With 100% foreign ownership, its a partnership between two or more professionals in Mainland.
What Is a Civil Company?
A civil company is a partnership between individuals who provide professional services such as doctors, lawyers, engineers, accountants, consultants, barbers, restaurant owners, etc.
In Dubai, a civil company can be formed with owners of any nationality, but if the owner is a non-UAE or GCC national, a Local Service Agent (LSA) must be appointed. The role of the LSA is to act as an introducer to government departments.
A civil company is considered a professional company and there is no requirement for a 51% local ownership, unlike Limited Liability Companies.
Link Up Corporate Services is a highly regarded and experienced company specializing in business setup in Dubai, UAE.
Our team of experts at Link Up Corporate Services is dedicated to providing comprehensive support throughout the entire process of establishing a professional civil company in Dubai.
List Of Processes to Setup a Civil Company In Dubai:
- The strategic inputs
- Organizes the business plan
- Getting approvals
- Clearances from various departments
- Drafting Partnership agreements and MOA
- Finding local service agent
- Helping to open bank accounts
- Support to find a proper office location
- Handling other documentation formalities
A Quick Look To All the Details
- Help to get an appointment of a UAE national as your local service agent
- The local service agent has no direct participation in the business
- The business owner provides some lump sum amount or the percentage of profits on total turnover to the local service agents.
- No restrictions on non-commercial activity
By working with Link Up Corporate Services, you will benefit from our combination of local knowledge and expertise, as well as our extensive experience in the field. This allows us to understand the specific needs of your business and provide unparalleled options for your civil company formation. With our comprehensive approach, we ensure that the process is carried out smoothly and with minimum hassle, ensuring a seamless experience for you.
Local Service Agent in Dubai
In order to start a business in Dubai, Abu Dhabi or the UAE, a local service agent or a local sponsor is required to meet the administrative requirements set by the government. These corporate entities serve as the necessary link between the business and the government, ensuring that all regulations and requirements are fulfilled.
According to UAE law, foreign investors are required to have either a Local Service Agent or a Local Sponsor for their onshore company setup within the Economic Development Zones. This can be either an individual or a corporate structure.
Sponsorship Options for a Limited Liability Company in the UAE
In a Corporate Sponsorship, a company that is your local sponsor will hold 51% of the shares and agreements and the individual investors or group of foreign investors hold the other 49% of the shares. Corporate sponsorship is usually the preferred choice and it provides further security for the expat partners who live outside their native country.
In an Individual sponsorship, the business sponsors are an individual with their own capacity. Emirati or you can say the local sponsor must be a UAE national. The Local Sponsor holds 51% of the shares and agreements of the company and the foreign partner holds 49% of the share. The local sponsors are allowed to give a Power of Attorney to the foreign investors because they are the main shareholder. This Power of Attorney helps them to manage his shares and rights in the company for an annual fee.
A service agent needs the following legal forms to support the company startup and operations in the UAE:
1. Being the first Branch of a foreign company in Dubai which can be either a representative office or a full foreign branch office. A representative office is a sales and marketing office but it cannot work commercially. A full foreign branch office can perform activities offered by its parent company with an approved license. Representative office and foreign branch office both need a service agent as an individual or corporate vehicle to complete the incorporation process. A service agent renders the specific necessary services to the company. They do not hold financial agreements or obligations of the company inside or outside the Emirate.
2. A sole establishment company or sole proprietorship company is a second legal form. The owner of a Sole Proprietorship business is an individual in Dubai, Abu Dhabi, or Sharjah. The Sole Proprietor can control 100% of the business and all its operations. He or she can keep 100% of any profits. A sole proprietor is in charge of all business accounts and financial obligations. If the owner is a National of a country other than the UAE or Gulf Cooperation Council then a Local Service Agent (LSA) is a must to have in support of the license.
3. The third legal form is a civil company. This is a partnership with foreign investors who have their own 100% of the equity combined as individuals. Generally, the service agents do not hold the equity in these legal forms and they are not involved in the company operations. The service agent services are available at a fee which is usually per annum. For some business activities, the authorities need an agent who has certain qualifications. The Local Service Agent would also own shares in the company because the civil liability has been linked to the activity. In this type of case, the Local representative would be the local sponsor but cannot be a local service agent.