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Legal Structures For Business

Federal Law No. 8 of 1984, as amended by Federal Law No. 13 of 1988 - the Commercial Companies Law - and its bylaws govern the operations of foreign business. In broad terms the provisions of these regulations are as follows:

The Federal Law stipulates a total local equity of not less than 51% in any commercial company and 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-in-commendam
  • Joint venture company
  • Public shareholding company
  • Private shareholding company
  • Limited liability company (LLC)
  • Share partnership company
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