Business License Services
DUBAI MAINLAND LICENSE
Mainland company formation in Dubai can be a very lucrative investment option for investors and business establishments. Mainland companies are business entities that are allowed to function and operate within the boundaries of Emirati jurisdiction that come under commercialized geographical regions.
In Dubai, all business entities that come under commercial, professional, and sole establishment registered under the Dubai Economic Department (DED) are known as Dubai Mainland License. Primary, possessing a Dubai mainland license helps you enjoy maximum freedom and flexibility to grow and operate your business. There are certain regulations and policies amended by the government that administers the operation of mainland companies in UAE.
Mainland Company is a local company or LLC registered with Department of economic development in every Emirates. The companies should have a local sponsor and the sponsor can be an individual or company. Mainland company setup gives you the freedom to extend your business across Dubai or UAE.
Company incorporation law in UAE mainland necessitates 51% of the total share of a commercial company to a UAE national. The remaining 49% goes to the foreign national or foreign investor. And this rule is mandatory for any business irrespective of the capital of investment.
However, the aforementioned law is not applicable to certain business endeavors and they are.
- Free Zone businesses
- Businesses that have complete foreign ownership
- UAE national – GCC partnership firms
- Fully Local ownership business concerns
Dubai mainland business setup does not restrict who and where you can trade in Dubai. By starting a mainland company, investors can plan and undertake any form of trade without worrying about the legal implications of overstepping trade permissions in Dubai and the entire UAE jurisdiction.
However, there are some legal formalities that must be adhered to such as having a local sponsor. Your business setup consultant should guide on how to work with a local sponsor and retain control of business management and finances.
Mainland business licenses
Generally, four major licenses are issued for businesses operating within mainland company formation in Dubai. The licenses are issued supported the business endeavor and that they are:
- Professional License – License issued for firms that undertake service-oriented endeavors. Professional licenses are required for professionals who participate in any professional activity like consulting. Compared to other licenses the value involved within the issuance of a professional license is a smaller amount.
- Commercial License – License issued for those business establishments that undertake to buy and to sell of products or services or just trading. Most traders choose the overall trading license to conduct quite one trading endeavor with one license. Commercial licenses are quite common in Dubai and UAE mainland. the whole formalities connected with Professional License like issuance, amendment, cancellation are often accomplished easily.
- Industrial License – License issued for firms that involve in the manufacture of products like factories, industries, etc. When it involves Industrial License, you’ll get to seek the approval of External Ministries and government departments depending upon the sort of commercial activity.
- Tourism License – All tourism-related activities require a legitimate Tourism License. The Department of Tourism and Commerce Marketing DTCM features a major role within the issuance of a Tourism license. a legitimate Tourism license is mandatory to conduct inbound and outbound tour-related activities for mainland company formation in Dubai.
FREE ZONE LICENSE
A free zone is established with a specific purpose in mind. The Dubai South free zone, for instance, aims to become the aviation and aerospace hub of the world, and has attracted many players in the industry. Dedicated infrastructure for the purpose makes any free zone an ideal destination for anyone intending to establish a presence by starting a company.
Free zones are designed keeping in mind the varied needs of both entrepreneurs and overseas companies. One could rent a single desk with access to the conference and meeting rooms, or it could be office space for hundreds of employees.
The biggest advantage of being located in a free zone is that there is a Free Zone Authority for every free zone. This Free Zone Authority deals with the Government on your behalf, and takes care of all the necessary paperwork. So you are effectively freed from a lot of hassle, and you can focus on running your company the best way you see it.
You are supposed to select your desired free zone jurisdiction based on the type of business. Your business activity should match the category of the preferred Free zone. Even though offshore companies share some of the benefits of Free zone companies in Dubai, they are not identical.
OFFSHORE LICENSE
UAE Offshore company formation is by far the most popular business setup formations in the UAE. An offshore company is an international business entity that offers no tax or low tax benefits.
In addition, they offer the ideal systems for business management, wealth management, application of smart international investment strategies, ease and freedom of business operations.
Offshore companies are businesses that are registered in Dubai but allowed to set base in offshore locations that are located outside the city of Dubai. Dubai offshore company formation can take the form of limited liability companies, limited companies, and limited partnerships.
Advantages of Dubai offshore company formations
Great flexibility: Foreign investors are allowed to 100% of offshore companies they set up in Dubai. Moreover, investors are not required to have a physical location as is the case with other business formations in the UAE.
Confidentiality: Details of company owners are not disclosed during the offshore company formation process. This makes offshore company formations ideal for foreign investors who wish to retain anonymity of their business dealings within the UAE and beyond.
Tax advantages: For a long, the UAE region has attracted foreign investors due to its lenient tax regime. For instance, offshore company formations benefit from the no corporate income tax law.
Bank accounts: Offshore companies are allowed to operate multi-currency bank accounts that facilitate international business transactions and guarantees money safety. Your offshore company formation specialist will help you in choosing the best multi-currency banking services provider in UAE as well as opening the required bank accounts.
100 % OWNERSHIP IN UAE
Dubai: The UAE has scrapped the need to have UAE nationals as sponsors, thus allowing expatriate investors 100 per cent ownership with effect from December 1, 2020. The move is in line with a federal law issued by President His Highness Sheikh Khalifa Bin Zayed Al Nahyan and which amends Law No. 2 of 2015 on companies and their shareholding.
The long-awaited 100 per cent ownership by foreign nationals of companies licensed and registered in the UAE is allowed as per Cabinet Resolution No. 16 of 2020. In recent years, individual emirates allowed foreign national owned companies to acquire the remaining stakes on a case by case basis. The latest amendment thus extends the scope of that significantly.
The new law amended 51 articles and added new ones, mostly focusing on the regulation of provisions of establishing companies with limited liability shareholding. The amendments exempt expatriate investors from the minimum percentage ownership of UAE nationals.
His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced the amendments to the law, noting that the UAE now enjoys a fertile legislative environment for the establishment of businesses in order to enhance the UAE’s competitiveness.
Setting up a committee
Under article No.10 of the amended law, a committee shall be formed as per a Cabinet decision and will include representatives from relevant agencies. It will deal with proposals to oversee companies engaged in activities of strategic importance.
The Cabinet will then issue a decision based on the committee’s recommendations to issue regulations licensing such companies.
