Dubai is the most important and significant part of the whole UAE, which is growing drastically and many investors and expats from across the globe are flocking to it, either to set their dream business or to invest in existing companies. The diversified and unique economy culture of Dubai attracts most of the entrepreneurs to start their business and company in Dubai. The government of Dubai has also cut down many laws to motivate the migrants to come to Dubai and set their business. There are quite a few types of companies and business licenses that are required to run those companies.
Limited Liability Company
This type of license is obtained when the company is fully operational within Dubai. The company requires to have an office setup and requires one or more UAE residents as the shareholders of the company. In Dubai, LLC is the most common type of business registration. In LLC the share ownership of any foreign investor is limited to 49%.
A partnership company is the same as the joint venture company. The company needs to have at least one local party engaged in the company formation to get engaged in the desired activities. The local equity participation must be 51% as per law but the profit and loss distribution can be changed according to the partners themselves. There is no need for a license in a partnership company, also the partners don’t need to publish the agreement.
A branch office is generally established by international parent companies, and need to have a special license from the Ministry of Economy of the country. This type of business owners is not allowed to perform import and export activities directly under its name. This type of business establishment also requires to appoint a UAE national as a service agent of the company.
The offshore companies have the easiest type of incorporation process. These companies are actually made by business holders who want to do business outside the country. These types of companies are free of corporate taxes and require no license. Also, the offshore companies don’t require to have any real office setup and can be incorporated with a virtual setup only.
Free Zone Companies
The free zone companies are other business establishments who can do operations within the free zone boundaries of the country only. This type of business allows 100% foreign ownership, repatriation of capital and tax exemption in import and export. In UAE there are 35 such free zones which offer attractive business establishment opportunities for entrepreneurs.
Joint Venture Companies
A joint venture is the most preferred company type for foreigners who are looking to enter the UAE market. A joint venture is commonly formed contractually between the partners or forming a limited liability company in the first place. The joint venture is generally done where a single entity can’t execute the business alone.
Private Shareholding Companies
There is a need of at least three partners to incorporate a private shareholding company in UAE. The chairperson and the other majority of directors must be the citizens of the UAE by the law of incorporating such a company. The private shareholding companies cannot invite the public to subscribe to its shares, and the company is possessed either referring an NGO or referring a number of stockholders who do not trade publicly.
Public Shareholding Companies
A public shareholding company holds all rights to invite the public to subscribe to its share. In general, the companies who are engaged in banking, insurance or other financial activities run their company as a public shareholding company.
The investors and the entrepreneurs who are going to set up a business in UAE has to go through a small registration and documentation process. Torjoman has a wide experience in this sector. Torjoman provides legal translation services to help the new ventures in translating all their legal documents required for gaining the license of trading or other general documents.
Also, last year, a new license has been released by the Abu Dhabi Department of Economic Development, Tajer Abu Dhabi, facilitating business applications from all GCC nationals and UAE residents with an Emirati partner without an office or physical presence; thus, this license package will let them launch their businesses at lower costs.
There are manifold types of business categories which come under these three major license type and Torjoman alters its services to cater to every type of documentation needed to establish a company in UAE.