Local Trading Company Setup (LLC)Locks and Keys Trading

Commercial license that allows to сonduct trading activity.

As part of the company registration process with this business activity, no additional approvals are required.

There is no requirement for a minimum share capital for local companies in Dubai with this business activity, its contribution is optional.
If the shareholder plans to obtain an investor visa, the shareholder's share in the share capital should be at least AED 48,000.

The Department of Economy and Tourism (DET) has the following basic requirements for company names:

• The trade name can include the shareholder's first and last name but should not be the last name alone (e.g. "Ahmed Al-Ghamdi Properties"; not "Al-Ghamdi Properties");
• The trade name cannot include words as Allah's name and all Its synonyms, countries, regions, areas, sects and organizations, already registered and known names of brands and establishments;
• The trade name cannot include a name starting with words like "Universal", "Middle East", "International" and its translation into Arabic;
• The trade name cannot contain obscene words and that it should not be among the names that offend modesty and contradict public decency.

Entrepreneurs are provided with the opportunity to open a corporate account in classic banks with physical branches, as well as in digital banks and in payment systems.

When choosing a bank to open a corporate account, factors such as the level of service, fees, available currencies, convenience of online banking, the reputation of the bank and other conditions that may be important for business should be taken into account.

Successful corporate bank account opening requires a well-prepared document package, which may vary depending on the specific requirements of a particular bank.  Incorrectly or incompletely submitted documents may negatively affect the final decision of the bank in processing the application for opening a corporate bank account.

Mainland registration is the best choice for investors and entrepreneurs for several key reasons:

1. Wide range of industries. At Mainland Dubai, you can do business in virtually any industry from retail to manufacturing to financial services. This provides flexibility and ample opportunities for a variety of business models.
2. Access to the local and international market. Sales of goods and services not only throughout the Emirates, but also around the world.
3. Ability to work with the state. Registration in the jurisdiction of Mainland provides the opportunity to participate in public tenders and orders. This not only contributes to the development of business, but also confirms your reliability and professionalism before government agencies.
4. Wide choice of premises.  For your business you can rent office, production or warehouse premises anywhere in the Emirates. This gives you the opportunity to choose the best location for your needs.
5. Trust of local authorities. Mainland companies enjoy a high degree of trust from banks and other financial institutions. This is due to the strict rules and regulations that are observed in this jurisdiction, as well as its status as a reliable and stable business environment.

A local company in Dubai can choose the most suitable legal form from those offered by the Department of Economic Development and Tourism (DET):

1. Sole Establishment (SE): A professional company founded and managed by a single shareholder who has unlimited liability and is personally responsible for all company debts. The shareholder can be either a UAE citizen or a foreigner, but a foreigner will require a local service agent (LSA) who holds UAE citizenship and is not a company shareholder but receives an annual fee for their formal involvement.

2. Limited Liability Company - Single Owner (LLC-SO): A limited liability company founded by a single shareholder. The shareholder is only liable for the company's debts up to its share of the capital. The shareholder can be either a UAE citizen or a foreigner.

3. Limited Liability Company (LLC): A limited liability company that allows 2 to 50 shareholders who are only liable for the company's debts up to their share of the capital. Shareholders can be UAE citizens, foreigners, or legal entities.

4. Civil Company: A professional company allowing 2 to 50 partners who have unlimited liability and are personally responsible for the company's debts. Partners can be UAE citizens or foreigners who pool their resources and skills to provide professional services (such as consulting, legal, medical, etc.). Foreign partners require a local service agent (LSA) who holds UAE citizenship.

5. Partnership Company: A partnership company allowing 2 to 50 partners, who must be UAE citizens. Partners are only liable for the company's debts up to their share of the capital.

6. Simple Partnership Company (Limited Partnership CO): A simple limited partnership allowing 2 to 50 partners divided into two types: general and limited partners. General partners have unlimited liability and are personally responsible for all company debts, while limited partners are only liable up to their share of the capital. Partners can be UAE citizens, foreigners, or legal entities.

7. Private Joint Stock Company: A closed-type joint stock company allowing 2 to 50 shareholders. Shareholders are only liable for the company's debts up to their share of the capital and are not personally responsible. Shareholders can be UAE citizens, foreigners, or legal entities. Shares of a private joint stock company cannot be publicly traded on stock exchanges and can only be transferred among company shareholders.

8. Public Joint Stock Company: An open-type joint stock company allowing 2 to 50 shareholders. Shareholders are only liable for the company's debts up to their share of the capital and are not personally responsible. Shareholders can be UAE citizens, foreigners, or legal entities. Shares of a public joint stock company can be publicly traded on stock exchanges, making them available for purchase and sale on the market.

For a local company in Dubai, there are various options for office solutions:

1. Virtual Office:

• Provides companies with an official address in Dubai without the need to rent physical office space.
• It is used for company registration, obtaining visa quotas, and opening a bank account.
• Can include services such as mail forwarding, call answering and redirection, and access to shared conference rooms when needed.

2. Coworking Spaces:

• Offer professionally equipped workspaces in shared office environments with flexible rental terms for independent professionals, startups, and small businesses.
• Include modern office equipment, high-speed internet, conference rooms, common relaxation areas, and kitchen facilities.
• Provide an opportunity to reduce expenses related to office rent and maintenance.

3. Office Spaces:

• Dubai offers a wide range of office spaces available for both rent and purchase.
• Options include fully furnished offices and vacant spaces that can be customized to meet a company's needs.
• Pricing and sizes of spaces vary based on location and level of finishing.

4. Shops:

• Retail businesses have access to shops and retail spaces in various areas of Dubai.
• Shops can be situated in lively shopping areas, shopping centers, and on streets with high pedestrian traffic.
• Prices depend on the location, size of the area, and the popularity of the neighborhood.

5. Commercial Buildings:

• The options can range from small buildings to large business centers.
• They can be used to open restaurants, hotels, medical facilities, educational institutions, entertainment venues, and other establishments.

6. Warehouses, Technical, and Other Spaces:

• Various warehouse spaces are available in Dubai for companies involved in logistics and goods storage.
• Warehouses come in different sizes and with various equipment to accommodate the storage and distribution of goods.
• Other options include agricultural plots, land for development, and specific facilities like production and medical centers, research laboratories and others.
  

In the UAE, there are several types of taxes and duties that regulate the financial activities of both legal entities and individuals. Let's explore the key ones:

1. Value Added Tax (VAT):

• Since January 1, 2018, the UAE has implemented a 5% VAT rate. The UAE is among the top 10 countries globally with the lowest VAT rate as of 2023.
• Foreign companies in the oil and gas sector are subject to a 55% rate, and foreign banks face a 20% rate.
• Companies with an annual turnover exceeding 375 000 AED are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
• Some goods and services may be exempt from VAT or subject to a 0% rate, such as international transportation, educational and medical services, and more.

2. Corporate Tax:

• It is a direct tax imposed on a company's taxable net profit.
• Starting from June 1, 2023, a 9% corporate tax is levied on companies with profits exceeding 375 000 AED.
• A 0% rate is applied to taxable income below 375 000 AED.
• Charitable and non-profit organizations, as well as educational and medical institutions, are fully exempt from CPT.

3. Excise Tax:

• It is an indirect tax imposed on specific excise goods deemed harmful to human health or the environment. Examples include alcohol, tobacco products, and sugary beverages, including energy and carbonated drinks.
• Excise tax rates vary depending on the category of goods: alcohol is taxed at 30% of the retail price, tobacco products at 100%, sugary beverages at 50%, and energy drinks at 100%.

4. Customs Duties: 

• A list of over 700 items is exempt from customs duties. For items not on this list, the rate is 5% of their value.
• Goods exported from the UAE or imported by charitable organizations, Arab countries, and Gulf Cooperation Council countries (with a certificate of origin) are not subject to customs duties.
• Starting from January 1, 2023, when purchasing items worth more than 300 AED from foreign online platforms, a 5% customs duty and 5% VAT are required. Items below 300 AED are exempt from customs duties.

5. Personal Income Tax:

• In the UAE, personal income is not subject to taxation.
• UAE citizens and residents are exempt from paying taxes on their personal income, including wages, interest, dividends, royalties, inheritances, gifts, capital gains, and other sources of income.
  

The local territory in Dubai provides the following main types of visas for foreign entrepreneurs and company employees:

1. Investor Visa: 

• Provided to foreign investors and company owners in Dubai who invest in a business in the UAE through the creation or purchase of a company.
• The investor's share in the company's share capital must be a minimum of 50,000 AED.
• The investor gains the ability to manage their business in the UAE, live and work in the country. The visa can also be extended to the investor's family. 

2. Employment Visa: 

• Provided to foreign workers hired by employers in the UAE. It allows employees to legally reside and work in the country.
• Employers are responsible for processing employment visas for their employees.
• Company owners can also obtain employment visas if they are employees of the company.
• Depending on the job position, employees may need to provide educational and professional qualification verification.
• The duration of the employment visa depends on the employment contract's validity, which can be extended upon contract renewal. 

3. Work Permit:

• Enables a person to work in the UAE while holding a valid visa (e.g., family or student visa).
• The application for a work permit is submitted by the visa sponsor.
• The work permit's duration usually corresponds to the validity of the existing visa.