Dubai is a well-respected pathway to the East, and since it became a financial hub, companies that engage in all types of business activities are now looking to establish a presence here. Setting up a Local Company is an excellent way to enable you to have a presence in Dubai as well as operate within the local jurisdiction.
The important issues to consider when establishing local companies include the availability of excellent ties with local partners. UAE law dictates that 51% of the shareholding of a local company must be held by a UAE national.
You should look to secure local partners who are able to give you the comfort and security to run your business in the UAE market with confidence. Another important legal consideration revolved around the agreements which you will form with your local partner. It is also important the activities are legal and regulated. Here, it is important to note that Limited Liability Companies (LLC) are relatively flexible in that they enable any legal business to be carried out in the Local Market , other than insurance, banking, or investment businesses.
You have various options when it comes to incorporation of a local company, and the seven categories of business organization defined by the Law are: General Partnership Company, Simple Limited Partnership, Private Joint Stock Company, Limited Liability Company and Partnership Limited with Shares.
The most common business structure chosen is the LLC, which is characterized by limited liability. Each of the partners shall only be liable to the extent of his or her share in the capital.
Author: Experienced lawyer Hassan Elhais, along with his team of prominent lawyers across the UAE, has made a name for himself as a renowned specialist in the fields of civil law, construction law, banking law, criminal law, family law, inheritance law and arbitration.