Setting up a Business in the U.A.E.

Overview by Globlatrade.net:

Legal Forms of Companies

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
Sole Proprietorship is an individual company.
 
 
No minimum capital.
1 person.
 
 
The individual entrepreneur is responsible for assets of the company over his personal goods.
Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.
Public Joint-stock Company
 
 
Minimum 10 million DH.
Minimum 10 partners.
 
 
Their responsibility is limited to the amount of contributions.
Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.
Private Joint-stock Company
 
 
Minimum 2 million DH.
Minimum 3 partners.
 
 
Their responsibility is limited to the amount of contributions.
Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.
Limited Liability Company
 
 
150,000 DH minimum.
Minimum 2 partners. maximum 50 partners.
 
 
Their responsibility is limited to the amount of contributions.
Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.
Limited Liability Company
 
 
No minimum capital.
Minimum 2 partners.
 
 
Their responsibility is unlimited for the assets and obligations of the company.
Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.
Limited Liability Company
 
 
No minimum capital.
Minimum 2 partners.
 
 
At least one partner should have one unlimited responsibility. The responsibility of other partners is limited to the amount of shares, if they do not take part in management of the company.
Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.
 
 

Business Setup Procedures

Administrative Formalities
All the companies should be registered in the trade register of Emirates or be an established company. All trade registers are under control of the Ministry of Economy and Commerce. Moreover, all types of companies obtain a licence from the Ministry of Economy for a trading company or Ministry of industry for an industrial company. In the domain of the banking, insurance, health, marine transport, education, media and telecommunication, specific authorisations are required.
The Competent Organization
The UAE Chamber of Commerce for establishment and the competent ministry.
Time Necessary for Registration
The procedure takes between one and three months.
 

Recovery Procedures

Principle
The insolvency of a company does not necessarily lead to liquidation.
Minimum Debt-to-Capital Ratio Triggering Liquidation
Here the ratios depend on the type of company. For LLC and JSC, if the losses reach half the capital, then the general assembly or the extraordinary assembly can demand liquidation of the company. If the losses rise to 3/4 of the capital then the shareholders representing the remaining quarter can demand liquidation.
Bankruptcy Laws
The bankruptcy is governed by the federal law no. 18 of 1993 on commercial transactions.
Reorganization and Rehabilitation Laws
It is the Code of Commerce which is applicable. There are no special conditions.

Any Comments About This Content? Report It to Us.

Read more See less
Experts Views (1)
Hot Tips (1) Go Top
Post your content

WANT TO APPEAR ON THIS PAGE?

Post content about Setting up a Business in the United Arab Emirates and you will be listed here to receive requests for offers.

Contact our expert contributors
  • Inspired Multi Dimensional Services...

    Multi Service, Sales, Supply, Sourcing, Trade , Nigeria

  • Healy Consultants

    Company Incorporation, Singapore