Type of License Mainland/Onshore
Approaching a new business venture can be a daunting prospect and deciding which License you need is the one question that can be answered relatively quickly. What are you going to be offering your clients/customers, services, products or both? Once you can answer that simple question then you fall into a category of licensing structure that the Economic Dept has already laid out and by simply stating what you wish to sell or which services you want to provide automatically places you into this Licence structure below:
Companies exercising non- commercial activities such as those established by professionals providing a service (advisory, consultancy, management, medical and educational services). This type of licensing permits non-nationals/foreign companies to form such companies subject to the compliance of having a Local Service Agent to act in a capacity to obtain and renew the company License and Immigration/Labour Dept company cards and with any other concerned authorities that may be required for a fixed yearly fee.
A Local Service Agent agreement will be signed in the Courts detailing the rights of both parties for all the above.
Foreign companies (Parent Company) wishing to open a branch in the UAE can do so by providing their attested incorporation documentation to mirror the current operation here in the UAE. This will be a professional License structure in accordance with the parent company activity if the parent company associated with consultancy, management services and will be 100% owned.
For companies wishing to trade goods and services, there is a tangible product to import/export/sell and distribute overseas or here within the UAE.
At least 51% shares must be allocated to the UAE Corporate or UAE National , the agreements must state that the minimum share capital has been assigned. Management of the company is stipulated in the Memorandum of Association and will be solely allocated to the 49% non-national person/individual shareholder including full financial management and abilities specifically detailed in this agreement. Profits and losses are also detailed in the agreement. The partners of this type of company are not personally liable for the company’s debts or liabilities. A Memorandum of Association will be signed in the Courts detailing the rights of both parties.
Foreign companies owning the 49% share in LLC company, they can open the LLC by providing their attested incorporation documentation for use in the set up here in the UAE. This will be a limited liability structure in accordance with the foreign company activity. A Memorandum of Association will be signed in the Courts detailing the rights of both parties.
A foreign investor who currently has a UAE Licence can enter into a joint venture with a UAE Corporate Company or UAE National Individual, this venture gives the foreign investor control over the business and full financial management of the company. The foreign investor receives all profits and losses, the UAE Corporation or UAE Individual receives a fixed fee. The UAE Corporation or UAE Individual ensures that there is a licence to operate in the Joint Venture and provides the sponsorship to the foreign investors’ employees by way of residence visa and work permits.
A joint venture is not suitable for manufacturing or contracting.
There are many free zones now in various locations all over the UAE and all free zones have separate governing authority and laws. All licences issued within the zone are 100% ownership and to take and operate any of the types of licencing in these zones you must comply with the Zone Authorities regulations. We advise anyone wanting to enter into a Free Zone licensing area to read the conditions of conducting business within the zone. Your office location will be within the zone area and various choices of office space will be available to rent directly from the Zone Authority.
Associated licence types in the Zone:
These types of licence in any Zone are Limited Liability entities and submission of yearly audited accounts will be required.
Existing UAE and Foreign companies may set up a branch of their company in certain Free Zones but dependent on which Zone is chosen there could well be a capital requirement.
If you currently hold any type of Free Zone licence and you have proposed or secured contractual business with any type of onshore/mainland companies, there is a possibility that you can register a branch of your Free Zone licence on the mainland.
Please contact us for details on which type of license suits the company profile.
Whether you need to add new activities or have a new investor or partner(s) to the existing business One Stop can assist with all these changes.
The Licence and associated incorporation documents will need to reflect any changes you may require and possibly this amendment may need attendance in the Courts. We can prepare, arrange all amendments and fix appointments with the Notary with the minimum of inconvenience to all concerned. We are even able to provide a Notary Officer to attend at your offices or our offices for speed and convenience.