Company Formation

I. Sole Establishment:

It is an establishment owned by a sole proprietor to operate an economic activity (commercial, professional, industrial, agricultural or real property). An establishment’s financial liability is linked to the proprietor who shall be responsible for all its financial obligations.

First:Documents required for Initial Approval

•  Registration and licensing application, as well as proof of reserved trade name.
•  Photocopy of applicant’s passport (together with residence permit / visa details for non-GCC states nationals).

•  Photocopy of applicant’s naturalisation identification for UAE nationals only.
•  No-objection letter from the applicant’s current sponsor for non GCC nationals.
•  Photocopy of the director’s passport, and no-objection letter from the director’s current sponsor.
•  Permission from the court to practice business, for applicants under 21 years.
•  Approval issued by other Government authorities according to the type of activity.

Second: Documents required after getting the Initial Approval

•  Initial Approval receipt
•  All documents submitted before in order to get the Initial Approval.
•  Photocopy of office lease including the plot number.
•  Appointment contract of Local Services Agent duly authenticated by the Notary Public in the Emirate for professional licenses of non GCC nationals.

II. Civil Company / Professional firm setup services

We supervise the entire process of establishing your professional firms. It includes strategic inputs, help select local service agents, assist to select locations, organize business plan, and also handle paperwork and documentation formalities.

•  Appointment of a UAE national as your local service agent.
•  The local service agent will have no direct involvement in the business.
•  Local Service Agents is paid a lump sum or a percentage of profits or on turnover.
•  While associating with IEC Emirates Chartered Accountants, you get the combination of our deep in-depth local knowledge expertise and extensive experience, which gives us the ability to precisely understand the unique needs of your business. We are thus able to recommend the best possible options and ensure that your business is set up with minimal hassles and effort.

Advantages

•  No personal income and capital taxes
•  No corporate taxation
•  100% repatriation of capital and profits
•  No currency restrictions
•  Competitive import duties (5% with many exemptions).
•  Abundant and economic energy supply
•  Simple staff recruitment procedures
•  Competitive freight charges.
•  We undertake the entire task for, so you’re free to concentrate on the bigger picture – your business.

First: Documents required for Initial Approval

•  Registration and licensing application, as well as proof of reserved trade name.
•  Photocopy of applicant’s passport (together with residence permit / visa details for non-GCC states nationals).
•  Photocopy of applicant’s naturalization identification for UAE nationals only.
•  No-objection letter from the applicant’s current sponsor for non GCC nationals.
•  Photocopy of the director’s passport, and no-objection letter from the director’s current sponsor.
•  Permission from the court to practice business, for applicants under 21 years.
•  Approval issued by other Government authorities according to the type of activity.

Second: Documents required after getting the Initial Approval

•  Initial Approval receipt
•  All documents submitted before in order to get the Initial Approval.
•  Photocopy of office lease including the plot number.
•  Contract of Professional Business Company duly authenticated by the Notary Public in the Emirate, Contract of Civil Works Company.
•  Appointment contract of Local Services Agent duly authenticated by the Notary Public in the Emirate for professional licenses of non GCC nationals.

III. Limited Liability Company

UAE allows LLCs to flexible, differential profit sharing arrangements. This permits the foreign investor a great edge as the 51% local equity rule is in most cases.

Limited Liability Company can be formed by a minimum of two and a maximum of fifty shareholders whose liability is limited to their shares in the businesses capital. Most companies with foreign partners have opted for the Limited Liability Company, due to the fact that this is the only option that’ll give maximum legal ownership i.e. 49% to the expatriates for a local business. As it is mandatory to have a UAE national as a partner in the LLC prospective investor has the option to choose the one UAE national (sponsor) as a partner in the company. The span of time to form a company will be approximately 1-2 weeks from the date of receipt of all documents.

Advantages

•  While foreign equity in the company may not exceed 49%, profit and losses will be shared in a ratio different to that of the share capital ratios
•  The most popular method of establishing a commercial company in Dubai
•  A Dubai LLC offers unrivalled access to Dubai and the wider UAE economy
•  Through a Dubai LLC, international entrepreneurs obtain Trade Licenses from the Dubai government
•  No specific minimum capital requirements
•  The investor becomes the partner in the company.
•  The investor gets the investor visa under which he/her enjoys an investor’s status in Dubai along with his/her family.
•  The investor can create more branches at different places for his activities.
•  The investor can run the business without the day-to-day interference of the local national partner.
•  The assets and capital created will be in the name of the company and not in the name of the local national partner.
•  Only a few restrictions on the activities of a Dubai LLC
•  Easy to open global corporate bank accounts following Dubai LLC set up

First: Documents required for Initial Approval

•  Registration and licensing application, as well as proof of reserved trade name.
•  Photocopy of applicant’s passport (together with residence permit / visa details for non-GCC states nationals).
•  Photocopy of applicant’s naturalization identification for UAE nationals only.
•  No-objection letter from the applicant’s current sponsor for non GCC nationals.
•  Photocopy of the director’s passport, and no-objection letter from the director’s current sponsor.
•  Permission from the court to practice business, for applicants under 21 years.
•  Approval issued by other Government authorities according to the type of activity.
•  The Company’s Board of Directors resolution to subscribe to the new company if the partner is an existing corporate entity in UAE or abroad (the resolution must be attested by UAE embassy / consulate or by a GCC state embassy / consulate and UAE Ministry of Foreign Affairs, and duly translated into Arabic).

Second: Documents required after getting the Initial Approval

•  Initial Approval receipt
•  All documents submitted before in order to get the Initial Approval.
•  Photocopy of office lease including the plot number.
•  Original photocopy of the Memorandum of Association duly authenticated by the Notary Public.
•  If the partner is an existing corporate entity in UAE or abroad the Memorandum of Association and the Commercial Register Certificate must be attested by UAE embassy / consulate or by a GCC state embassy / consulate and UAE Ministry of Foreign Affairs, and duly translated into Arabic).

IV. Branch and Representative Office.

We undertake to assist the A to Z procedures relating to Branches and Representative Offices in UAE from
Details at a glance

•  A branch office is permitted to promote and market the products of its parent entity.
•  Also, It can enter into transactions and offer services to customers.
•  Representative offices are only allowed to promote/market the business activity of parent company.
•  And cannot enter into a transaction in the name of its company
  Look after the entire process of establishing your branch or representative offices. We give strategic inputs, help select local sponsors, assist to select locations, on your business plan, and also paperwork and documentation formalities.

Useful Tips on Dubai Branch/ Representative Offices

•  No personal income and capital taxes
•  No corporate taxation
•  100% repatriation of capital and profits
•  No currency restrictions
•  Competitive import duties (5% with many exemptions).
•  Abundant and inexpensive energy supply
•  Simple staff recruitment procedures
•  Competitive freight charges.

First: Documents required for Initial Approval

•  Registration and licensing application, as well as proof of reserved trade name.
•  Photocopy of the director’s passport, and no-objection letter from the director’s current sponsor.
•  Photocopy of the national agent’s passport & UAE naturalization identification.
•  Approval from the Ministry of Economy & Commerce (commercial activities only).
•  The Company’s Board of Directors’ Resolution authorizing opening of the branch in Dubai, duly translated into Arabic.
•  Power of attorney issued in favor of the director.
•  Main company’s Memorandum of Association.
•  Photocopy of the main company’s certificate of Incorporation duly translated into Arabic.
•  Approval issued by other Government authorities according to the type of activity.

Second: Documents required after getting the Initial Approval.

•  Initial Approval receipt
•  All documents submitted before in order to get the Initial Approval.
•  Photocopy of office lease including the plot number.
•  The original appointment contract of national agent duly authenticated by the Notary Public (Engineering Consultancy Companies are excluded).

V. Joint Venture

We have expertise to assist all joint venture operations setup in UAE. We initiate dialogue and contacts with potential partners, set strategic direction, co-ordinate your business plan, and also handle paperwork and documentation formalities.

•  Minimum Local equity participation of 51%.
•  Profit and loss distribution can be mutually agreed.
•  So you can hold 49% equity and eligible for a higher share of profits.

First: Documents required for Initial Approval

•  Registration and licensing application, as well as proof of reserved trade name.
•  Photocopy of applicant’s passport
•  Photocopy of applicant’s naturalization identification
•  Permission from the court to practice business, for applicants under 21 years.
•  Approval issued by other Government authorities according to the type of activity.

Second: Documents required after getting the Initial Approval

•  Initial Approval receipt
•  All documents submitted before in order to get the Initial Approval.
•  Photocopy of office lease including the plot number.
•  Original photocopy of the Memorandum of Association duly authenticated by the Notary Public.

VI. Public & Private Shareholding Company

We organize to establish shareholding companies in UAE from inception to conclusion We give strategic inputs, assist to help decide company structure, select local partners, choose exclusive office locations, organize business plan, and also handle documentation formalities.

Salient features:

•  Minimum capital required for a public shareholding company is AED. 10 million (US$ 2.725 million).
•  Minimum capital required for a private shareholding company is AED. 2 million (US$ 0.545 million).
•  UAE nationals are appointed as Chairman/ Director.

First: Documents required for Initial Approval

•  Registration and licensing application, as well as proof of reserved trade name.
•  Four copies of the Company’s Memorandum & Articles of Association duly authenticated by the Notary Public.
•  Two copies of the Project’s Feasibility Study.
•  Approval issued by other Government authorities according to the type of activity.
•  Ministry of Economy resolution concerning private shareholding.
•  Approval of UAE Securities and Commodities Authority concerning public shareholding.

Second: Documents required after getting the Initial Approval

•  Initial Approval receipt
•  All documents submitted before in order to get the Initial Approval.
•  Photocopy of office lease including the plot number.
•  List of Directors’ names, dates and places of birth, occupation, and a sample of the Directors signature. Please provide the original documents plus one copy of each.
•  A written declaration by each member of the Board of Directors of accepting the appointment.