Commercial Business License is that kind of a setup wherein the expatriate partner is solely responsible for the business right from its decision-making to its profits and losses. The local partner, also known as the local sponsor (despite being a shareholder of 51%) shall only act as a sleeping partner without any active involvement in the company at all.
Starting a mainland business in U.A.E is not restricted in terms of office location unlike freezone business or offshore companies that are restricted to their respective jurisdictions.
Necessary arrangements to provide the business owners with a reliable local UAE partner, which is a mandatory requirement to start your UAE mainland business is completely taken care of by our experts.
What are commercial activities?
Commercial activities are the activities that require a capital. They include wholesale and retail trade, construction, transportation, communication, financial mediation, real estate and leasing.
| Owners | Partnership Percentage |
|---|---|
| EXPATRIATE | 49% |
| UAE NATIONAL | 51% |
Professional License is a license wherein a local service agent (LSA) is a UAE national who assists a foreigner in the licensing requirements and other government-related matters in exchange for an annual fee while the business is 100% owned by expat investor.
Difference between a local sponsor and a local service agent is that the former is a 51% shareholder of the company while the latter has 0% ownership beyond the fact that both the companies are situated in the mainland.
What are professional activities?
Professional activities are the activities that depend on mental and physical effort. They include agriculture, fishing, education, health, social work and community, social and personal services.
Manufacturing enterprises and industrial companies are required to have an industrial license in the UAE. Approvals from the finance and industry ministry along with permissions from other judiciaries are mandate. Industrial licenses in the UAE are valid for a definite period subject to compliance with the conditions mentioned during the issuance.
Industrial trade license is issued to organizations that convert natural resources or alter raw materials. This alteration can be in terms of structure and appearance with the aim to produce or manufacture new products, semi-manufactured products or even fully manufactured products.these activities mainly imply production, segregation, accumulation, packaging etc. industrial trade license obligates the company to have a physical warehouse inside the country.
What are industrial activities?
Industrial activities are the activities that require a capital. They include manufacturing, mining, quarrying, electricity, gas, and water.