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Understanding the Complex Requirements for Establishing a Company in the UAE

The UAE government is open to foreign investments. But, just like any governing bodies, they have implemented a set of requirements which a company must comply with to be able to legally operate. Going through the legal requirements involved in setting up company in Dubai can seem like an overwhelming task. This cosmopolitan city is strict when it comes to company registration. To get an understanding of what company registration in Dubai is like, let’s have a look at the basic requirements.

Business licensing requirements
Business licenses issued in Dubai are basically classified into 3 categories namely, commercial license, industrial license and professional license. Any business of any category is required to have a “trade” license in Dubai. Dubai’s Department of Economic Development (DED) is the government agency responsible for issuing local company licenses. This department operates from several locations to deliver licensing services.

It is essentially important to understand and determine the license category that allows you all the activities your business will be engaged in. Choose a license category that covers a wide scope of business activities.

Shareholding structure
Startup companies other than those with a professional license established 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. In Dubai, this is a legal DED requirement.

If you wish to own your business 100%, you need to establish your business in one of the Free Zones which offer speedy start up and duty free customs boundary in addition to full ownership.

Finding the right sponsor for your company can be a major issue in the setup process, it is advisable to hire business setup services Dubai experts who can take you through the entire process. These people will take charge of all the legalities and liaise with relevant government agencies. This will help you legally ready to operate within 24 hours.

Minimum capital share requirement
Depending on the category of your business, you are required to show the the Ministry of Commerce a significant amount of your capital investment. Following are the different share capital requirements for joint stock companies. The amount varies based on the business they will undertake.

Public companies are required a minimum share capital of 10 million AED. A minimum share capital of 25 million AED for insurance and investment companies and a minimum share capital of 40 million AED for financial institutions.

Austria Business Center (ABC)
The Austria Business Center (ABC) is a leading global company that provides fully equipped, operational and ready for occupancy serviced offices.  They offer a wide range of top-notch customised, serviced office packages and expert business setup services. If you’re a start-up company looking to have a smooth business setup process, ABC has a professional team who are experts in the licensing, sponsoring and partner sourcing process. ABC is the #1 provider of business centres Dubai and they have branches in the world’s major cities.

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