Process of Setting up a Branch Office in Dubai

The UAE government offers simple and quick way to set up branch offices in the UAE.

If you're planning to establish a branch office in Dubai, we've identified steps to follow for your convenience.

Step 1: Appoint a Business Consultant

The very first thing is to find and assign a local consultancy whose role will be limited to administrative tasks such as licensing, registration, visas, etc in return for a service fee and a contract.

The consultant will not be a part of the management nor does it have any company ownership.

Step 2: Reservation of trade name and preliminary permission

In order to register the trade name, the consultant will go to the Department of Economic Development (DED) and then submit for preliminary authorization from the Ministry of Economy to set up a branch in Dubai.

Step 3: Filing of Application

Application for Ministry of Economy will be submitted after initial approval and the application form should include full details of international parent company such as share capital, operations, corporate office, summary of projected operations to be undertaken by branch office and name of prospective general manager in Dubai.

The files with the application form to be submitted are:

Certificate of trade name reservation and initial approval

Company documents such as MOA (Memorandum of Association), AOA (Articles of Association) COI (Certificate of Incorporation) and Certificate of Good Standing.

Parent company’s management board resolution for establishing the branch office in Dubai

Power of attorney for General Manager in Dubai

General Manager’s passport copy

Audited financial statements of parent company’s for the last two years

Statement issued by parent company stating its major operations and trade activities and also the activities which will be carried out in Dubai

Notarized agreement with local services agent and his identification documents copy (if LSA is a company then company’s corporate documents)

Step 4: Get Approval from Ministry Of Economy and Federal Foreign Companies Committee

The Ministry of Economy shall give its own authorization and additional documents (hard copy) to be submitted shall be,

Application form

COI of parent company

MOE initial approval

Certificate of local bank deposit

The Ministry of Economy will forward the request to the Committee of Federal Foreign Companies with a notice that the branch office in Dubai will be allowed to conduct specific activities.

Step 5: Get License by Department of Economic Development

Once the Federal Foreign Companies Committee’s permission is received, the petitioner must send another request to DED requesting different documents submitted to MOE, with the inclusion of the proposed branch office address in Dubai.

The application must include

MOE approval as well as other authorities ' approvals in this context

Copy of proposed lease in Dubai

Copies of documents that were submitted to MOE in Step 3

Undertaking of parent company

Letter from UAE Auditor confirming his appointment and with the summary of parent company’s financial statements for two years.

After successful submission, DED will issue commercial license to branch office which will be valid for one year and renewable annually. Now there is a new law in Dubai that upon special request, 4 year license may also be obtained.

Step 6: Completing Administrative Tasks

After license issuance, the branch office can proceed to carry out administrative tasks such as creation of bank accounts, acquiring visas and labor cards for its employees etc.

Step 7: Registration with Commercial Authorities

After the successful completion of documentation work and licensing so that you have everything at hand, branch office can register itself with commercial authorities and it is entered in the register of Ministry of Economy and Commerce. Lastly branch office is registered at Dubai Chamber of Commerce and Industry.

PMC Solutions DMCC Services for Branch Office Setup

If you are new to Dubai or you have no information about setting up new company, we at PMC Solutions DMCC will do that just for you.

Having experience of more than 10 years and thousands of satisfied clients, we guarantee you that our experts will provide you with the best business solution according to your needs.

Do not get into the hassle of running from one authority to other, leave that upon us and we will setup your branch office whilst saving your time and money.

Contact our business consultants for further guidance.

Benefits of opening a Branch Office in the UAE

A business owner could choose from four different categories and choose the one that would be the most useful for their company.

Apart from the ability to trade in the local market and secure 100% ownership of your company, which is the scenario for most types of branch offices, there are several other reasons for establishing a branch in the UAE. Here are the top five:

 Benefits of opening a branch office in the UAE:

Tax exemptions:

Without hitting on the exceptional tax structure of the country, it is impossible to address the advantages of setting up any type of business in the UAE. Based on the jurisdiction and country of origin, branch parent companies may benefit from the zero percent corporate tax rate of the UAE.

Audit trail:

Auditing multi-national companies can be a quiet a task. Establishing a branch office enables to relieve this concern. Every transaction between the parent and the branch company gets legally monitored. This creates a stringent audit process for parent companies requiring audited books.

Less administrative burden:

In addition to bookkeeping and auditing, operating multi-national setups can be complicated. Also, when operating a branch office, most of this obstacle is avoided. There is normally no need for a distinct financing mechanism within branch offices of the UAE, as audited accounts are not needed.

Cost-efficient path to new markets:

It can be an expensive affair to enter new markets – notably those worldwide. Not so if you set up a UAE branch. Since there is no need for share capital, branch offices give enterprises a great opportunity to develop their business without high capital costs. However, because branch offices are often smaller than stand-alone companies, operating costs are also relatively lower.

Analyse before you buy:

All of the world's feasibility analyses and market research could never balance actual trading knowledge in a particular market. Branch offices deliver a bit of real understanding, enabling foreign investors to establish a presence in the local market and provide an access to the feasibility of trying to open up a sizable company within the UAE.

Do not get into the hassle of running from one authority to other, leave that upon us and we at PMC Solutions DMCC will setup your branch office whilst saving your time and money. Contact our business consultants for further guidance.

Log on to www.pmcsolutions.me or contact us at +971 588 631 656 or email at setup@pmcsolutions.me

LLC Company Formation in Abu Dhabi

Starting a business in Abu Dhabi can take multiple legal forms to include: Limited Liability Company, Branch Office, Representative Trade Office, Professional Service License, Free Zones, and Exclusive Distributor.

LLC Company Formation in Abu Dhabi is the most widely adopted entity for businesses intending to enter the UAE outside a Free Zone.

A minimum of 51 percent of a limited liability company's total shareholding must be retained by a UAE national or a firm entirely owned by UAE nationals.

Business Setup in Abu Dhabi

Step 1: Determine the legal form and activities of the business.

Step 2: Register the trade name and obtain the initial approval.

Step 3: Arrange an office for rent.

Step 4: Apply for a trade license and regulatory approvals.

Step 5: Obtain the DED Trade Licence Abu Dhabi.

Step 6: Register the Business with Labour and Immigration.

Step 7: Open a corporate bank account

Step 8: Employee visas application

Limited Liability Company Formation Abu Dhabi

It may seem really interesting to set up a company in Abu Dhabi mainland, but it's not as easy as it is in the free zones.

That is why individuals need to be very precise, taking measures to form a mainland company in Abu Dhabi while following the business process, in order to prevent any delays.

Before proceeding with the company registration in UAE, everyone concerned should understand about all the legal and administrative processes. It is as essential to carry out these processes as it would be to run a good company.

Before beginning a company in the UAE mainland, there are various steps to be taken. For an insight into these processes, read below.

What is an LLC

The most popular type of business in UAE is Limited Liability Company (LLC). A Limited Liability Company can be founded by a minimum of 2 shareholders and a maximum of 50 shareholders whose liability is restricted to their shares in the business capital.

If you are an expat planning to establish an LLC in UAE, then a local agent is mandatory. 51 % of the business will be owned by the sponsor, hence choosing the right partner is crucial. Local sposors usually act as sleeping partners and will not participate in the operation of your business. They help you deal with various paperwork with ministries and government.

The incredible flexibility it offers is what makes LLC unique and one of the most preferred kinds of business. An LLC company is allowed to trade anywhere in UAE and GCC.

Benefits of an LLC Company Formation in Abu Dhabi

An LLC can perform any type of business activity that does not include insurance, banking and investment. The amount of visas that can be acquired is not restricted. 

An LLC company's shareholders can take advantage of an investor's visa under which they and their family can acquire investor status in the Emirates.

An LLC is exempted from paying the standard 5% customs duty on imported goods. Also, restrictions are not imposed on real estate ownership.

How will PMC Solutions DMCC help in register a company in Abu Dhabi

Preparing the application forms as required by the DED;

Advising with the Business plan strategy;

Drafting of company’s Memorandum of Association;

Trade Name Registration and acquiring Initial Approval;

Assisting you with the visa for investors and employees;

Guiding you with the VAT registration, implementation, and return filing;

Guidance and support for e-channel registration;

Securing required approvals and permissions from various government authorities;

Provide other required value added service like Book Keeping, Auditing.

UAE Commercial Companies Law Changes in Limited Liability Company

Here are the latest regulations concerning the registration of an LLC company in Abu Dhabi, UAE

Shareholder Information :

Articles should list the birth date with the information of the LLC's shareholders. In the previous law, this was not a necessity.

Sole shareholder

The sole shareholder of an LLC may be a individual or a corporate entity. The old law requires at least two shareholders to form an LLC in Abu Dhabi, UAE.

Managers / Directors

More than 5 executives or directors can now be appointed by LLC's in Abu Dhabi. They should also alter the articles according to the increase in governance positions.

Share pledges

Shareholders in companies with limited liability are permitted to pledge their shares. The pledges need to be made by the establishments memorandum and articles of association, and be notarized.

Accounting

A Limited liability company must comply with International Accounting Standards in Abu Dhabi. The old CCL permitted the use of any standard to be used in the past.

For more information on Limited Liability Company (LLC) Formation in Abu Dhabi kindly contact us to arrange for a Free Consultation

Ready to setup a company in Abu Dhabi? Get in touch with PMC Solutions DMCC – Business setup Consultants in Abu Dhabi today, and let us guide you through it.

Log on to ww.pmcsolutions.me or contact us at +971 588 631 656 or email at setup@pmcsolutions.me

8 Basic Steps to Setup Your Business in Dubai

You should not take more than a week to setup a company in the UAE once you have completed all your legal processes.

But you need to consider some factors necessary in the process before you initiate your legalities:

1.     Type of business activity

The type of business activity will determine the kind of trade license you require.

Whether it's business, professional, industrial or commercial licenses, the foundation for your activities will be defined. While choosing, however, remember that certain activities such as food trading, jewelry trade, veterinary operations, and legal consultancy require additional approvals from other government departments.

The Dubai Department of Economic Development (DED) has a list of more than 2100 operations from which you can choose.

You can contact the DED if you can't locate your particular business activity in there. Each free zone has its own formalities and approval.

2.     Ownership

As a foreign citizen, you need to opt for a business license and location in one of the many free zones of the UAE if you want 100 percent legal ownership of your business.

Each free zone caters to specific kind of business activity and hence determining your business activity in the initial stage will help you find your best option.

There are more than 45 free zones in the UAE with distinct activity classifications.

If you need a local trade license, you have to get a license from the Department of Economic Development (DED).

The DED permit comes with certain limits on share of ownership for foreigners depending on various legal structures under DED.

3.     Legal Structure

Depending on your location and business activity, there are rules for your company formation.

For instance, if you're planning on a legal consultancy firm, this can only be achieved as a business branch or as an independent company.

This activity is not permissible for a sole proprietor. Each free zone has its own business structure constraints and you can view them on the respective free zone's official site.

4.     Trade Name

Your trade is a very significant component of the legal process. Ideally, the name of the company should show the nature of the business unless it is another company's branch.

All trade names rules can be viewed on the official website of the DED.

5.     Share Capital

Minimum share capital is generally specified in the Memorandum of Association of your suggested company. Most of the time, you don't need to pay minimum capital.

6.     Location

It would be best to shortlist some offices with the expenses and other information once you have your legal processes and forms ready to go. Once you get your legal formalities out of the manner, this would imply a definite way forward.

In free zones, you will get help in finding suitable locations as per your needs along with assistance in setting up electricity, internet, water and other facilities.

7.     Employees

You need to employ a manager to supervise activities in most legal forms of the DED and have him available on board before your business is registered.

But you may not be permitted to employ at all in other instances. For instance, Intelaq license holders (license for home-based Emirati company owners) are not permitted to employ employees, but may employ contractors.

8.     Local Support

Having a local sponsor is compulsory for DED licenses and this is an excellent support for foreign business owners.

Having a local partner for free zone companies can support the business growth.

This is not compulsory, however, and Dubai as a business destination offers simple set-up regulations for all entrepreneurs irrespective of nationality.

Looking for a trusted consultant for business setup in Dubai?

Log on to www.pmcsolutions.me or contact at +971 588 631 656 or email at setup@pmcsolutions.me

Office Space for Business Setup in Dubai

If you are looking at setting up a business in Dubai or UAE you will need to rent a business office space.

Several actions need to be taken to setup a business in Dubai as permitted by the government.

One such step is to rent a Dubai office. Renting an office space in Dubai while forming a business is obligatory. A private residence cannot be used as an official company address.

The solutions range from workstations to warehouses with attached office space in an open-plan office of a business center, already fitted out offices or shell.

You can not only lease business spaces, but also purchase them, depending on the location of the business and also the individual circumstance.

Benefits of renting a Dubai Office

Renting an office room in Dubai has many advantages. Some of them are as follows:

Lenient legal formalities

Less cost with more facilities

Equally spacious to work

Business flexibility

But if a business setup can do without an office space, the requirement to rent one may seem costly.

As many companies move online, using cloud computing, messaging applications, and voice services, some businesses claim the need for a physical office is redundant, especially for start-ups and newer businesses. Nevertheless, whatever the situation is, it is a must in Dubai to have an office to set up a company.

Investors have the option to go for a "smart desk" or a "flexi desk" service when it comes to free zones in Dubai, but again the number of visas available for these companies differs for staff and depends on the size of the office space.

On the other side, the representatives of the Department of Economic Development (DED Dubai) who have come up with this law claim that a physical facility is made compulsory since it enables authorities to carry out inspections such as tracking operations and ensuring that the business complies with immigration laws. Although startups are not pleased with this law, they have to follow it as part of Dubai's legal framework and can balance the costs of renting with other company commitments.

Now, if you're a foreigner who wants to start a business in Dubai but you don't know about this legal compulsion, you can always get a consultant's assistance. They will assist you find a cheaper rental office room and can guide you through the setup procedures and documentation as well.

Looking for a rental office in Dubai with extra facilities in your budget?

Log on to www.pmcsolutions.me or contact us at +971 588 631 656 or email at setup@pmcsolutions.me

How to Start a LLC Company in Dubai?

The most prevalent type of company in the UAE is the Limited Liability Company (LLC). LLC Company Formation in Dubai can be implemented by a minimum of 2 shareholders and a maximum of 50 shareholders whose liability is restricted to their company equity shares

One of the ways to set up a business in Dubai is an LLC Company Setup.

Since this is the only alternative that provides maximum legal ownership, which is 49 percent, to an expat for a local business in UAE, most businesses with foreign partners opt for a LLC company in UAE.

Since it is obligatory to have a UAE national as a partner in the LLC Company Formation (51% shareholding), the potential shareholder has the choice of choosing the one UAE local (sponsor) as a partner in the firm.

Dubai's LLC setup is flexible and arrangements for differential profit sharing are also very feasible. This gives the foreign investor a huge advantage as a local partner has 51 percent legal equity.

Below are the steps for LLC Company Formation in Dubai

·         Registering the business with the Department of Economic Development (DED Dubai).

·         Drafting and notarizing the company’s Memorandum and Articles of Association.

·         Submitting all the required documents and business license application form with the Department of Economic Development (DED).

·         Registering with the Dubai Commercial Register

·         Upon incorporation, registering one’s employees with the Ministry of Labour and General Authority for Pension and Social Security

Benefits of an LLC Company in Dubai

·         Dubai LLC Company provides exceptional access to the overall economy of the UAE.

·         No particular minimum capital required.

·         Investors are able to handle the company without the local partner's daily interference.

·         Convenient for opening corporate company bank accounts along with easy credit facility accessibility.

A Dubai-based LLC company is perfect for a UAE business or company seeking to deliver consulting services as a credible joint venture partner with an Emirati national.

LLC company in Dubai provides different tax benefits For instance, Dubai businesses registered in most sectors are not subject to corporate taxes, apart from oil and petroleum taxes. A latest shift in tax law, however, launched the VAT, which is levied at a very small rate. Dubai's VAT is 5 percent.

In addition to this tax, the limited liability company in Dubai provides numerous benefits, including the free repatriation of revenues when established by foreign investors and falling within the dual tax treaties of the UAE.

Trading, industrial and commercial licenses are the most important business licenses that can be acquired with the help of a limited liability company in Dubai.

If you want to setup a business in Dubai and decide on a LLC Company, our professional business setup consultants can guide you set up in Mainland Dubai or any free zones in UAE.

For more information on LLC Registration in Dubai or Dubai LLC License Fees log on to www.pmcsolutions.me or contact us at +971 588 631 656 or email at setup@pmcsolutions.me

PMC Solutions DMCC are the trusted business setup consultants in Dubai, UAE. They provide consultancy and PRO Services in Dubai and are located in Almas Tower, JLT, Dubai.

RAS AL KHAIMAH ECONOMIC ZONE – RAKEZ

Ras Al Khaimah Economic Zone (RAKEZ) is a flagship commercial and economic hub strategically located in the heart of Ras Al Khaimah, United Arab Emirates (UAE), offering a wide range of customizable alternatives to investors from around the world for business setup.

RAKEZ, a significant economic zone, is committed to encourage investors from all over the world to support and nurture them in its cost-effective ecosystem where companies cooperate and develop efficiently.

Established in 2017, RAKEZ presently houses more than 14,000 multinationals from over 100 nations covering more than 50 sectors, making it one of the region's major economic zones.

RAKEZ offers uniquely free zone and non-free zone entity formations and provides its customers with straightforward access to fast-growing Middle East, North Africa, Europe, South and Central Asia markets through the main logistics hubs available in the Emirates. These include five seaports, an international airport and multi-lane superhighways.

The authority is a customer-focused organization that offers reliable and cost-effective services. With its streamlined business set-up procedures, fast-track visa, licensing and ongoing business support services in a one-stop shop system, customers are assured to experience absolute ease of doing business with support at every step.

Available Facility Choice

§  Flexi facilities

§  Standard offices

§  Executive offices

§  Warehouses

§  Land plots for development across specialized zones.

RAKEZ Business Zone (caters to the below service sector)

§  Al Hamra Industrial Zone

§  Al Ghail Industrial Zone and

§  Al Hulaila Industrial Zone for manufacturing, industrial projects, trading, assembly and logistics

RAKEZ Academic Zone for:

Educational institutions and academic consultancy service providers.

RAKEZ Media Zone for:

Media firms and Professionals

RAKEZ Local Offices Location :

Ras Al Khaimah

Dubai

Abu Dhabi

International offices in India, Turkey and Germany.

RAKEZ offers the required infrastructure for various kinds of industries minimizing the initial investment expenditures. In addition, RAKEZ offers very friendly client representatives with affordable services.

Benefits of Setting up your business in RAKEZ

Whether you are an entrepreneur, a freelancer, a SME or even a big business, RAKEZ offers a variety of ideal alternatives:

§  Simplified and fast-track business set-up processes

§  Secretarial and business center services

§  One-stop shop for all government services

§  Choice of free zone and non-free zone entity formations

§  State-of-the-art warehouses of various sizes

§  Industrial land plots for large industrial projects

PRAGMATIC FOUNDATIONS

CUSTOMISED SOLUTIONS : Providing tailor-made packages and smart solutions

EFFICIENT IN EVERYTHING : Streamlined and timely delivery of services

DIVERSIFICATION : Wide range of industries, sectors and activities

COST-EFFECTIVENESS : Delivering affordable premium solutions

EXPERTS WITH CONFIDENCE : Professional consultancy team and customer service

For more details on setting up your business in RAKEZ and the required documentation contact PMC Solutions DMCC  Consultant for FREE Consultancy in Dubai at www.pmcsolutions.me / Call +971 588 631 656 or email at setup@pmcsolutions.me

Can a Free zone company do business in Dubai?

Free zone companies are exempted from doing business outside their jurisdiction.

Free zone is a jurisdiction or a region offering easy company formation, uniquely designed for international businesses and foreign investors. Free zone companies in Dubai receive tax benefits and 100% ownership to expatriates.

As per law, the Department of Economic Development (DED) is the only accountable authority for issuing licenses outside the free zone.   

Free zone jurisdictions do not authorize companies registered under the free zone authorities to conduct business in Mainland Dubai. Most trading companies in the free zone are completely              restricted to do business in Dubai Mainland. But few professional companies are given leverage.

A restricted free zone company can proceed with doing business in Dubai Mainland by getting specific license approvals and the right documentation from the Department of Economic Development (DED) in Dubai.

Free zone companies can also opt to get connected with a distributor who has a DED license to further proceed with doing business in Dubai Mainland.

Besides this, free zone companies can conduct business in Dubai Mainland through a civil work company, limited liability company or by establishing a branch office.

This depends on the type of activity being conducted and the nature of business. Proposed location of the business also matters. Trading companies act as distributors and sell outside the free zone through other agents or re-sellers.

Service-related companies like consultancy firms; are pretty straightforward. Contracting, Maintenance, Real estate and some other businesses would be more suitable in a non-free zone area.

Also, restaurants, gyms, retails outlets which are very location dependent makes more sense to operate in the non-free zone area.

For any further queries or to understand the difference between a Mainland business setup and free zone company formation speak to our professional business advisor.

The most important part is to understand which jurisdiction best fits your line of business activity and how economical the particular option is.

PMC Solutions DMCC is a Corporate Service Provider specialized in designing bespoke solutions for Business Setup, and Family Residency for foreign and local investors, willing to establish and grow their businesses in the entire UAE.

PMC Solutions has been established to provide complete company incorporation, administration and management services in all major jurisdictions in the UAE where it is pioneering the concept of Free zone and Offshore Incorporation.

For further details log on to www.pmcsolutions.me or e-mail at setup@pmcsolutions.me.

12 Things You Should Know Before Starting Your Dubai Business

Dubai, the commercial capital of UAE delivers enormous business opportunities and pioneering commercial modules for businesses across the globe.

International exposure and an investor-friendly government are the two major contributing factors that encourage businessowners to start a business in Dubai. Startups in Dubai also receive tax advantages in comparison to other nations.

Despite of the friendly business setup procedures, it can be quite challenging for a new entrant to setup their business.

Speculating on how to setup your business in Dubai?

 

Here is an introduction to what you need to learn about starting a company in Dubai

1. Decide Your Business Activity: Not all business activities are allowed in the UAE, there are a few limitations. Before you setup your business in Dubai, various permissions are needed. Thus, the first thing you have to do is decide if your company fits in with the Dubai norms.

2. Pick the Right Jurisdiction: Dubai provides onshore business establishments (Mainland / LLC), Free zone business formations, and offshore business establishments. Choosing the correct jurisdiction relies on the company activity you wish to perform and the nature of the company.

3. Choose the Shareholding Structure: The shareholding structure determines the company set-up in Dubai. This will also differentiate your company's legal form. The composition of the shareholding must be consistent with your company activity and preferred jurisdiction. Here are the shareholding structures for which you can choose:

Limited Liability Company

Sole Proprietorship

General Partnership

Partnership in Commendams

Public Shareholding

Private Shareholding

Joint Venture

Shared Partnership

SME License

Representative Offices

Branch Offices

Limited Partnership

4. Local Sponsorship: It is a mandatory to partner with a UAE national to start a business in the mainland of Dubai. Finding a trusted and reliable UAE company partner is the task. It is indicated that 51% of the contract will be held by the UAE local partner.

A business would involve a local service officer as far as freezone is concerned, who would operate for a nominal fee.

It is recommended to get into a contract with a silent partner- this will assure security and total control over your company.

5. Trade Name Registration: You need to register your trade name with the DED. You need to give your business a name according to the norms listed by the Economic Development Department (DED).

The trade name functions as your business ' identity, and therefore DED emphasizes to associate the name according to the type of permit. The registration of a trade name requires about three days and is valid for a period of six months.

6. Approval of Your Business Activity: In Dubai, only a few commercial activities are not permissible, some activities have constraints, while others are totally forbidden! The Dubai DED is the body responsible for deciding, regulating, classifying, allowing and licensing all financial operations according to Law No. 13 of 2011. This does not apply to free zones and offshore business setup, however.

7. Check on External Approvals: DED grants business licenses and deals with investors. But sometimes in order to start your company, you may need external approvals. In general, the non-governmental and semi-governmental bodies acquire these permissions.

8. Office Space: Renting an office space in Dubai while forming a business is compulsory. You cannot start your business in Dubai without renting an office.

It is necessary to submit the tenancy agreement, documents of the Real Estate Regulation Authority (RERA), and EJARI, after which the DED grants the initial approval.  

9. Initial Approval from DED: The initial approval is the accreditation from the DED to start your business. At this point, you can start your company and proceed to obtain your trade licence permit.

10. Draft the MOA/LSA for your business : The MOA specifies each partner's share of limitations and freedom within the company, while the LSA describes the agent's role and fulfills the compliance that will be executed.

MOA / LSA are legal papers and should be drawn up with the assistance of a legal consultant.

11. Business License Process: Once DED registers the company, the business license is processed. Business licenses are issued primarily based on the nature of the business activity and the company's jurisdiction.

The most prominent company licenses in Dubai are: commercial license, industrial license, and professional license. Getting the trade license permit It takes around one week or more from the time you receive your initial approval from DED.

Here is the general list of documents and certifications that are essential for business setup in Dubai.

License Application

Attested LLC agreement

Governmental forms

Name reservation certificate

Initial approval certificate

External departments approval

Tenancy contract

EJARI registration certificate

Passport copies partners and NOC for partners (if any)

Dubai Chamber of Commerce and Industry Registration

Endorsements from Governmental Agencies (For Gas and Oil Companies)

UAE Central Bank Approval and License (For Financial Institutions)

Finance and Industry Ministry Certification (For Manufacturing Companies)

Economy and Commerce Ministry Certification (For Insurance Companies)

Health Ministry Certification (For Medical & Pharmaceutical Firms)

12. Collect your Business License: The DED will provide a payment voucher or transaction number when all the listed papers are submitted. In order to obtain the company trade permit, the final payment must be made. You become a full-fledged business entity once you obtain your business license.

Based on the information above, it is obvious that registration of a business in Dubai business is an extensive process! However, by appointing a company setup consultant, you can make it fast and cost-effective.

For more information on business setup inquiries in Dubai, UAE log on to www.pmcsolutions.me or contact us at +971 588 631 656 or email at setup@pmcsolutions.me

PMC Solutions DMCC are the trusted business setup consultants in Dubai, UAE.

Dual Business License in Dubai

According to the business regulations, Free zone businesses in Dubai can only work within their corresponding free zone limits. Basically, they are not allowed to own or do business anywhere else in the UAE. But now, there is a innovative and incredible alternative to do business in Dubai. The Free zone Dubai Airport can now receive the dual license permit to function across Dubai. And that’s a great news! A dual license for a Dubai company is a matter of demand among entrepreneurs and business owners. A dual business license in Dubai has become the need of the hour with several possibilities to invest in more than one company.

Dual licensing was something that was demanded for a long time by companies in free zones, whose interest was in functioning in multiple undertakings and also in the UAE market having a wider outreach.


A dual license enables an onshore license to be applied for by a free zone registered company, allowing the company to perform business outside the boundary of that free zone and without the need to obtain extra office premises. Potential Benefits of Obtaining a Dual License
• Increase in opportunities and business choices • Cost saving – since there is no requirement of an additional office space and also the setup cost can be saved. • Dual licensing will decrease overall accounting, administrative and operating expenses. It will also offer businesses flexibility and competitive edge in the market place to conduct business with one license in the free zone and the mainland. Companies in general will be more productive and lucrative • Less business loss opportunities. One or the other will be effective based on choosing your category of company.

With plenty of possibilities and options for businesses, investing in two companies at the same time is certainly a great idea. Companies importing and selling in the mainland as well as re-exporting will benefit most as they trade in both the mainland and neighboring nations. The most sophisticated free zone authority DMCC is now partnering with the Department of Economic Department (DED) with a dual licensing system. The application process for dual licence permit is much similar to that of a foreign business branch, as you will need to designate a local National Service Agent (NSA). The NSA will not be a shareholder of the onshore branch, but will act as the company's representative, especially in administrative and Labor & Immigration matters. This notewothy initiative of Dubai's dual licensing scheme will bring ample importance to the Dubai and UAE economy in particular. For more information log on to www.pmcsolutions.me or contact us at +971 588 631 656 or email at setup@pmcsolutions.me.

Do You Really Need a Local Sponsor to Start Business in UAE?

Incorporating and entity in the non-free zone requires a UAE national as a partner or as a service agent. This depends on the legal structure and license activity. Local sponsor is a mandatory requirement if a foreign investor aims to form his business in the UAE mainland. The sponsor has to be a UAE national. If the business is to be set up in the UAE mainland, then the 51% of business will be owned by the local sponsor.

But this is not in the case with free zones. Free zone companies can be 100% owned by foreign nationals.

Anyone willing to start a business in Dubai or anywhere in UAE, initiates the process of setting their company in the UAE by looking for UAE local sponsorship.

‘Local sponsor’ is a generic term used in the UAE referring to local service agents and nominee shareholders (sleeping partners) in mainland companies with foreign investment. A sponsor has to be an Emirati (UAE national) with a family membership card.

Also, business setup is possible in Dubai Mainland without local sponsor by forming civil/professional services company. But this still necessitates a Dubai local agent.

The appointed local sponsor takes no role in the daily operations of the company’s business. They are responsible for liaising with the necessary government department on behalf of the organization in the obtaining of visas, immigration approvals and other licenses.

Getting your company registered in Dubai or UAE can be a complex process at the best of times. Add to that the additional difficulties of setting up in a foreign country and the entire process can feel like unachievable. However, none of these factors pulls back foreign entrepreneurs and investors when it comes to owning a business in the UAE. And nor should it.

True, getting a business up and running anywhere takes effort, but as long as you go in with the accurate knowledge and professional advice, there is no reason why these complexities cannot be overcome.

PMC Solutions DMCC helps you register your company in Dubai or UAE by providing you with trusted Dubai Local Sponsors (UAE National Partner).

PMC Solutions DMCC is a Corporate Service Provider specialized in designing bespoke solutions for Business Setup, and Family Residency for foreign and local investors, willing to establish and grow their businesses in the entire UAE.

PMC Solutions has been established to provide complete company incorporation, administration and management services in all major jurisdictions in the UAE where it is pioneering the concept of Free zone and Offshore Incorporation.

For further details log on to www.pmcsolutions.me or e-mail at setup@pmcsolutions.me.

Gold Trading in Dubai

Volume of gold traded in Dubai has been growing at a rate of 13 percent year on year. It also represents a way to overcome any weakness in the US economy since the dirham is pegged to USD.

Hence gold is often seen as a safe haven compared to fiat currency.

Dubai has been the worlds highest exporter of gold and hence you can see that gold trading business is a lucrative one with many key players operating from here.

The Dubai gold souk used to be the main hub and location for businesses during the old days but now investors have many options and more high tech and secure location to conduct their businesses from.

As with any startup you would have to be suitably licensed for the import and export of gold.

For this we can go with the Mainland option, popular for retail outlets and also if you are mainly into wholesale the Dubai Multi Commodity Centre – DMCC free zone will be the ideal location.

DMCC accounts for the bulk of the business of gold trade in Dubai, it is also home to the Dubai Gold and Commodities exchange (DGCX), a huge network of wholesalers and gold refineries.

Gold being a high value commodity also needs a secure form of storage, DMCC houses a high security vault managed by Brinks to store your precious metals.

Trading in precious commodity like gold is regulated by the Security Industry regulatory agency (SIRA).

Meaning this is part of the preapproval stage before the trade license as the registered address of the business must be approved by SIRA and they will be the ones to mandate any modification like security camera, burglar alarms to be done.

This of course also depends on the business model and how they will be operating.

Once you have your license issued by DMCC or the Department of Economic Development (DED), you can start trading in gold.

Trading in gold is not just limited to holding physical gold, there are other options like CFD, Futures where physical gold is not actually handled or taken possession of, rather the transactions take place electronically and only profits or losses are reflected in the trading account.

For all your queries on Gold Trading Business in Dubai log on to www.pmcsolutions.me

Business Liquidation in UAE Mainland

Liquidation of a business is an activity that will put an end to a company’s operation and its life.

Closing a business on the Mainland

Regardless of what sort of company you own in the UAE, you must cancel your company license and all associated licenses when you decide to close it down.

Checklist before liquidating your company in the UAE

• Settling down all utility bills
• Paying off Telecommunication Bills
• Closure of Bank Accounts
• Preparing the Final Audit Report
• Cancellation of all the visa under the license

Cancelling the license is a requirement upon business closure

Knowing that you are no longer in the company is essential for relevant government entities so that you will prevent any accumulated fines and penalties imposed on your license if it is not renewed on the expiry date.

It is essential to discharge your liabilities to creditors and associates and safeguard your interests and shares if you are in a shareholding company.

It is also wise to bring your goodwill and business reputation in perspective, if you decide to reopen a company.

Formalities for cancelling your business license

Cancelling the license depends on the form of your company. For establishments and sole proprietorships, the process is simple because all you need to do is to apply for cancellation through DED and acquire all relevant clearances from:

• Ministry of Human Resources and Emiratisation
• Directorate of Residency and Foreigners Affairs
• the relevant water and electricity authority
• the leasing entity etc.

However, for companies with shares, the process is longer because it requires liquidating the shares, collecting the debts and paying the creditors’ before finalizing with DED.

Companies which require a liquidator

You need to appoint a liquidator if the legal form of your company is one of these:

• General Partnership
• Limited Liability Company
• Simple Limited Partnership
• Public Joint Stock Company
• Private Joint Stock Company

Freezing a trade license

Freezing a license is different than terminating a license completely.

Companies in Dubai can keep their trade licenses inactive by paying a certain freezing fee for three years. They cannot, however, stretch it beyond that particular period.

The documents required initially for Liquation of Company in the UAE

• License Copy
• Memorandum of Association Copy with all the changes
• Power of Attorney if any
• Shareholders Resolution
• Shareholders passport Copy
• Emirates ID Copy
• Deregistration Application Form

Liquidating a business in the UAE can be challenging throughout the process, and it is also a step-wise method in which time is gradually consumed.

We at PMC Solutions DMCC can guide and support you to complete all the legal formalities and procedures to liquidate your company in the UAE.

For more details log on to www.pmcsolutions.me or contact us at +971 588 631 656 or email at setup@pmcsolutions.me