List of Conditions

  • »  To refrain from performing any activity without a permit or a DED permit
  • »  Do not use the location of the facility for the purpose of housing or any other purposes except the authorized activity Customer Service
  • »  Do not make any modifications or changes in the permit data without referring to the department
  • »  Location change requires prior approval from the department
  • »  Secret doors or rooms in the facility are not allowed
  • »  Place a signboard on the front of the shop specifying working hours
  • »  Allocating separate measure rooms (Men / women) in garments and tailoring shops
  • »  Do not over stock goods in the shop
  • »  Do not display products outside the shop
  • »  Do not install surveillance cameras in women's salons and shops or women's tailoring or in special places and to fix a notice (the place is monitored by cameras) and that is only for authorized activities
  • »  Smoking is prohibited in the shop
  • »  Do not put any advertising posters on the shop facade before obtaining a prior permit provided that the area of the ad shall not exceed 50% of the interface area
  • »  Do not put coin machines before obtaining a permit
  • »  Do not sell cigarettes to those who are below the legal age of 18 years
  • »  It is strictly prohibited the sale or storage of fireworks
  • »  Shops selling popular herbs, any products, medical, therapeutic, medicinal or herbal preparations are not allowed to give therapeutic prescriptions
  • »  Attend the department to get permission if there is a warehouse
  • »  Do not carry out repairing devices without obtaining the appropriate permit
  • »  Do not sell or download any copy software on devices
  • »  Do not sell or download programs to open restricted sites
  • »  Never promote products and services by phone
  • »  Never promote for the shop through brochures or posters before obtaining a permit from the department
  • »  Do not shade shops in the ground floor, with the exception of the women's clinics and salons
  • »  Place a copy of the license or permit in a prominent place in the shop
  • »  Permits and prior approvals from the department are required for discounted sales and promotional campaigns
  • »  Do not put paper ads on the facades of houses and on cars
  • »  Adhere to fixing the prices on goods and commodities
  • »  The consumer has the right to get a purchase invoice
  • »  Shop owner needs to show the retrieval and replacement policy in a prominent place
  • »  Do not promote, sell or supply any counterfeit or adulterated goods or of unknown source
  • »  It is important to comply to the agreement with contractual parties
  • »  It is important to comply with the laws regulating consumer rights
  • »  Do not impose an additional fee for the use of credit cards
  • »  Not perform activity after 12: 00 am without obtaining a permit
  • »  Commitment to production and expiry dates on goods
  • »  In the event of a warranty on spare parts or electrical appliances to inform the buyer in writing of the coverage of the warranty, the guarantee period and the reasons leading to the cancellation of warranty
  • »  The facility needs to take a permit from the department in case of making a promotion campaign, discounts or clearances
  • »  It is necessary to deal cautiously while purchasing from unbranded vehicles or those not issuing purchase invoices and it is necessary to know the source of products offered or sold
  • »  Service prices should be presented to the consumer before its performance
  • »  Do not install any products holding infringed trademarks
  • »  To provide the customer with a paper proving that the workshop had received the vehicle from the client with a sketch map illustrating the previous scratches or bruises on the car
  • »  The workshop shall be responsible for the car under its custody during the repair process until the customer receives the vehicle
  • »  Obtaining the approval of Land and Property Department
  • »  Office space of not less than 60 square meters
  • »  Office to be located on the front of (main street or within an offices building)
  • »  Obtaining the approval of Land and Property Department.
  • »  Office space of not less than 100 square meters.
  • »  Office to be located on the front of (main street or within an offices building)
  • »  Obtaining the approval of Municipality and Planning Department (Engineering Affairs Sector)
  • »  Office space of not less than 100 square meters.
  • »  Get the approval from Civil Defense Department
  • »  Office space of not less than 60 square meters
  • »  The provision of a special warehouse for cylinders or contracting with filling factories and provide a copy of the letter from the factory
  • »  Do not exercise filling activity in the shop or the warehouse as filling must be in the filling plant site only
  • »  Importing cylinders between emirates is prohibited
  • »  Commitment to the price list published by the Ministry of Economy
  • »  Facilities are to be licensed in the industrial areas only.
  • »  Shop area of not less than 100 square meters per activity which also entails providing the same space if you add another activity.
  • »  Do not exercise activity outside the boundary of the shop.
  • »  Provide a fenced area or shed area not less than 300 square meters for the activities of public workshops for car maintenance.
  • »  Compliance with activities specified by the licensing and to refer to the department in the case of the desire to add other activities.
  • »  Facilities are to be licensed in the industrial areas only.
  • »  Area of not less than 500 square meters or the provision of spare parts warehouse and in the case of contracting with car agencies copy of the contract is a must.
  • »  Do not exercise the activity of replace and repair unless a place is provided for the practice of the additional activity and after the approval of the department.
  • »  Do not put objects outside the shop.
  • »  Facilities are to be licensed in the industrial areas only.
  • »  Do not work outside the boundary of the workshop and do not store items outside the boundary of the facility.
  • »  For repair of heavy equipment activities the area shall not be less than 500 square meters.
  • »  Adhere to issue receipt of delivery to the consumer and a commitment to deliver orders on time and guarantee
  • »  Area not less than 1500 square meters.
  • »  Provide blueprints approved by an engineering consultancy office.
  • »  It is necessary to separate entry and exit gates for cars.
  • »  Provide parking space for cars and don’t park cars in public place
  • »  Facilities are to be licensed in the industrial areas only.
  • »  Area not less than 100 square meters.
  • »  Do not open more than one car wash shop in the same area.
  • »  Provide parking space for cars and don’t park cars in public places
  • »  Facilities are to be licensed in the industrial areas only.
  • »  Area not less than 100 square meters.
  • »  Do not stack objects outside the boundary of the shop.
  • »  Do not over stock goods in the shop
  • »  It is necessary to provide a warehouse
  • »  It is necessary to provide sale and purchase invoice
  • »  Facilities are to be licensed in the industrial areas only.
  • »  Area not less than 80 square meters.
  • »  Do not stack objects outside the boundary of the shop.
  • »  Do not over stock goods in the shop
  • »  It is necessary to provide sale and purchase invoice
  • »  It is necessary to commit to the delivery time agreed on with customers
  • »  Provide female workers
  • »  Provide fitting rooms
  • »  Do not install surveillance cameras
  • »  Provide a copy of the tailoring pattern on the invoice
  • »  Provide female workers in case of offering photography for families and women
  • »  Shop area not less than 50 square meters.
  • »  Shop to be in the ground floor and apartments are not permitted
  • »  It is permissible to practice the activity in the ground floors and all shops in malls and villas in trading areas
  • »  Area not less than 50 square meters.
  • »  Fix price lists for services and show it in a prominent place of the salon and no change is permissible before obtaining approval from the department.
  • »  Massage business require obtaining license
  • »  It is permissible to practice the activity only in the ground floors except for shops in shopping malls all floors are permissible
  • »  Shop area not less than 30 square meters.
  • »  Fix price lists for services in the salon
  • »  Area not less than 300 square meters.
  • »  It is permissible to operate in the ground floors and in all the shops in malls and villas in commercial areas.
  • »  Provide dressing rooms and closets.
  • »  Must obtain a permit from the department in the event of using sale automated machines (tea-coffee) or any other products.
  • »  Adding healthy food activity is not allowed
  • »  Allowed only on main streets on the ground floor and in business areas.
  • »  Shop area not less than 50 square meters.
  • »  Closed cabins are prohibited.
  • »  Shading the shop’s front facade is prohibited.
  • »  Maintaining public morals and decency.
  • »  Wearing (a uniform) for workers.
  • »  Men are not allowed to be present or to massage women.
  • »  Working hours from 6 am to 12 am unless there is a permit to work extra hours.
  • »  Massage rooms must not have locks nor to install a piece of transparent glass above the door
  • »  Do not install cameras with the obligation of keeping customer’s anonymity and privacy.
  • »  Shop area not less than 100 square meters.
  • »  Massage room area not less than 6 square meters.
  • »  Maintaining public morals and decency.
  • »  Wearing (a uniform) for workers.
  • »  Women are not allowed to be present or to massage men.
  • »  Obligation to provide the appropriate clothes for customers during the provision of massage service.
  • »  Working hours from 6 am to 12 am unless there is a permit to work extra hours.
  • »  Massage rooms must not have locks nor to install a piece of transparent glass above the door
  • »  Do not install cameras with the obligation of keeping customer’s anonymity and privacy.
  • »  Shop area not less than 100 square meters.
  • »  Massage room area not less than 6 square meters.
  • »  Working hours from 6 am to 12 am at night unless there is permission to work extra hours.
  • »  Do not install shading means to the location facade that can block visibility and light which may prevent the control parties from watching from a distance. The shop’s front windows to be made of transparent glass.
  • »  Closed cabins or rooms are prohibited
  • »  Do not use audio amplifiers, devices or any means that might cause inconvenience and noise.
  • »  Not to exploit events and charge extra for customers.
  • »  Working hours from 6 am to 12 am unless there is a permit to work extra hours.
  • »  Do not install shading means to the location facade that can block visibility and light which may prevent the control parties from watching from a distance.
  • »  The shop front windows to be made of transparent glass
  • »  Not to run luck games (gambling), obscene or offensive games.
  • »  Closed cabins or rooms are prohibited
  • »  Children under the age of 10 are not allowed unchaperoned.
  • »  Applications for signboards to be submitted through (calligraphers) registered in the emirate only.
  • »  Commitment to the form allocated to the boards, record all data and sizes and dimensions of the board with the need to develop a sketch for the board.
  • »  Taking into account the consistency of the board with neighboring shops in the same building and neighboring buildings in terms of space and lengths and visibility in order to preserve the aesthetic view of the emirate.
  • »  The total area of the board must not to exceed the total area of the interface for the shop.
  • »  The board shall not exceed the shop area.
  • »  Writing in a correct Arabic language avoiding spelling and grammar mistakes.
  • »  Using Arabic language is compulsory in signboards for at least 50%, taking into account that it is to be on the right side of the board.
  • »  Commitment to the trade name stated in the economic license.
  • »  Not to fix the signboard before obtaining approval from the department.
  • »  Signboards shall take the public morals and Islamic rules into account.
  • »  Show the approval of the brand name agent in case it was advertised in the signboard.
  • »  Undertaking by the company executing the trade name signboard to abide by all the mandatory requirements otherwise they shall be accountable for violations.
  • »  The Department reserves the right to remove the signboard through a specialized company at the expense of the owner in case of non-compliance with the specifications adopted after a waiting period not more than 15 days.
  • »  When changing the location of the signage board a new permit is required and the old board to be removed.
  • »  When changing the trade name a new permit is required and the old signage board to be removed.
  • »  When changing the trade name, the establishment owner need to apply for a new permit and remove the board presenting a picture for the shop front before and after the removal.
  • »  If you do not wish to renew the permit you have to remove the board and inform the department.
  • »  Signboards on store’s glass windows shall not exceed 50% of the windows area, taking the clarity of vision into account.

List of Legal Forms

Definition: It is an establishment owned by a sole proprietor to operate an economic activity (commercial, professional, industrial, agricultural or real property).An establishment’s financial liability is linked to the proprietor who shall be responsible for all its financial obligations.
Definition: A civil Company is each company that undertakes directly a specific profession as its target and partners depend, for their earnings, on the practicing of activities which involve the use or investment of intellectual faculties more than depending on speculation, materials, or others' work.

Conditions:
  • »  It is allowed for a number of normal individuals to practices a service or professional activity as distinct form, a commercial one, the business takes the form of a “Business Partnership” in accordance with the provisions of the rules (from 683 to 690) of the Federal Civil Dealings Law.  However, it is necessary to appoint a "Local Service Agent” if all authorized partners are not UAE nationals.

  • »  The relationship between the principal entity and the local service agent is regulated by an agency agreement. The obligations of the local service agent towards his principal and third parties shall be restricted to render the usual experience in order to enable him to practice the professional or craftsmanship work without holding any responsibility or financial commitment in respect of his principle’s business or activity inside the Emirate or otherwise.
  • Definition: It is a company where number of partners cannot be more than fifty partners and cannot be less than one partner.  Each partner’s liability is proportioned to their capital equity and Partners’ shares may not be represented in negotiable certificates.

    Conditions:
    • »  The name of the Limited Liability Company shall be taken from its purpose or from one or more of the names of partners, the statement Limited Liability Company shall be added to the company's name, stating the company's capital.
    • »  Other than the insurance, banking, and investment businesses for others, the Limited Liability Company shall be entitled to practice any legal business.
    • »  The company may not resort to Public Subscription to make up its capital or to increase it or to get the necessary loans, and it may not issue any negotiable stocks or shares.
    • »  Shares may not be divided, and if several people owned it, they shall choose one to be an individual owner against the company, and it may fix for the share owners a time for such selection, provided that after that date, the share may be sold to its owners, in which case partners shall enjoy a priority in purchase.
    • »  Losses and profits shall be divided equally among shares unless otherwise herein stated.
    • »  The share of each partner shall be transferred his heirs and the ones mentioned in the will shall be treated as heirs.
    • »  A Limited Liability Company can be managed by manager / managers that may be selected from among the partners or any other parties providing that they do not exceed a total of five persons.
    • »  The managers shall be appointed by memorandum of association or by a separate management contract for limited/unlimited terms.  If the manager/managers are not appointed as stated in the above paragraph, the General Assembly of the partners will appoint them.
    • »  Unless otherwise stated in the MOA, the company manager shall enjoy full powers of administration, and his acts shall be binding to the Company, provided that it is supported with stating the capacity he or she enjoys.
    • »  The manager's resolution shall be as responsible as that of the company board, all conditions in the company contract contrary to that shall be invalid.
    Definition: A general partnership is an arrangement between two or more partners whereby each of the partners is jointly and severally liable to the extent of all their assets for the company's liabilities.

    Conditions:
    • »  Only UAE nationals are allowed to be partners in a general partnership.
    • »  The name of the company shall be made up of the name of all partners, and its name might be limited to the name of one or more partners and adding a word to modify the presence of the company. In addition to that the company may have a special commercial name.  If the name of a person other than the partners was mentioned in the name while he is aware of that, the said person shall be responsible in partnership for the company's obligations.
    • »  All partners shall be considered a dealer, and the bankruptcy of any partner leads to the bankruptcy of all partners.
    • »  The company shares may not be represented in negotiable certificates.
    • »  Partners are severally responsible in all their money for the company's obligations and any agreement to the contrary might not be made against Third Parties.
    • »  The company administration shall be undertaken by all partners, unless the company contract or an independent contract assigns the administration to a partner or to a non partner party.
    Definition: A general partnership is an arrangement between two or more partners whereby each of the partners is jointly and severally liable to the extent of all their assets for the company's liabilities.

    Conditions:
    • »  A simple limited partnership is a company formed by one or more general partners liable for the company liabilities to the extent of all their assets, and one or more limited partners liable for the company liabilities to the extent of their respective shares in the capital only.
    • »  Only UAE nationals are allowed to be partners in a general partnership.
    • »  The name of the company shall be made up of the name of one or more of the limited partners, adding a word to modify the presence of the company. In addition to that the company may have a special commercial name.
    • »  The name of the limited partner may not be mentioned in the company name, if it was mentioned with his knowledge of that, he shall be considered a partner for Third Parties in good faith.
    • »  The simple limited partnership shall be a partnership for all partners and shall be subject to all the rules of partnerships, based on the following:
    • »  The simple liability contract shall include in addition to the other data, the name of each limited partner, his surname, nationality, date of birth, country, capital share, and the part paid of it.
    • »  The limited partner is only liable towards the company's debtors with his capital share.
    • »  A limited partner may not intervene in the company administration-related issues related to others even if upon authorization, he may rather require a copy of the loss / profit accounts and the balance sheet and check the validity of the data by reviewing the company's records and documents by himself or by a representative from any of the partners or others provided that this does not harm the company.
    • »  If the limited partner violates the above mentioned ban, he shall be responsible in all businesses for all the obligations resulting from his business.
    • »  The limited partner may be held responsible in all his money for all company's obligations if the business administration he carried out leads others to believe that he is one of the ultimate actual partners, in which case the rules and regulations of the actual partners shall apply to the limited partner.
    • »  If the limited partners carried out any of the banned administration business based upon an explicit or implicit authorization from the partners, such partners shall be held responsible with him for the obligations resulting from such acts.
    • »  Limited partnership shall issue resolutions in consensus of all partners and limited partners, unless the contract states a majority, and the majority in number shall be considered, unless otherwise stated.
    • »  Resolutions to amend the company contract shall not be passed unless duly approved in consensus of all partners and limited partners.
    Definition: Public Joint Stock Company (PJSC) is defined as an organization whose capital is divided into negotiable shares of equal value and a partner therein shall be liable only to the extent of his share in the capital of the company.

    Conditions:
  • »  The name of the company shall be taken from its purpose. It cannot be the name of a natural person unless if the company purpose was investment of a patent registered under the name of this person. If the company at incorporation or thereafter owns a shop and took its name to be the company’s name.  In all cases the phrase “Public Joint Stock Company” should be added to the company name. The Public Joint Stock Company can not bear the name of any other company or a similar name. Otherwise the other company may require the competent administrative or legal authority to obligate the company holding the such name to change it to a different name.
  • »  Company capital needs to be sufficient to achieve the purpose of its incorporation. In all cases the Capital can not be less than thirty million dirhams.
  • »  He shall be deemed a founder any one who signs the initial Memorandum and Articles of the Association with the intent to assume the liability arising therefrom. Incorporation of the company may be permitted only if the number of founders is not less than five.  However, the Federal Government or the Governments of the respective member-Emirate may independently establish a company, and may involve a number of capital subscribers less than that reserved in the preceding sub-clause.
  • »  The founders shall elect a panel inter se comprising a minimum of three and a maximum of five members to finalize establishment formalities with the concerned authorities
  • »  Founders shall subscribe to a minimum of 30% and a maximum of 70% of Association's capital, and shall, before the publication of the subscription announcement, pay the percentage required to be paid up by the founders for each share at subscription time. Before invitation for public subscription is made the founders must provide the Ministry and the concerned authority with a bank certificate to effect that payment of the abovementioned percentage was made thereby.
  • »  The company capital shall comprise equal shares. The nominal value of each share shall be not less than one dirham and not more than one hundred dirhams. Upon incorporation of the company it is not permitted to issue shares at a lower or higher price than the nominal value plus issue charges.  All company shares shall maintain equal rights and obligations.
  • »  Shares issued shall be nominative and negotiable. It is not permitted to cause their issue to bearer. Form and term of the profit coupons shall be determined by the Articles of Association and may be issued as nominal or to bearer.
  • Definition: A number of founders, not less than three, may, among themselves, establish a private joint-stock company

    Conditions:
  • »  whose shares are not offered for public subscription and they may subscribe to the full amount of the capital which not be less than five million dirhams
  • »  Except for provisions concerning public subscription, all provisions contained herein with regard to public joint-stock shall apply to private joint-stock shall apply to private joint stock companies.
  • »  A private joint stock company may be converted into a public joint stock company if satisfying the following requirements:
  • »  Nominal value of issued shares must be paid up in full.
  • »  The company must have been more than two financial years old.
  • »  The company must, during the two years preceding the application for conversion, have realized net profits distributable to other shareholders at an average of not less than ten per cent of its capital.
  • »  The resolution calling for the conversion of the company is adopted by a majority of three quarters of the company's capital in the Extra-ordinary General Meeting.
  • Definition: Companies located in one of the emirates of the state and wishing to open branches in other emirates, may do this provided that they comply with the company law when registered in the desired company (Commercial and Industrial Companies). In addition, civil companies may open branches for them. They also are required to meet the license conditions in the concerned emirate such as approval of the activity if the activity requires external approvals.
    Definition: Any company located in Arab or Foreign Countries (Except for GCC countries). And they are dealt with as follows:
    • »  Companies practicing professional activities to be registered directly at the department without the need for registration in the Ministry of Economy provided that they have a local service agent.
    • »  Companies wishing to open a representation office need to register at the Ministry of Economy first then complete the procedures at the department taking into consideration giving such companies the brand name and initial approval then return to the Ministry of Economy.
    • »  Whereas companies exercising commercial activities such as contracting activities. They should have the initial approval and the brand name and then return to the municipality to take the technical committee’s approval. Then attend to the ministry of economy.


    Conditions:
    • »  Except for foreign companies operating under special licenses within duty-free areas in the State, foreign companies shall not practice their main activities or establish offices or branches thereof in the State until permit to this effect be obtained from the Ministry after prior approval of the Concerned Authority had been obtained. The issued permit shall specify the activity which a company is authorized to carry out. Such permit shall be issued if the company engages an agent to be a natural person holding the state nationality or a company fully owned by natural citizens, and whose entire partners be nationals too.
    • »  The Agent's responsibilities towards the company and third parties shall be limited to rendering necessary services to the company without his or her bearing any financial liabilities or obligations related to the company or its branches and offices inside and outside the State.
    • »  A foreign company or its offices or branches referred to in the preceding Article shall not commence their activities in the State except after entry in the Register of foreign companies in the Ministry of Economy.
    • »  The Foreign Company's offices or branches shall be governed by the laws applied within the State concerning their activities in the state.
    • »  They shall have a separate balance-sheet, a separate profit a-and loss account and shall appoint auditors.
    • »  If a foreign company or its office or branch assume activities in the State before effecting the procedures defined in the preceding Article, the persons who assumed such activity shall be severally and jointly liable therefor.
    • »  Reserve a trade name via department’s e-services
    • »  A copy of the licensor’s ID and Passport. Either for expatriates or citizens, in addition to the family book.
    • »  Fill in registration form and commercial register, available in the department’s websites and in service centers.
    • »  A copy of the residence, visit visa for non-GCC nationals.
    • »  Non-objection letter from the custodian to expatriates non-GCC nationals to exercise the commercial activity if they are not willing to transfer the residency.
    • »  Non-objection letter from the General Residency and Foreigner Affairs for non-GCC nationals.
    • »  Approval from other governmental departments on the activity when required.
    • »  A ratified copy of lease contract issued by Municipality and Planning Department, or a copy of the property ownership deed if the property is owned by the licensee.
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