In the UAE there is a belief that interaction should be positive in nature. That is what makes me so immensely happy to write the foreword for the book, 'Doing Business in the UAE & UAE Free Trade Zones.' The very title offers an invitation to people to come and to enjoy the warmth and friendship of the UAE. There is nothing in the world like the warmth of Arabian hospitality. If at the same time you can and do enhance your business fortunes in this cosmopolitan country that welcomes every one with open hands, then so much the better.
In the UAE, to Establish an LLC there is a given process. It includes:
- Obtain initial approval for name and activity from the Department of Economic Development or the Economic Development Department/Municipality/the Chamber of Commerce.
- Obtain approval from concerned Ministry/Department if the activity is of special nature.
- Draw up company's Memorandum of Association and have it notarized from courts of respective Emirates.
- Capital contribution certificate to be obtained from banks for cash shares and auditor's certificate for both cash shares and kind shares.
- Submit applications and initial approval along with notarized copy of Memorandum of Association, capital certificate, tenancy contract etc., to the Department of Economic Development or the Municipality.
Once all of this has been scrutinized by the legal department the name of the company will then be entered into the commercial register and will have the
Memorandum of Association published in the Ministry of Economy and Commerce Bulletin. The Department of Economic Development or the Municipality will then issue the license.
For your information, the following entities will be involved dependent upon where you will be doing business.
ACTIVITIES THAT REQUIRE SPECIAL APPROVAL:
- Department of Economic Development: Licensing Authority in the Emirate of Dubai.
- Economic Development Department: Licensing Authority in the Emirate of Sharjah.
- Municipality/Chamber of Commerce: Licensing Authority in other Emirates.
Licenses to practice the majority of activities are directly issued by the licensing authority in the respective emirates. Certain activities require special approval from the related Ministry/Department. (for medical, pharmacy etc - ministry of health; air transport, air cargo etc - dept. 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, chartered accountants firm etc. - ministry of economy & commerce