A professionally licensed company can be set up with 100% foreign ownership in the Emirate of Dubai. Although, a UAE national has to be appointed as a service agent the person will have no direct involvement in the business and will be paid on an annual basis.
The role of the Local Service Agent is to assist in obtaining a professional license, visa, labour card, etc. You won’t require any minimum capital to set up a professional company in Dubai.
A professional company is supposed to practice a profession as its main object and can carry out only non-commercial activities.
The foremost advantage of a Free Zone Company is that you are entitled to get 100% ownership of your business. Free Zones companies in UAE are exempted from the 51% – 49% minimum shareholding rule, which is non-negotiable outside the free zones. You can choose to incorporate a Commercial License within a Free Zone if your company is planning to export goods. If you plan to sell goods within UAE, under a Free Zone, you will be required to appoint a distributor. You will not be allowed to invoice your clients directly and you will have to place all the invoicing through the distributor.
A Commercial License can be formed as a branch of a foreign company, in which case, you will get a 100% ownership in Dubai, UAE.
You can obtain the Industrial License from the Dubai Department of Economic Development (DED). However, Industrial Licenses must be approved by the Dubai Municipality (DM) and different ministries and other authorities.
Industrial licenses are issued for companies that alter natural resources or transform raw materials. This transformation can be in terms of structure, appearance, the manufacturing new products, or transforming semi-manufactured products into fully manufactured ones. This transformation can be accomplished by mechanical means, or by manually segregating, filling, assembling, or packing products.
In order to set up an industrial licensed company in Dubai, you must have a local sponsor holding 51% of the shares while as a foreign investor, you will own the remaining 49%.
To obtain an Industrial License in UAE, a physical office inside the country is a requirement. Virtual offices are not entertained by the DED. It is necessary to do the maximum amount of preliminary analysis before applying for this license.
Dubai has transpired into one of the top business destinations in the world over the years and attracts a lot of investors into LLC Company Formation in Dubai. Investors choose Dubai for Company Formation- LLC as it remains tax-free and diverse in its policies. Many investors prefer to set up Limited Liability Company or LLC companies in Dubai.
A Limited Liability Company can be formed with the strength of minimum two and a maximum of 50 shareholders and the liability of shareholders are limited to their own share in the company capital. The LLC companies face a few restrictions in areas like banking, insurance or money investment.