Dubai Economy by the numbers
Commercial Licenses (2014)
Direct Foreign Trade ( value in AED million)
The Benefits & Advantages of doing Business in Dubai
It’s a well-known fact that Dubai is a leading commercial hub in the international community. With the world’s best infrastructure and a leading global environment for business class society, it’s no wonder Dubai is steadily becoming the premier choice for every businessman. Dubai provides a clear competitive advantage for anyone seeking to do business in the Middle East and surrounding regions.
To support Dubai’s economy, the United Arab Emirates (UAE) has always presented investors with attractive offers and opportunities. For example, in majority of the sectors in Dubai there is no corporate tax in order to encourage more business throughout the Emirates. Additionally, there is no employee income tax and no restrictions are placed in Free Zones on the exchange of foreign goods whether it is within the Free zone, from Free Zone to Free Zone or Internationally . Dubai is also the largest economic hub in the Middle East, providing investors the greatest number of facilities and opportunities in the region including those in Indian sub continental regions and parts of North Africa. In total, Dubai provides geographically central access to 2 million people in over 30 countries.
The UAE’s economy is strong, vibrant, and easily accessible to businesses and entrepreneurs. The government has focused on implementing a number of economic initiatives to help promote and sustain this viability and its currency’s stability. These initiatives allow UAE investors to achieve excellent profit margins and intellectual property security.
The efforts to promote stability and security are also reinforced by the efforts of businesses within the Dubai community. Various businesses in the UAE have grown and expanded with these initiatives over the years to solidify the country’s position as the premier MENA region business hub. Moreover, UAE is also the house to the largest number of Free Zone areas in the region, which further encourages business through sea trading.
UAE’s bold focus has been on continually building its premier reputation as a leader in the fields of construction, travel, tourism, and health care in the region. With such an end in view, the government willingly adapts to new policies when needed. This gives the UAE a much needed flexibility to adapt to regional and global market trends. The clear competitive edge that Dubai and the UAE provides businesses has been the stepping stone to success again and again for new companies that make Dubai their home.
Education is also a priority for the UAE government. They continually support and promote educational activities and programs throughout the country to make UAE an ideal spot for global educational bodies looking to settle or expand.
UAE has also been recognized internationally for its excellence in providing business and investment opportunities to new investors in any sector or community around the world.
Requirements for Conducting Business in Dubai
To perform basic business activities in Dubai, you’ll need a license. There are four categories depending on the sector you wish to do business in:
Commercial License – This form of license is for any type of commercial business. In most cases, this license is issued for businesses that are engaged in trade (imports, exports, etc.).
Professional License – This license is issued to businesses that wish to engage in professional services/activities or non-commercial activities. In most cases, this is related to professions that require a specific type of expertise; such as Consultancy services.
Industrial License – This license allows a business to manufacture goods as well as anything else related to industrial enterprises.
Branch Office of a Foreign Company License – The UAE issues this license to any company whose Head Office (or Parent Company) is located somewhere other than within the UAE’s borders.
All licenses are issued by Dubai Economic Department. Depending on the license, however, you may also need additional approvals from various related Authorities. For example, banks and financial institutions will require approval from the Central Bank of the UAE. Insurance companies and related agencies require approval from the Ministry of Economy and Commerce. Manufacturing companies need approval from the Ministry of Industry, and, pharmaceutical and medical products require approval from the Ministry of Health.
SSC Dubai Can Help You
Our goal at SSC Dubai is making business legalization in Dubai as simple and stress-free for our clients as possible. We have both the first-hand knowledge of what works in Dubai and a nose-to-the-grindstone work ethic to help ensure your success. We’ll help you intelligently build your business and network to make your vision a reality.
Our goal as your consultants is simple; we want to bring you the best business advice possible while maintaining complete transparency and confidentiality to ensure your trust.
We’re ready to help you launch your business today! Click here
Limited Liability Companies (LLC) in Mainland Dubai
The LLC is the most popular type of business model in the UAE. It provides an ideal stepping-stone for new businesses to secure local and national sponsorship. It also protects employees and investors from the need to worry about taxes and liberty on bank transactions. Additionally, it makes getting work visas for foreign employees easier.
LLCs are most important for non-national partners. Shares for LLCs are not open to the public, nor are they negotiable. Additionally, partners in LLCs are not required to present capital to authorities for incorporation. Also, non-national partners are permitted to hold shares but not exceeding 49% of the capital. However, profits may be divided on other agreed upon ratios. These could take into consideration such things as the efforts of non-national partners in management, provisions for technology, or expertise. Under an LLC, a foreign partner may still undertake management of the company and fix the annual fee/profit for national partners.
The primary purpose of establishing an LLC is the trade of physical goods both inside and outside of the UAE. The Dubai Economic Department allows 5 to 6 business activities from the same trading group per trade license. If partners or investors wish to trade in multi commodities and goods, they can apply for a “General Trading License”.
Conditions to Establish an LLC
There should be no less than 2 partners and no more than 50.
The company’s objective should not include insurance, banking, investments, or professional services.
The company’s capital should be no less than three-hundred-thousand Dirhams (Dhs. 300,000) and should be divided into equal shares of no less than one thousand Dirhams each (Dhs. 1,000).
UAE national’s shares should be no less than 51% of the company’s capital. This takes into consideration the business activities reserved for nationals.
Procedures for the Incorporation of an LLC Firm
Approve the Company Name
Prepare a Memorandum of Association
Authenticate the Memorandum of Association
Approve the Memorandum of Association
Inscribe the company name in the Commercial Register at the Trade Licensing Department.
Publish the date of the company’s incorporation
Obtain a Trade License
Give us a call today and we’ll help you establish your business’s own LLC in Dubai mainland.