Legal Structures for Business in Dubai
The Federal Law stipulates a total local equity of not less than 51% in any commercial company and defines seven categories of business organization, which can be established in the UAE. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures. It further lays down provisions governing conversion, merger and dissolution of companies.
General Partnership Company
Partnership in-commendam (Limited Partnership)
Public Shareholding Company (PJSC)
Private Shareholding Company
Joint Venture (Consortium Company)
Professional Companies (Professional Partnership)
Sole Proprietorship Firm to practice a profession
Opening a branch or representative office of the foreign company
Establishments by GCC Citizens
Appointing a Commercial Agent (Exclusive Distributor
Limited Liability Company (LLC)
Licensing
The basic requirement for all business activity in Dubai is one of the following three categories of licenses:
Commercial licenses covering all kinds of trading activity; Professional licenses covering professions, services, craftsmen and artisans; Industrial licenses for establishing industrial or manufacturing activity.
These licenses are all issued by the Dubai Economic Department. However, licenses for some categories of business require approval from certain ministries and other authorities: for example, banks and financial institutions from the Central Bank of the UAE; insurance companies and related agencies from the Ministry of Economy and Commerce; manufacturing from the Ministry of Finance and Industry; and pharmaceutical and medical products from the Ministry of Health.
More detailed procedures apply to businesses engaged in oil or gas production and related industries.
Practicing some trade activities (e.g. jewellery and insurance) requires the submission of a financial guarantee issued by a bank operating in Dubai. In general, all commercial and industrial businesses in Dubai should be registered with the Dubai Chamber of Commerce and Industry.
Types of Licenses
In general, most of the free zones issue the following types of licenses:
1. Trading License
2. Industrial License
3. Service License
4. National Industrial License
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