COMPANY NAME

The name of the Company is a very important part of the incorporation. Ideally, the owner(s) should give 3 proposed name during the pre-approval stage. It should indicate as well the nature of business, unless it is a branch of another company. 

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LEGAL FORM

Under UAE Law, there are five types of business establishments applicable to foreign entities interested in establishing a formal presence in the UAE. UAE government has implemented wide range of economic and administrative policies which has made UAE an attractive business destination. A company can create a permanent establishment, create an entity in a UAE free zone, enter into a commercial agency agreement, establish a branch office, create a civil company (currently possible to establish a company in Dubai, Sharjah and Ajman).

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TYPE OF ACTIVITY/ ACTIVITIES

Investor(s) must choose the right business activity for their UAE company. Whether it's commercial, professional or industrial licenses, these will define the basis of your operations. However, while selecting, remember that certain activities such as food trading, jewellery trade, veterinary activities and legal consultancy require further approvals from other governmental departments.

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OWNERSHIP AND LOCAL SPONSOR / LSA

Except for the free zones where foreign investors can have the full ownership of their businesses, expatriates who want to undertake a business activity in the country need to have a UAE national partner or partners who hold at least 51 percent of the company as per the Commercial Companies Law No. (8) of 1984. 

 

The law also permits foreign companies to open branches or offices in the country provided that the branch or office appoints a UAE national services agent. If a foreign company does not wish to have a direct presence in the country or obtain a licence, it can still sell its products or services in the country by appointing a commercial agent in accordance with Law No. (18) of 1981 and its amendments in Law No. (14) of 1998 regulating commercial agencies.

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OFFICE TYPE

A major aspect of planning for and starting a new business in UAE is finding an appropriate location. Once you have your legal procedures and forms ready to go, it would be best to shortlist some offices with costs and other details.

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EMPLOYEES

Hiring an employee based in a Freezone is not really mandatory, but having a staff to take care of the business will help be more effective. Unlike if you have a License registered in DED which is really required.

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