UAE Onshore Companies Set up
The United Arab Emirates Company Law No. 8 of 1984 was issued and implemented effectively early in the year 1993. Under this federal law, UAE nationals should own at least 51% of all private and public shareholding firms and limited liability firms. In effect, a large number of private and public shareholding firms, particularly those involved with banking and insurance are proposed to be completely owned by UAE nationals, and construes seven classifications of business organization which can be founded in the UAE.
Likewise, it deploys the qualifications with regards to directors, shareholders, incorporation as well as the least possible capital levels. It imposes provisions conducting merger, conversion and dissolution of firms.Send your Inquiry
Any firm integrated outside the UAE may run any industrial, commercial or professional enterprise by one of the following legit forms:
Branch of a Foreign Firm
Limited Liability Firm- this type of firm is formed to run any industrial or commercial enterprise which includes a single or more UAE national partner whose shareholding is not lower than 51% of the paid-up investment.
Public/Private Shareholding Firm- this type of firm is formed to run any industrial or commercial enterprise which includes a single or more UAE national partner whose shareholding is not lower than 51% of the paid-up investment.
The fundamental qualification to administer business enterprise in the United Arab Emirates is to attain one of the following three classifications of licenses:
- Trade Licenses- are the licenses in which the juridical and natural person is authorized to carry out any trade activity with the intention of gaining profit by means of buying and selling of goods and rendering of services. These specific licenses are provided to transport and storing establishments, retail trade or wholesale enterprises, hotels, contractors and financial consulting offices.
- Manufacturing/Industrial Licenses- refers to the license in which juridical or natural person is authorized to carry out any investment activity wherein the objective is to locate natural resources or to convert raw materials with regards to its form or characteristic into semi-manufactured or manufactured products or to convert the semi-manufactured products into completely manufactured products by means of utilizing mechanical power and dividing the products, filling, gathering or packing them.
- Professional License- pertains to the licenses in which the juridical and natural person is authorized to carry put any profession or career wherein he relies on his physical or mental exertion instead of relying on cash capital. This is provided to carry out some employments like business, personal services, auditing, educational and medical services and consultancy studies and services.
Essentially, all these licenses are issued by the Economic Department or similar designated Department of each Emirate. Be that as it may, licenses for a few classifications of business feel the necessity for authorization from particular authorities and other ministries; for instance, insurance firms other related agencies from the Ministry and Economy and Commerce, financial and banking institutions from the UAE’s Central Bank, medical and pharmaceutical products from the Ministry of Health, Manufacturing from the Ministry of Finance and Industry. Meanwhile more elaborated processes apply to businesses that are involved with gas or oil production and other related industries.
Carrying out a few trade activities entails the submitting of a financial guarantee circulated by a bank that operates in the United Arab Emirates.
It is valuable to note that under this license, the foreign partner shall be the pure owner with a local partner acting as a service agent.