One of the most important aspects of forming a company in
Dubai or the UAE is obtaining a trade license. Obtaining a business license in
Dubai is no longer a difficult task. Our professional team assists you in
obtaining a license in the UAE for your business needs. Depending on the nature
of your business, we will assist you in obtaining the appropriate business
license in Dubai to ensure its smooth operation and maintenance. In Dubai,
three types of business licenses are issued.
·
Mainland License
·
Free Zone License
·
Offshore License
MAINLAND COMPANY FORMATION
The Prime benefit of setting up a
business in Mainland is that we are able choose a preferred location as the
mainland covers the major commercial locations in Dubai. The Prime locations
that comes under mainland are..
·
Deira
·
Burdubai
·
Business Bay
·
Al Quoz
·
Al Qusais
·
Jumeirah
·
Al Karamah
·
Ras Al Khor
·
Business investors chose Dubai
as their favorite business hub because of the city’s ideal conditions. Investors
can conduct their businesses both domestically and internationally by setting
up their firms in mainland . To register a business on the mainland, it must
follow the guidelines and procedures of the Department of Economic Development
(DED).
·
It will be better to seek the help of business setup consultants to
complete the company formation procedure to save both time, costs and proper
documentation. Phenom Business Solutions can
help you register your business on the Dubai mainland, making its process simple
and time saving.
Advantages of a Mainland
Company in Dubai
·
Able
to chose preferred location
·
100%
foreign ownership for most activities.
·
Can trade across all emirates as well as internationally.
·
No
minimum capital requirement
·
Easily
open your branch offices.
·
Legal
proceeding are easier.
·
Startups
can setup their business without registering an office for one year for
selected activities.
·
No
minimum office space requirement for most activities.
Different
types of Licenses that can be registered in Mainland:
COMMERCIAL LICENSE
Commercial licenses are issued to businesses that are
involved in any sort of trading activities related to goods, commodities and
services. A maximum of ten activities under same activity can be included in a
single license. Different categories that one can get a commercial license in
Dubai are,
·
Sale of goods such as FMCG, Electronics,
garments, cosmetics, automotives, etc
·
Import and export of goods
·
Logistic services
·
Real Estate & Brokerage firms.
·
Travel & Tourism activities
·
Cargo Services
·
Insurance firms.
·
Rental Services.
INDUSTRIAL LICENSE
Industrial license is mandatory for manufacturing of
any kind of goods using raw materials that can be purchased locally or
imported. Different categories in which one can obtain industrial license are:
· Textile products
· Metallic products
· Building Materials
· Petroleum products
· Security equipments
· Chemicals
· Pharmaceuticals
· FMCG
PROFESSIONAL
LICENSE
Professional license is another type of business
license in Dubai mainland. These kind of license will be helpful for entrepreneurs and investors who are from a
particular professional background and apply their professional experience in a
business. Professionals licenses are issued for the activities that comes under service
sectors like
·
Accounting firms
·
Consultancy firms
·
Engineering services
·
Maintenance services
·
Architecture
·
Laboratory
·
Research firms
·
Photography
·
Healthcare services
·
Lawyer firms
·
Documents Clearing
.
SOLE ESTABLISHMENT
A sole establishment is suitable for individuals who
want to register a professional license. Through a sole proprietary one can get
100% ownership of their license. However a foreign national would be requiring
a local service agent but will have
complete power over the company’s operations, profits, liabilities, banking,
etc
Expatriate investors shall form Sole establishment for
conducting professional activities such as Accounting,
Consultancy, advertising, lawyer firms, IT services, etc.
A foreign investor should appoint a Local Service Agent against
an annual service fee, who can be a UAE national or a company . There will be a Service Agent agreement that
must be signed by both parties from the concerned department. This agent will
have signing power in government departments like labour and immigration for
work permit and visa issuance.
If more than one partners are involved in such firms,
then a CIVIL COMPANY can be formed with same legalization by forming
Civil contract agreement between the partners other than local
agent.
Limited Liability
Company or LLC
Limited Liability Company or LLC
Company is the most preferred type of
business in Dubai. It’s a type of Business license which can have a maximum of
50 shareholders. The most important thing is that the shareholder’s liability
is limited to everyone’s share capital.
It is the most suitable legal form
of license for foreign investors and entrepreneurs to set up their dream business
in Dubai. The shareholders can be of different nationalities and almost
citizens from any country can be a partner in LLC. As per the new law, it is
not mandatory to have a UAE national as a partner in LLC in Dubai( Earlier it required 51% of the shares to be of UAE
national). So a foreign investor or entrepreneur can open his LLC company with
100% ownership. Foreigners can get full authorization to deal with ministries
and the government for various paperwork.
Options are available to get their license on DED’s
“Instant License” scheme for selected activities through which the
companies can run their business without registering any office for One year. There
are no limitations on the number of employees they can hire as it does not
depend on office space. Partners or investors can get their visas with their
profession as Partner or Investor. Investors and entrepreneurs can even avail
Golden Residency or Green Residency (a kind of Permanent Residency) if the
eligibility conditions are met.
Phenom Business Solutions can guide you in obtaining
your LLC license by,
·
Typing of required
application for DED & other
departments
·
Getting name approval
& Initial approval.
·
Following up in other
departments in case of any external approval.
·
Finding local sponsors
if required.
·
Preparing the
Memorandum of Association and its documentation.
·
Finding appropriate
office location if required.
·
Submitting in
concerned departments and getting the license.
FREE ZONE
COMPANY FORMATION
Free zones are special economic zones in some areas or jurisdictions which allows business
activities specific to that region. There are more than 40 Free Zones in UAE
and around 30 in Dubai Emirate itself. The governing body that controls the operations, licensing and
legalization is called Free Zone Authority (FZA). The laws and regulations
of mainland companies are not applicable
to the Free zone companies. Each Free zone has its own Free Zone Authority and can issue
business licenses for the activities specific to those Free Zones only. Your business activity should
come in the category of the particular Free zone. A Free Zone
Authority issues business licenses to new investors and also for those who want
to set up a branch of a foreign company in UAE.
Advantages of forming a company in Free Zone
·
Foreign investors can avail their Business
License with 100% ownership.
·
Company formation cost is less.
·
Free zone regions are exempted from export and import
duties.
·
Free zone regions are exempted from Corporate
tax and personal tax.
·
Free zone companies do not have foreign
exchange restrictions.
·
Visa processing procedures are easy.
·
Investors can get 100% repatriation of capital and profits.
·
Free zones regions will provide with fully
equipped offices and warehouses.
·
Independent laws and regulations
Some of the major
Free Zones in Dubai are:
·
Jebel Ali Free Zone
·
Dubai Maritime City
·
Dubai Commercity
·
Dubai World Central
·
Dubai World Trade center
·
Dubai Design District
·
Dubai Science Park
·
Dubai Outsource City
·
Dubai Multi Commodities Centre
·
International Humanitarian City
·
Dubai Silicon Oasis
·
Dubai Internet City
·
Dubai International Financial Centre
·
Meydan Free Zone
·
Dubai Healthcare City
·
Dubai International Academic City
·
Dubai Production City
·
Dubai Media City
·
Dubai Studio City
·
Dubai
Textile City