Dubai continues to attract more investors around the world. The UAE government provides a lot of business facilities and amazing infrastructure to setup your company. In the recent days, UAE has turned out to a favorite location for investors, employees, and residents. The favorable business setup laws widen the opportunity for every investor.
Entrepreneurs can choose from different company formations and register it with necessary legal requirements. The legal framework differs based on local and foreign investors. UAE supports different business activities and so, you need a unique business structure to proceed.
Different company formations in UAE
Sole proprietorship
While starting a sole proprietorship company, the individual has 100% ownership and authority to control its operations. The owner handles all the profit as well as bear the financial duties or debts.
Few requirements for sole proprietorship,
- Investor from any nationality can own a sole proprietorship company
- UAE and GCC nationals can own the 100% commercial or industrial company
- If business owner is not a UAE national, they can appoint a Local service agent (LSA)
- LSA helps you obtain the license and comply with all the approvals
Civil company
Civil company is a good choice for professionals such as engineers, doctors, surgeons, lawyers, and more. Civil company is the best choice for professional services.
Few requirements of a civil company,
- Such companies have no restrictions on nationality but if you start an engineering company, you should include Emirati national to hold 51% of the company shares.
- If owner is a foreigner, you need local service agent for business setup
Limited liability company
LLC or Limited Liability Company is a legal company type in UAE. The company can have minimum 2 to maximum 50 shareholders. They can invest and get the profit shares as per the investment. In this case, profit or loss is divided equally between shareholders.
Few requirement of LLC,
- Shareholders cannot increase capital or loans by distributing it as public stocks
- The company can have one to five managers from legal partners
- Have an UAE accredited auditor to look after financials
Private share holding company
A private firm is formed with minimum partnership of AED 2,000,000 from at least three investors. The company is compatible with all sorts of business including commercial and industrial activities excluding professional businesses.
Branch office in Dubai
It’s a branch of popular company. The branch office is physically different but work as a single business entity. Such branch offices expand your business and flourish it over UAE. With the help of branch offices, it’s easy to establish your presence all over UAE.
How business consultants help you in choosing the company type?
Business consultant is a dedicated business setup firm in Dubai with a track record of establishing various companies in UAE. We provide complete assistance right from idea to final execution.
We help you choose the perfect company type based on your requirements. Choose the right company structure and establish your presence in UAE.
