Arrangement of Local Sponsors
Legal Structures for Business
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.
Fifty-one per cent participation by UAE nationals is the general requirement for all UAE established companies except:
In respect of foreign companies registering branches or a representative office in Dubai; In professional or artisan companies where 100% foreign ownership is permitted.
A Limited Liability Company (L.L.C) can be formed with 49% shareholding of expatriates and 51% shareholding in favour of local U.A.E. national. Nominee arrangement is normally made with U.A.E. national to hold the mandatory shares in favour of expatriate partner. This provides effective total control to manage the company and enjoy all profit. The minimum capital required to form an L.L.C. in Dubai is US$ 81,800 which has to be deposited in bank and shall be blocked for approximately 2 weeks time.
The L.L.C should have specific activities as per classification made by the Department of Economic Development, Dubai. Only one category of activities is given to one company except in General Trading where minimum capital requirement is US$ 818,000.L.L.C. is perhaps the only type of entity available for trading and manufacturing concerns.
In United Arab Emirates mainland, all types of business entities require local partner/sponsor. Often enterprises, without any intermediary support, meet with inappropriate local partner/sponsor. Kayzed has empanelled disciplined U.A.E nationals with varied background and expertise to choose from. All these U.A.E. nationals are well educated with fluency in English.
A Foreign company can form a branch of such company with 100% shareholding in the name of Head Office with the appointment of U.A.E., national as an agent. Such entity except in the cases of banks or insurance companies , would not be permitted to involve in actual trading which would only be permitted through awarding agency to U.A.E. operating company.
Such office can be established in the Emirate of Dubai by any International Company or enterprise to represent in the UAE in order to promote its products and services, expand its activities or facilitate the conclusion of commercial contractual agreements between the company represented by the office and its client. Such an office neither carry out any trading activity nor enter into any commercial deals of whatsoever nature
Procedures & Cost: A company in any free zone can be established either as a free zone establishment (FZE) or a branch of the foreign company. Such company can be owned 100% by foreign investor with no involvement of local partner or sponsor.
Currently there are more then 20 Free Zones in U.A.E., which offer the following incentives to the investors:
In general, most of the free zones issue the following types of licenses:
Currently there are more then 20 Free Zones in U.A.E., which offer the following incentives to the investors.
Some of the salient features are:
100% foreign ownership
No corporate taxation for 50 years; renewable for an additional 50 years
Freedom to repatriate capital and income
No personal income tax
Full exemption from import duties
No currency restrictions
No bureaucratic red-tapism
No recruitment problems
Modern efficient communication
State of the art infrastructure
Attractive working environment
Dubai Airport Freezone
Dubai Cars & Automotive Free zone
Dubai Internet City
Dubai Metal & commodities free zone
Dubai Media Free zone
Dubai Gold and Diamond Park
Jebel Ali Free Zone
Dubai Health care city
Sharjah Airport Freezone
Ajman Free zone
Ras Al Khaima Free zone
ABR Free zone
Dubiotech –Advancing the Business of sceince
Dubai flower centre freezone
Dubai international financial centre
Dubai logistics city (DLC)
Dubai Maritime City
The Dubai Multi Commodities Centre(DMCC)
The world’s first free zone
Dubai Silicon Oasis Authority(DSOA)
Dubai Studio city(DSC)