TYPES OF LICENSES ISSUED IN DUBAI
1. Trade License
A trade license is issued to a natural or juridical person to practice any trading activity for the purpose of profit making through buying and selling of goods. These licenses are issued for engaging wholesale or retail trade enterprises, contractors, hotels, transport and storing establishments etc., A Trading License can be a General Trading or Specific Trading. A specific trading license limits the scope of activities to trade in only closely related items. [For e.g. a company cannot trade in building materials, if its licensed activity is trading in computer peripherals].
2. Industrial License
An industrial license is issued to a natural or juridical person to practice any investment activity, the object of which is to discover natural resources or transform raw materials in terms of its structure or appearance into manufactured products or to transform the semi-manufactured products into fully manufactured products by using mechanical power and segregate the products, filling, assembling or packing them.
3. Professional License
A professional license is issued to a natural or juridical person to practice any profession in which he depends on his physical or mental efforts rather than depending on a cash capital. This license is issued to practice certain professions such as engineering consultancy, other consultancy services and studies, auditing and accounting, business set up, company formation, medical and educational services and similar services.
TYPES OF COMPANIES
LIMITED LIABILITY COMPANY (LLC):
- Local & International Trade allowed
- Office required
- Visa provided
- 51% shareholding held by local U.A.E. national except for professional licenses, where 100% shareholding is allowed
L.L.C. allows you to do local trade and services. It is recommended for companies who want to pursue retail business. In addition to local trade it also permits global trade. A Dubai limited liability company (L.L.C.) is an ideal vehicle to use for entrepreneurs doing business within Dubai, the U.A.E. and internationally. With Dubai L.L.C., you still can own only 49% of the equity. However, you can do that and keep more than 49% of the profits. U.A.E. law allows L.L.C.s to come up with flexible, differential profit sharing arrangements. These can give you an enormous advantage, especially since the 51% local equity rule is quite inflexible in most cases. It’s not surprising, therefore, that the L.L.C. is the most popular form of business organization in U.A.E.
- A Dubai L.L.C. offers unrivalled access to Dubai and the wider U.A.E. economy. Through a Dubai L.L.C., international entrepreneurs obtain Trade Licenses from the Dubai government. There are few restrictions on the activities of a Dubai L.L.C., and it is possible to obtain a license for all activities with the exception of banking, insurance and investment activities.
- Through a Dubai L.L.C., investors obtain a strong physical presence in Dubai. Although cost effective office space is hard to find in, we offer solutions to meet every budget and specifications.
- Incorporating a Dubai L.L.C. now faces no specific minimum capital requirements, after this formal requirement was abolished in the U.A.E.. Companies may or may not be subject to minimum capital requirements, dependent on the size, nature and goals of the business.
- It is easy to open global corporate bank accounts following Dubai L.L.C. set up.
INDUSTRIAL AREAS FOR COMPANY INCORPORATION IN DUBAI
The Dubai Government has allocated a number of Industrial areas and provided them with all necessary facilities, such as internal roads, electric power, water, tele-communication services and other facilities. The local government offers various incentives to the businesses involved in industrial projects. These include exemption from customs duty on import of items for the use of industrial projects such as raw materials and machinery, in addition to a 10% price preference in government prices over imported goods. There are five basic requirements to be complied by an entrepreneur to start up an industrial project in Dubai.
- International Trade is allowed and local U.A.E. trade is possible only through a local distributor
- Office required
- Visa provided
- 100 % Foreign shareholding allowed and no local sponsor required
- Only International Trade allowed
- No office required
- No Visa provided
- 100% Foreign shareholding allowed and no local sponsor required