TRADING PARTNERS

Services - Company Formations - Dubai/UAE

DUBAI U.A.E.

The company formation procedure in Dubai typically takes 8-15 days. The company will be incorporated using your desired name. Dubai offshore companies must use the suffix Limited or Ltd. to denote limited liability. The following words and their associated activities are prohibited: Banking, Insurance and Re-insurance.There are several categories of licences available which can be broadly classified under following categories:

- Commercial licences for trading activity;
- Professional licences covering professions, services, craftsmen and artisans;
- Industrial licences for establishing industrial or manufacturing activity.

These licences can be obtained from the Dubai Economic Department. Financial guarantees by a bank operating in Dubai may be required for some trade activities like jewellery and insurance. All commercial and industrial enterprises in Dubai must register with the Dubai Chamber of Commerce and Industry.
All UAE established companies must have fifty-one per cent participation by UAE nationals except in the following cases:

- Within the Jebel Ali Free Zone;
- Business activities which are 100% AGCC owned;
- Where wholly owned AGCC companies enter into partnership with UAE nationals;
- Where foreign companies register a branches or representative office in Dubai;
- Certain business practices where the law stipulates 100% local ownership;

In certain professional or artisan business practices where foreign ownership is permitted. The law also defines the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures and stipulates provisions governing conversion, merger and dissolution of companies. There are seven categories of company formations defined by the local Dubai law and they are:

1. General partnership Company
2. Partnership-en-commendam
3. Joint Venture Company
4. Public shareholding Company
5. Private shareholding Company
6. Limited liability Company
7. Share partnership Company

Shareholders:
A limited liability company can be floated with a minimum of two and a maximum of 50 people whose liability is limited to their respective shares in the company’s capital. Limited liability companies provide a suitable structure for companies interested in developing a longterm presence in Dubai. The minimum capital requirement for floating a limited liability company is currently Dh. 300,000 (US$ 82,000), contributed in cash or in any other kind. While foreign equity in the company may not exceed 49%, profit and loss distribution can be specified. A minimum of two directors and one secretary are required and they cannot be bodies corporate. One of the directors can also be a secretary. A register of directors must be held at the Registered Office, but it is not a matter of public record.

Minimum share capital:
Dubai offshore company can select its own minimum capital. Usually we recommend share capital to be US Dollars 1,000. All shares must be fully paid when allotted. A company may not create different classes of shares. Bearer shares cannot be issued. Presently, joint shareholding is not allowed.

Dubai offshore companies pay no taxes on profit, capital gains or anything else in Dubai.

If you need our professional advise forming a company, wish to register companies or need to form or apply to form ready made companies, unlimited or limited liability companies, or need a suitable company structure in Dubai or the the other emirates of the U.A.E. - please, do not hesitate to contact us - we will be your best service.