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What are types of Business In Dubai?
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The principal forms of business structures are:
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- Limited Liabilities Company.
- Professional License
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What are differences between the two types of license?
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The main differences between the two forms of license are:
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a) L.L.C.: Owners have limited personal liability for the debts and actions of the LLC. Other features of LLC are more like a partnership, providing management flexibility and the benefit of pass-through taxation.
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b) Professional License: A Professional License is a type of company formation structure in Dubai whereby the foreign investor or foreign owner has 100% ownership of the company. It is compulsory to appoint a local UAE sponsor for this type of company also, with the only exception being that the local UAE sponsor does not own any equity in the company.
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Is it possible to establish a limited liabilities company for several business activities?
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No, limited liabilities companies are restricted to trading and industrial activities, and civil business companies are established for practicing professional activities.
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What are the formalities for registration of the Business?
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Once we have decided on the right company for you the
Following processes and fees are paid:
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Initial approval from economic department
- Trade name approval
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Foreign Company Name fees
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Notary fees for court (depend on company share capital)
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Typing LLC contract (Arabic & English)
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Ministry of economic fees
- Trade license fees
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Owner accommodation fees (per partner)
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Government cultural fees
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Commercial services fee
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Commercial license - Tejari fees
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Chamber of commerce
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Waste fees municipality
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Commercial services improvement fees
- License fees
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Auditor's report fees
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5% of office rent for registered address
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Sponsorship Fee
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Do I need a local sponsor? |
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Yes, to operate any kind of business we need local sponsor in U.A.E.
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How many partners can we have in the Company?
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We can have minimum of 2 partners and maximum of 42 partners in the co. (U.A.E. Sponsor 51% + Expat 49%
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Do I need an office for registration?
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Yes, to operate any type of business and to get trade license, tenancy contract of the office is required
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What is the security for 51% in local share?
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As per the law 51% of local share belongs to U.A.E. national but a side agreement should be sign by both the partner and local stating that the local partner will take the fixed yearly remuneration and everything belongs to investor. As it is compulsory to appoint a local UAE sponsor for any type of business.
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We have a panel of reliable and trustworthy local sponsors. Our sponsors range from local UAE nationals who can expedite the various business requirements for you to sponsors who can give you tremendous clout and visibility by being a member of your board. Some of our sponsors are business tycoons and the mere mention of their names will bring immediate recognition and respectability to any new business venture in Dubai. This is crucial when approaching various government departments for permits.
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What is Role of Local Partner?
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The local partners will only be the sponsor of the company and will not interfere in any transaction and has nothing to do with any activity of the company.
In this arrangement, the local UAE sponsor is usually paid an annual "sponsorship fee" in return for giving, in return the sponsor will give all services like licensing with govt. dept such as economic, labor and immigration dept. Management control of the company will always be with the foreign investor. This is why finding the right local UAE sponsor is crucial to the success of your business.
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What is the fee required for issuing the trade license?
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As per Annexure-1
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How much time does it take to establish a Company?
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It takes approximately 5-7 working days depending on the availability of required documents from you.
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Do I need to register the name of the co. and if yes, where and how?
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Yes, you have to give min 5 names to check for their availability with economic dept, we’ll register the name if it is available within the list. If the investor can provide more names, the possibilities of the getting name will be faster.
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Trade License is valid for how much time?
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You need to renew your trade license after every one year based on Annexure-2. Normally the license is issued for one year and the same has to be renewed every one year.
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What is the Benefit of registering the L.L.C. COMPANY?
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You can become the Managing Director or the partner of the co.
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You can operate without the interference of the local.
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You can sponsor your family and enjoy the business status in U.A.E.
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You are eligible for employees visas as per the need of your operation
The liabilities of the partners are limited by the amount of share held by each partner.
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All business activities carried out in Dubai are tax free at corporate and personal level.
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Is my partner required to be here to form the company?
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To form the company we require the partner presence one time to sign the M.O.A. with notary public.
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Procedure of starting Different types of Business?
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Investor can initiate any kind of business by taking the approval from Govt.
Docs, required for formation of Co.
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Passport Copy of the investors.
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If investor is visa holder N.O.C. from the current sponsor.
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Min 5 names to be provided for registering Trade name.
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Tenancy contract of the premises.
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What are the benefits of business setting up in Dubai?
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Generally, people pay taxes in the country they live and/or work in, whether it be income tax, and/or a tax on consumption (eg VAT in the UK, MwSt in Germany, GST in Canada and New Zealand, etc. Tax is also paid on income derived from within a country whether or not you live there eg rental property, investments. But UAE has established a reputation of being largely a tax-free country Dubai's key benefits are
- No personal income tax
- No taxes of any sort and no tax department
- No filing of accounts
- No tax exchange agreements with ANY country
- No public record of directors or shareholders
- Highly flexible banking system geared to the requirements of high net worth international investors
- In short, Dubai offers the offshore solution for the 21st century
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