# Business sponsorship issues and problems in llc companies in uae



## juanjuan (Mar 20, 2014)

Hi Gents ;

I am an indian engineer who has been exploring the possibility of starting a new small business in UAE in civil / construction works of say commercial shops / mini residential units for residents on labour rate / lumpsum cost basis.What are the lisences , legislation etc applicable for starting this type of business ?

Instead of renting residence / office , can one buy small a piece of land in a Free Zone area and construct a small residence cum office unit there so as it acts as an investments as well as saves the rental expenses in the long run.How much shall be the cost of such say a 30 feet x 40 feet piece of land.Further , what if there is G+4 clearance and additional studio apartments can also be made and sold on upper floors to different buyers?What legislation / lisence is required to raise the funds for such construction by entering into Agreement for construction linked payment plan with buyers ?

I wish to connect with individuals who have been doing such business in UAE and who can share their experiences and advice regarding the same.

Another issue of confusion and concern is the legal issue of 51% ownership by the local national as i understand that irrespective whatever the legal ownership is retained by the Local agent.I also understand that there could be situations wherein the local agents could pose a serious threat to a small business of a foreigner and therefore seek expert advice of members in this connection ?


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## Stevesolar (Dec 21, 2012)

juanjuan said:


> Hi Gents ;
> 
> I am an indian engineer who has been exploring the possibility of starting a new small business in UAE in civil / construction works of say commercial shops / mini residential units for residents on labour rate / lumpsum cost basis.What are the lisences , legislation etc applicable for starting this type of business ?
> 
> ...


Hi,
Welcome to the forum.
You have asked a lot of very detailed questions that will not be easy to answer.
Firstly - the rules for 51% ownership are for "mainland" companies and do not necessarily apply to Freezone companies (most of these can be 100% foreign ownership).
You first need to research all the various Freezones - there are rather a lot of them in Dubai, as well as the other Emirates - to find the one that most closely matches the type of business that you want to carry out.
Then you need to look up the rules, setup fees, accounting requirements, capital requirements and whether they offer rented or purchase offices/factories. You also need to ensure that with the freezone licence that you choose - that you are able to transact directly with mainland companies (with some, you need to appoint a mainland based distributor/agent with a mainland trade licence).
Much of the above information can be found through Google, Wikipedia and the websites of the various Freezone authorities - but it does appear to be a bit of a minefield!
Best of luck.
Cheers
Steve


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## juanjuan (Mar 20, 2014)

*minefields...*



Stevesolar said:


> Hi,
> Welcome to the forum.
> You have asked a lot of very detailed questions that will not be easy to answer.
> Firstly - the rules for 51% ownership are for "mainland" companies and do not necessarily apply to Freezone companies (most of these can be 100% foreign ownership).
> ...


Hi Steve ,

Thanks for your response especially the caution about minefield.

Lot of useful information does appear while using search engines.But then i understand that sponsored links have all the goodies only and could be very much a misleading minefield also.

Therefore, as i searched this forum very useful information appeared in the form of first hand experience of members , seniors in the forum which gives factual and expert information to a newcomer like me here and not just the sweet candies only as presented through search engines.

I look forward towards a fruitful association and exchange with members , seniors , experts.


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## Desert_Fever (Apr 13, 2013)

Having opened a few firms here, I have to also throw out another caution: there is "official information" (which is getting more reliable), and then there is "the unofficial - we can bend any rule if we wish" type of dealing which happens more often in person, with sweet greeting and behind the scenes. If you are serious, just plan the route which is BEST FOR BUSINESS and explore it locally. DM me if you need a contact (who I work with) for professional assistance. He is local.


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