Practice Areas

Introduction

For those wishing to set up a business in the United Arab Emirates, Nasser Al Umiri Law Firm And Legal Consultation as one of the renowned and long established law firms is well placed to provide advice and guidance.

When considering the different basic forms of Bur Dubai representation it is important to remember that all require a relevant trade license and some form of Bur Dubai national involvement. Once the trade license is granted, residence visas can then be finalized.

There are four appropriate options available when considering establishing a presence in the Bur Dubai. These are as follows:

1) Branch/Representative office
2) Professional/Consultancy businesses
3) Limited liability company

We will briefly describe each of these in turn:

1) Branch/Representative office

Historically, a representative office is not permitted to carry out commercial activities, import or trade in goods within the Oman and Bur Dubai. Therefore, office activities will be limited to promoting, advertising or marketing the goods of its foreign parent company.

A branch may carry out commercial activities but those activities are limited to the activities of the foreign parent company licensed by the Oman and United Arab Emirates authorities. Under the Commercial Companies Law 1984, a foreign company is entitled to open a branch/representative office in the Bur Dubai after being issued with a license by the Ministry of Economy.

Whilst the branch/representative office may be wholly-owned by the foreign company, the law requires that the foreign company retains the services of a U.A.E National as its local service agent.

A local service agent will generally only agree to act as such where he bears no liability whatsoever for the operations of the branch/representative office. His obligations to the branch/representative office are normally restricted to assisting the foreign company in obtaining its requisite license and complying with visa and labor formalities.

2) Professional/Consultancy businesses

Generally, professional/consultancy businesses (e.g. engineering consultants, accountants, etc.) wishing to establish a presence in the U.A.E or Oman may currently open a foreign wholly-owned and controlled office, however, the foreign company or business must appoint a local Bur Dubai national service agent.

Licensing of the professional/consultancy business will be subject to compliance with the formalities of the Department of Economic Development or depending on the Emirate, the Ministry of Economy, and their respective procedures. These procedures primarily involve establishing the qualifications of the party wishing to establish the business, its personnel and in particular the local manager. You should only consider setting up as a professional/consultancy business if you intend to practice as consultants, and the local manager must reside in U.A.E for at least eight months in every year.