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Company Formation Services in UAE

Let us take a look at the best methods to start a company in UAE, various types of legal structures of the companies in UAE and requirements for Starting a Business in UAE:

  • We assist you to get your companies registered in the UAE
  • We help you in choosing the right sponsor or partner for your business in UAE
  • We work closely with you to fulfil the requirements for business set-up in UAE
  • Your registration for taxes and licenses would be accomplished in time through us.

Take a glance at the easy steps to register your company in UAE and the list of our services that helps you to attain company formation conveniently.

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The United Arab Emirates is among the fastest growing economies and attracts the foreign investors, especially for the trading activities due to its favourable geographical location and the business friendly policies of the UAE government. Corporates from Europe, US, Canada, Africa and Asia plan their business expansion, setting up a branch office and various other forms of the companies.The Chinese traders utilize UAE as their trading hub for trading with the African countries due to the convenient geographical location.

Company Formation Steps in UAE

The business houses need to follow the regulations for Company Formation in UAE and we play an important role in this process through the prompt, honest, effective and affordable PRO Services for the corporate clients through annual discounted plans.

Finding a Partner:

It is mandatory to find a local partner or sponsor for the overseas investors for certain legal structures of the company and searches for the most suited partner for the clients.

Office – Warehouse:

The necessary verification’s and approval for the location of office and warehouse would be accomplished in time.

Chamber of Commerce:

The procedure for affiliation with the Chamber of Commerce would be completed in time for commencing the business operations smoothly in the UAE.

Initial approval:

The business idea needs to be approved strategically through the concerned ministry and other authorities and represents the clients for necessary documentation and approvals.

MOL & DNRD registration:

We assist in acquiring registration with Ministry of Labour for manpower hiring and their residence permit and from the Department of Naturalization & Residence Dubai for immigration of the entrepreneurs.

Determining the suitable Legal Structure for the company :

This is the crucial step for any client and looks out for the best suited legal structure of the company based on their business goals and the regulations in UAE for operating the businesses.

Trade License:

The Trade License would be acquired completing the related procedure to Register A Company on behalf of the clients.

UAE is among the strongest and fastest growing economies in the Middle East Region. Due to the strong financial reserves, the financial and banking sectors in the country are stable and possess great growth prospects as well. For sustaining the development, the government encourages investments in various sectors.

The sectors such as aviation, tourism development, trading, financial services and non-conventional energy resources have seen a drastic growth in the recent past. The established network of 35 Free Zones across the 7 Emirates has attracted foreign investment in various areas and the friendly norms such as tax rebates and possibility of 100% foreign ownership have served as the key to industrial growth in the country.

Legal Structures of the Company

The most important step in order to Register A Company would be deciding on the legal framework or the structure of the company based on the local regulations.

There are different forms of legal structures of the companies in UAE:

Limited Liability Company:

Article 227 of the Commercial Company Law of the UAE, with the subsequent amendment eliminating the stringent terms regarding the foreign ownership, has brought tremendous ease in forming a company as an LLC or WLL (With Limited Liability). The proof of possessing adequate investments with no minimum limit, 2 to 50 shareholders out of whom the local partner/sponsor possessing 51% of ownership share; would be the requirements to form an LLC in UAE.

The norms for profit shares among the shareholders are flexible. An LLC can avail the privilege of a local business and enjoy tax benefits as well.

General Partnership Company:

This is also known as Joint Liability Company, where 2 or more native UAE nationals come to an agreement to form the company. The shares of these businesses are not for negotiable certificates. The names of the partners and a few words describing the nature of business need to be added to the company name. Every partner would have the role in administrative and management decisions and operations unless specified in the Partnership Agreement.

Limited Share Partnership Company:

This type of company is formed by active partners that are involved in the administrative decisions and liable for their personal wealth; and the silent partners that make the capital investment and are liable for the amounts they invest in the company. If a silent partner starts an own project under the company’s name; the liability would be up to the extent of the obligations based on the project started.

The company can be formed if the UAE nationals act as the general partners and the foreign partners are involved as the silent partners only. The minimum share capital required for formation would be AED 500,000. The name of the company needs to include the name of the partners and the activity as well.

Holding Company:

These companies are formed with an intension to invest and manage other companies by the foreign and local investors. It is possible to incorporate a Holding Company in any of the seven Emirates.

These companies cannot be engaged in production of goods and services. There can be different forms in which a Holding Company can be formed.

Public Shareholding Company:

This can be the ideal way to invest in the UAE through public shares subscription. The equally divided shares can be traded on the national stock exchange. It requires a minimum share capital of 1 Million AED to form this type of company in UAE. At least 10 Founder Members need to sign a Memorandum of Association and the liability of the shareholders would be restricted to the shares owned by them. This type of company can engage in diversified commercial, industrial and professional activities.

Joint Venture:

This type of company can be formed by two or more parties entering into an agreement, out of whom, one company needs to possess a UAE license. Trading activities can be conducted under the company’s name; however, the company doesn’t enjoy the benefit of being a legal entity. The company would be held responsible for the decisions; and the profits are shared among the parties according to the agreement. A foreign investor possessing a share in the Joint Venture can be involved in the policy and management decisions. A foreign investor can enjoy the privileges of a local business through the Joint Venture.

Representative Trade Office:

This is the form of the company in which 100% foreign ownership is allowed, and the parent company can possess the complete control. These companies need to be engaged in the promotion and marketing of products and services of the parent companies and are not supposed to be engaged in any profit making activity. The parent company would be supposed to appoint an individual or a UAE based company as a National Service Agent.

Commercial Agencies:

The foreign companies can run their businesses in UAE through this legal framework of company without possessing their physical presence in the country. They can enter into an agreement with a UAE based company to act as their Commercial Agency. When the Commercial Agency is registered under the Ministry of Economy & Commerce, they would be facilitated to import goods and earn commissions on the sales as well.

Branch Office:

To retain the 100% ownership of the businesses abroad, the foreign companies can set up their branch offices in the UAE. This is the ideal format for the parent companies engaged in financial or engineering services abroad. The Branch Offices are considered as the extension of the parent company’s business in a foreign country and the parent company is held responsible for their activities in UAE.

The Branch Offices can conduct the commercial activities similar to the parent company abroad. For this, an approval from the UAE Department of Economic Development would be essential. A local company or individual is to be appointed as the National Service Agent to operate the business smoothly.