Dubai
is known around the world for the excellent business environment
it offers. Rules and regulations for conducting business
from Dubai are among the most liberal and attractive in
the region. International companies seeking to establish
a business presence in Dubai have a host of alternatives.
Besides trading, many companies prefer setting up an office
in Dubai to liaise directly with customers and further expand
their area of operations. Having a permanent office in Dubai
can provides many advantages in the Middle East. Businessmen
in the region prefer to deal with locally based companies.
The are some specialised consultants that can help you to set up your office in Dubai. The buying patterns of some countries serviced through Dubai
are known to be unpredictable, thereby necessitating constant
monitoring of market forces. To operate a company in Dubai,
one has to obtain a relevant licence.
There
are several categories of licences available which can be
broadly classified under following categories:
Commercial licences for trading activity;
Professional licences covering professions, services, craftsmen
and artisans;
Industrial licences for establishing industrial or manufacturing
activity.
These licences can be obtained from the Dubai Economic Department.
Financial guarantees by a bank operating in Dubai may be
required for some trade activities like jewellery and insurance.
All commercial and industrial enterprises in Dubai must
register with the Dubai Chamber of Commerce and Industry.
All
UAE established companies must have fifty-one per cent
participation by UAE nationals except in the following
cases:
Within the Jebel Ali Free Zone;
Business activities which are 100% AGCC owned;
Where wholly owned AGCC companies enter into partnership
with UAE nationals;
Where foreign companies register a branches or representative
office in Dubai;
Certain business practices where the law stipulates 100%
local
ownership;
In certain professional or artisan business practices
where foreign
ownership is permitted. The law also defines the
requirements in
terms of shareholders, directors, minimum capital
levels and
incorporation procedures and stipulates provisions
governing
conversion, merger and dissolution of companies.
The
seven categories of company formation defined by the law
are:
General partnership Company
Partnership-en-commendam
Joint venture Company
Public shareholding Company
Private shareholding Company
Limited liability Company
Share partnership Company
A
limited liability company can be floated with a minimum
of two and a maximum of 50 people whose liability is limited
to their respective shares in the company’s capital.
Limited liability companies provide a suitable structure
for companies interested in developing a longterm presence
in Dubai. The minimum capital requirement for floating
a limited liability company is currently Dh. 300,000 (US$
82,000), contributed in cash or in kind. While foreign
equity in the company may not exceed 49%, profit and loss
distribution can be specified.
