also note that in any company in which the gov’t; or Public Organizations hold any share should be form as Public Joint Stock Company. The board of directors have a minimum of 3 and max of 12 board members. The chairmen also; a majority of the board members are UAE Locals.

    LLC form of company formation Dubai : LLC is the most common form of company formation Dubai. That is, In LLC the expat can act as partners in the company. Also their liability limit; are only to their share in the capital. This type of a company form under the Art 22 of the Company Law. In this type of company a UAE local is require; that is he will hold 51% of share; also expat can hold 49% of share.

    But the most important thing which you need to know is that; both parties will agree on distribution of profit as well as on lass. The minimum of 2 & the max 50 share holders can form an LLC. The minimum 300,000 AED share capital requires for an LLC. Also please note that 1,000 Dhs is the minimum share value of each share. However, at is now necessary to have capital amount deposit in the bank.

    Partnership Limited by Share form of company formation Dubai : This type of a company form under Art. 256 to 272 of the company Law. That is, It seem like, Simple Limited Partnership (SLP); as it is define in Company Law Art 256. That is, “A company where share holders are jointly liable to the amount of all their company assets; also there are some contributing share holders; which are liable only to the amount of their share only in the capital”. It this point let me tell you one more thing; that is, that only the liability of a UAE local is not limited. In this type of a company the minimum share capital is 500,000 Dhs.

    Civil company formation in Dubai : Civil Company is an other form of company formation in Dubai. In a simple word we can say that, it is an association of two or more parties; who is agree to carry out professional work. They are liable to third parties against payment of consideration. In this type of company skills of a share holder are judge. Civil company formation in Dubai follows the Federal Law No. 5 of 1985.

    In a simple word we can say that, it is form of company formation Dubai. In which expat can get 100% share of the company. But it subject to certain situations. In this type of company an LSA is require instead of a local sponsor. For example HR consultancy, Legal consultancy, Management consultancy; is the best example of this type of a company. This type of company is similar to the GP; that is in form of legal status.

    Branches and Representative Offices form of company formation in UAE : It is another type of company formation in UAE. Both local and foreign companies can establish their branches as well as representative offices in the UAE. Let me tell you that there is only one rule of UAE; that is separate license for each entity. So it is very clear that, branch license and as well as representative office; need separate license for each of one. Even though they are consider as the part of their parent company.

    In terms of legal form and set up process. So it is very clear that, the branch and also representative offices are similar; but, there are certain differences between them. For example, in the first place branch can perform the same activity of the parent company. However, the representative offices can only promote their parent company. And also note that it is not allow doing any trade or providing services.

  4. Company Formation in Dubai : Dubai Company Formation Guide

    Dubai Company Formation : Dubai Company Formation Guide. Your ultimate guide to company formation in Dubai for investors and businessmen. Explore various options, procedures and requirements. Discover company formation procedure, cost, price, Dubai company formation agents & consultants.

    Offshore Company Formation in Dubai : Over the past 30 years, Dubai has established itself as a world renowned economy, boasting thousands of successful companies in commerce, finance, engineering, logistics, and transport. One reason that the emirate has been so successful, is because the government has gone to great lengths to ensure that there are laws and special schemes in place, which encourage foreign investment. From joint local and foreign investment, to 100 per cent foreign owned free zone companies, if you’re thinking about forming an offshore company, you will be able to find an option that suits you.

    Finding Consultants to assist in Company Formation in Dubai : If you’re new to company formation and investment in the region, then you will benefit from expert assistance in identifying the best way for your venture to move forward. Nam Associates can help in this area. Our deep understanding of the local economy, laws, and customs, will help you to form the kind of corporate structure that is best suited to meeting your business objectives.

    You have plenty of options available for establishing an offshore company in the UAE. You may choose to create an LLC with a local partner. This will allow you up to 49 per cent ownership, and the ability to obtain a local business license and locate anywhere that you choose, in Dubai.

    Another option may be to set up in a local free zone, as a startup business, or even as a satellite of an existing company. Free zones in Dubai provide economic advantages like a 50 year tax free period for corporate taxes, as well as zero taxes on capital gains and personal income. A free zone business can even tie into a director residence visa, so it’s important to consider this when you look at all of your options.

    Whatever route you decide to take, it is important that you have a clear understanding of business in the UAE, and how laws and regulations can affect the success of your business.

  5. Company Formation in Dubai : Dubai Company Formation Guide

    Dubai Company Formation : Dubai Company Formation Guide. Your ultimate guide to company formation in Dubai for investors and businessmen. Explore various options, procedures and requirements. Discover company formation procedure, cost, price, Dubai company formation agents & consultants.

    Are you planning for a Company Setup in UAE, that gives prime importance to strategic growth? Yes, we guessed it right! We’re indeed talking about Dubai here. Well, not only Dubai but the entire Middle East region is rapidly growing and we are extremely confident about the idea of Company Setup in a growth-oriented market like this. We, at Nam Associates, understand your requirement of establishing a Company Setup in Dubai and we take pride in mentioning that we focus on providing Company formation solutions in the heart of the United Arab Emirates (UAE). We at NAM, DWC Dubai, JLT, DMCC and UAE, offers a stable platform for a dream that is about to become a reality. We believe that it is a great idea to explore and exploit this evergreen market of UAE, which is constantly buzzing with golden opportunities.

    Company Formation in Dubai can be a daunting process for new investors. We can help in facilitating you with a cost effective Business / Company Setup in Dubai UAE. Business licensing and trade licensing issuance can be a lethargic process for the investors. We can take the responsibility of getting all your necessary documentation done with full compliance and up to your satisfaction.

    What’s more, we offer the best market competitive rates for all your documents processing and clearance. Your requirements are the key aspect in processing your case of Business/Company Setup in Dubai. A reliable business sponsor can also be arranged as per your business requirements in Company Formation in UAE. We advise you about the right time for processing your Company Formation documentation in UAE depending on your circumstances and knowing when you are ready to do business.

    Following are some types of company formation that you can make in UAE:

    A general partnership company formation– A partnership Business/Company Setup can have two or more partners investing in the same business where the profit gained is shared equally among them. Each partner is liable equally for all the liabilities, including tax, duties and other deductibles.

    Public Shareholding Company formation- It is a type of company where the investment is divided into equally negotiable shares. Each shareholder in the company is liable to a limited number of shares owned by him. The minimum investment required in a public shareholding company is about 10million AED.

    Private Shareholding Company formation–Incorporation of a private shareholding company in the UAE requires a minimum of 3 persons investing in the business. A private shareholding company is not allowed to invite the public for buying its shares. The minimum capital required for investing in a private shareholding company is 2 million AED.

    Joint Venture Company formation– It is that business where two or more partners mutually agree in sharing the profits as well as the losses incurred by their business. The contract for such partnership need not to be notarized and can also be just an oral commitment among the partners.

    Limited Liability Company LLC – A limited liability company can be formed with 51% shares for the local UAE residents and 49% shares for the expatriates.

    Free zone Company – A free zone company gives 100% ownership to the investor with extreme liberty in taxation and other deductibles.

    As far as Company setup of LLC, Professional firm, Branch offices, Joint ventures and Shareholding companies is concerned, it is important to know the basic legal norms. We also recommend that you take a note of the documents required for a successful completion of the business formation process.

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