Thursday 21 June 2012

Legal Structures for Setting up Business in Dubai, UAE

The Federal Law stipulates a total local equity of not less than 51% in any commercial company and defines seven categories of business organisations, which can be recognized in Dubai. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures. The seven categories of business organization defined by the Law are:
 · General partnership company
 · Partnership · Joint venture company
 · Public shareholding company
 · Private shareholding company
 · Limited liability company (LLC)
· Share partnership company

Out of the above seven company types, LLCs are more commonly chosen by the foreign investors. Apart from these seven categories, investments are encouraged through: · Branches and representative offices of foreign companies · 100% foreign owned professional firms · Free Trade Zones

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Posted by Winston Karumba, Senior Business Consultant


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