Page 413 - Sustainable Cities and Communities Design Handbook

386 Sustainable Cities and Communities Design Handbook

3. Application package must be delivered to the Department of Economic
Development or the Municipality as appropriate;
4. Following approval, the new company will be included in the Commercial
Register and the Articles of Association published in the Bulletin of the
Ministry of Economy;
5. A license will then be issued by the Department of Economic Development
(Dubai and Sharjah) or the Municipality or the Chamber of Commerce of
the other emirates.
The Commercial Companies Law allows for setting up branches and
representative offices of foreign companies. They may be 100% foreign
owned, provided a local service agent 34 is appointed.
A branch office (regarded as part of its parent company) is a full-fledged
business, permitted to realize contracts or conduct other activities similar to
those of its parent company as specified in its license. Activities are approved
on a case-by-case basis. 35
A representative office is limited to promoting its parent company’s
activities (e.g., gathering information and soliciting orders and projects to be
performed by the company’s head office). Representative offices are also
limited in the number of employees that they may sponsor.
Local service agents (also referred to as sponsors) are not involved in the
operations of the company but assist in obtaining visas, labor cards, etc. The
time required for setting up a branch of a foreign company is approximately
3e4 weeks from the date of receipt of all the documents. To prove the cred-
ibility of the company, a business plan and current profile, as well as financial
statements of the last 2 years, should be submitted.
In the case of professional firms, 100% foreign ownership, sole pro-
prietorships, or civil companies are permitted. They may engage in profes-
sional or artisan activities. A UAE national must be appointed as a local
service agent.
The basic requirement for all types of business activities in the UAE is one
of the following three categories of licenses:
1. commercial licensedcovering all kinds of trading activity,
2. professional licensedcovering professions, services, craftsmen, and
artisans;
3. industrial licensedestablishing industrial or manufacturing activity.

34. Only UAE nationals or companies 100% owned by UAE nationals may be appointed as local
service agents.
35. Expanding your horizons? A guide to setting up business across the Middle East and North
Africa region, KPMG International Cooperative, 2010.