Q: Branch of a Local Company

It is a branch of a company located in Dubai’s mainland and conducts the activities related to the parent licence, which complies with the laws of the Department of Economy and Tourism in Dubai.

Question 1

Public Joint Stock Company

Accepted Answer

A public joint stock company is a company with a capital divided into equal negotiable shares. The founders subscribe to a portion of such shares, while the rest of the shares are offered to the public through public offering. In such companies, a shareholder’s liability is limited to his/her share in the capital.

Question 2

Private Joint Stock Company

Accepted Answer

A private joint stock company can be established provided that the number of shareholders shall not be less than two and not more than two hundred, and the capital shall be divided into equal shares of the nominal value that shall be paid in full.

Question 3

Private Joint Stock – One Person Company (OPC)

Accepted Answer

It is a company that one legal person can establish and fully own its shares. The holder of the company's capital shall only be liable for its obligations to the extent of the capital of the company as set out in its memorandum of understanding (MOA). The name of the company shall be followed by the phrase "Private Joint Stock &ndash; One Person Company (OPC)".

Question 4

Limited Liability Company (LLC)

Accepted Answer

A limited liability company (LLC) has a minimum of two partners but not exceeding 50. Each partner is liable only to the extent of his/her share in the capital. Partners’ shares aren’t represented in negotiable instruments.

Question 5

Limited Liability One Person Company (OPC)

Accepted Answer

A limited liability one person company (OPC) is a company that a UAE national or other nationality (whether natural person or company) may establish and own. All laws and regulations that apply to limited liability companies apply to the limited liability one person company.

Question 6

General Partnership

Accepted Answer

A general partnership includes two or more partners who shall be jointly liable for the Company’s obligations with all their personal funds. All partners must be natural persons.

Question 7

Limited Partnership

Accepted Answer

A company formed of one or more general partners who are separately and jointly liable for the company’s liabilities, and they have the status of “trader”. Also, the company can be formed of one or more limited partners who shall be only liable for the company’s liabilities in the limit of their shares in the capital, and the limited partners do not have the status of “trader”.

Question 8

Civil Company

Accepted Answer

A company owned by two or more partners practising a professional activity such as tailors, beauty salons, consultancy or training, etc.

Question 9

Sole Establishment

Accepted Answer

A sole establishment is an establishment owned by one person with the purpose of conducting a business activity. The owner of the sole establishment is personally liable for all the financial obligations and liabilities incurred by the establishment.

Question 10

Branch of a Local Company

Accepted Answer

It is a branch of a company located in Dubai&rsquo;s mainland and conducts the activities related to the parent licence, which complies with the laws of the Department of Economy and Tourism in Dubai.

Question 11

Branch of a Company Based in Another Emirate

Accepted Answer

This legal form refers to branches of companies that exist and are licensed in any other emirate of the UAE, but not in Free Zones. Such branches may conduct the business activities related to the parent company's licence in accordance with the applicable laws of the Department of Economy and Tourism in Dubai.

Question 12

Branch of a Free Zone Company

Accepted Answer

This legal form refers to branches of the companies established in the free zones all over the UAE.

Question 13

Branch of a GCC Company

Accepted Answer

These are branches of existing licensed companies based in the GCC countries. They can practise activities carried on the parent licence, following the laws of the Department of Economy and Tourism in Dubai.

Question 14

Branch of Foreign Company

Accepted Answer

This legal form represents the branch of a company established outside the United Arab Emirates and the Gulf Cooperation Council (GCC) countries. The branch of a foreign company can conduct the same activity as the parent company, in accordance with the applicable laws of the Department of Economy and Tourism in Dubai.

Legal forms of company structure