Types of Companies You Can Form in Dubai
12 March, 2015
In Dubai, it is possible to set up different types of businesses. They will fall into one of two different categories. The business will be either a partnership or a company.
Options for Partnerships and Companies
When it comes to partnerships, there are a number of different options available. It is possible to set up a general partnership, limited partnership, partnership limited by shares, and silent partnerships. Companies can be limited liability companies, public shareholding companies and private shareholding companies.
Those who are part of a general partnership are able to perform commercial activities under the name of the business. This type of partnership can be dissolved if one of the members is unable to perform duties due to health issues or death, and it is possible to dissolve the partnership if all of the remaining partners agree.
In a limited partnership, there can be general and silent partners. General partners will be liable for the profits and losses of a company, and silent partners are only liable for their shares.
In an LLC, there can be up to fifty members, and the business needs to be formed by a minimum of two shareholders. In this type of company, there needs to be at least 51% local contribution. Companies that are in the banking or insurance fields need to form a public shareholding company in order to operate in Dubai. At least 25% of the companys shares need to be publicly transferrable. The chairman needs to have a UAE nationality, and most of the directors will need to be citizens of the UAE.
Most of the companies formed in Dubai will need to have at least 51% local ownership. However, some types of companies require 100% ownership by law. Companies in the various free zones may have different ownership requirements. Those companies that are in the professional or artisan fields can be fully owned by foreigners, although a Emirati national would still be required as a service agent.
The Jebel Ali Free Zone is one of 18 free economic areas, and setting up a business there offers a number of advantages. There is no VAT, capital tax or personal tax, they can be 100% foreign owned, and there is no minimum share capital required.
Before starting a business in Dubai, all companies need to receive a license to operate. They will need to get this from the Dubai Economic Department. Three different types of licenses are available depending on the type of business someone is running. They can receive a commercial, industrial, or a professional license. In addition, certain types of businesses will need to have additional approvals from third party government authorities. These include manufacturing companies, financial companies, insurance company, and pharmaceutical companies.
Setting up a company in Dubai is possible for different types of industries. It can often be confusing as to just what you need to do in order to get your company up and running. Often, it is a good idea to get help from professionals who know and understand all of the nuances of operating in Dubai.
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