What types of companies exist in the UAE (Part 1)

Today we will talk about the types of companies that can be opened in the UAE.There are several categories of business that can be registered in the United Arab Emirates. These include:

1. Mainland Company;

2. Freezone Company;

3. Offshore organization.

Referring to a particular type of business should be based on the characteristics of the business that you intend to conduct in the country.

Mainland company in the UAE

It is understood as a legal entity that receives a work permit both within the country and abroad. If an entrepreneur intends to develop a business on the mainland, then he will need to register a company with the Department of Economic Development in the emirate in which he plans to expand his activities. Further, the Department issues a license for doing business (we will talk about them, licenses, later). It must be taken into account that only local citizens can engage in certain types of activities when registering a mainland (or local) company.

In general, the entrepreneur is given one of the following mainland company forms to choose from:

1. Limited liability company (LLC)

2. Limited partnership

3. Public or private company with share capital

4. Branch

5. Joint venture.

What to choose? The most attractive option for foreigners is LLC (LLC). Such an enterprise does not require large investments at first. The liability of each of the founders is limited to the amount of their contribution to the capital. A company can have at least 2 shareholders and no more than 50. Of the restrictions on types of activity, there is a ban only on insurance, banking and financial investments.

We will talk about other categories of business in detail tomorrow. Stay in touch with us!