The joint venture is one of the most popular forms of doing business in Dubai as it allows foreign entrepreneurs or companies to associate with a local company under a contractual agreement. Joint ventures offer foreign companies the same advantages as limited liability companies in Dubai. In order to start a joint venture in Dubai one needs a local partner who will hold 51% of the participation in the company. The only difference between joint ventures and limited liability companies is the prescription of profits and losses. One of the greatest advantages of setting up a joint venture in Dubai is that no license in required, as the local partner will have the business license to carry out the activity. Dubai joint ventures are suitable for specific projects.
Once the conditions of the joint venture have been agreed upon, the parties must register the agreement with the Department of Economic Development in Dubai (DED). The agreement must have a certain form issued by the DED and must be singed before a public notary. Once the joint venture agreement has been drafted, initial approval from the DED is required. In order to obtain the approval, the following documents must be supplied:
Foreign applicants must also submit the Dubai residence permit. Also, a resolution passes by the foreign company’s management board will be required.
Once the initial approval is obtained with the DED, the joint venture is required to follow several steps more in order to start operating. The following documents must be submitted with the Dubai Trade Register:
Unregistered joint ventures are also allowed to operate in Dubai, but for short periods of time only.
For assistance in setting up a joint venture, you can contact our company registration agents in Dubai.