Incorporation of Company in Dubai: What is Concept of Company in Dubai? 1. Company is a contract whereby two persons or more are obliged to contribute to an economic project aimed to make profit, through providing a share of money or work, and dividing whatever profit or loss achieved or sustained by such project. 2. In provision of Item (1) above, an economic project shall include any commercial, financial, industrial, agricultural or real estate activity or any other economic activity. 3. By way of exception from Item (1) of this Article, a company may be incorporated and fully owned by one person as per the provisions of this Law. 4. Obtaining a trade license is mandatory for starting any business activity in Dubai. The concerned authority which is responsible for issuing local Dubai company licenses is the Economic Development Department, functioning in different locations. The different types of trade licenses issued in Dubai include Commercial Licenses - Issued to companies engaged in trading activities. Industrial Licenses - Issued to the companies engaged in manufacturing. Professional Licenses - Issued to the companies working as service providers, professionals, artisans, and craftsmen. Forms of Company that can be incorporated in Dubai: 1. A company must be in one of the following forms: a. General partnership. b. Limited partnership. c. Limited liability company. d. Public joint stock company. e. Private joint stock company. 2. Any company not incorporated under one of the forms above shall be deemed invalid, and persons who contracted in name of such company shall be jointly and severally held liable for any liabilities created by such contract. 3. Any company incorporated in the State shall have its nationality, however this does not necessarily mean that the company shall enjoy citizenship rights.
OWNERSHIP REQUIREMENT 1. With the exception of general partnerships and limited partnerships in which joint venture partners must be citizens of the State, each company incorporated in the State must have one national partner or more of a share not less than 51% of the Company's capital. 2. By way of exception from the provisions of item (1) above, Cabinet may, upon a proposal from the Ministry and in coordination with competent authorities, issue a decision determining category of activities that may only be practiced by citizens of the State. 3. Any assignment of shares to any partner resulting in violation of the percentage set out in items (1 and 2) of this Article shall be null and void. Incorporation Procedures Applicable at Competent Authority 1. Application for a company incorporation shall be submitted to the competent authority together with its MOA and AOA as well as the projects' profitability inclusive of the time schedule proposed for execution, and any other documents required by the competent authority. 2. Competent authority shall consider the incorporation application, issue initial approval or reject the same, and notify Founders Panel within 10 working days as from the application date, provided the same meets all requirements, or from the date of providing any required documents or information. If initial approval is not issued by competent authority during such period, application shall be deemed rejected. 3. If competent authority rejects the incorporation application or the period under item (2) expires without deciding on such application, the Founders Panel may complain before the Director General of the competent authority or his representative within 10 working days, and if such complaint is rejected or not decided on within 15 working days from its submission date, the Founders Panel may challenge the rejection decision issued by competent authority before court of competent jurisdiction within 30 working days as from the date of being notified of such rejection or elapse of such period without any decision issued.