DED (Dubai Economic Department) has divide the all the business activity in three different categories:- Commercial License – All the activities relating to Trading is covered in this category and as termed as LLC formation Professional License – All the activities relation to Services, Profession, artisans and Craftsmen are covered in this category.
Industrial License – All the activities related to Manufacturing are covered in this category.
All the above license is issued by Dubai Economic Department. There are certain activities which require approval from certain ministries and other government authorities. Below are the list of activities requires approval from external ministries:-
- Restaurant License fall under Dubai Municipality
- Rent a Car License fall under RTA (Road and Transport Authority)
- Advertising, Publishing and Printing fall under National Media Council
- Banking service and Financial Institutions fall under Central Bank of UAE
- Insurance License fall under Insurance Authority
- Industrial and Manufacturing License fall under Ministry of Economy
- Pharmaceutical License fall under Ministry of Health
- Contracting License fall under Dubai Municipality
- Logistic, Cargo packaging, Cargo Clearing License fall under Dubai Maritime City
- Travel and Tourism License fall under DED
- Sports Activity License fall under Dubai Sports Council
- Jewellery and Precious metals License fall under Dubai Protective System
All commercial license and industrial license in Dubai needs to be registered under Dubai Chamber of Commerce and Industry.
Some of the License needs Bank Guarantee and additional charges to be paid to the third Party
Tourism License
- Inbound Tourism – Bank Guarantee of Dh100,000 to be deposited in Bank
- Outbound Tourism – Bank Guarantee of Dh200,000 to be deposited in Bank
- Once the license is cancelled the deposit will be refunded
Travels
- Travel Agency – An amount of Dh100,000 to be deposited at Department of Tourism & Commerce Marketing. Once the license is cancelled the deposit will be refunded.
Building Contracting Companies
- Building Contracting Company License needs to pay Dh10,000 extra at the Department of Economic Development as one time fee.
General Trading
- General Trading License needs to pay Dh15,000 extra at the Department of Economic Development as one time fee.
Customs Broker
- Custom Broker license requires deposit of Dh50,000 to be paid at Dubai Customs. The deposit can be refunded on cancellation of License.
RTA Activities
- Following fees need to be paid to RTA at the time of Initial Approval
- For Rent a Car activity fee Dh5000
- For Bus Rental activity fee Dh1000
- For Passenger Transport by rented Buses activity fee Dh 1000
Telecommunications Equipment Trading
- A one-time fee of Dh5500 to be paid at Telecommunications Regulator Authority (TRA).
Security Service & Surveillance Services activity
- This activity requires approval from Department of Protective Systems.
Oilfield & Natural Gas related activities
- This activity requires approval from Ruler’s Court
Money Exchange
- This activity requires approval from Central Bank of UAE and Department of Protective Systems
Jewellery & Precious Metal, SIM Card Trading, Stamp & Seal Making
- This activity requires approval from Department of Protective Systems
Supermarket requirement
- A minimum of 2000 square feet is required for getting the approval from DED.
- For any other license an Ejari of 200 square feet is required to process the License.
Partners Requirement:
- In LLC (Limited Liability Company) the local Emirati holds Fifty-one per cent of shares in the Trade License and the balance 49% is held by the Expat. This is the general requirement for all UAE established companies.
- In Professional License 100% ownership can be an Expat under DED License. The Local Emirati will be the Local service agent in the License.
100% Ownership by Expat without Local sponsor is possible for the below:
- In Any Free Zone Expat can be 100% Owner
- Company owned by GCC national
- Branch of a Foreign company
- Representative Office of Foreign Company.
Types of Legal Structure in Mainland
- In Dubai all business entities fall under commercial, professional & sole establishment and registered under DED (Dubai Economic Department) are known as Dubai Mainland License. All the Emirates, Abu Dhabi, Sharjah, Ajman, Ras AL Khaimah, Umm AL Quwain & Alain follow the same practise. In all Mainland Commercial License the Local Emirati is 51% shareholder or a local service agent in Professional License.
Limited Liability Company(LLC)
- In Dubai Mainland LLC formation falls under Commercial category and can be formed with a minimum of Two shareholders or a maximum of 50 shareholders in the license. The liability of the shareholder is limited to the shares invested in the company. In this license the 49% shareholders can be an Expat and 51% shareholder can be a Local Emirati.
- At Present there is no need for Minimum capital requirement to form the company as in August 2009 the minimum capital requirement law was abolished. In this license the Partners can appoint a Manager to run the business among them or to a third party. The minimum share required to get a Partner Visa in LLC is 24% in the license.
- To form a LLC license we at Burj Commercials assist in setting up a business in Dubai by following the below steps:-
1- Trade Name Reservation
- The first and foremost step in registering the License in DED is to select a name and it needs to be approved by DED.
2- Initial Approval
- On completing the Trade name reservation, we need to get the Initial approval for the activity from DED.
3- Drafting of MOA & Legalisation
- On receiving Initial approval, the MOA needs to be drafted in English & Arabic and get it notarised from Dubai court.
4- Ejari
- The Tenancy contract required to submit the documents to the DED for final approval. Minimum of 200 square feet is required.
5- Commercial License
- On submitting all the above documents the company will be registered in the Commercial Register. The license will then be issued by the DED.
Branches and Representative Offices of Foreign Commercial Companies
- Those Foreign companies who are interested to open a Branch or a Representative office in Dubai are governed under Commercial Companies law to do the formation in Dubai and other Emirates. These companies can be 100% owned by the foreign entity with the appointment of Local service agent.
- The term Local service agents mean the UAE nationals or a firm which is owned 100% by UAE national. These local service agent are also referred to as sponsor for the license and are not involved in the day to day operations, but helps the companies in getting Establishment Card, Company Labour Card, etc and are being paid as a lump sum in terms of remuneration and or a percentage in profit or turnover as per the agreement made. The Branch of a Foreign companies are not allowed to conduct any Importing activity except for re-export.
- To form a Branch of a Foreign Companies or Representative office license we at Burj Commercials assist in setting up a license in Dubai by following the below steps:-
1- Initial Approval
- The first and foremost step is to get the approval from Ministry of Economy and Commerce by submitting the Local service Agreement with a Local Emirati or a company 100% owned by Local Emirati.
2- DED Approval
- The application will be forwarded to the DED for getting the Initial approval.
3- Federal Foreign Companies Committee
- The activity listed in the application will be then forwarded to the Federal Foreign Companies committee for their approval.
4- Ministry of Economy
- The Ministry of Economy will then issue the Certificate to carry out the activity mentioned in the application.
5- Commercial License
- With the copy of the Certificate issued from MOE (Ministry of Economy) submit the final application to the DED to register in the Commercial Register.
6- Dubai Chamber of Commerce
- The Branch license then must be registered in the Dubai Chamber of Commerce.
Professional License
- Burj Commercials assists Investors or clients who want to set up a Professional License in Dubai. This activity related to any Profession falls under this category. The Foreign Expat can be 100% owner in the License and the legal Entity of the License could be a Sole Proprietorship or Civil company. Under this license the Local Emirati will be appointed as a Local Service Agent, however he doesn’t have direct involvement in the business and for his appointment he is remunerated with a lump sum fee annually. The Local service agent assists the companies in obtaining Establishment card, Company Labour card, Visas, etc. We at Burj Commercials assist clients in getting good Local service agent at a very reasonable rate.
Joint Venture Companies
- A Joint Venture company is bound by a contractual agreement between two or more parties like Foreign entity and Local Entity establishing license to conduct a desired activity. The Local party should be 51% shareholder in the License; however the profit and loss can be shared as per the agreement between the two parties. This kind of formation is best suitable for companies who are working on a specific project.
Public and Private Shareholding Companies
- Those companies who would like to start a business comprising of Insurance, banking or financial services should run as a public shareholding companies as stipulated in the Law. Companies who want to open a branch license in the field can establish a Branch of a Foreign company or a representative office.
- The capital required for a Public Shareholding companies for a large projects is Dh. 10 million and for a Private shareholding company is Dh. 2 million. As per the law the Chairman and the majority of Board directors must be a UAE local nationals.
GCC Nationals
- The UAE provides an option for GCC to set up a business in Dubai without involving Local Emiratis as a Sole Proprietorship. Inorder to have Partnership with Expat without local Emirati the Investment for a particular project should be minimum of Dh. 10 million and should have sound business knowledge. The business fall under this categories are Tourism, services, Industrial activity and any other such business which will add value to the UAE economy.
Business Cards
Our business Credit and Debit Cards offer a wide range of benefits and savings to support your business success. Both products are backed with worldwide offers that add value to your transactions and reduce your cost of doing buiness.
Business Credit Card
Protect your company against unauthorized use of the card by employees with Corporate Liability Waiver
Access great discounts and benefits on every rental with Hertz Gold Plus Rewards
Save 20% on your daily business shipments with DHL Shipping Discount
Enjoy complimentary golf at 5 exclusive golf courses across the UAE
Business Rewards Credit Card
Enjoy complimentary Rewards or Plus Points with every transaction
Enjoy complimentary golf at 5 exclusive golf courses across the UAE
Unlimited access to over 650 premium airport lounges in more than 300 cities worldwide
Save up to 30% at over 2,000 restaurants across the UAE, Middle East and Europe with Bon Appétit
Visa Platinum Business Debit Card
High daily purchase limit of AED 125,000 and cash withdrawal limit of AED 50,000 at home and abroad
Make contactless payments wherever the contactless logo is displayed
Get discounts at merchants around the world
Secure your purchases with purchase protection and extended warranty
Visa Signature Business Debit Card
High daily purchase limit of AED 125,000 and cash withdrawal limit of AED 50,000 at home and abroad
Enjoy unlimited complimentary access to over 850 airport lounges worldwide
Benefit from 24-hour concierge service that provides a completely customized experience
Access over 900 exclusive hotels worldwide and exclusive benefits with the Visa Luxury Hotel Collection
Running your business
We have decades of experience helping large and small companies manage all their banking needs.
You’ll benefit from business banking services and financing solutions that help you stay on top of cash flow and maximise the potential of your organisation’s financial assets.
Cash Management
We drive cost and time savings for your business through efficient and effective cash management solutions that cover your regular and routine payments, collections and overall liquidity to flatten financial cycles and unlock working capital for your business.
Payments
Hassle-free way to automate salary payments to your employees
- Salary payment
- Supplier payments
- Utility and Government payments
Collections
Enhance security, savings, business time and money
- Physical and digital collection systems
- Secure cash and cheque pick-up
- Online collection of customer payments by direct debits
Liquidity
Solutions for increased efficiency and reduced costs
- Standing instructions at reduced costs
- Simple or complex sweeping and pooling capabilities
- Tailored investments to maximise returns on idle or surplus cash
- Post-dated cheque warehousing
Escrow
Facilitating your business transactions
- Real estate escrow
- Commercial escrow
- Owner association/body corporate escrow
- Advisory, deposit/payment management, reconciliation and reporting services
Treasury
Our Treasury team will help you manage your financial assets, optimise your company’s liquidity and navigate your international trade with insight and confidence.
Spot Trade
- Trade in more than 25 currencies
- Manage quick overseas or cross-currency payments or receivables
Forward Contracts
- A hedging tool with no upfront payment
- Pre-agreed rate and maturity date
Interest Rate Swap
- Exchange the future interest rate payments you make over a set period on loans or bonds
- Make no exchange of the principal
Structured Deposit
- Potential for higher returns compared to fixed deposits
- May be taken in ‘tranches’ with either a fixed offer period or available until the tranche is fully subscribed
- Returns depend on the performance of the underlying investment product
Dual Currency Deposits
- Combination of a cash or money market deposit with a foreign exchange option
- Capital and interest can be converted into an alternative currency
- Yield depends on several variables including currency pair, term, market interest rates and volatility of currencies used
Growing your wealth
Your wealth needs to be carefully managed to enable it to grow. That means not only finding the right vehicles to enhance its value, but also protecting what you have to ensure it is not lost due to unforeseen events.
We offer an extensive range of investment and insurance options to suit your unique needs and goals.
Investments
Our investment team is ready to advise you on a curated selection of investment options to help you achieve optimum returns on your capital.
Mutual Funds
- Pools of funds collected from many investors for investment in stocks, bonds or other assets
- Own units in the fund, which is operated by a professional fund manager who aims to deliver capital gains and income for all the fund’s investors
Bonds
- Debt securities issued by governments, corporations or other institutions to raise funds
- Provide a steady flow of investment income, and potentially lower the overall portfolio risks
Sukuks
- Sukuk is a financial certificate that is Shari’ah compliant
- They represent an undivided ownership in an asset or a special investment activity
Structured Products
- Designed to achieve risk-return objectives that are not achievable with traditional investments
- Return on capital invested may be linked to the performance of an index, a “basket” of selected stocks, or other underlying traditional assets
- May also include an element of principal protection
Gold Savings Certificates
- For investment or as a gift, each certificate is valid for five years from the date of issue
- Sold in multiples of 300 grams (999 finesse) and 500 grams (995 finesse)
- Priced against the global spot market
- Can be redeemed against physical gold or the equivalent amount in cash at any time until maturity
