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Dubai, United Arab Emirates

Legal forms for establishing a business in the UAE

Legal forms for establishing a business in the UAE

The UAE promotes specific business activities within its specialized jurisdiction as a business powerhouse rich in investment opportunities and world-class facilities. The United Arab Emirates, Through timely and strategic economic diversification projects, increase foreign direct investment inflows, and accelerate the gross domestic product, and setting laws to regulate the work of internationally accredited business companies, The country has made the talk of every foreign investor today. Since every business needs a unique structure to be incorporated, The United Arab Emirates facilitates the steps of establishing businesses within the country , as well as various legal forms to help companies establish, grow and prosper.

There are many different legal forms that the Emirates offers to entrepreneurs in it to do business in the United Arab Emirates, which help you to establish your company without risks :

Sole proprietorship company

A sole proprietorship means that the company is owned by a single person who controls all of its operations and owns 100% of the shares of any dividends. This business entity is the simplest form of corporate structure in the UAE. It does not impose any special requirements other than obtaining a residence permit in the case of a foreign citizen, It can be established in free zones.

A limited liability company

A limited liability company in the UAE is the preferred form of business entity by individuals. The liability of the partners in an LLC is limited to the extent of their investment in the company. It is permissible for one person, a citizen of the country or a citizen of the Gulf Cooperation Council countries, whether they are natural or legal persons, to establish a limited liability company or “LLC” for short.

civil company

Recognized professions such as doctors, accountants, engineers and lawyers can open a civil company in the UAE. The company can have partners who own 100% of the shares. It can only be for professional work. It is specific to the material or intellectual activities practiced by one or more natural persons under a specified capital.

Solidarity company

Under this type of business company , ownership is shared by two or more partners who share profits and losses as per the specified proportion. There are two main types of joint venture companies, namely the public company, in which the general partners who are citizens of the state are responsible for the debts of the company and are held accountable. The limited partners are liable for their debts only up to the value of their capital contribution.

Holding Company

It is a joint-stock company or a limited liability company that establishes subsidiaries inside or outside the country or controls existing companies. The holding company owns stakes or stocks in joint-stock companies or limited liability companies, provides loans and financing to its subsidiaries, owns real estate and movables necessary to carry out its activities, and owns patent rights.

Public joint stock company

A Public Shareholding Company is defined as a legal entity with a minimum capital of AED 30,000,000 with transferable shares of equal value. Each shareholder is liable only within the limits of his capital. A Public Joint Stock Company is also called a Public Joint Stock Company (PJSC) in the UAE. The company’s trade name must not be from any co-investors unless the name is a patent for a shareholder.

Private joint stock company

This type of business is also called a Private Joint Stock Company (PJSC) in the UAE. It can be formed through a partnership of at least AED 5,000,000 from at least three investors. These legal structures are compatible with all types of commercial and industrial activities as well as professional businesses.

Branch of a foreign company

Establishing a branch of a foreign company requires that the company have an Emirati partner. The extension is required to conduct the same business activity as the parent company. can rent an office in the building, Issuing invoices to Emirati and international customers, And sign local legal contracts. The branch shall not engage in manufacturing, importing or exporting products to/from the United Arab Emirates.

Representative office

The representative office in the UAE is not a business structure in itself but a business activity that the branch can undertake. It has some special criteria which include permission to promote and market the parent company’s business – but not to conduct commercial operations. Representative Office requires a Local Service Agent (LSA), It can be a UAE national or a company owned by one or more UAE nationals.

Itqan Dubai can help you establish your company in the United Arab Emirates, One of its employees within a qualified and highly skilled team will communicate with you and facilitate all business in the different economies of the Emirates and help you complete all procedures to easily establish your business or help you rent the necessary offices to establish your company in the United Arab Emirates.


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