Thursday, 20 February 2014

Registering Busines In Dubai : | Dubai License | Company Formation | Business Setup | LLC registration |




Registering Businesses in
Dubai


Steps Required in Setting  up a Business

Prior to operating any business in Dubai, the steps outlined below must be undertaken in order to meet the legal requirements of all concerned government authorities and to guarantee maximum commercial benefit for the business owner:

    Determine the category/categories (commercial, industrial and/or professional) and type of business activity/activities to be practiced.

    Determine  all  the  related  business  activities  that  can  be  included  within  each business license, subject to a maximum of ten activities per license.

    Determine  the  appropriate  business  legal  form  for  your  business  taking  into consideration the desired business activity/activities and the number and nationalities of the business owners and please press here to view the terms and conditions for conducting business in Dubai.

•   Confirm all the requirements of the license to be issued.

•   Determine the trade name of the business. (See Appendix A)

    Submit an application to the Department for an initial approval either by a personal visit to the Department Offices or through the Internet(Coming soon), a document clearing service or a legal consultant's office.

    Register a trade name after obtaining an initial approval either by a personal visit to the Department Offices or through the Internet (Coming soon), a document clearing service or a legal consultant's office (If you have previously reserved a trade name, you can proceed to register it with an initial approval by use of the record number).

    Lease business premises (it is recommended that you contact the counter of the Planning Department of Dubai Municipality on Telephone Number 2020105 or on Dubai Municipality's Telephone Number 2063788, before leasing premises in order to verify that it is suitable for the business). Thereafter you can visit the said Department's counter on the building's first floor for approval of the premises.

Saturday, 15 February 2014

How to secure a medical or related license in Dubai | Company Formation | Business Setup |



Medical and Related Professions (Ministry of Health, Department of Health and Dubai
 Municipality Requirements) 

Stage – I: Approval by Ministry Of Health

Formal application with local sponsor’s particulars and suggested trade name
Provide address/location of proposed clinic/pharmacy/centre for formal inspection by the MOH
Obtain no objection from MOH

Stage – II – Approval by Department of Health (DOH)

A DOH qualified manager
If the manager is a new appointment he should appear for DOH exam before
Obtaining permission to proceed for the license. Exams shall be conducted within 2 weeks’ time from the date of submitting the application.
Upon successful clearance of the exam a formal request letter has to be submitted in the name of a UAE national to the “Director, Licensing and Specification Department�? With passport copy, nationality card, profile about the proposed establishment, experience of the doctor, location etc.
U pon reviewing the application, the department shall issue the no-objection letter to the department of Economic Development and Dubai Municipality.

Wednesday, 12 February 2014

Industrial Areas for Company Incorporation in Dubai



Industrial Areas for Company Incorporation in Dubai
The Dubai Government has allocated a number of Industrial areas and provided them with all necessary facilities, such as internal roads, electric power, water, tele-communication services and other facilities. The local government offers various incentives to the businesses involved in industrial projects. These include exemption from customs duty on import of items for the use of industrial projects such as raw materials and machinery, in addition to a 10% price preference in government prices over imported goods. There are five basic requirements to be complied by an entrepreneur to start up an industrial project in Dubai.

1. No objection from Dubai Municipality
2. Obtain initial clearance from Ministry of Finance & Industry (Industrial Department)
3. Apply for industrial license with Department of Economic Development
4. Arrange the factory site (such as preparation of factory site, installation of machinery, import of raw materials etc.)
5. Register the project in the Industrial Register at the Ministry of Finance & Industry

How to Incorporate a Contracting / Engineering Consulting Company in Dubai

Incorporating a Contracting Company and Engineering Consultant Company

The Department of Economic Development (DED) in coordination with Dubai Municipality (DM) is the authority body that regulates and controls the licensing procedures for an entity which intends to carry out the aforesaid intended activities (Consultant and Contracting Company).
Before we inform you the regulations relating to Consultant and Contracting Company we would briefly mention the forms of legal entity in UAE. Legal Forms of Business Structures for Consultant and Contracting Company can be as a Branch of a Foreign Consultant and Contracting Company or as Limited Liability Company (LLC).

A) Background information regarding the registration of a branch office of a foreign company, in the UAE

Article (314) of the Commercial Companies Law allows a foreign company to exercise its main activity in the U.A.E. or set up their offices or branches only if a license to this effect has been issued to them by the Ministry of Economy However the Ministry of Economy does not allow registration of foreign company easily and permit it subject to the need of the UAE. The GGC members benefit of a specific status in the event the GGC company is 100% GGC national

The initial requirement for setting up a branch office of a foreign company in the U.A.E. is to appoint a Local Service Agent, who should be either a U.A.E. National or a Company owned 100% by U.A.E. Nationals .

The Commercial Companies Law provides that the said agent shall not assume responsibility for the financial obligations of the company and shall not interfere in the administration of its operations, but shall only offer necessary services such as acquiring entry and residence visas, obtaining necessary licenses from the Municipalities, Economic Department, Chamber of Commerce & Industry or various Ministries, facilitating the clearance of papers with governmental authorities and keeping the foreign company informed of all announcements related thereto, etceteras. The agent is remunerated by an annual fee for the services he renders to the foreign company, such sum shall be determined by an agreement between the agent and the company; namely, the National Service Agency Agreement.

Tuesday, 11 February 2014

Why would you own a property in Dubai through an offshore company and not in your own individual name?



Why would you own a property in Dubai through an offshore company and not in your own individual name?


What is the main benefit of owning property through an offshore company? Is it not better to have the property held in your own name or joint names?


The inheritance laws in Dubai are not as straight forward, nor the same, as those back in the UK or the European Union. If a foreigner owns property in Dubai and passes away, the laws of their home country may not apply to their assets. Under Sharia Law there is a fixed distribution of assets upon death of the deceased owner and there is no concept of ‘right of survivorship’, for example where property passes to the surviving joint owner. By structuring your property into an offshore company, you ensure that Sharia Law will most definitely not apply to your assets and that lengthy probate proceedings are avoided.

What type of offshore companies can we use?

Since 1st January 2011, the only offshore company that can be used to hold real estate owned in Dubai is the Jebel Ali Offshore Company. This company does not allow you to trade, give you residency nor work permits. The shares of the Jebel Ali Offshore Company can be held in personal names but we usually have the shares held by an offshore company 100%. We recommend common law offshore jurisdictions such as British Virgin Islands. This means that if a death occurs Sharia Law will not apply as your assets would be held in the name of the offshore entity and not in individual names. The probate process would also take place in foreign courts.

What are the other benefits of holding a property in Dubai offshore?

The offshore entity can be designed to suit joint investors. So a group of investors can hold shares in an offshore entity that ultimately protects their portion of shares in the property. It also provides confidentiality and privacy. Hence protecting your assets.

Monday, 10 February 2014

Setup an Engineering Consultancy License in Dubai


Setup an Engineering Consultancy License in Dubai


(Dubai Municipality Requirements)

 To be a UAE national
To be holder of a BSc. Degree in engineering from a recognized university in one of the engineering fields for which he requires to obtain a license.
To have experience in the specialization field not less than three years after obtaining the university degree
To be a member of the Engineers’ Association in the Country
Not to be an owner or a partner in any of the contracting companies nor building materials trading companies

Expatriates may, pursuant to the stipulations and conditions provided for, apply for registration in the register of engineers subject to the following conditions:

To be exclusively dedicated to the business of the Engineering Firm
To have experience in the concerned engineering field not less than 5 years after obtaining the university degree.
Expatriate engineer must reside in UAE not less than 9 months in a year. One more expatriates may join the firm; provided they are entered in the Register of Practicing Engineers and the maximum shareholding in the capital allowed shall not exceed 49%. Engineering firm operating in Dubai shall adopt one of the following forms:
Local Engineering Firm A local engineering firm is the firm owned by one or more UAE nationals who are entered in the Register. One or more expatriates may have share in the ownership of the firm, provided that they are entered in the Register and maximum such ownership allowed in 49%.  A local engineering firm can be classified as follows:


For UAE nationals  ( Not Less Than ) 

Category I    10 
Category II    5
Category III   3


For Expatriates ( Not Less Than ) 


Category I    15
Category II    10
Category III    5

An Associate Engineering Firm :

A local engineering firm classified as first category may associate with a foreign engineering firm in establishing not more than one associate engineering firm to carry out some specialised engineering works, provided that such firms should have previously practiced the engineering profession for a period not less than 10 years inside or outside the country in the field required to be licensed. 

An Expert Engineering Firm  :

An expert engineering firm is the firm carrying out some of the sophisticated specialised engineering works. Its work shall be limited to provide opinion to the local engineering firms, the associate engineering firms or any of the official bodies. The applicant of the expert engineering firm license must hold a scientific degree in a sophisticated engineering specialisation, have practiced the profession in his sophisticated specialisation for a period of not less than 15 years and require to carry out the activity personally. It is conditional for an expert engineering firm ( if the licensee is an expatriate ) to appoint a UAE national as a local service agent whole domicile is in Dubai. 



Kind Regards

Vithul Murali 
Dubai Mobile : +971 505573538
Email : Vithul@a2zconsultus.com
Skype : Vithul.murali

Legal Forms of Companies in Dubai ( Definition & Ownership Rules )

Sole Proprietorship

Definition: A Sole Proprietorship is a business owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.

Ownership Rules: A professional-type Sole Proprietorship can be owned by an individual of any nationality. If the owner is a National of a country other than the UAE or GCC, they require a Local Service Agent (LSA).
An industrial or commercial type Sole Proprietorship can be owned only by UAE Nationals or GCC Nationals.
Activity–based exception:
A sole proprietorship that offers legal services — known as a legal consultancy — does not require a local service agent.


Civil Company

Definition: A Civil Company is a business partnership for professionals in recognized fields such as doctors, lawyers, engineers and accountants. A Civil Company can only practice professional business and is 100% owned by professional partners.

Ownership Rules: A Civil Company can be owned by professional partners of any nationality. If the owner is a National of a country other than the UAE or GCC, they require local Service Agent (LSA).
A foreign company can be a partner in a Civil Company, as long as the foreign company is in the same profession as the civil company.
Activity-based Exceptions:
An engineering Civil Company must have one partner who is a UAE National, who owns no less than 51% of the business and who must be an engineer of the same business activity. A Civil Company that offers legal services does not require a local service agent.

Sunday, 9 February 2014

JAFZA ( Jebel Ali Free Zone Authority ) Company Formation a Brief



Over its 27 year history, Jafza has evolved into a dynamic trade catalyst ecosystem that enables business and creates new opportunities for growth. From a modest start in 1985 with just 19 companies, Jafza today flourishes as a business community with over 7,100 companies including 100 of the Fortune 500s.
Jafza’s vision, inline with the vision of His Highness Sheikh Rashid Bin Saeed Al Maktoum, is to be the leading provider of sustainable industrial and logistics infrastructure solutions. We are dedicated to our customers, our employees, our shareholders and our community, and uphold our commitment to each one of our stakeholders.

Activities Allowed By Free zone

Any activity may function in jafza after the approval of the environment, Health , Safety,  and security department (EHSS)
Most of the jafza –based companies fall under the activity heading of trading , Manufacturing and services industries. In order from most to least numerous, companies in jafza come from the Middle east , Europe, the Indian sub continent, Americas, far East, Africa and others.

New responsible sourcing certification programme for gold- DMCC







Fujairah Gold Refinery first to join new DMCC’s Market Deliverable Brand (MDB) initiative Dubai, UAE; 3 February 2014: DMCC, Dubai’s and the region’s global gateway for commodity trade and enterprise, has confirmed the launch of its new responsible sourcing Market Deliverable Brand (MDB) accreditation initiative designed to certify gold and silver refineries (in operation for over one year) for their quality and technical production of gold and silver. For gold refineries specifically, the certification also includes responsible sourcing of gold bars in accordance with the ‘DMCC Guidance’ and ‘Review Protocol’.

  Gautam Sashittal, Chief Executive Officer, DMCC said:  

“It is important for Dubai, as one of the largest physical gold trading hubs in the world, to give industry participants the assurance that they can trade with confidence knowing that upcoming refineries in the UAE and globally comply with international trade and responsible sourcing best practices. DMCC’s Market Deliverable Brand (MDB) accreditation initiative marks an important milestone as it enables refineries in operation for over one year to ensure their gold is sourced responsibly and that their gold and/or silver production processes are in line with globally accepted best practices to assure quality of their gold and/or silver products.


Company Incorporation in DMCC - Zero Personal and Corporate Tax

Established in 2002 by Royal Decree, DMCC is a strategic initiative of the Government of Dubai with a mandate to enhance the commodity trade flows through the emirate by providing the appropriate physical and financial infrastructure, regulation, products and services required.