The Various Business Structure in the UAE

A lot of people, especially the foreign investors stress on the process of company setup in UAE rather than focusing on what type of business structure will be ideal for his/her business. You will be surprised to know that you can establish your company in the UAE in 7 different forms. Each of the business structure varies from the next one in so many aspects. If you are willing to set up a business in the UAE, you may need to choose any of the following forms of business structure for your company.

  1. General Partnership:

Company incorporation with a general partnership is limited to UAE nationals only. So if you are a foreign investor, you cannot select this business structure for your company.

  1. Partnership Limited by Liability:

Even though the foreign investors don’t have the option to go for a general partnership, they can apply for partnership limited by liability for the company. The limited liability company (LLC) is ideal for the foreign investors where they can choose a local partner and run a business with a limited share.

  1. Joint Venture:

Joint venture refers to a contractual agreement between two or more individuals, companies or associations with a common economic objective. It can be local or international in scope. Even though the joint ventures are considered as a separate business option, it also envelops other business structures like a general partnership, limited partnership, joint stock company, and even a freezone company.

  1. Public Joint Stock:

A public joint stock company requires AED 10,000,000 as minimum share capital with the minimum of 10 founders for the process of company setup in UAE. In fact, the shares of the public joint stock should be offered to the public, and the subscription notices should be published in any two local dailies. Also, it should have 3 to 15 directors for the term of three years.

  1. Private Joint Stock:

A private joint stock, on the other hand, requires AED 2,000,000 as minimum share capital with 3 founders minimum. All the regulations applicable to the public joint stock are also applicable for the private joint stock, except for the fact that the shares of the private joint cannot be offered to be public. This business structure is ideal for large projects like banking, insurance, etc.

 

There are other business structures like a regional office of a foreign company, sole proprietorship and much more. The LLC companies are the most commonly availed option among the foreign investors. However, if the person wants and the government permits, a person can choose any of the aforementioned business structure for his company setup in UAE.