A commercial company in Dubai will have 100% foreign ownership, according to Federal Law (participation of UAE nationals). The law also establishes seven types of business entities that are permitted to register in Dubai. These are the following:
SOLE PROPRIETORSHIP: In Dubai, a sole proprietorship is a separate legal entity run by a single person. A sole proprietor has complete control over the business's operations and is solely responsible for its profits and losses. A sole proprietor is fully responsible for the debts and obligations of the business.
GENERAL PARTNERSHIP COMPANY: A General Partnership Company in Dubai is owned by two or more partners who share unlimited liability and are personally liable for the company's debts and obligations. In the event of bankruptcy, withdrawal, insanity, or death of a partner, a general partnership may dissolve.
PARTNERSHIP-en-COMMENDAM: In Dubai, a Partnership-en-Commendam is made up of one or more general partners who are jointly and severally liable for the company's profits, losses, debts, and obligations. Due to partners involved in financial commitments in a limited partnership, the joint partners in Dubai require UAE nationals.
LIMITED LIABILITY PARTNERSHIP: A Limited Liability Company (LLC) is a business entity whose liability is limited to the amount of stock it owns. Except for insurance, banking, and money investment, an LLC can engage in any type of business activity. Trading LLCs are allowed to do business in their home Emirate as well as export and import goods with ease.
JOINT VENTURE COMPANY: In Dubai, a joint venture company is a contract between an international party and a regional party that has been granted permission to conduct the desired business activity. An exclusive license cannot be issued in the company's name. The original partner's license is sufficient for the project's implementation with the help of the other partner who is involved in the competition's running.
PUBLIC SHAREHOLDING COMPANY: In Dubai, a Public Joint Stock Company is also known as a Public Shareholding Company. It's the one in which the company's capital is divided into equal shares and each shareholder's liability is limited to the number of shares held.
PRIVATE SHAREHOLDING COMPANY: A non-governmental organization owns a Private Shareholding Company in Dubai, which is also known as a Private Joint Stock Company. AED 2 million is the minimum capital required to register a private shareholding company in Dubai.
PROFESSIONAL COMPANY: In Dubai, a professional company operates solely on the intellectual efforts of its partners. Professional companies in the UAE are governed by explicit rules. To start a Professional Company, one must have a professional license.
The Limited Liability Company (LLC) is the most popular of these seven company types among foreign investors.
TYPES OF BUSINESS LICENSES
The licensing authority in Dubai is the Department of Economic Development (DED), which issues licenses for significant activities. All business activity in Dubai requires the application and acquisition of one of the three types of licenses listed below:
COMMERCIAL LICENSE: To engage in trading activities or the buying and selling of goods, an investor must first obtain a commercial license in Dubai. This license is issued by the DED to the businesses.
INDUSTRIAL LICENSE: Businesses that transform natural materials or natural resources into their final products are granted an industrial license in Dubai.
PROFESSIONAL LICENSE: In Dubai, a professional license is granted to an individual or a company to practice any profession in which the individual or company relies on talent and intellectual abilities. It is aimed at artisans, craftsmen, and other professionals who provide services.
Apart from that, other licenses can be applied for, such as-
Import/Export License
Manufacturing License
Spa License
Freelance License
E-commerce License
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