Business Setup & Planning - Incorporation

ESTABLISHMENT BY GCC CITIZEN

The states of the Gulf Cooperation Council (the UAE, Saudi Arabia, Sultanate of Oman, Qatar, Kuwait and Bahrain) signed the United Economic Agreement in Riyadh on 7th June 1981, with a view to coordinate and unify economic, financial, monetary, commercial and industrial legislations and UAE endorsed this agreement in 1982. It is conditional as per the Federal Law No. 2 of 1989 concerning permitting the GCC citizen to conduct a business operation in UAE that the investor should be a natural person residing in UAE and practice the required activity by himself and have a license to practice the activity in his country of origin. Procedure overview of llc establishment.

In case the investor is a legal person wishing to conduct retail or wholesale trade then the investor must be in the form of a company of which the share owned by UAE nationals is not less than 50% of the capital.

Setting up of Branch of GCC Companies in Dubai

The dept. of economic Development, Dubai has recently released a circular clarifying the procedures of setting up Branches of GCC companies wholly owned by GCC nationals.

The circular stipulates that Branches of GCC Companies shall be required to register only in the DED and the concerned parties shall not refer to the Ministry of Economy, provided other Government Departments’ approvals may be required for the activities in question.