Perfect Magazine
Learn How To Start BUSINESS SETUP IN UAE
  • January 16, 2021
  • williambeel
  • 0

Are you looking to start a business in UAE? The first thing you’ll need is an E-commerce Business License. This blog post will teach you everything you need to know about how to start your own business in the United Arab Emirates. 

We will cover what types of businesses are allowed, what licenses are needed, and how much it costs. We also have links for all the forms that can be downloaded so that you can get started right away! 

Officially, the laws governing business in the UAE are still only available in Arabic. However, we’ve provided links to English translations of these documents right here:

The article continues after this block You may also like to download the full list of Emirates Business License Laws (in English) that we prepared for our readers. Click here.

UAE Laws Related to Businesses Types of Businesses Allowed In the UAE

In the United Arab Emirates, there are three types of businesses that can be started: Sole Proprietorship Partnership Company (LIMITED LIABILITY COMPANY)

UAE Laws Related To Starting A Sole Proprietorship

A sole proprietorship in the UAE means that you are your own boss. You have no business partners, and you don’t need to register for a Partnership License from the UAE Ministry of Economy as required by other types of businesses. A sole proprietorship is easy to set up, however, it also means that you will be responsible for any debts incurred by the business. Click here for a direct link to the downloadable form to start your own sole proprietorship in the UAE.

 UAE Laws Related To Starting A Partnership

The UAE does not allow General Partnerships. If you want to setting up a business with multiple partners, you will need to apply for a Special Partnership License from the Ministry of Economy. Click here for a direct link to this form. The UAE has very strict rules governing partnerships. Click here for a direct link to the English language version of the Business Law dealing with partnerships in the UAE.

UAE Laws Related To Setting Up A Company (LIMITED LIABILITY COMPANY)

Companies in the UAE are governed by Law No.(2) of 1977 as subsequently amended and currently in force. Click here for a direct link to the Business Law on companies in the UAE.

There are two types of business entities that can be established in the UAE i.e. Public Joint Stock Company (PJSC) and Private Joint Stock Company ( PJSC). A public joint-stock company is registered with The Central Depository as its nominal holder. Its capital must be divided into a minimum of 5,000 shares. A private joint-stock company is registered with The Central Depository as its nominal holder. Its capital must be divided into 200 – 1,000 shares depending on the decision of the founders/shareholders.

UAE License Required For E-commerce Businesses

As per the UAE Law (3) of 2002, as amended and currently in force, an E-commerce company needs a license from the Ministry of Economy. Click here for a direct link to this business license application form. Applicants must submit their valid trade license along with the application form and other supporting documents required by the licensing authority before any consideration can be given to their application.

Ok, so now you know what type of business license you need. Next, we’ll talk about how much it costs to set up a company in the UAE…

UAE Business License Costs For Sole Proprietorship, Partnership And Company (LIMITED LIABILITY COMPANY)

For Sole Proprietorship, the minimum capital requirement is AED 10,000.00

For Partnership, the minimum capital requirement is AED 25,000.00

For Limited Liability Company (PJSC), the minimum capital requirement is AED 50,000.00

UAE Laws Related To Importing And Exporting Products In The United Arab Emirates

In general, the UAE restricts imports of products from Israel and Iran except for food items, medicine etc. There are no restrictions on importing products from other countries in the region. Click here for a direct link to this Business Law on importing and exporting goods in the UAE.

UAE Laws Related To Starting A Transport Company In The United Arab Emirates

The transport sector in the UAE is set to boom since Dubai has launched its own version of the online taxi service Uber. Click here for a direct link to this Business Law on starting your own transport company in the UAE.

UAE Laws Related To Starting A Media Company In The United Arab Emirates

Media outlets in the UAE are not allowed to broadcast any content that criticizes the UAE ruling family, Islam, or is deemed immoral. Click here for a direct link to this Business Law on starting your own media company in the UAE.

UAE Laws Related To Starting A Recruitment Firm In The United Arab Emirates

A recruitment firm can be set up as either a sole proprietorship, partnership or limited liability company. The minimum capital requirement for a recruitment firm is AED 25,000.00 and the registration fee is AED 2,700.00. Click here for a direct link to this Business Law on starting your own recruitment business in the UAE.

Also Read:

https://dubaibusinessadvisors.com/blog/business-management/reduce-pro-service-cost-by-50/

UAE Laws Related To Setting Up An Advertising Firm In The United Arab Emirates

An advertising company can be set up as either a sole proprietorship, partnership, or limited liability company. The minimum capital requirement for an advertising firm is AED 25,000.00 and the registration fee is AED 2,700.00. Click here for a direct link to this Business Law on starting your own advertising business in the UAE.

UAE Laws Related To Setting Up A Construction Company In The United Arab Emirates

Construction companies in the UAE need to be licensed and registered with the Department of Economic Development. Applicants must submit their valid trade license along with the application form and other supporting documents required by the licensing authority before any consideration can be given to their application. Click here for a direct link to this Business Law on starting your own construction business in the UAE.