Legal Structure of Business in the UAE

In the UAE, the 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. Although you may not be able to go through the deep details of all the laws, but for an entrepreneur looking to setup business in the UAE, it is very important to know the basics.

Please, also check my another post on Licencing requirements to do business in the UAE and a list of most profitable small business ideas for UAE by StartupGuys.net

Well, in the broad terms the provisions of the above mentioned regulations are as follows:

1. The Federal Law stipulates a total local equity of not less than 51% in any commercial company and defines seven categories of business organisation which can be established in the UAE. 
2. It sets out the requirements in terms of shareholders, directors, minimum capital levels and incorporation procedures. 
3. It further lays down provisions governing conversion, merger and dissolution of companies. 

There are basically seven categories of business organisation defined by the Law, which are as follows:

1. General partnership company
2. Partnership-en-commendam
3. Joint venture company
4. Public shareholding company
5. Private shareholding company
6. Limited liability company
7. Share partnership company