- October 5, 2015
- Posted by: Aswani
- Category: Blog
DUBAI Company Registration – How to Setup Your Business in the City
Dubai is a wonderful city that houses some of the most magnificent marvels of the world. It is also a city that is considered to be ideal to do your business in. However, before you start your venture here, you are mandatorily needed to have a trade license. The essentials of such license would depend upon the different governmental policies that are wrapped around the type of business you intend to begin here. Specific businesses like health care, finance, printing & publishing, and food trading will need to attain more clearances than general trading businesses.
To gain maximum benefit out of your business, it is very much necessary for you to select the right kind of trade license for it. When doing your business in Dubai, there can primarily be three kinds of licenses that you can look forward to:
- Industrial License: This license is issued to the company that is going to engage in any type of activity related to manufacturing
- Commercial License: This license is issued to the company that is going to engage in any type of activity related to trading.
- Professional License: This license is issued to professionals who work in the domains of service providers, artisans, professionals and craftsmen.
DED or Department of Economic Development is the government agency in Dubai that is responsible for issuing these licenses.
Pre-Requisites for Business Licensing
- Before issuing licenses for banks or other similar financial institutions, it is mandatory to take approval from the UAE Central Bank
- Before issuing licenses for manufacturing divisions, it is mandatory to take approval from the Finance & Industry Ministry
- Before issuing licenses for medical & pharmaceutical products it is mandatory to take approval from the UAE Health Ministry
- Before issuing licenses for businesses engaged in gas or oil production, it is necessary to get approvals from their respective government agencies
- To get your business registered in Dubai, it is necessary to take approval from the Dubai Chamber of Commerce & Industry
Pre-Requisites for Business Ownership
Just like every other city in Dubai, any foreign business can never own more than 49% of share in the company. The remaining 51% or more has to be held by a UAE National only. However, under certain criterions, there can be exceptions to this clause. Take a look at those:
- The company is located at a Trade Free Zone in Dubai
- If the law requires 100% local ownership
- Foreign artisans or professionals, who are allowed to have 100% ownership
- If a foreign business sets up a base office or assigns a representative in Dubai
- For certain activities, 100% ownership is allowed to Gulf Cooperation Council (GCC) nationals or businesses
- If a GCC company enters into partnership with a wholly owned business of a UAE national
Legal Business structures that are allowed to operate in Dubai
As per the Federal Law, the following structures of business are allowed to operate in the city of Dubai:
- General partnership
- Private Shareholding
- Public Shareholding
- Joint Venture
- LLC or Limited Liability Company
- Shared Partnership
- Partnership in Commendams