CONSULATE GENERAL OF UNITED ARAB EMIRATES

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Untitled Document

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Turkish


	News

Exhibition's

www.middleeastevents.com

National Exhibitions Company Abu Dhabi

    P.O. Box 5546,
    Tel: +971 3342 406 2
    Fax: +971 4446 135 2
    Email: louise.osborne@adnec.ae
    http://www.adnec.ae

Dubai International Convention And Exhibition Center

http://www.dicec.ae

Expo Centre Sharjah

    P.O. Box 3222, Sharjah
    United Arab Emirates
    Tel: +971 6 5770000
    Fax: +971 6 5770111
    Email: info@expo-centre.ae
    http://www.expo-centre.ae


	Important Links

www.adcci-uae.com

www.dcci.org

www.dubaided.gov.ae

www.dm.gov.ae

www.sharjah.gov.ae

www.government.ae/gov/en

www.etisalat.com

www.lunad.com

Untitled Document

Commerce

Economic Situation

With its inviting business environment, the UAE has transformed itself into a truly international center for commerce and trade. The UAE, long recognized as the commercial and business hub of the Arabian Gulf, has the 3rd busiest port in the world in terms of volum, with Dubais Jebel Ali port ranking behind Singapore and Hong Kong ... This Gulf powerhouse has no corpurate taxes( with the exeption of banks and foreign oil companies with equity in concessions ), no income taxes, and a relativety low import duty of 5 percent ( GCC Customs Union implemented in January 2003 ).

It has competitive labor coming from over 150 counties and a domestic market with a per capital income of around US $18,400 according to UAE Central Bank statistics .

The UAE is a model for digital readiness in the Middle East and has embraced the internet age , as well as mobile phone technology. The government has held programs to educate the business community and understanding of the Internet and its capabilities. The Emirates of Dubai , which has capitalized on its strategic trading position between central Asia, the former Soviet Union, the Middel East, and Africa for centuries, is in constant growth.

Procedure for Establishing Foreign Companies' Branches :

Except those companies licensed to practice activities in the U.A.E Free Zone ,foreign companies are not allowed to practice activities in Dubai or to establish offices or branches unless they obtain a licence issued by the Ministry of Economy & Commerce after the approval of the Department of Economic Development . The licence issued shall determine the activity the company is allowed to practise .

Foreign companies licensed to operate in the U.A.E may not start their activities before being inscribed in the Ministry's register of foreign companies ,the commercial register at the Department of Economic Development and obtaining the Department's Trade licence .To set up a branch of foreign company ,the following steps should be observed:

1. An application shall be submitted to Department of companies at the office of Ministry of Economy & Commerce in Dubai , the application should include this data :

a) Name, type of the company & address of its main office .

b) Type of activity , specialization required to be practiced in the U.A.E

c) Main operations carried out by the company abroad & its previous expertise in the field of activity which intend to conduct

d) Name of the local services agent in the U.A.E and his address if he is a natural person but if it is a cooporated body ( company ) its legal form, capital ,names of the shareholders & their addresses. All shareholders should be U.A.E nationals.

2. The Department of Companies at the Ministry of Economy & Commerce ,after registering the application, giving it a number and making sure that the required documents are complete , shall refer it to the Department of Economic Development as follows :

a) In case of rejection the application and the attached documents shall be returned to the Department of companies to be kept there & the concerned parties shall be notified of rejection decision .

b) In case of acceptance , the application shall be referred to the committee of foreign companies at the Ministry for approving the content of the application and for determining the activity of the branch .This committee shall prepare its recommendations and refer them to Minister of Economy and Commerce for issuing the decision .

3 . Completion of registration procedures in the commercial register & issuance of the licence by the licensing Department at the Department of Economic Development .

4 .Registration of the company ‘s branch with the Dubai Chamber of Commerce & Industry .

5 .Inscription of the Company's branch in the Foreign Companies Register at the Ministry of Economy & Commerce .

The Regulation of the Law has many requirements :

• Each foreign company granted a licence to operate in the U.A.E should have an auditor, provided that he is licensed and his name is inscribed in the Chartered Accountants' Register .

• Any company practicing activities in the U.A.E and wishing to amend the data according to which it obtained the licence , should approach the Department of Commercial Affairs at the Ministry of Economy & Commerce through its concerned office to notify such amendments.

• Foreign companies licensed to practice activities in the U.A.E should renew their inscription in the Register of Foreign Companies annually and one month prior to the expiry date of registration .

• In case the company wishes to cease its activity ,It should apply to the Ministry requesting the cancellation of its inscription in the Foreign Companies Register, and the business of the company shall not deemed to have ceased unless the Ministry's decree is issued approving the cancellation .

• All documents pertaining to foreign companies shall be submitted to the Ministry of Economy and Commerce in Arabic , and if they are written in foreign language , dually certified Arabic translation should be attached there to .

The private Shareholding Company :

Like the public shareholding Company , this company issues shares, but not through public subscription Capital should not be less than one million dirhams, and the number of shareholders shall not be less than three In other respects this type of company is governed by the same provisions applicable to public shareholding companies.

The Public Shareholding Company :

This company issues as its corresponding type of companies in other countries. The foreign partner may own these shares up to 49 % of the shares for public subscription except in the companies whose activities are reserved to U.A.E nationals only .The capital of a public shareholding company should not be less than 10 million dirhams . As it issues shares which are out to public subscription and traded in exchange markets, it is subject to the control procedures necessitated by such a status. The president should be UAE nationals, a latter amendment permitted the choice of the vice – president from non UAE shareholders .This clearly shows that non UAE shareholders can participate in the management of the company at the highest echelon, or it can be said in fact that the law accommodates a kind of majority of capitals , in giving it the office of president , and the need for practical experience , in giving non – UAE members the office of Vice President .

Limited Liability Company:

It is the most important type of companies for non nationals .It is stipulated that the number of partners should not be less than two and not more than fifty . The law also provides that the share capital of this company should not be less than 150.000 Dhs. However ,the competent authorities in Dubai made the minimum share capital of this company 300.000 Dhs .The shares of such companies are not open for subscription by the public and are not negotiable shares. Non – national partners are permitted to hold shares not exceeding 49% of the capital ,however profits maybe divided on other ratios agreed upon , taking in to consideration efforts of non –national partners in management ,introduction of technology or providing expertise . Management of the company may be undertaken by the expatriate partner.

Free Trade

Zone /Warehouses

The first free zone trade in the UAE the Jebel Ali Free Trade Zone ,was established in 1985 in Dubai and located with the largest man-made seaport in the world . The UAE Free Zones today are home to approximately 5,000 companies with a total investment estimated at more than USD $4 billion .

Presently, 13 free trade zone operate in the UAE, and more are in the developmental stage in most instances, these zones have been co-located with either a seaport or airport. The exception are the ( Dubai Internet City ) e-commerce free zone and the ( Media City ) free zone . Every free trade zone offers incentives and exemptions ranging from tax holidays to assistance in recruiting labor. Since UAE tariffs are low and not levied against many imports, the chief attraction of the free zone is the waiver of the requirement for majority local ownership. In the free zones, foreigners may own up to 100 percent of the equity in an enterprise .

AHMED BİN RASHED FREE ZONE