Types of companies and licenses for them in the UAE

An important stage of the process of registering a business in the UAE is the selection of the appropriate legal form and authorization to operate.

Among the most common and popular options of company types for registration in Mainland are Limited Liability Company and Sole Establishment.

L.L.C. Companies in their form of organization resemble limited liability companies in Russia. Features:

100% foreign ownership;
any licenses;
up to 50 founders can be registered, liable within the authorized capital;
work with both local and foreign counterparties;
you can rent an office in any Mainland neighborhood;
registration of accounts in banks of any country.

Sole proprietorship companies resemble sole proprietorship in Russia, but Sole Establishment in UAE is a full-fledged legal entity. It is chosen for conducting professional activities.

affordable registration cost compared to other types;
100% foreign ownership;
registration of one founder;
available types of activities: marketing, advertising, education, some beauty industry services, private legal and accounting practice, IT specialists, fitness trainers, etc.;
It is possible to register without an office.

Next, let's break down the pros of registering a company in the Free Zone:

100% foreign ownership;
opening a license available in the selected economic zone;
renting an office only in the Free Zone;
restrictions for work on the mainland;
the founder can be one or several, are responsible within the authorized capital.

There are more than 40 free economic zones in the UAE, which have their own rules, benefits and permitted types of licenses. To select the appropriate SEZ, you should contact professionals.

After choosing the legal form of organization, it is worth paying attention to the main types of activities:

Commercial or trade, under which everything related to sales is suitable.

Professional, including the provision of services

Production, which is responsible for the production of goods for further sale.

Within each type of license there are dozens of activity groups. It is important to choose the most suitable for the future type of activity, otherwise later there may be difficulties with the opening of a bank account and interaction with counterparties. Sign up for a free consultation with a lawyer and he will help you choose the legal form and permit for your business.

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