Mainland Licenses
The essential tread for Setting up a Business in UAE is identifying the type of license that is appropriate for your type of Business, like
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Commercial License
For companies with activities related to trading, logistics, contracting etc.
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Industrial License
For Companies related to Manufacturing or other types of Industrial activities.
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Professional License
For individuals or groups that offer their expertise as a service to the general public like doctors, engineers, mechanics, consultants, IT artists, writers etc.
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Tourism License
For individuals or tourism companies like travel agencies, tour operators, for inbound and outbound travels etc.
Commercial License
Commercial License or Limited Liability Company (LLC)
A Limited Liability Company (LLC) is the most common form of business entity currently formed in UAE. An LLC can be formed by a minimum of one and a maximum of fifty persons whose liability is limited to their shares in company’s capital.
According to the recent amendment to the UAE Commercial Companies Law (the “CCL” ) a foreign expat can now own 100% foreign ownership to companies incorporated in the UAE under the revised CCL. The UAE Ministry of Economy announced that the foreign ownership amendment is effective since 01st June 2021 and the mandatory requirement that a minimum of 51% of the shares in a mainland Company be held by one or more UAE nationals, being natural or legal persons, has been removed from Article 10 of the CCL.
Foreign investors may now own and control Mainland Companies without the need of cumbersome arrangements, additional costs and legal uncertainty. We expect the amended CCL to strengthen the UAE’s standing as an international investment destination.
Benefits of Commercial License
- Access to clients both in the UAE and Freezones
- Cost effective solution to start up without office
- Flexibility to choose office as per your preferred location
- Unlimited employee visas
- 100% Tax Free Income
- No minimal capital requirement
- Easy access to local/global bank accounts and loan facilities.
Professional License
Professional License is usually awarded to Companies that provide a professional service to the general public like doctors, engineers, mechanics, consultants, IT, artists, writers etc. The firm shall be regarded as a Professional Company. For example, Clinics, Consultancy firms, IT, MEP Works, Cafes & Restaurants, Saloons and many other service sectors.
In setting up a professional firm, 100% ownership is generally permitted. However , a UAE National has to be appointed as a Local Agent, but the Agent will not have a direct involvement in the business and will be paid on an Annual Basis as a fixed sum or a percentage of the profit.
Benefits of Professional Firms
- 100 % ownership of the firm.
- Access to the wider UAE economy
- Tax Free Income.
- No restriction on employee visas.
Industrial License
An Industrial License is for Companies related to Manufacturing or other types of industrial activities.
According to the recent amendment to the UAE Commercial Companies Law (the “CCL” ) a foreign expat can now own 100% foreign ownership to companies incorporated in the UAE under the revised CCL. The UAE Ministry of Economy announced that the foreign ownership amendment is effective since 01st June 2021 and the mandatory requirement that a minimum of 51% of the shares in a mainland Company be held by one or more UAE nationals, being natural or legal persons, has been removed from Article 10 of the CCL.
Foreign investors may now own and control Mainland Companies without the need of cumbersome arrangements, additional costs and legal uncertainty. We expect the amended CCL to strengthen the UAE’s standing as an international investment destination.
Benefits of Industrial License
- Access to clients both in the UAE and Freezones
- Cost effective solution to start up without office
- Flexibility to choose office as per your preferred location
- Unlimited employee visas
- 100% Tax Free Income
- No minimal capital requirement
- Easy access to local/global bank accounts and loan facilities.
Tourism License
100% ownership is generally permitted in setting up a tourism business in Dubai. One needs to get the business registered with the department of economic development as well as with the department of Dubai tourism and commerce marketing.
The Dubai government has many options available for tourism licenses and the investor must choose the right activity when it comes to applying for a tourism business license.
Benefits of Tourism License
- 100 % ownership of the firm.
- Access to the wider UAE economy
- Tax Free Income.
- No restriction on employee visas.
Branch & Representative Offices of Foreign Companies
Under Articles 313 to 316 (inclusive) of the CCL, foreign companies are permitted to establish wholly owned branch and representative offices in the UAE. Representative offices is limited to promoting the parent company’s activities like gathering information and soliciting soliciting orders and projects to be performed by the company’s head office.
Representative offices are also restricted as to the number of employees they can sponsor and as a result, representative offices tend to act as administrative and marketing centers for their foreign parent company’s head office.
Provided that approval is received from the Ministry of Economy and the DED, and the appropriate trade license is obtained, a company may establish a branch or representative office in the UAE. The office must be registered on the Registry of Foreign Companies at the Ministry of Economy before it commences trading.
A UAE national must be appointed as Local Service Agent(LSA) while starting a Branch Office in UAE.
Benefits of Branch/Representative Offices of Foreign Companies
- Global Branding and a wider exposure to the UAE economy.
- This Business Structure reduces the need for national participation.
- Retain Brand Loyalty and offer services to existing customers thereby retaining the brand loyalty.
