Federal Law No. 8 of 1984, as amended by Federal Law No. 13 of 1988 – the Commercial Companies Law – and its by-laws govern the operations of foreign business. In broad terms the provisions of these regulations are as follows: The Federal Law defines seven categories of business organization, which can be established in the UAE. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures. The seven categories of business organization defined by the Law are: General partnership company, Partnership-en-commendam, Joint Venture Company, Public Shareholding Company, Private shareholding company, Limited Liability Company, Share Partnership Company. By far the most usual form that businessmen and/or corporations prefer is the limited liability company.
Dubai companies must use the suffix Limited or Ltd. to denote limited liability. The following words and their associated activities are prohibited: Banking, Insurance and Re-insurance.
A RAK ICC can have a minimum of one shareholder and there is no limitation on the maximum. 100% foreign ownership of the company is allowed. Corporate shareholders are permitted. Shareholders meetings should be held at least once a year and every RAK ICC company shall take minutes of all proceedings at general meetings.
There is no minimum capital requirement. Usually we recommend share capital to be US Dollars 1,000. Share certificates must be issued within two months from the date of payment of the capital. Bearer shares are not allowed. Shares may be issued fully, partly or nil paid.
DIRECTORS AND SECRETARY
A minimum of one director is required and corporate directors are permitted. A register of directors must be held at the Registered Office, but it is not a matter of public record. The number of directors can be fixed in the Memorandum and Articles of Association. Any shareholder may be appointed as a director and/or secretary. One secretary is required and corporate secretaries are permitted.
REGISTERED OFFICE AND LOCAL AGENT
A Dubai company must maintain a local Registered Agent approved by the local authorities and a local Registered Office, which is usually provided by the Registered Agent.
Dubai company meetings need not be held in Dubai.
10 working days.
RECURRING AND MAINTENANCE FEE AS FROM 2ND YEAR
- Provision of registered office and registered address
- Provision of company secretary
- Payment of annual government fee