Establishing a Dubai sole proprietorship firm, U.A.E GCC citizens and

The law permits the establishment of a sole proprietorship for the UAE nationals

or nationals of GCC countries. Since the procedure and conditions differ in every

case, the following is a list of conditions applied to each case for establishing sole

proprietorship.

In case of U.A.E. citizen

The national individual who wishes to practice a business activity may apply to

the Dept. of Economic Development on the specified form for obtaining a license

to practice the required activity with the following documents:

1. Photocopy of passport

2. No-objection letter from his employer (if he is an employee)

3. No-objection letter from the concerned authority to practice that type of activity of

    which requires special approval.

In case of G.C.C. Citizen

In accordance with the Article 8 of the Unified Economic Agreement in respect of

treating all nationals of the Gulf Cooperation Council countries as nationals of any

member state without any discrimination in carrying out business activities in the

fields of industry, agriculture, livestock, fisheries and contracting.

The natural person who wishes to practice retail or wholesale trade, according to

this law must be residing in the U.A.E., must practice the required activity by

himself and have a license to practice the activity in his country of origin.

However he may not open branches inside the country.

The documents required in case of GCC citizen

1. Photocopy of valid passport

2. No-objection letter from the concerned authority to practice that type

 of activity of which requires special approval.

3. Photocopy of the license issued to him from the concerned authority in his home

  country under which he practices the activity, if he is a merchant.

The documents required In case of foreign investor:

·         Photocopy of valid passport

·         Photocopy of his local agent’s valid passport.

·         Photocopy of the agreement with the local agent

·         Non objection letter from the concerned authority to practice that type of

·         Activity (for the activities, which require special approvals).

The documents required In case of a company:

·         It should submit a copy of the partnership deed duly authenticated by

          the Notary Public. In addition to the other supporting documents required for the

          license in accordance with the legal status of each company.

If the applicant is a branch of a G.C.C. company, the following documents

are required:

·          Photocopy of the trade license issued to him by the concerned authority of the 

       investor's home county.

·          Photocopy of the partners’ valid passport

·          Photocopy of the company’s Memorandum of Association in the country

of origin.

If the applicant is a Representative office or branch of foreign company,

the following documents are required:

1. An official certificate from the competent authority in the country where the foreign company is registered which shows that the company is established and registered in that country according to the provisions of applicable laws with a statement of the legal form of the company and its capital.

2. The Board resolution authorizing the opening of a branch or an office to practice the activity in the UAE. In addition to the resolution to authorize the representative of the company with the power to establish a branch in Dubai, provided that the documents be authenticated and legalized by the concerned government authorities.

3. An identical copy of the company’s memorandum and articles of association duly attested by   the competent government authorities.

4. Last two years’ balance sheets coupled with the auditor’s report duly attested by the     competent government authorities or a duly document attested by the chartered accountant    of the company or any other document showing that the financial position of the company   is sound.

5. The agency between the foreign company and the local service agent

  and an identical copy of it.

6. The passport of the local service agent and photocopy of it or his identity card and a photocopy of it if the agent is a natural person. In case the agent is a juridical person (company), a photocopy of the memorandum and articles of association should be attached and attested by the concerned authority as well as a photocopy of its trade license and the certificate of its inscription in the commercial register coupled with photocopies of all these documents.

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