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Trading at the local UAE market. What is necessary for it?

Article image: Trading at the local UAE market. What is necessary for it?

Currently the United Arab Emirates is one of the most attractive places for running and development of existing business including trade at the local market. Developed banking sector, complete absence of taxation, effective protection of the rights and secure residence, absence of restrictions on movements of financial assets all this makes business in the United Arab Emirates profitable enough.

Local market of the Emirates - requirements to onshore companies

The main requirement to companies wishing to operate at the local market of the Emirates is a mandatory participation of local sponsor or partner. Such a partner, who shall be the citizen of the United Arab Emirates must hold at least 51 % in the company. There is a possibility to arrange nominal holding of shares when a local citizen is not involved in managing the company and receives a fixed fee for nominal holding.

Among legal forms of organization of company at the local market of the country there are two main types:

  • Public Companies;
  • Limited Liability Companies.

Public companies

For this legal form it is allowed to run any type of business on the territory of the country. Minimum 10 shareholders are required, the maximum number of shareholders is not limited by the legislation. However, if local government participates in a company the number of shareholders may be smaller then 10.

The Board of directors administers and manages such company whereby chairman shall be citizen of the United Arab Emirates.

Clarify the cost of opening company, corporate or personal bank account, obtaining a residence visa, or another question regarding business in Dubai, UAE:

Limited Liability Companies

For such forms any activity permitted by law on the territory of the country is allowed. There are limitations for investment, insurance and banking sectors. Maximum number of shareholders is 50 and management of the company is carried out by the General Manager / Director who is not required to be a shareholder in the company.

Thus, in order to trade at the local market of the United Arab Emirates a registration of onshore company is necessary. It is important to note that any business activity at the local market of the Emirates requires obtaining an appropriate license. Furthermore, for each individual type of business it is necessary to register a separate company or, where it is permitted and various activities can be combined under one company, to obtain separate licenses for each activity for the same company. For example, for retail and wholesale trade at the local market of the country it may be necessary to register two separate business entities.

If you decide to trade at the local market of the United Arab Emirates we will help you to accomplish your plans promptly and with minimal costs. Our company has the extensive experience and our employees are qualified specialists, who will help you in solving practically any matters and tasks on the territory of the United Arab Emirates.

In order to build an effective business model that brings steady income you will need help of professionals in various industries. We are ready to provide you with maximum support and assistance in arranging your business in the Emirates.

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