Legal Requirements for Foreign Nationals Setting Up a Business in Dubai mainland
Foreign nationals who want to set up a business in Dubai mainland are required to fulfill certain legal requirements.
Here are some of the key legal requirements:
Business activity and legal structure: The foreign national must choose the business activity they want to undertake and the legal structure of their business. The legal structures available in Dubai mainland include sole proprietorship, partnership, limited liability company (LLC), and branch office.
Local sponsor: A foreign national needs to have a local sponsor or a local service agent, who is a UAE national, to set up a business in Dubai mainland. The local sponsor or local service agent can hold up to 51% ownership of the business.
Commercial license: The foreign national must obtain a commercial license from the Department of Economic Development (DED) in Dubai. The license is issued based on the business activity and legal structure of the company.
Office space: The foreign national needs to have a physical office space for their business, which can be leased or owned.
Capital requirements: The capital requirements for setting up a business in Dubai mainland vary depending on the legal structure of the company and the business activity.
Visa requirements: The foreign national must obtain a residence visa and work permit to live and work in Dubai. The visa application process varies depending on the legal structure of the company and the business activity.
Tax registration: The foreign national must register for taxes with the Federal Tax Authority (FTA) if their business meets certain criteria.
Overall, setting up a business in Dubai mainland requires the foreign national to comply with local regulations and procedures, and it is recommended to seek the assistance of a local business setup consultant or a legal professional to ensure compliance with these requirements.
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