| FAQ's
on Company Formation |
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Are
you interested to invest in UAE Free Trade Zones? |
[These
are excerpts from discussions with our clients
highlighting questions being asked frequently
by prospective investors] |
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1.
Which are the leading commercial places in UAE? |
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UAE comprises of 7 Emirates
viz. Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al
Quwain, Ras Al Khaimah and Fujairah. All these
emirates are actively promoting business and trade.
All these Emirates have Free Trade Zones except
Abu Dhabi. |
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2.
What are the leading free zones in UAE? |
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Jebel Ali Free Zone, Dubai
Airport Free Zone, Dubai Internet City, Dubai
Media City, SAIF Zone, Hamriyah Free Zone, Ajman
Free Zone and Ras Al Khaimah Free Zone. |
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3.
As an expatriate investor can I set up a trading
concern fully owned by me? |
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The Federal Law of UAE restricts
the ownership to an expatriate in a trading company
to 49% whereas in free trade zones expatriate
can set up 100% owned. |
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4.
What are the legal forms available to establish
a business in the free zone? |
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Branch of Foreign
Company, Free Zone Establishment and Free Zone
Company |
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5.
What is the minimum capital to form an LLC in
Dubai and in Sharjah? |
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AED 300,000 (USD
81,810) in Dubai and AED 150,000 (USD 40,905)
in Sharjah and other Emirates |
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6.
Can I have a General Trading Licence in Dubai? |
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The L.L.C shall have specific
activities as per classification made by the Department
of Economic Development, Dubai. The company can
have multiple activities with General Trading
Licence where an additional fees of USD 4,100
will be levied by licensing authorities in the
year of incorporation and USD 1370 annually. |
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7.
Which activities require special approval ? |
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License to practice majority
of the activities are directly issued by the licensing
authority in the respective Emirate. However,
certain activities require special approval from
the related Ministry/Department.(for e.g., medical,
pharmacy etc.- Ministry of Health; air transport,
air cargo etc. – Department of Civil Aviation,
financial institutions, banks, money exchange
etc.- central bank; new industrial project, expansion
– Ministry of Finance and industry; publishing,
printing, newspaper, advertising, video film,
photography etc., - Ministry of Information; education,
training etc. – Ministry of Education; agriculture,
veterinary etc.- Ministry of Agriculture; customs
clearance, freight forwarding, sea cargo etc.
– seaports & customs authority, telecommunication
equipment – Ministry of Communication; branch
of foreign company, insurance company, audit firm
etc. – Ministry of Economy & Commerce) |
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8.
Is there any taxation in UAE? |
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Currently there
is no corporate or personal tax applicable to
business organizations or employees in UAE |
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9.
How can I obtain my visa to stay in UAE? |
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Visa (Residence
Permit) shall be issued after obtaining the trade
licence and completing the immigration formalities. |
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10.
How long the Residence visa permit is valid? |
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Residence Permit
is valid for 3 years and can be renewed for similar
period |
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11.
How can I bring my family to UAE? |
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Once your residence permit
formalities are over, you can sponsor your wife
and children. |
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12.
What are the documents to be brought from my country
to sponsor my family? |
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Your marriage certificate
and the children’s birth certificate duly
attested from UAE Embassy. |
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13.
If I set up company in Dubai and obtain residence
permit can I travel other emirates freely? |
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Yes, you can travel other
emirates since the residence permit is valid for
entire UAE |
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14.
Can I buy property in Dubai? |
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In Dubai, an expatriate can
buy properties offered by Emaar Properties, Nakheel
Corporation and Jumeirah Residence which are available
in certain demarcated areas. |
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15.
How this country is secured for investment and
living? |
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The country is very much
secured for investment and living. Majority of
the UAE population is expatriate. |
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16.
Is there any duty or levies charged by government
authorities? |
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There is no duty or levy
charged by government departments except 5% import
duty for the products imported to main land. However,
companies operating ion free zones are exempted
from import duty also. |
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17.
How efficient are the seaport facilities? |
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UAE has excellent port facilities
on its west and east coasts viz. Mina Zayed, Port
Rashid, Jebel Ali Port, Port Khalid, Khor Fakkan
Port and Fujairah Port. Jebel Ali Port is the
largest man made port in the world. These facilities
enable even the world’s largest container
ships to access the port with ease. |
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18.
What options are available for schooling of children? |
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In order to cater to expatriate
population from various parts of the world, there
are schools offering American, British, Indian,
Pakistani and European curricula. |
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19.
What are the recreational facilities available? |
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Recreational facilities available
in most of the leading cities are available in
UAE ranging from cinema, theatre, theme parks,
water sports, apart from those unique to this
region like desert safari, etc. |
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20.
What is the climatic condition in UAE? |
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The summer temperature often goes above 42°C
but winter months from October to April are
quite cool, with temperatures going down 14ºC
FAQ's on Trademark Registration
Do I have to register
my trademark?
No, but registration has several advantages,
including notice to the public of the registrant’s
claim of ownership of the mark, a legal presumption
of ownership nationwide, and the exclusive right
to use the mark on or in connection with the
Goods or service set forth in the registration.
Obtaining the rights in a trademark means obtaining
the right to prevent others from using the same
or a similar mark on the same of similar products
or service. Unlike For patents and designs,
the duration of a trademark right can be as
long as you wish.
Registrability
Not all trademarks are registrable. For a trademark
to be registrable it must be new and it must
be distinctive. If the trademark is not new
or distinctive, it will not be possible to get
a valid trademark registration.
A trademark is only considered to be “new”
if no-one else has used or registered it (or
a similar mark) for use on products or services
the same or similar to yours. For a trademark
to be distinctive it must be more than just
an obvious word or picture and it must not describe
the nature or any features of the product or
service concerned.
Trademark Searches
How do you know whether or not you
mark is new? The best way is to have us conduct
and/or arrange for searches of the relevant
local and international databases (some of which
can be accessed by subscription or by attendance
only), to see whether there are any marks similar
to yours already registered or for which an
application for registration has been filed.
Others searches can also e conducted to assist
in determining whether there are similar marks
in use, but which have not yet been registered
or for which and application for registration
has not yet been filed. Searching requires not
only finding relevant marks but also the analysis
of those marks and their registration documents
to whether or not they might pose any difficulties
for your mark.
What are the benefits of
trademark registration?
1. Constructive notice nationwide of the trademark
owner’s claim.
2. Evidence of ownership of the trademark.
3. Jurisdiction of federal courts may be invoked.
4. Registration can be used as a basis for obtaining
registration in foreign countries.
5. Registration may be filed with U.S. customs
service to prevent importation of infringing
foreign goods.
Are there federal regulations governing the
use of the designations “TM” or
“SM” with trademarks?
No. use of the symbols “TM” or “SM”
(for trademark and service mark, respectively)
may, however, be governed by local, state, or
foreign laws and the laws of the pertinent jurisdiction
must be consulted.
These designations usually indicate that a party
claims rights in the mark and are often used
before a federal registration is issued.
When is it proper to the federal registration
symbol (the letter R enclosed within a circle--®--with
the mark.
The federal registration symbol may be used
once the mark is actually registered in the
U.S. Patent and Trademark Office. Even though
an application is pending, the registration
symbol may not be used before the mark has actually
become registered. The federal registration
symbol should only be used on goods or services
that are the subject of the federal trademark
registration. [Note: Several foreign countries
use the letter R enclosed within a circle to
indicate that a mark is registered in that country.
Use of the symbol by the holder of a foreign
registration may be proper.]
Marks To Avoid When Choosing
a Trademark or Service Mark
Descriptive – Descriptive marks are marks
that describe the goods or services with which
they are associated. Generally, descriptive
marks are not registrable. Descriptive marks
may, however, become registrable upon a showing
of what’s called secondary meaning.
Generic – Generic words are common words
that describe an entire class of goods or services.
These words do not serve as an indication of
the source of goods or services and should be
avoided when choosing a potential mark.
Geographically Misdescriptive or Deceptively
Misdescriptive Marks – These types of
marks are not registrable without a showing
of secondary meaning.
Scandalous or Immoral Marks – These
are marks that offend the conscience.
Surnames – surnames are not registrable
without a showing of secondary meaning.
Deceptive marks – deceptive marks are
not registrable.
How Long Does a Trademark
Last?
A federally registered trademark lasts 10 years,
provided that it is properly maintained. If
properly maintained, trademark rights can last
indefinitely.
What is Trademark Maintenance?
To keep your trademark from being cancelled,
it is necessary to file a Section 8 Declaration
of Use between the fifth and sixth year of registration.
Subsequent filings must be made on each 10 year
anniversary of registration. Additionally, after
five years of continuous use of your mark, you
are entitled to file a Declaration of incontestability.
Failure to maintain your trademark can result
in the loss of your trademark or unnecessarily
limiting your rights. If you do not already
have an attorney, we are available to assist
you with your trademark maintenance.
Do I Need To Be Using My
Trademark To Register It?
No, but you must have a bona .de intent to use
the mark in interstate commerce. If you have
not yet used your mark, you may file intent
to use application. Additionally, the intent
to use applicant must later file a Statement
of Use when the mark is used in interstate commerce.
There is additional filing fees associated with
filing a Statement of Use. These additional
fees (currently a $ 100 government filing fee
and a $ 185 preparation fee) are not included
in our $250 application fee.).
What Works Are Protected?
Copyright protects "original works of authorship"
that are fixed in a tangible form of expression.
The fixation need not be directly perceptible
so long as it may be communicated with the aid
of a machine or device. Copyrightable works
include the following categories:
Iterary works;
Musical works, including any accompanying
words
Dramatic works, including any accompanying
music
Pantomimes and choreographic works
Pictorial, graphic, and sculptural works
Motion pictures and other audiovisual works
Sound recordings
Architectural works
How Long Copyright Protection
Endures
A work that is created (fixed in tangible form
for the first time) on or after January 1, 1978,
is automatically protected from the moment of
its creation and is ordinarily given a term
enduring for the author's life plus an additional
70 years after the author's death
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