Setting up shop in UAE

By Bassma Al Jandaly, gulf news
Dubai: In order to run a business in the UAE, the applicant should not be under 21 years of age.

If the applicant is younger, permission is needed from the civil court of the emirate where the person plans to run the business.

The UAE Federal Law allows expatriates to run their own business here and allows 49 per cent ownership. The rest 51 can be owned by one or more Emiratis.

In Free Trade Zones expatriate businesses are exempt from most of the requirements applicable elsewhere and can hold 100 per cent ownership of the company.

In Dubai, expatriate architects, engineers, management consultants, health care professionals, legal and accounting people can obtain professional licences in their fields and operate the firms with 100 per cent foreign ownership, but with an Emirati appointed as a local service agent.

The local agent has no direct involvement in the business and is paid a sum or percentage of profits or income. The number of staff members that may be employed in a professional firm is limited.

A foreign company may establish a branch in any of the emirates but a local sponsor or agent is required who must be an Emirati. The trade licence can be obtained from the Department of Economic Development. The partnership contract should be attested by the Ministry of Justice and the civil court.

Inspection

The Department of Economic Development will inspect the establishment's site. One needs documents for the licensing section including the rent contract, partnership contract and fee payment papers.

A photocopy of the licence from the Department of Economic Development should be submitted at the Chamber of Commerce and Industry.

One also needs to apply for membership of the chamber. Industrial companies require special licence from the Ministry of Industry. One also needs an approval from the industrial section of the Department of Economic Development.

The running of a bank requires approval from the UAE Central bank.

Practising trade activities like jewellery shops or insurance requires the submission of specific financial guarantees issued by a bank.

All commercial and industrial businesses should be registered with the Chamber of Commerce and Industry at the emirate where the company will operate.

Documents needed

- Partnership contract between expatriate investor and Emirati partner or agent must be attested by the Ministry of Economy and Commerce.

- Expatriate investors or partners should have valid residence or visit visa or visas from GCC states.

- Expatriate partners or the investor must be medically fit, and a letter to this effect must be obtained from the Ministry of Health.

--A work licence or labour card will be issued by the labour department under the name of business partner or sponsored investor.

--For application of an establishment card, the expatriate needs to submit a photocopy of the passport, photocopies of chamber membership certificate, commercial registration at the Department of Economic Development(DED) and rent contract.

- The documents include the copy of licences that the UAE national has from Department of Economic Development, photocopy of the attested partnership contract and a map of the location of the company and the stamp of the commercial establishment.

--For work visa applications from the ministry of labour, a photocopy of the worker's passport is required, including the photocopy of the licence from DED, copy of the chamber's membership certificate, copy of the signature endorsement card and copy of the partnership contract.

--In the case of companies endorsed by the Ministry of Economy and Trade, a contract copy should be attested from the Ministry of Economy, with copy of the visit visa and the original, specifying the profession.

- An investor's card is obtained after the investor's arrival in the country. A residence visa is then stamped on his passport.

- For obtaining an investor's card, two photos, health certificate, copy of the licence from the DED are needed.