A commercial license is the perfect choice
for companies engaging in trading or buying and selling goods. Usually buying
and selling is referred to as trading in the UAE and Dubai. If you choose a
business activity that is classified under Commercial Activity, you will be
issued with a commercial license by law. The activities such as logistics, car
rental and real estate brokerage are classified as commercial activities, even
though they are providing services.
A Commercial License company can be setup
as Limited Liability Company, where 51% of its shares should owned by UAE
Nationals and the remaining 49% is open to foreign ownership. If the company is
planning to sell goods in Dubai & UAE markets then the ideal choice is to
incorporate or set up a Limited Liability Company in Dubai UAE.
A Commercial License can be formed within
one of the free zones in Dubai or in the UAE. In some of the free zones in UAE
it is possible to setup Limited Liability Companies, whereas in other free
zones it is Limited Liability Partnership. It is possible to setup with a
suffix “FZ-LLC” which stands for “Free Zone – Limited Liability Company” in
some freezones or “FZC” – which stands for “Free Zone Company”. The main
advantage with Free Zone Company is that you will get 100% ownership in your
business. Free Zones companies in UAE are exempt from the 51% – 49% minimum
shareholding rule that is must in outside the free zones. You can choose to
incorporate a Commercial License within a Free Zone, if your company is
planning to export goods. For Free zone Company if you wish to sell goods
within UAE, it is required to appoint a distributor and you cannot invoice your
clients directly and all the invoicing should take place through the
distributor.
Visit our website www.ushinternational.com
http://plusuae.com/business-setup-in-abu-dhabi/
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