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Types of Commercial Activity and Business
Which types of commercial activities are generally available to foreign investors in Dubai?
Setting up a Place of Business:
Formation of a representative office — (no direct commercial activities permitted)
Formation of a branch office— (import/export not permitted, only rendering of services)
Formation of company within the UAE. (total foreign equity of not more than 49% permitted)
Formation of a professional firm (may be 100% owned by one or more foreign investors; such firms may only render professional services, e.g. in the areas of medicine, education, and academic and skilled professions)
Do foreign companies require a “sponsor” for all types of commercial activities?
As a rule, a number of people or bodies are referred to as “sponsor” in Dubai, the other emirates of the UAE and the GCC countries. This could be the employer, the business partner, the local partner or the sleeping partner in a joint venture,
Representative offices, branch offices or professional companies, which may remain in full foreign ownership require a service agent, also known as “sponsor”.
The categories of business organizations defined by the law are:
- General partnership company
- Limited Liability company
- Joint venture company
- Public shareholding company
- Private share holding company
- Share partnership company