Setting Up business in Mainland of United Arab Emirates

Setting Up business in Mainland of United Arab Emirates

The companies require legal sanctity before doing business in United Arab

Emirates. For conventional businesses in UAE, the Economic Department

is the authority which regulates all the procedures and requirements. These

are authorities for licensing to embark on economic activity in the Emirate.

1. Dubai Economic Department.

2. Sharjah Economic Department.

3. Abu Dhabi Economic Department.

4. Ras al Khaimah Economic Department.

5. Fujairah Economic Department.

6. Umm al Quwain Economic Department.

7. Ajman Economic Department.

Types of Licenses in conventional Business

Industrial license
Commercial license
Craft license
Tourism license
Agricultural license
Professional license

Important note: A business license may include more than one activity in one

business activity.

Legal Forms of Business

The first step to kick-start your business is to choose the economic activity and the second step is to decide on the legal form which caters for your business model. Here are the legal forms of companies which the Economic Department recognizes.

General Partnership.
Limited Partnership.
Limited Liability Company.
One Person Limited Liability Company.
Sole proprietorship.
Civil company.
Public shareholding Company.
Private Joint-stock Company.
Representative Office.
Branch of Free Zone Company.
Branch of Foreign Company.
Branch of Local Company.
Branch of Company Based In another Emirate.
Branch of GCC Company.
Government Liaison office.
Foreign Ownership of Companies

foreigners/ ex-pats/non-GCC citizens are allowed to establish companies without local service agents with 100 per cent ownership of those companies, most of the commercial and

industrial activities are included in that list with the exception of some special activities. The foreigner can acquire the license for the above-said activities in the following two forms.

1. Limited Liability Company.

2. One-Person Limited Liability Company.

Special Impact Activities

These are seven special activities in which a foreigner/foreign company

cannot hold 100 per cent ownership of the business in UAE. These activities

are called strategic impact activities.

1. Security, defence, and military-type activities.

2. Currency Printing.

3. Banks, exchange bureaus, finance institutions and insurance activities.

4. Telecommunications activities.

5. Hajj and Umrah Services.

6. Holy Quran Recitation Centers.

7. Services related to the fisheries sector.

Above said activities are special activities in which shareholdings of citizen

are determined by the concerned authorities along with shareholdings of

foreigners/foreign companies who wish to invest in these sectors albeit

in the fisheries sector, the citizen shall have 100 per cent ownership.
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