In Dubai, only those can make a company who either partner with a local company to form one company together or who deals with business in one of the FTZ (Free Trade Zones) of Dubai yet on the terms not to make any business actions in the UAE when operating from there. Business requirements are different here of course. Let us see what are the main steps and business requirements if you want to establish a company in the UAE.
Today, the best business is either to start a company in either Dubai or in one of the neighbouring Emirates, which are developing thanks to the closeness of Dubai with great speed offering great opportunities now for the international companies that want to set up their office or workshops over there. Theses include Ras al Khaimah and Sharjah Emirates. Of course, Dubai does its best to be as attractive as it can get, with all the relatively hard laws that very adapted to be easier if someone has money and some knowledge on the business requirements. For many companies, the business requirements include the presence of a local UAE business partner. This is very important to know for the future running of your company, as according to the local laws, once you want to set up a business in Dubai with operations within Dubai, you will need a partner. This partner will own 51% of the partnership that may see not too attractive, unless you have a good lawyer who can put the contract in such form so that it does not threaten your ultimate status.
The mostly used form of legal entity is the LLC or Limited Liability Company. This means that the partners are only reliable for the company up to the starting or minimum amount they have invested into the company, which does AED 300.000 equal USD 81,700 being around E 50.000. This stands for any legal entity no matter they are formed within or outside a FTZ. The companies that are formed within an FTZ will be obligated to follow the instructions of the authority of that FTZ. Normally the basic business requirements are the same though.
Other forms of legal entities include the Simple Limited Company, which means that the partners are liable for the company with all their money. Therefore, international companies less use this form of business. As the SLC, does not require a big amount to start up though and doesn’t have harsh business requirements, several local small businesses start up with this form and then with time they change to become an LLC instead.
The Private Trade Stock company is also a form of business that can be requested although it is important to know that for the setting up, it needs at least three members and the company is not allowed to trade with stock publicly at all. As for the establishment of banks, UAE has strict regulations for international banks which make their operation pretty hard in the UAE area.
There were some of the basic business requirements in Dubai and the UAE. If you would like to know more business requirements go on the website of Department of Economic Development of Dubai (DED) where the whole registration process of companies happens.
