Yes, but if the capital of the company is less than Dhs. 300,000/- then it should be raised to Dhs. 300,000/- by an amendment to the Memorandum of Association. The original and the amendment to the Memorandum of Association along with other documents have to be filed with the Department of Economic Development, Dubai.
The Law stipulates that companies engaging in banking, insurance, or financial activities should be run as public shareholding companies. Foreign banks, insurance and financial companies, however, can establish a presence in Dubai by opening a branch or representative office.
Shareholding companies are suitable primarily for large projects or operations, since the minimum capital required is Dh. 10 million (US$ 2.725 million) for a public company, and Dh. 2 million (US$ 0.545 million) for a private shareholding company. The chairman and a majority of directors must be UAE nationals and there is less flexibility of profit distribution than is permissible in the case of limited liability companies.
We would work with you to help deliver a successful conclusion of the project. We can work to support your existing advisors or completely manage the project for you. Our specialist team at Dubai Business Advisors and our close associates has the expertise to provide you with any or all of the following, ensuring a successful transaction:
Make a 'no names' approach on your behalf to the target business.
Assistance with deal structure and negotiations with the vendor and their advisors leading to agreed heads of terms.
Full or partial project management.
Review and analysis of target company financials.
Work with management to determine an appropriate project plan and timeline and assume responsibility for maintaining this plan and coordinating the deliverables from M3CF, other professional advisors and financiers.
Review/preparation of a financial model allowing easy manipulation of various business inputs and clearly show the results in terms of cash flow and profitability.
Support in the preparation of the Business Plan to ensure maximisation of opportunity.
Insure that the business plan answers the anticipated questions which funding sources are likely to ask.
Establish a ‘short’ list of potential funders after considering the criteria.
Take responsibility of insuring that the investment proposition is communicated to prospective lenders.
Support with the presentation of the business Plan to potential funders.
Guide the management team through the take-up process, where necessary.
Prepare business plans suited to the needs of the lenders.
The partners can commence business on receipt of the Certificate of Commercial Registration, provided the partners have obtained a residence visa. The partners shall be jointly liable for all acts and transactions performed on behalf of the company prior to its registration.
The company may undertake any business activity permitted by the Department of Economic Development except business of banking, insurance and investment of funds for third parties.
By practice, the department does not permit, two different classified business activities under one license e.g. trading and manufacturing need separate licenses or two different designated classes of activities under one license, e.g. trading of electronics and Jewellery need separate trade licenses.