Business Setup Overview
Mainland Business Setup
UAE Mainland
UAE Freezone
UAE Offshore
Taxation
Expert taxation and financial management solutions
VAT Services
Business Accounting Services
Financial Forecast & Projection
Book-keeping Services
Accounts Payable
CFO Services
Inventory Verification Service
Tax Residency Certificate in UAE
Payroll Management
Month End Financial
PRO Services
Professional support for all your business needs
PRO Business Services Overview
MEA & MOFA Attestation
Golden Visa
Property Visa
DUBAI Customs Registration
Assistance in Bank Account Opening in UAE
DIFC Formation
Pioneering Excellence in Financial Foundations.
Overview
DIFC Foundation
DIFC Prescribed Company
About Business
Building & Engineering
Educational Activities
Financial Activities
Gas & Energy
Heavy Industries
Light Industry
Medical
Nutrition & Food
Personal Household
Print & Media
Real Estate
Sports
Activity Group: Transport
Various Activities
Business Setup
Company Formation
Dubai Business Laws
Entertainment & Related
Freezone Company Formation
Offshore Formation
Research Article
UAE Business News
Accounting & Bookkeeping
Business Setup Dubai
Cloth Pressing Business
Construction
Crypto Business
Decoration Design Business
Dry Cleaning Business
Education
Energy and Mining
IT
Financial Services
Fintech
Healthcare
Healthcare Industry
Hotel and Hospitality
Home Based Business
Manufacturing
Media and Entertainment
Online Business
Real Estates
Restaurant and Cafe
Shipping
Telecommunication
Trading
Transport
Travel and Tourism
Utilities
Yoga Centre
Discussed below is a general overview on HOW to set up business in Dubai with Department of Economic development Dubai and all free zones across UAE including different forms of business structure.
Company registration with Department of Economic development Dubai
To date, there are at least quite a number of business structures/forms that are legally permissible to do business in Dubai, as provided for under the Federal Law No. 8 of 1984 as amended by Federal Law No. 15 of 1998 or otherwise known as the Companies Law of 1998. However, the discussion below is limited to the most commonly-used business structure/forms found in Dubai. The other forms or business structures will be discussed in detail in succeeding articles. Also, included herein are the list of the usual documents required in the application for trade/business registration, as adopted from Department of Economic Development – Dubai website.
This is the most preferred and widely used business structure that is appealing to foreign investors because of, among other things, the flexibility of its management structure, which has no restrictions as to who and what nationalities will manage the company. It is however required that, a minimum of 51% U.A.E. national ownership must at all times be maintained. However the UAE national partner has nothing to do with the expatriate’s business operations, profits and losses and he will charge fixed annual remuneration. This can be protected by a side agreement with two witnesses.
This kind of business structure generally allows a professional firm to be wholly owned by foreigners, save in cases of some sectors and activities which are restricted to either UAE nationals or at least imposes a UAE national shareholding requirement.
Professional firms may be in the form of a sole proprietorship or a civil company. Such firms may engage in professional or artisan activities but the number of persons that may be employed by such firms is limited. Further, a UAE national must be appointed as local partner for sole proprietorship, but she/he has no direct involvement in the conduct of the business except to assist in obtaining licenses, visas and labor cards for and in behalf of the Firm. The local partner is paid a lump sum amount accordingly. In cases where there are at least two or more partners, a Civil Works Company is created instead. It is also a must that all individuals directly connected therewith should have the relevant University level qualifications as to their field of business. Consultancy and service providers are among the most common forms of this structure.
These types of business structures allows a foreign entity to wholly and completely own the branch or representative office provided that a UAE national is appointed as the local service agent, whose role is limited to administrative matters such as obtaining visas, licenses and dealing with local authorities. The local service agent is not entitled to share in the profits or losses of the business but is instead paid a fixed amount for the services rendered. The relations between the two parties shall be regulated by a service agency agreement and should not to be confused with a commercial agency agreement.
While a branch office may carry out activities similar to those of its parent company, however, there are certain activities that are restricted. A representative office on the other hand, may only act as administrative arm for and in behalf of their parent company’s head office but is not permitted to directly and actively carry out the business activities.
Foreign Investors who wishes to set up their businesses in Dubai must first consider the idea of having it within the so-called “Free Zone” areas scattered throughout the emirates. Not only for the practical reasons of not having to go through the legal and administrative complexities required for those establishing business outside of free zone areas, but also the substantial incentives and privileges it offers. While these “perks” may vary depending on what Free zone you are in, but basically the following are the most common items to be considered:
For Free Zone Areas, documents needed may vary depending on what free zone area one may intend to set up his business. Therefore, it is strongly advice to get in touch with the respective free zone authorities on this matter.
Free Zone Company- It should also have a board of directors, who must be residents of Dubai, consisting of a minimum of three and having at least two directors and one secretary.
JAFZA , RAKIA and RAKFTZ offers offshore company formation. This types of companies are not allowed to conduct business within UAE. These types of companies can conduct international business outside UAE and can also own assets in UAE.
If you are looking for business setup consultancy, do not hesitate to send us an enquiry by clicking here, or call us directly on +971 -4-4542366.
Our Success lies in honestly and integrity which are used as motivational factors to inspire us to arrive at success as well as prosperity for the company plus our customers.
18,000
20
175
High Tech