19/04/2024
Selecting the type of license is the first step in starting a business in UAE. You can choose from commercial, professional, and industrial licenses.
Companies engaged in buying or selling of goods can opt for a commercial license. Entities involved in industrial and manufacturing activities, should apply for industrial license. And, professional license will be granted to service providers, professionals, artisans, and craftsmen.
Mainland Companies are of various types and their activities differ.
LLC can conduct any industrial, commercial, professional and tourism business. In the case of public joint stock companies, any industrial, commercial or professional business activities can be practiced. But, a Private joint stock company can perform only commercial and industrial activities.
A branch of a local or GCC company can conduct activities included on the main company license and a branch of a foreign company can conduct only selected commercial and professional activities.
When it comes to branches of free zone companies, commercial, industrial, and professional businesses are permitted as long as the activity of the main company is authorized on the mainland.
In a mainland setup, a foreign investor can own a maximum of 49% shares and at least 51 percent of the shares should be owned by the local sponsor.
But, off late, the government has approved a new investment law allowing 100 percent foreign ownership on mainland. This means you no longer will have to rely on local sponsors to begin your own company.
