Legal Structure for Business in UAE

Foreigners of any nationalities can actively participate in various available business activities in the UAE. Under the Federal Law No.8, business organizations may take any one of the seven mentioned forms:

• Limited Liability companies

• Public shareholding companies

• Private shareholding companies

• Partnerships limited by shares

• General partnerships

• Limited partnerships

• Shareholding companies

The company which does take any of these forms is considered as an illegal company and the person running it will severally liable for the obligations arising from these kind of contracts. An exception applies only to the companies that are operating in a Free Trade Zone. Dubai is favored for its liberal approach to business and commerce as the liberal regulations and laws attract millions. Each business entity big or small must be registered and licensed with the Federal Ministry of Economy and Commerce of the country. Moreover, there is a law set that the participation of the UAE nationals should never be less than 51 percent in any of the commercial enterprises.

Private Shareholding Companies: This company must have at least three shareholders and the minimum capital which one has to invest in Dh 2 million. The shares of the company may not be offered to the public. The incorporating documents of these companies must preclude public offering of shares.

Limited Partnership: This kind of partnership may comprise of one or more general partners who are severally and jointly liable to all its debts. A limited partner may not participate in the management and his name may not appear in the name of partnership. Moreover, all the general partners must be UAE nationals.

Joint Ventures: If we talk about joint ventures, these are formed by the agreement between two or more legal entities or natural persons. Moreover, the terms and objectives of these ventures are governed by the joint venture contract. It may be carried out in private name of one of the UAE national partners.

These are few legal structures for performing business in the country.

Business in UAE

Foreigners of any nationalities can actively participate in various available business activities in the UAE. Under the Federal Law No.8, business organizations may take any one of the seven mentioned forms:

•  Limited Liability companies

•  Public shareholding companies

•  Private shareholding companies

•  Partnerships limited by shares

•  General partnerships

•  Limited partnerships

•  Shareholding companies

Business Structure in UAE

The company which does take any of these forms is considered as an illegal company and the person running it will severally liable for the obligations arising from these kind of contracts. An exception applies only to the companies that are operating in a Free Trade Zone. Dubai is favored for its liberal approach to business and commerce as the liberal regulations and laws attract millions. Each business entity big or small must be registered and licensed with the Federal Ministry of Economy and Commerce of the country. Moreover, there is a law set that the participation of the UAE nationals should never be less than 51 percent in any of the commercial enterprises.

Private Shareholding Companies: This company must have at least three shareholders and the minimum capital which one has to invest in Dh 2 million. The shares of the company may not be offered to the public. The incorporating documents of these companies must preclude public offering of shares.

Limited Partnership: This kind of partnership may comprise of one or more general partners who are severally and jointly liable to all its debts. A limited partner may not participate in the management and his name may not appear in the name of partnership. Moreover, all the general partners must be UAE nationals.

Joint Ventures: If we talk about joint ventures, these are formed by the agreement between two or more legal entities or natural persons. Moreover, the terms and objectives of these ventures are governed by the joint venture contract. It may be carried out in private name of one of the UAE national partners.

These are few legal structures for performing business in the country.