Joint Venture in Dubai
A Joint Venture company in Dubai refers to business investors drafting an agreement between a foreign party and a local party licensed to engage in the desired activity. Both parties agree to cooperate in forming a joint venture company formation in Dubai. The parties in the joint venture company generally agree to certain timelines and milestones to achieve.
Benefits of a Joint Venture Company Formation in Dubai
A joint venture company setup in Dubai is recognized and regulated under the UAE Commercial Companies Law. The advantages of a joint venture company are hereby:
- Lower tax regime
- No currency restrictions
- Competitive freight charges
- Abundant and economic energy supply
- 100% repatriation of capital and profits
- Competitive import duties (5% with many exemptions)
- There is no limitation to the number of legal entities included in the joint venture companies.
- Investors have the flexibility to determine a mutual agreement regarding the profit and distribution.
The Procedure for Joint Venture Company Formation in Dubai
Once both parties agree upon the joint venture in Dubai, they must register the agreement with the Department of Economic Development (DED). The steps to register your business are as follows:
- Draft the Agreement:
The first step is to draft the Joint Venture Partnership Agreement for setting up a business in Dubai. All the parties included in the company setup must draft the agreement.
- Finalize the Business Activities:
Determine the business activities that will be performed in the joint venture company in Dubai. This type of company is suitable for all the companies that come together for a specific purpose or project.
- Select the Trade Name:
Register the joint venture's company name with the DED. The name must not be similar to any established business name in the UAE.
- Sign the Documents:
The DED will issue a form to everyone involved in the company's setup. The next step is to sign the form before a public notary.
- Obtain the Initial Approval:
Draft the initial approval and the joint venture agreement and submit them to the DED.
- Submit the Documents:
These are the documents required to obtain this approval:
- Trade name reservation
- The registration application
- Copy after the director’s passport
- Copy after the applicants’ passports
- A no-objection letter issued by the local partner
- Approval for the type of activity to be undertaken
-
Obtain the License:
The last step is to apply for a business license in Dubai and make the payment. Once the license application is approved, you can start with the venture.
Business Setup Worldwide is a platform to help you start a business in Dubai and the UAE. We provide you with various services, from company registration to visa and taxation. Contact us today we’d be glad to assist you.
