- Legal Articles
- Ask Elhais
September 28, 2016|
With its stellar growth, Dubai has been known for alluring every business opportunists due its efficient licensing rules, infrastructure, and ease of work. In a survey "the World Bank's Ease of Doing Business Survey for 2014," the Emirate has been indicated as the easiest places to do business. If you're an expat and looking to begin a new business, you need to be informed about the business law and regulations. If you aren't aware, you can seek the help of lawyers and legal advisors in Dubai. We have some of the crucial and fundamental rules of business laws in Dubai:
If you're an expatriate and have been think of opening a limited liability in the Emirate, the law states that around 2 or 50 persons. A limited company has the freedom to get involved in any lawful activity, which should not include insurance, banking or investment. For Approval and License, one needs to approve The Economic Department and the business can be registered with Dubai Chamber of Commerce and Industry. The commercial name chosen should be approved by the Licensing Department of the Economic Department.
When it comes to the formation of a joint venture between foreign and a local party in Dubai, the law stipulates that the local party should own 51% equity. It is all right if official contract documents do not exist between the parties. The joint venture is beneficial if you have a specific project or technology. For a strategic partnership, lawyers in Dubai can advise on structuring, drafting and negotiating.
Under the UAE Commercial Company Law (13) of 1988, foreign companies are not allowed to undertake any financial obligations. The representative office should be registered with the UAE Ministry of the Economy, then with the Dubai Department of Economic Development. The business law also mandates the office to engage with UAE National Local Service Agent, either an individual or a UAE National-owned company.
The branch can be 100% owned by the foreign company, but it is mandatory for the company to appoint a local service agent, which should be UAE nationals or companies owned by UAE nationals. The branch or representative offices are prohibited from engaging in any kind of import activity, and can't generate profit.
For opening a branch office in free zone, it is required for companies to get license approval from Ministry of Commerce and Economy wherein they also note down the activity to be practiced by the authorized brand or office.
In the case of establishing sole proprietorship company by a foreign company. The foreign company has a 100% ownership. A local service agent is elected who should be UAE national. The agent is not associated with the company's business, but he is a part of the amount from the turnover of the enterprise.
Foreign firms can establish a permanent presence in the UAE by launching a limited liability company or a sole proprietorship or set up a branch office in a UAE Free Trade Zone. There are many benefits of opening a branch office in FTZ:
No personal income taxes
Corporate tax exemption for 15 years, which can be renewed
100% tax exemptions for import and export
100% repatriation of capital and profits
support for sponsorship and housing
support for employee appointment
It is true that Dubai has earned the reputation for enabling foreign companies to do business with ease, but it is necessary to get familiar with business laws for achieving success.
Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.
Your email address will not be published. Required fields are marked *
I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.
Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.
...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...
I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.
Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.
He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.
Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.
Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.
Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.
I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.
Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.