Setting up a Mainland (LLC)
Professional License
One of the primary reasons that make Dubai a perfect place to set up businesses is the attractive low tax system of the Emirate of Dubai. Professional License setup in Dubai is one of the excellent services from the professionals of Business Link UAE.
A professionally licensed company can be set up with 100% foreign ownership in the Emirate of Dubai. Although, a UAE national has to be appointed as a service agent the person will have no direct involvement in the business and will be paid on an annual basis.
The role of the Local Service Agent is to assist in obtaining a professional license, visa, labour card, etc. You won’t require any minimum capital to set up a professional company in Dubai.
A professional company is supposed to practice a profession as its main object and can carry out only non-commercial activities.
Commercial License
If your company plans to engage in trading or buying and selling of goods, a commercial license will come in handy for your plans. Buying and selling is referred to as trading in the UAE and Dubai. If you select a business activity that is classified under Commercial Activity, you will be issued a commercial license by law. The activities such as logistics, car rental and real estate brokerage are constituted as commercial activities.
A commercial licensed company can be setup as a Limited Liability Company (LLC), where 51% of its shares should be owned by UAE Nationals and the remaining 49% is open to foreign ownership. If your company is planning to trade in Dubai and UAE markets, setting up a Limited Liability Company in Dubai, UAE is the way to go. A Commercial License can be formed within one of the free zones in Dubai or in the UAE.
In some of the free zones in UAE, setting up a Limited Liability Company is fairly easy, whereas in other free zones it is treated as a Limited Liability Partnership. It is possible to set up with a suffix “FZ-LLC” which stands for “Free Zone – Limited Liability Company” in some free zones or “FZC” – which stands for “Free Zone Company”.
The foremost advantage of a Free Zone Company is that you are entitled to get 100% ownership of your business. Free Zones companies in UAE are exempted from the 51% – 49% minimum shareholding rule, which is non-negotiable outside the free zones. You can choose to incorporate a Commercial License within a Free Zone if your company is planning to export goods. If you plan to sell goods within UAE, under a Free Zone, you will be required to appoint a distributor. You will not be allowed to invoice your clients directly and you will have to place all the invoicing through the distributor.
A Commercial License can be formed as a branch of a foreign company, in which case, you will get a 100% ownership in Dubai, UAE.
Industrial License
You can obtain the Industrial License from the Dubai Department of Economic Development (DED). However, Industrial Licenses must be approved by the Dubai Municipality (DM) and different ministries and other authorities.
Industrial licenses are issued for companies that alter natural resources or transform raw materials. This transformation can be in terms of structure, appearance, the manufacturing new products, or transforming semi-manufactured products into fully manufactured ones. This transformation can be accomplished by mechanical means, or by manually segregating, filling, assembling, or packing products.
In order to set up an industrial licensed company in Dubai, you must have a local sponsor holding 51% of the shares while as a foreign investor, you will own the remaining 49%.
To obtain an Industrial License in UAE, a physical office inside the country is a requirement. Virtual offices are not entertained by the DED. It is necessary to do the maximum amount of preliminary analysis before applying for this license.
Dubai has transpired into one of the top business destinations in the world over the years and attracts a lot of investors into LLC Company Formation in Dubai. Investors choose Dubai for Company Formation- LLC as it remains tax-free and diverse in its policies. Many investors prefer to set up Limited Liability Company or LLC companies in Dubai.
A Limited Liability Company can be formed with the strength of minimum two and a maximum of 50 shareholders and the liability of shareholders are limited to their own share in the company capital. The LLC companies face a few restrictions in areas like banking, insurance or money investment.
For a Limited Liability Company, you’ll require an Emirati local sponsor or a silent partner with 51% of share in the company and an expatriate investor will hold 49% of share. After all legal procedures are completed, this local partner or silent partner will make an agreement in the court that he has no involvement in the company.
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