Company License In UAE

COMPANY LICENSE IN UAE

Depending on the nature of the activity a business entity plans to undertake, license in one of these categories will be issued:

1. Commercial License – to be issued to a company that will engage in any kind of trading activity.

2. Industrial License – to be issued to a company that will engage in manufacturing or any industrial activity.

3. Professional License – to be issued to service providers, professionals, artisans, and craftsmen.

 Dubai Company Register:

Requirements for business licensing: The approval process for a business registration in Dubai

Issuance of licenses for banks and other financial institutions must have the approval of the UAE Central Bank Issuance of licenses for manufacturing companies must have the approval of the Finance and Industry Ministry.

Issuance of licenses for companies engaged in insurance and other relevant firms must have the approval of the Economy and Commerce Ministry

Issuance of licenses for medical and pharmaceutical products must have the approval of the Health Ministry. For companies engaged in gas or oil production, additional endorsements and approvals from other government agencies may be needed

In addition, business registration must also have the involvement of the Dubai Chamber of Commerce and Industry

Requirements for business ownership:

Every company, other than those with a professional license, set up in Dubai or elsewhere in the United Arab Emirates [UAE] is required to have no less than fifty-one percent (51%) shareholding by UAE nationals.

The exception to this requirement would be any one of the following six conditions:

1. The company is established at any of the Free Zones in Dubai.

2. In cases where the law requires 100% local ownership.

3. Where a company wholly owned by the Gulf Cooperation Council (GCC) enters into a partnership with another company wholly owned by UAE nationals.

4. In certain activities, 100% ownership for GCC nationals or entities is permitted.

5.In artisan or professional companies in which total foreign ownership is allowed.

6. In the case of a foreign entity registering a representative or branch office in the UAE.

7. In the case where a professional license is being applied for such professions such as architect, doctor, artist etc. The foreign ownership can be 100%. However a local national must be taken as ‘service agent’.

Legal business structures:

A major consideration in business registration in Dubai and the other Emirates is the choice of business structure. The Federal Law defines the seven legal structures of business organizations, as follows:

1. General Partnership

2. Partnership in Commendams

3. Public Shareholding

4. Private Shareholding

5. Joint Venture

6. Share Partnership

7. Limited Liability