Dubai is well-known across the globe as a haven for investors. However, new economic and administrative changes have made starting a company in the UAE even more appealing. Dubai and Riyadh based Creation Business Consultants are experts on opening the company in Saudi Arabia and the United Arab Emirates and will guide you through the process.
Department of Economic Development
If you want to start a company in Dubai, you’ll have to register with the Department of Economic Development (in further text, DED). DED will offer you a business license in Dubai, and licenses are divided into three categories:
An industrial license is needed for manufacturing and selling the completed items made from raw materials. While the trading company can import the raw materials for manufacturing, a manufacturing company must have an industrial license to produce the items. A trading company can also export the finished products, but it cannot sell them in the local market.
A commercial license is intended for the unrestricted trade of all lawfully marketable items across all borders. It is typically used for businesses that import or export goods. It is also common for companies that trade in goods to have a commercial license. The benefits of having a commercial license include the ability to trade without restrictions and import or export goods at a lower cost.
Professional license is for individuals or organizations providing consultation services, engineering services, accounting services, administrative services, training, and education. The profession’s regulatory body generally determines eligibility for this type of license. They set the standard for education, experience, and examinations. The regulatory body also determines who is eligible for a license and monitors professional conduct.
The recent legal changes granted foreigners the opportunity to open a business on the mainland and obtain 100% ownership, subject to certain restrictions. This implies they no longer need a local sponsor to launch a firm in Dubai. This legislation encourages international investors worldwide to set up shop in the UAE, and Saudi Arabia is following the suit.
100% foreign-owned company
As mentioned, you may own your firm outright while in Dubai. The law eliminates the necessity for a local partner. Previously, a foreigner (and his partners) may own up to 49 percent of a corporation, with the remaining 51 percent controlled by a local/Emirati partner. Foreign investors continue to gain from 100 percent ownership of businesses in the professional services sector.
A list of approved activities has been produced in Dubai, and it includes more than 1000 economic activities out of 2300 listed by the Dubai Economic Department. The approved activities include various sectors, including retail and wholesale trade, tourism and hospitality, professional services, real estate, transportation and logistics, and technology. In addition, the list also includes several new business sectors, such as e-commerce, 3D printing, and cryptocurrency.
The Dubai government is committed to making it easier for businesses to start and operate in the city. This new list of approved activities is another step in that direction. By reducing the risk associated with starting a business in Dubai, the government hopes to attract even more businesses and investors to the city and help stimulate economic growth.
Remember that your company activity will determine the sort of license you require. Your action should be on the positive list if you want to gain 100% ownership on the mainland. If your activity isn’t listed, you may still seek external permission to get a legal permit for it. This is always a viable option, though it can be time-consuming and expensive. The best way to go about this is to research the relevant authorities and submit an application that outlines your company’s plans. This will give you the best chance of success, as the authority will be able to see that you’re serious about setting up your business in Gulf.
Benefits of 100% foreign-ownership
The new regulation aims to motivate foreign investors to invest in the nation, enhance the economy and make it easier to conduct business, locally and globally. With boosting both local and foreign investors’ global competitiveness, the UAE and KSA are preparing for the global market of the 21st century.
You may work freely within the region with no constraints as an investor. Not only that, but you may trade worldwide as well. With 100% ownership, you have complete control over your firm. There is no longer any reliance on a local partner for administrative processes, and as you will be dealing directly with DED, you will have more freedom. In addition, you don’t need to pay a local partner, so you are saving money and can make more considerable investments.
If we were to summarize the new measures in one phrase, we would state that under the new legislation, non-Emiratis and non-Saudis of all nationalities may completely own their firm as long as it falls within the permitted areas. Compliance with laws is your highest priority, so contact your agent and entrust your business to the professional advisor.
