A trade license is obligatory when it comes to conducting business in the UAE. The Economic Department issues different licenses for various business and professional activities. The three major types of licenses in the UAE are commercial, industrial and professional. There are some business practices that need specific licenses by the government.
Along with licenses approval from relevant authorities one might also need a prerequisite to conduct many commercial activities in the UAE.
A sole proprietary business is suitable for independent individuals who want to integrate themselves. Forming a sole establishment company in UAE gives you the freedom of registering your business under your name. As its name, a sole establishment business is registered only under a single individual called a sole proprietor who fully controls all the company’s activities.
A general Partnership Firm is a business with a legal structure where two individuals or more than two partners can agree to form professional services and consultancy business and are willing to extend their assets as per the company’s obligations. Some of the professional activities to include in a partnership firm are medical clinics, legal consultancy, management consultancy, HR Consultancy, IT Consultancy, training, and other similar activities.
Limited Liability Company or LLC Company is the most popular type of business in Dubai. An LLC Company formation requires a minimum of 2 individuals and a maximum of cannot exceed 50 shareholders where their liability is limited to everyone’s shares.
Company formation of a foreign business entity in UAE consists of opening a branch of an existing foreign company by following the UAE commercial law. A foreign company is required to form a branch or an office that represents the parent company which allows a branch to get registered with 100% foreign ownership of the parent company.