It only stands to reason that a UAE business guide should always start by education novice investors in the legal regulatory hurdles in setting up a profit-based enterprise in the region. Foreign investors that the investment opportunities offered by the different sectors in the UAE signified that businesses is easily set up in the locale which isn’t true. It is important that you know what type of businesses is available to investors and the various requirements associated with its incorporation.
Starting With Licenses
Every business in the UAE requires a license and there are 3 types of licenses offered in the region. This UAE business guide delves into each in detail.
1. Commercial License – this license can be classified as a general license for any types of commercial businesses in the city. In most cases, this is related mostly to business that deals with trading (e.g.: imports, exports, etc.)
2. Industrial License – an industrial license is issued to corporations that deals with manufacturing of goods or anything related to industrial enterprises.
3. Professional License – this license is released to individual businesses that offer a specific service, mostly related to crafts, profession, and the likes.
Another important topic discussed in this UAE business guide is the ownership of an investor to a particular business. There are two that you should be aware of, namely Partnership Ownership and Sole Ownership.
Partnership Ownership is a type of business where your native UAE partner owns a majority of the shares in the business. In this case, your sponsor should own at least above 50% of the total shares while you get the rest or subdivided with other investors. There are 3 classifications of business under this category, namely:
*Limited Liability Company (LLC)
*Private or Public Shareholding Companies
The second type of ownership is the Sole Ownership where the investors get full ownership of the enterprise giving him or her full control over its operation and profit. If you check out a UAE business guide aside from this one, you will find out that Sole Ownership ventures are limited to Free Trade Zones where you don’t need an agent to set you up.
Company Registration Procedures
This section of the UAE business guide discusses the various procedures necessary for company or business incorporation in the region. Small-scale business, especially those operating outside Free Trade Zones require the aid of a native UAE sponsor or agent to register the enterprise — like processing necessary documents, applying for business visa, registering the business in related government agencies and bureaus, and so on.
In most cases, the procedure can be summed up with the steps below:
1. Submission Of Company Registration Application
Documents pertaining to the registration of the company are to be duly submitted to the Department of Economic Development (DED). This application
will be subjected to approval by a government representative so a business will be issued its license to operate its enterprise in the region.
2. Notarizing Documents
A native UAE lawyer is necessary to have your documents notarized in order for the entrepreneur to get a preliminary approval. In most cases, documents have to be notarized first before you submit it to the DED for approval.
3. Filing Business-Related Documents
Once you have passed the preliminary approval and have obtained the license to open up a business in the city, the next step is to file documents related to the business with the DED. This includes documents pertaining to company registration, financial statements, bank-accounts, registration of native UAE workers, compensation and benefits, rules and by-laws, and so on. There are also some documents that need to be filed with other government agencies as well, like the Ministry of Labor for one but these are mandatory.
Simplifying Business Registration with Experts
This UAE business guide can help give you an idea on what the various legal processes involved in setting up a business in the region. However, if you don’t have the means to take care of this task on your own then the best way to jumpstart your enterprise in the city is to look for a local UAE business consultant firm to help you process all the requirements to register your venture quick and easy.