Ownership of Business Organizations in UAE

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What are the steps to starting a business in the UAE?

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1. Identify the business activity. 2. Choose the appropriate legal form. 3. Register the trade name. 4. Obtain initial approval. 5. Draft the Memorandum of Association (MoA) and Local Service Agent (LSA) agreement. 6. Select a business location. 7. Secure additional government approvals. 8. Submit all documents and pay the required fees.

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What are the six main categories of business activities in the UAE?

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1. Industrial 2. Commercial 3. Professional services 4. Tourism 5. Agricultural 6. Occupational

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What is the legal form of a business?

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The legal form determines the structure of the business and the applicable laws and regulations. In the UAE, options include Sole Proprietorship, Partnership, LLC, PJSC, PrJSC, Civil Company, and Branches.

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What is a Limited Liability Company (LLC)?

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An LLC is a business structure that combines features of corporations and partnerships, offering limited liability to its owners, with a minimum of 2 and a maximum of 50 shareholders.

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What are the key benefits of an LLC?

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1. Limited liability for owners. 2. No double taxation on profits. 3. Flexibility in ownership.

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What is a Public Joint Stock Company (PJSC)?

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A PJSC is a company with a minimum capital of AED 30 million, requiring at least 10 shareholders, and shares that are publicly traded.

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What are the requirements for setting up a PJSC in Dubai?

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1. At least 10 shareholders. 2. A board of directors with 3 to 15 members, majority must be Emirati. 3. Minimum capital of AED 30 million.

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What is the purpose of the Memorandum of Association (MoA)?

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The MoA is a legal document that outlines the company's structure, objectives, and ownership.

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What is the role of a Local Service Agent (LSA)?

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An LSA is a UAE national appointed to assist foreign businesses in liaising with government authorities, without ownership rights.

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What are the advantages of partnerships?

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1. Shared skills and talents. 2. Easier financing. 3. Shared responsibility. 4. Continuity of business.