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UAE Over all Business Ranking

Setting a New Busines

A foreign company eyeing to magnify their business in UAE may opt to run its operations as a branch or a representative bureau or may also go to form a registered company within one or more of the emirates in UAE. It has the option to grow its sales and services by hiring a commercial representative who will sell its products and services into the UAE marketplace as well as export them to other parts of the world.

Initially, it is advisable for the company representative to interact with the concerned authorities at the central and emirate level which will also further help to perceive rules and regulations at both the level. Although federal laws get more superiority over local laws, still it can be seen that all the emirates in UAE exclusively have their own discretionary rules and policies that may have the impact on the working of a business.

An investor has an unique option to set up its new company and commence its business from a free zone which is labeled and controlled by its own authorities with its own laws and policies that help to catalyze economic activity within an emirate.

As per the ownership regulations in UAE, the companies which are founded in UAE are requisite to have 51 percent ownership rights with UAE Emiratis or can be completely owned by UAE Emiratis, except the cases mentioned below:

  • 100 percent foreign ownership allowed in Free Zones
  • 100 percent ownership for companies engaged into professional activities
  • 100 percent ownership for Gulf Co-operation Council (GCC) nationals
  • Wholly owned GCC companies entering into partnerships with UAE Emiratis
  • However there are certain exceptions here (case to cases), wherein the commercial law provides a provision of 100 percent ownership for the locals as per the mandate.

Even though the UAE Emiratis hold 51 percent stake in the companies, still the companies are not permitted to conduct those business activities which are permissible only for UAE nationals or companies wholly held by UAE nationals. 

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