DUBAI COMPANY FORMATION GUIDE

Transcription

1 DUBAI COMPANY FORMATION GUIDE A BOOK BY DBA BUSINESS ADVISORS

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3 Table of Contents EXECUTIVE SUMMARY... 7 REGISTERING BUSINESSES... 9 LEGAL FORMS OF BUSINESSES INDIVIDUAL ESTABLISHMENT COMMERCIAL COMPANY CIVIL COMPANIES LEGAL FORMS OF COMMERCIAL COMPANIES GENERAL PARTNERSHIP JOINT PARTICIPATION VENTURE PUBLIC JOINT STOCK COMPANY (PJSC) PRIVATE JOINT STOCK COMPANY LIMITED LIABILITY COMPANY (LLC) PARTNERSHIP LIMITED WITH SHARES (PLS) BRANCH REPRESENTATIVE OFFICE OF A FOREIGN COMPANY DUBAI OFFSHORE COMPANY WHY SET UP A DUBAI OFFSHORE COMPANY? THE DUBAI OFFSHORE COMPANY REGULATIONS FREQUENTLY ASKED QUESTIONS ABOUT DUBAI COMPANY INCORPORATION BUSINESS FORMATION IN DUBAI LICENSING REQUIREMENTS FIRST UNITED ARAB EMIRATES NATIONALS SECOND NATIONALS OF GULF COOPERATION COUNCIL COUNTRIES (GCCC) INDIVIDUAL ESTABLISHMENT PUBLIC SHAREHOLDING COMPANY THIRD NATIONALS OF OTHER COUNTRIES FOURTH FOREIGN COMPANIES BRANCH OF A FOREIGN COMPANY DOCUMENTS REQUIRED NEW LICENSES SHAREHOLDING PROF. BUSINESS & BRANCH CO FOREIGN COMPANY BUSINESS FORUM & COUNCIL BRANCH REQUIREMENTS GOVERNMENT LIAISON OFFICE LIMITED LIABILITY COMPANY PARTNERSHIP REGISTRATION RENEWAL REPRESENTATIVE OFFICE SINGLE COMPANY WITH LIMITED RESP

4 AMENDMENTS CHANGING TRADE NAME CHANGING/ADDING AN ACTIVITY CHANGING COMPANY LOCATION CHANGING OF SERVICES AGENT SALE OF A COMMERCIAL BUSINESS LICENCE CHANGING/APPOINTING A MANAGER SUCCESSION OF HEIRS DEVOLUTION OF LICENSE ADDING/WITHDRAWAL OF PARTNER AMENDING THE CAPITAL CANCELLATIONS SOLE ESTABLISHMENT/PROFESSIONAL BUSINESS COMPANY BRANCH OF A COMPANY REGISTERED IN DUBAI OR ANY OTHER EMIRATE BRANCH/REPRESENTATIVE OFFICE OF A FOREIGN COMPANY CANCELLATION OF COMMERCIAL COMPANY S REGISTRATION GOVERNMENT REQUIREMENTS CENTRAL BANK OF THE UAE REPRESENTATIVE DEPT. OF PORTS & CUSTOMS DUBAI MUNICIPALITY FOOD CONTROL RESTAURANT CAFETERIA BUTCHERY TEA STALL CATERING & CANTEEN SWEET SHOP GROCERIES VEGETABLES & FRUITS SOFT DRINKS BAKERY SEAFOOD SHOPS ROASTERS MILLS DRY, CHILLED & FROZEN FOOD STORES SCHOOL CANTEEN FOOD TRADING WASTE FEES CONSTRUCTION NEW LICENSE APPLICATION LICENSE RENEWAL APPLICATION STATUS MODIFICATION APPLICATION

5 DUBAI CARGO VILLAGE DUBAI CARGO VILLAGE AIR CARGO SERVICES REQUIRED DOCUMENTS TRANSFER OF LICENSE ADD AIR FREIGHT ACTIVITITIES EMIRATES SECURITIES & COMMODITIES AUTHORITY BROKERAGE PROFESSION LICENSING WITH EMIRATES SECURITIES AND COMMODITIES AUTHORITY LICENSING DOCUMENTS TO BE ATTACHED LICENSING REQUIREMENTS WITH DUBAI FINANCIAL MARKET DOCUMENTS TO BE ATTACHED WITH THE DUBAI FINANCIAL LICENSING APPLICATION REQUIREMENTS AFTER OBTAINING THE APPROVAL TO LIST WITH DUBAI FINANCIAL MARKET MINISTRY OF ECONOMY & COMMERCE COMMERCIAL PERMITS REQUIRED DOCUMENTS PROMOTIONAL CAMPAIGNS SIGNBOARDS TRADE EXHIBITIONS CONFERENCES BUSINESS AFTER OFFICIAL HOURS ADDITIONAL ACTIVITIES KIOSKS & COUNTERS ADDITIONAL OFFICES EXTRA ACTIVITIES OF FUEL & CAR SERVICE STATIONS PERMITS FOR EXTRA ACTIVITIES OF FUEL & CAR SERVICE STATIONS PREPARING AND DELIVERING MEALS DURING RAMADAN OFFICES IN DUBAI POLICE TRAFFIC DEPARTMENT ATM OPERATION SHOE REPAIR KIOSKS TENTS USED FOR COMMERCIAL PURPOSES TRADE NAMES CONDITIONS FOR SELECTING & APPROVAL OF TRADE NAMES REMARKS ADMINISTRATIVE DECISIONS NO. 117 (2001) NO. 5 (2002) NO. 50 (2002) NO. 63 (2002) NO. 74 (2001)

6 FORMS AND FINES CUSTOMER GUIDE LIST OF FINES COMMERCIAL PROTECTION FUNCTIONS INSPECTION FEES LAWS STEPS FOR FILING COMPLAINTS REGISTRATION PROCEDURE VISIT VISA BUSINESS SETUP COMMERCIAL PROFESSIONAL FREE ZONE OFF SHORE COMPANY ADVANTAGES REQUIRED DOCUMENTS TRADE MARK SUMMARY OF PROCEDURES REQUIREMENTS PATENT & UTILITY SUMMARY OF PROCEDURES REQUIREMENTS INDUSTRIAL DESIGN SUMMARY OF PROCEDURES REQUIREMENTS COPYRIGHTS SUMMARY OF PROCEDURES REQUIREMENTS SCHENGEN VISAS HOW TO APPLY STANDARD DOCUMENT REQUIRED PROCEDURES DIFC EMPLOYMENT / RESIDENCY VISA PROCEDURE FOR EMPLOYEES AND DEPENDENTS EMPLOYMENT VISA MEDICAL TEST AND EXAMINATION EMPLOYMENT PERMT STAMPING IN PASSPORT SPONSORING DEPENDENTS

7 EXECUTIVE SUMMARY The purpose of this document is to provide detailed information to those interested in conducting business in the Emirate of Dubai, the economic activities which can be undertaken and the requirements thereof, and any government authority approvals that require to be obtained in respect of the economic activities. The information provided includes a list of activities which have been suspended and cannot operate, the conditions and measures required by the various government authorities who are responsible for conducting economic activities in Dubai, the registration of businesses and assistance with the documents required to complete the registration. This document also includes guidelines for the various application forms, a list of violations and the relevant fines and the laws of commercial protection, e.g. Trade Mark Laws. The steps and procedures section provides information to any interested party of the procedure and system in place to ensure that their time and effort in completing formalities is kept to a minimum. The Dubai Economic Department recommends that in any economic activity, one should view the various requirements and documents in order to proceed in the business in a safe and sound manner. The procedures are in place to ensure that there is a systematic and expeditious approach to the incorporation of a business. 7

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9 REGISTERING BUSINESS Steps Required to incorporate a Business Prior to operating any business in Dubai, the steps outlined below must be undertaken in order to meet the legal requirements of all concerned Government Authorities and to guarantee maximum commercial benefit for the business owner. Determine the category/categories (commercial, industrial and/or professional) and type of business activity/activities to be practiced. Determine all the related business activities that can be included within each business license, subject to a maximum of ten activities per license. Determine the appropriate business legal form for your business taking into consideration the desired business activity/activities and the number and nationalities of the business owners. Submit an application to the Department for an initial approval either by a personal visit to the Department Offices or a document clearing service or a legal consultant s office. Register a trade name after obtaining an initial approval either by a personal visit to the Department Offices or a document clearing service or a legal consultant s office (If you have previously reserved a trade name, you can proceed to register it with an initial approval by use of the record number). Lease business premises (it is recommended that you contact the counter of the Planning Department of Dubai Municipality on Telephone Number or on Dubai Municipality s Telephone Number , before leasing premises in order to verify that it is suitable for your business). Thereafter you can visit the said Department s counter on the building s first floor for approval of the premises. Prepare all required documents such as Memorandum of Association and other contracts such as the appointment of local service agent which has to be authenticated by the Notary Public and approvals of other relevant government authorities, which are necessary in each case. For example, to carry on media activities, an approval issued by the Media council is required. Submit an application to the Department to obtain a final license. Applications can be submitted through a document clearing service or a legal consultant s office. Submit an application to the Department for a signboard permit for a business trade name as required by the economic regulations. However, office premises would be an exception to this. Obtain necessary connections for telephone, fax and Internet services, an application must be submitted to Etisalat / du. To obtain a special P.O. Box for an establishment, an application must be applied to the Emirates Post. Register company with DNRD and Labour Department obtain necessary work permits for business employees and management: an application must be submitted to both the Ministry of Labor and Social Affairs and the Department of Naturalization and Residence. For more information you may 9

10 visit the Department of Naturalization and Residence website at and the Ministry of Labor and Social Affairs. Register a trade mark or a commercial agency; you must refer to the Ministry of Economy and Commerce. You may visit the said Ministry s website. If you wish to conduct a promotional campaign or a commercial offer, or if you wish to carry out an activity after official working hours or additional activities etc., an application must be submitted to the Department for the necessary permit. If you wish to conduct a promotional campaign or a commercial offer, or if you wish to carry out an activity after official working hours or additional activities etc., an application must be submitted to the Department for the necessary permit. LEGAL FORMS OF BUSINESS INDIVIDUAL ESTABLISHMENT It is an establishment owned by a sole proprietor to operate an economic activity (commercial, professional, industrial, agricultural or real property). An establishment s financial liability is linked to the proprietor who shall be responsible for all its financial obligations. Commercial Company: A company is a contract by which two or more persons enter into an economic profitgenerating enterprise. They shall each subscribe a share either in the form of money or work effort, and share an enterprise s profit or loss. An economic enterprise includes any commercial, financial, industrial, agricultural, real property or any other type of economic activity. Civil Companies Civil companies are formed to practice activities which involve the use or investment of intellectual faculties, acquired information or the use of skills like carpentry. It has more than two partners. Under Dubai Local Order No. 63 of 1991 on licensing professionals and tradesmen in the Emirate of Dubai, in order to establish a business, which practices a service or professional activity as distinct form, a commercial one, the business takes the form of a Business Partnership. Professional companies may be 100% foreign owned. However, it is necessary to appoint a local service agent. 10

11 The obligations of the local service agent towards his principal and third parties shall be restricted to render the usual experience in order to enable him to practice the professional or craftsmanship work in the Emirate without holding any responsibility or financial commitment in respect of his principle s business or activity inside the Emirate or abroad. The relations between the two parties shall be regulated by any agency agreement. Legal Forms of Commercial Companies: Legal forms of commercial companies, pursuant to Federal Law No. 8 of 1984 as amended, is summarized below. For more information you may refer to the said Law which is available at the Department s library, offices of legal consultants and advocates, as well as in commercial libraries in the United Arab Emirates. General Partnership: A general partnership is an arrangement between two or more partners whereby each of the partners is jointly and severally liable to the extent of all their assets for the company s liabilities. The CCL provides that only UAE nationals are allowed to be partners in a general partnership. There is no prescribed minimum capital requirement for the establishment of general partnership. Joint Participation Venture: A joint participation venture is a company concluded between two or more parties to share the profits or losses of one or more commercial businesses being performed by one of the partners in his personal name. The company shall be confined to the relationship between the partners and will not be affected towards third parties. A joint participation venture is restricted to the arrangement between the partners therein and must not be made to third parties. Between the partners themselves the arrangement is essentially a partnership. Each partner conducting business will generally do so in his own name and will not declare the interest of the other partners to others. The liability of the partners who are conduction business in unlimited regarding the liabilities of the company. If the liability of the other partners is disclosed, the venture will be treated for every purpose as a general partnership. There are no registration formalities for this type of company as it is not a distinct legal entity. The company uses the business name and license of the partner conducting the business. A memorandum of association should, however, be prepared to indicate the rights and liabilities of the partners and the method of distribution of the profits and loses. Public Joint Stock Company (PJSC): A public joint stock company is any company whose capital is divided into equal value negotiable shares. The shareholders of a PJSC are liable only to the value of their shares in the capital of the company. The minimum share capital requirement is Dh. 10 million with a minimal face value of Dh 1 100, a banking entity Dh. 40 million and insurance and investment companies Dh. 25 million. 11

12 A PJSC must have at least 10 founder members and its management should be vested in a board of directors consisting of a minimum of three to a maximum of fifteen persons whose term of office may not exceed three years. Directors can be re elected when their term of office has expired. A PJSC is required to have a chairman (of the board of directors) who must be a UAE national. The majority of the board of directors is required to be UAE nationals. Private Joint Stock Company: A private joint stock company is essentially the same as a public joint stock company with the following differences: The minimum capital requirement is Dh. 2 million. The shares of a private joint stock company cannot be offered to the public. Only three founder members are required. A Private joint stock company may be converted into a public joint stock company, in order to do so the following conditions must be satisfied: 1. The nominal value of the issued shares is fully paid up. 2. A period of not less than two financial years has expired. 3. During the two years preceding the application for conversion, the company has achieved net profits, distributable to the shareholders whose average is not less than 10% of the capital. 4. A resolution of the extraordinary assembly for the conversion of the company is adopted by a majority of three quarters of the company capital. 5. The Ministry of Economy s decision to convert the company form a private joint stock company to a pubic joint stock company is published in the Official Gazette. Limited Liability Company (LLC): Limited Liability Company is one with limited liability, where the number of partners may not exceed fifty and should not be less than two. Each of the partners shall only be liable to the extent of his share in the capital. The partners participation should not be represented by negotiable certificates. In addition, an LLC has the following legal and commercial characteristics: At least UAE nationals must hold 51% of the shares. 12

13 Public subscription for raising capital is not permitted. The management or managers are appointed by memorandum of association, by a separate management contract or the general assembly of the partners. Managers may be one or more of the partners or any other parties providing that they do not exceed a total of five persons. It is possible to provide in the memorandum of association that the profit and losses will be share in a ratio different to that of the share capital ratios. Partnership Limited with Shares (PLS): A partnership limited with shares is a company formed by general partners who are jointly liable to the extent of all their shares for the company liabilities and participating partners who are liable only to the extent of their shares in the capital. The partners whose liability is unlimited must be UAE national. The minimum share capital requirement for limited partnership is Dh. 500,000. Branch Representative office of a Foreign Company: A branch representative office is legally regarded as part of its parent company and does not have a separate legal identity from that of its parent company. Branch representative offices are nevertheless required to have a national agent. If the agent is a company, it must be wholly owned by UAE nationals. The national agent, however, will not acquire any rights or interest in the business of the branch representative office. Dubai Offshore Company Legal form: Federal Law No. 8 of 1984, as amended by Federal Law No. 13 of 1988 the Commercial Companies Law and its by laws govern the operations of foreign business. The legislation, which governs Dubai Offshore Companies, was enacted in Jebel Ali Free Zone (Jafza) in Dubai in May It provides for a secure environment for investors without the levels of unnecessary intrusion and bureaucracy found in other offshore jurisdictions. Name of the company: Dubai offshore companies must use the suffix Limited or Ltd. to denote limited liability. The following words and their associated activities are prohibited: Banking, Insurance and Re insurance. Shareholders: Dubai offshore company can have minimum one and a maximum of 50 persons whose liability is limited to their shares in the company s capital. 100% foreign ownership of the 13

14 company is allowed. There is no public register of shareholders and directors. Shareholders need to visit Jafza and sign the incorporation documents in the presence of the authorized official of Jafza. Alternatively a power of attorney notarized and legalized by UAE Embassy, can be issued to a nominated person who can then sign before Jafza authorized official. The minimum share capital: Dubai offshore company can select its own minimum capital. Usually we recommend share capital to be US Dollars 1,000. All shares must be fully paid when allotted. A company may not create different classes of shares. Bearer shares cannot be issued. Presently, joint shareholding is not allowed. Directors of the company and secretary: A minimum of two directors and one secretary are required and they cannot be bodies corporate. One of the directors can also be a secretary. A register of directors must be held at the Registered Office, but it is not a matter of public record. Registered office and local agent: Dubai offshore company must maintain a local Registered Agent approved by the local authorities and a local Registered Office, which is usually provided by the Registered Agent. Taxation: Dubai offshore companies pay no taxes on profit, capital gains or anythingelse in Dubai. Audit and financial returns: No annual reports or accounts need to be filed. Accounts must be audited and accounts must be distributed to shareholders (but NOT filed with the authorities). Dubai offshore company may retain their accounting records wherever in the world the directors deem appropriate. Meetings: Dubai offshore company meetings need not be held in Dubai. Time needed for formation: Usually it is 5 7 working days. Why set up a Dubai Offshore Company? In our professional opinion, a Dubai Offshore Company is an excellent corporate structure because: 1. A Dubai Offshore Company is tax free; 2. A Dubai Offshore Company portrays a good image to your Clients and suppliers; 3. There is no public register of shareholders and directors; 4. A Dubai Offshore Company is quick to incorporate. However, our Clients should note the following: 1. A Dubai Offshore Company is not permitted to trade in the United Arab Emirates (UAE); Dubai Company Formation? Yes, thanks to the new EU directive takes effect Dubai is becoming the better place incorporate your offshore company. 14

15 Dubai looks set to reap the rewards of a recent EU ruling under which banks are now forced to reveal information to tax authorities. The EU Savings Directive, which came into effect on July 1, obliges financial institutions in all EU member states to either disclose tax and bank information to the relevant tax authority, or charge clients a hefty withholding tax. Though the new directives will specifically affect EU residents, a number of banks in tax havens have also agreed to exchange customer information, including Jersey, Guernsey, the Isle of Man, the British Virgin Islands, the Cayman Islands, Switzerland, Liechtenstein, Monaco and San Marino. The reputation of discretion for some of these countries is being eroded. Since July 1, in order to keep details of their wealth private, bank customers now have the option of paying a withholding tax which will be levied directly in the country in which their savings are held. This will be charged at a rate of 15 per cent for the first three years, 20 per cent for the following three years, and 35 per cent from 2011 onwards. Dubai has long enjoyed a reputation as a secure, tax free jurisdiction for international banking and company incorporation. With this latest development from Europe, Dubai company registration and corporate and personal banking options are becoming more popular with international businesses and high net worth individuals. Since Dubai is neither a signatory to this directive, nor agreeing to cooperate with the Organization of Economic Cooperation and Development (OECD), it looks set to gain even further. The Dubai offshore company regulations Type of entity Type of law Government Fees Corporate taxation Double taxation treaties available Limited by shares Incorporated under the Offshore Company Regulations 2003 Subject to change Nil No Share Capital Usual currency AED Minimum paid up AED 1 Directors Minimum number 2 15

16 Local resident required Corporate Directors permitted Records publicly available Location of Meetings No No No Anywhere Shareholders / Members Minimum number 1 Corporate Shareholder permitted Records publicly available Location of Meetings Yes No Anywhere Company Secretary Required Local or qualified Yes No Other Annual return required Change of domicile No permitted Frequently Asked Questions about Dubai Company Incorporation The following are some of the most frequently asked questions about Dubai Company Incorporation: What is meant by a Dubai Offshore Company? Are there any advantages or disadvantages of incorporating in Dubai itself? Is it possible to set up a branch or representative office of a Company in Dubai? What type of documentation is required to open a Company in Dubai? 16

17 How long will it take to complete incorporation in Dubai? Is there a public register of shareholders and directors in Dubai? Is a Dubai LLC required to prepare financial statements? Can a Dubai Offshore Company trade within the UAE? What does it mean to incorporate in a Free Zone in Dubai? Dubai has a number of business development areas known as Free Zones which allow companies to set up in Dubai, while maintaining its Offshore Status. The Free Zones are tax free and provide purpose built facilities for offices and related activities. A Free Zone License is normally issued within 2 6 weeks, depending on the Free Zone, but some may stipulate that all work must be carried out within the Free Zone. Importantly, Free Zones will only allow companies to trade outside of Dubai. Some Free Zones are set up to cater for particular types of businesses such as Knowledge Village which provides services for educational companies. What is meant by a Dubai Offshore LLC? An Offshore Dubai LLC is a limited liability company set up in Jebel Ali Free Zone (see above). A Dubai LLC can trade as normal and can be wholly foreign owned. There is no requirement for the LLC to have a physical presence in Dubai. Are there any advantages or disadvantages of incorporating in Dubai itself? Incorporating in Dubai proper (as opposed to a Free Zone) does have the advantage of allowing a company to trade freely both within and outside of Dubai. Is it possible to set up a branch or representative office of a Company in Dubai? Yes. Branch office will be free to carry all activities of parent company like a Limited Liability company. However, the rules governing such a representative office can be restrictive. Representative office of a foreign company in Dubai can meet with clients, conduct marketing and sales meeting and establish a real presence in Dubai. Nonetheless, a representative office cannot engage in trade or actual sales of any kind, nor can it enter into contracts or complete or perform any services offered by the Company Headquarters. What type of documentation is required to open a Company in Dubai? This depends on the type of entity you wish to establish. The documentation requirements from the Dubai Authorities can be quite cumbersome. DBA Business Advisors will provide you with a detailed list of requirements to minimize this burden, on request. How long will it take to complete incorporation in Dubai? This will all depend on the type of entity you wish to establish. The length of time varies greatly 17

18 from one entity to another, but you should plan for at least four to six weeks. DBA Business Advisors will provide you with a detailed project plan on request. Is there a public register of shareholders and directors in Dubai? Details of the directors and shareholders of a Dubai LLC are available for public viewing. Is a Dubai LLC required to prepare financial statements? No. Can a Dubai Offshore Company trade within the UAE? No. However, it can open and operate corporate bank A/C in UAE. Business Formation in Dubai Starting a business in Dubai is both exciting and bewildering. Gleaming skyscrapers add to the general buzz of a city which is booming. However, Dubai business setup is, unfortunately, still a challenge because of unclear regulations on business formation in Dubai, high government fees at almost every stage of starting a business in Dubai, and sheer demand for business formation in Dubai, which causes delays to the Dubai business setup process. The following information paints a definitive guide to Dubai business setup pros, cons and procedures: 1. When starting a business in Dubai, investors should budget to spent up to US$50,000 to successfully complete all aspects of the Dubai business setup project. 2. The lead time for starting a business in Dubai depends on the type of company you wish to set up. For example, incorporating a Dubai LLC takes approximately 2 weeks, while incorporating a Dubai offshore company normally takes at least one week. 3. Business formation in Dubai is the ideal way for international traders to legitimately book profits without paying local corporation tax. In addition, since Dubai is a respected trading jurisdiction Dubai business setup projects a positive image to your Clients. 4. If starting a business in Dubai to conduct trading solely outside the UAE, it is not necessary to rent an office or employ staff in Dubai. Then incorperation of an offshore is an option. 5. If starting a business in Dubai to trade within the UAE as a branch of a foreign company, it is necessary to appoint a UAE national as a according to the Dubai business setup regulations for a limited liability company (LLC). Prior to business formation in Dubai, DBA Business Advisors will introduce you to a bona fide UAE businessmen who have acted as the nominee shareholders for many of our Clients. 6. Foreign investors who want complete control of their Dubai company and do not want to trade 18

19 within UAE opt for business formation in Dubai Free Zones. A Free Zone company allows for 100% foreign ownership. 7. Starting a business in Dubai Free Zones often requires high levels of paid up capital. For example, in Jebel Ali Free Zone, a Free Zone Establishment (FZE) requires a paid up capital of US$272, According to the Arab World Competitiveness Report 2007, the UAE has the Arab world s most competitive economy. Investors starting a business in Dubai often comment on the highly competitive nature of the local economy. 9. To support Dubai business setup, DBA Business Advisors assists opening of a domestic or international corporate bank account for our Client. The bank account is with leading international retail banks and includes world class multi currency Internet banking facilities. 10. To support business formation in Dubai, DBA Business Advisors assists in obtaining Dubai residence and employment visas for many of our Clients. 11.DBA Business Advisors provides our Clients with Virtual office services if required. For example, to support Dubai business setup, DBA Business Advisors offers a local business address in Dubai for invoicing, as well as telephone, fax and support. Licensing Requirements Terms & Conditions on Operating Economic Activities in the Emirate of Dubai First United Arab Emirates Nationals: United Arab Emirates nationals may operate all commercial, professional and industrial activities subject to requirements of other government authorities, according to each activity, and to approvals issued by such authorities. For example, media activities require approval of the National Media Council. They may carry on activities through any of the following legal forms: Individual establishment Limited liability company Joint liability company Private shareholding company Public shareholding company Civil business company Second Nationals of Gulf Cooperation Council Countries (GCCC) 19

20 GCCC nationals may carry on most commercial, professional and industrial activities, subject to requirements of other government authorities, according to each activity and to approvals issued by such authorities. The may carry on activities through any of the following legal forms: Individual establishment Limited liability Company: Two or more GCCC nationals may establish a limited liability company to practice a specific commercial activity. However if there is one or more partners who are not GCCC nationals in this case one or more UAE national partner is required, with a shareholding of not less than 51% of the paid up capital. Private Shareholding Company: Three or more GCCC nationals may establish a private shareholding company to practice a specific commercial activity. However if there is one or more partners who are not GCCC nationals in this case one or more UAE national partner is required, with a shareholding of not less than 51% of the paid up capital. Public Shareholding Company. Civil Business Company: Two or more GCCC nationals may establish a civil business company to practice a specific profession without a local services agent. However if there is one or more partners who are not GCCC nationals, a local services agent who is a UAE national shall be appointed or included as a partner. Third Nationals of other countries Nationals of other Arab or foreign countries may carry on economic activities through any of the following forms: An individual establishment: It may be established to practice any professional activity, only by appointing a local services agent who shall be a UAE national. Limited liability Company: This kind of company shall be established to carry on any commercial or industrial activity, including one or more UAE partners whose shareholding shall not be less than 51% of the paid up capital. Private Shareholding Company: This kind of company shall be established to carry on any commercial or industrial activity, including one or more UAE national partners whose shareholding shall not be less than 51% of the paid up capital. Civil Business Company: Two or more persons may establish a civil business company to practice a profession, provided that a local services agent who must be a UAE national is appointed or included as a partner. Fourth Foreign Companies: Any company incorporated outside the United Arab Emirates may operate any commercial, industrial or professional activity through one of the following legal forms: 20

21 BUSINESS INCORPORATIN GUIDE