United Arab Emirates

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Operating a Business in the United Arab Emirates

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Sole Proprietorship is an individual company. No minimum capital.	1 person. The individual entrepreneur is responsible for assets of the company over his personal goods.	Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.
Public Joint-stock Company Minimum 10 million DH.	Minimum 10 partners. Their responsibility is limited to the amount of contributions.	Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.
Private Joint-stock Company Minimum 2 million DH.	Minimum 3 partners. Their responsibility is limited to the amount of contributions.	Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.
Limited Liability Company 150,000 DH minimum.	Minimum 2 partners. maximum 50 partners. Their responsibility is limited to the amount of contributions.	Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.
Limited Liability Company No minimum capital.	Minimum 2 partners. Their responsibility is unlimited for the assets and obligations of the company.	Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.
Limited Liability Company No minimum capital.	Minimum 2 partners. At least one partner should have one unlimited responsibility. The responsibility of other partners is limited to the amount of shares, if they do not take part in management of the company.	Company's application for registration: AED 1,000; Notarize the company in a court: 0.25% of the capital; Board registration: AED 1,000; Business registration certificates: AED 3,000; Registration to the House of Commerce: AED 1,200.

Business setup procedures: All the companies should be registered in the trade register of Emirates or be an established company. All trade registers are under control of the Ministry of Economy and Commerce. Moreover, all types of companies obtain a licence from the Ministry of Economy for a trading company or Ministry of industry for an industrial company. In the domain of the banking, insurance, health, marine transport, education, media and telecommunication, specific authorisations are required.
The competent organization: The UAE Chamber of Commerce for establishment and the competent ministry.

Working conditions

Legal weekly duration: 8 hours per day, 9 hours for employees of hotels and restaurant. During Ramadan month, the daily work duration is reduced by two hours for Muslim employees.
Retirement age: 60 years, 55 years for women working in public sector and 65 years for judges.
Working contracts: The work contract is framed by the law and if desired by individual negotiation.
The formalism of the labour contract is extremely rigid. The prcedures for hiring and dismissals are easy.The contract duration should not exceed 4 years. It is renewable by mutual consent.

Cost of labor

Minimum wage: There is no legal minimum salary.
Average wage: The average annual salary is USD 25,000.
Social contributions: Social security contributions paid by employers: There is no social security system for non-national employees. The only obligation of the employer is to provide a health card to his employees, costing 300 AED. Since 2005, the Abu Dhabi Emirate has formulated the "Health Insurance Law" which imposes the obligation on companies based in this Emirate to subscribe to a social insurance for all its foreign employees and their families (spouses and minors).
The nationals belonging to them have a free access to healthcare.
Social security contributions paid by employees: Foreign employees are recommended to subscribe to an additional insurance.

Social partners

Social dialogue and involvement of social partners: Employees' Unions are banned in the UAE.
Unions: Ministry of Labour
Labor regulation bodies: Ministry of Labour

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