SPONSOR AS AGENT FOR CIVIL LICENCE wonderland for foreign entrepreneurs when it comes to setting up a company.
The UAE offers two different types of options for setting up a business.
These options are mainland and free zones.
Both economic zones have their own set of advantages and are suitable for different types of businesses.
Ex-entrepreneurs can open another type of company in Dubai, i.e., a civil company.
This type of company offers several advantages as well. But before they can set up a company,
entrepreneurs need to obtain a civil company license in Dubai.
This guide will take you through the comprehensive process of license issuance as well as company formation in the UAE.
Read on to find out everything you need to know about the procedure.
What is the civil licence company in Dubai?
A civil firm, also known as a civil partnership or corporation,
is a group of two or more qualified professionals in specialized industries who work together to provide a number of professional services.
These experts include consultants, medical professionals, accountants, lawyers, and engineers.
The owners of the company must possess professional qualifications in their field of expertise and can form a civil licence company as partners.
Shareholders of a civil licence company incorporated in Dubai are allowed to be professional partners of any nationality.
But, a Local Service Agent (LSA) is required to support the licensing of the civil licence company
if the owner or shareholder is a national of a country other than the GCC or UAE.
Such as assistance from the Department of Economic Development (DED), the Department of Labor, and the Immigration Department.
They have no debts or obligations to operate outside or within the respective emirate.
Although civil licence companies allow 100% complete foreign ownership,
working through a Local Service Agent (LSA) in the UAE is still necessary to conduct business from the mainland in Dubai.
Unlike local sponsors, LSAs do not have financial ownership of your company.
The sole responsibility of the LSA is to communicate with government authority bodies on your behalf,
assisting with such things as filing visa applications, approving licenses, work permits,
and other similar tasks. In return, they receive a set fee or a share of the company’s revenue.
There are some additional requirements to regulate participation in certain activities. For example,
out of two business partners, one of the partners must be a UAE national to perform architectural work.
This nationality holder must own at least 51% of the company. Furthermore,
this partner must possess proven work experience in the field and the necessary qualifications
for the service provided or the business activity being conducted.
It is best to confirm with the DED (Department of Economic Development) the required work experience,
compliance standards, and educational requirements for the business activities planned for the civil licence company license.
What makes civil companies different from others?
UAE professionals prefer to form a civil licence company because it is less time-consuming and less costly than an LLC.
As mentioned earlier, LSA works closely with businesses to bridge the gap between government and corporations.
But it has no impact on business decisions or day-to-day operations.
Although it may seem convenient and simple to open a company in the UAE,
before starting a business in Dubai, one of the most dynamic cities in the world,
a new entrepreneur should always consider the risks involved in having unlimited liability.
Let’s find out what distinguishes civil licence companies from other private companies in Dubai,
UAE. Keep in mind the following points:
Multiple visas
Depending on the size of the civil licence company, the owners of the company can apply for more than one visa.
However, the Department of Economic Development can negotiate this matter (DED).
license
A company must only engage in professional operations in order to maintain a civil licence company license.
The best examples of experts who fit into this group are carpenters, doctors, web designers, lawyers,
and engineers. The shareholders of these companies must be knowledgeable and skilled in their respective fields of industry.
Local Service Agent (LSA)
Even if you fully own your civil licence company 100 percent,
a local service agent will be chosen to represent it when applying for formal approvals.
This local service agent is also called a service agent.
These approvals include work permits and visas. An LSA can be a UAE national company or a person.
licence legal responsibility
A shareholder or owner of a civil licence company is entitled to 100% liability for the company,
unlike a Limited Liability Company (LLC). This means that you are responsible for all of the company’s liabilities including debts.
licence Multiple shareholders
The minimum number of shareholders required to establish a professional company in the UAE is two,
and the maximum is 50, either individuals or companies.
licence trading activities
Professional licenses do not allow commercial activities.
Conditions for incorporating a civil licence company in the UAE
In the process of forming a civil licence company,
there are some specific rules and regulations that must be followed.
licence These terms are as follows:
Any entity or company may sell a civil company or a branch office in Dubai.
A change in the legal form can also be made by the owners in accordance with the procedures of the Department of Economic Development.
The business regulations of the Department of Economic Development allow partners of any nationality to practice professional activities.
You must obtain a detailed civil licence agreement between the former partners in the civil company license
A service agent agreement is required to designate a local service agent for the company
Civil licence organizations or civil companies in Dubai can only appoint a limited number of directors in a civil legal form.
The company’s trade name must reflect and be consistent with its business activities.
Branches may carry out one or all of the activities that fall under the basic business license.
How to establish a civil licence company in the Emirates?
Documents required to obtain a civil licence company license
Before moving on to the steps, here is a list of documents required to obtain a civil licence company license in Dubai, UAE:
Initial authorization application form duly signed by the UAE Legal Services Agent and all international partners
Phone numbers and addresses to create an LSA (Legal Service Agreement)
Trade name registration certificate
A legal service agreement with a UAE national, notarized by a notary
Passport copies of all partners (including the local service agent’s family card and a copy from Zinsia)
The partnership contract between the international partners, including profit sharing, money,
and property information must be notarized in front of a notary
Step 1. Choose a name for your company
Choose a business name that complies with the rules and regulations of the UAE government.
Step 2. Choose a business
In order to determine the type of trade license to apply for,
you must decide on the type of operations you plan to perform.
Depending on the location, select your business from the allowed list.
Step 3. Hire a local sponsor
Local Emiratis are the local sponsors who can help you with any legal matter.
Hire them to stay on the safe side and make sure everything runs smoothly.
Step 4. Receipt of the initial approval
Initial approval must be obtained from the Dubai Department of Economic Development (DED).
Step 5. Choose a location for your office
Choosing an office space is essential for registering a business in the UAE.
It is also possible to work from a virtual office depending on your business activities.
Step 6: Conclusion of a partnership agreement
The agreement between the foreign partners in the business is called a Partnership Agreement.
It shall be formulated and implemented by the Honorable Court.
Step 7. Create a local sponsor agreement
An agreement between the local sponsor in the UAE and the overseas business partners specifies how
the company will operate outside the country is known as a local service agent agreement.
Preparing and implementing the company’s final request, whether from the department or the court, and then submitting it.
Step 8. Completion of company formation
You will have to submit the appropriate documents to your chosen jurisdiction to set up your company in Dubai.
Benefits of establishing a civil company in Dubai, UAE
As with any other company, starting a civil company in the UAE has many advantages.
Here are some of the positive aspects of opening such a company:
licence Instant company setup
licence Setting up a civil licence company in Dubai is a quick and simple process.
You will be able to quickly obtain a civil company license from the Department of Economic Development,
thanks to provisions recently passed by the UAE government.
Sponsoring dependents is simple
If you are the owner or shareholder of a civil licence corporation, you are eligible to sponsor dependents’ residence permits.
These may be relatives, household helpers, and other people.
But, you must meet the requirements. Other than that,
the process of opening a civil project is very easy to follow and useful.
at a reasonable price
A civil corporation can be formed with relatively less money than other licenses or businesses.
You only need to pay the professional licensing fee. As a result,
your company’s overall launch costs are relatively lower than those of the competition.
licence No limits on visas
licence Civil licence corporations are one of the most common forms of a large business.
Civil company owners can apply for more than one visa at a time. There are no upper limits,
however, you must have 100 square feet of office space per visa.
For large companies that need hundreds of visas, this becomes somewhat unrealistic.
But you are allowed to negotiate with the Department of Economic Development to find a solution to this problem.