Page 13 - Premier Brains Global -Doing Business in UAE (Low Res)
P. 13
DOING BUSINESS in UAE
iA branch operates as an extension of the
1) Mainland / Onshore
parent company, A representative office
Establishments (Establishing is a cost center and is restricted to only
marketing and promotional activities on
presence in the ‘Mainland’)
behalf of the foreign company.
All mainland establishments in UAE are • Professional License
governed by the UAE Commercial Companies
Law (CCL) which applies to most onshore Business activities covered under
economic activities. A mainland business professional category can be 100% owned
is allowed to do business in the local UAE by expat / foreigners but it is mandatory to
market as well as outside UAE without any have UAE national as a service agent.
restrictions
The most common business models used to
establish presence in the mainland are:
2) Free Trade Zones
• Limited Liability Company (LLC)
A Free Zone is a designated area within the
Previously, the mandatory requirement for UAE where foreign investors enjoy up to 100%
certain business activities was that a local foreign ownership as well as other benefits
Emirati sponsor / partner was required to such as import duty and VAT exemptions.
own 51% ownership in the company and the Free Zones have been established to attract
remaining held by the foreign investor. The foreign investments into the UAE. Each free
UAE now has amended the CCL allowing zone may have its own specific requirements
foreign investors to have 100% ownership and procedures.
in the business undertaken by them in UAE List of some freezones are as below,
but with certain ‘strategic sectors’ retaining
ownership restrictions. Abu Dhabi
Abu Dhabi Airport Free Zone (ADAFZ), Abu
A LLC can conduct all its activities that are Dhabi Global Market, Khalifa Industrial
mentioned in its license in the respective Zone, Industrial City of Abu Dhabi, Higher
emirate and rest of UAE. However when Corporation for Specialized Economic
conducting business activities in other Zones / Zones Corp, Masdar City Free Zone,
emirates, you might require opening local twofour54
branches to apply for government related Dubai
tenders or working with government entities, Dubai Airport Free Zone, Dubai Auto Zone,
hence, deciding the right emirate to open Dubai Biotechnology & Research Park,
office is an important decision at the start. Dubai Car and Automotive City Free Zone
(DUCAMZ), Dubai Design District, Dubai
• Branch or Representative Office Flower Center, Dubai Gold and Diamond
Park, Dubai Healthcare City, Dubai Industrial
Foreign companies can establish a branch City (DIC), Dubai International Academic
or representative office in the UAE to City, Dubai International Financial Centre,
promote their business and engage in Dubai Internet City (DIC), Dubai Knowledge
certain activities. Village, Dubai Logistics City, Dubai Media
City, Dubai Multi Commodities Centre, Dubai
Outsource Zone, Dubai Silicon Oasis, Dubai
13
