Mainland Company Formation For A GCC Company In Dubai
On June 7, 1981, the states of the Gulf Cooperation Council (the UAE, Saudi Arabia, Sultanate of Oman, Qatar, Kuwait and Bahrain) signed the United Economic Agreement in Riyadh. This agreement has specified key points on forming a GCC company in Dubai, other parts of the UAE and other states under the GCC.
Important points are as follows
- GCC nationals can register their company as a sole establishment or as a partnership firm (given that all partners are GCC nationals).
- A GCC national who is intent on setting up a business and wants to have a non-GCC national as a partner can only set up a limited liability company or an LLC. The UAE national shareholder must own 51% of the shares. However GCC nationals can have non-GCC business partners without the involvement of a UAE national in Dubai for any project worth a minimum of AED 10 million and entirely based on non-GCC knowledge and finance.This move by Dubai DED is also in line with adding value to the emirate’s economy and to empower more skilled workers employment. However such companies can’t be registered without a concrete business plan approved by Dubai DED committee.
- GCC companies wholly owned by GCC shareholders are allowed to open branches in the UAE mainland. Such companies do not need to be referred to the Ministry of Economy.Flyingcolour business setup services can assist in the mainland company formation and registration of businesses that have GCC nationals as shareholders.