PROFESSIONAL COMPANIES (PROFESSIONAL PARTNERSHIP)
A firm shall be regarded as a professional company that practices a profession as its main object and that partners rely on their livelihood on the intellectual effort they exercise more than on profiting from the business of others. On this basis the professional companies are set up between professionals or partisans and carry out non-commercial activities. The firms, which are registered as professional companies or firms may only practice specific activities and not extend that to commercial activities. Such activities include rendering the services of legal practice and consultancy, auditing, organizing and keeping accounting records and books, civil engineering, architecture consultancies and services, managerial and economic consultancy and studies, technical services, medical and curative services, educational services and other similar services.
SOLE PROPRIETORSHIP FIRM TO PRACTICE A PROFESSION
A foreign investor is permitted to practice certain types of business activities allowed for non-nationals without having a national partner. Such activities are medical services, engineering consultancies, legal practice and consultancies, computer consultancies and similar services provided that such an investor holds a valid and legal UAE residence permit. However, it is a condition that he should have a local services agent accordingly to service agency contract authenticated by a Notary Public
APPOINTING A COMMERCIAL AGENT (EXCLUSIVE DISTRIBUTOR)
Foreign investors may appoint a commercial agent to represent their interests in the U.A.E. instead of establishing a permanent presence. The U.A.E. Commercial Agencies Law (Federal Law No. 18 of 1981, as amended by Federal Law No. 14 of 1988) regulates and governs the appointment of commercial agents, sales representatives, and distributors in the U.A.E. This law defines a commercial agency as any arrangement whereby a foreign company is represented by an agent to “distribute, sell, offer, or provide goods or services within the UAE for a commission or profit”.
ESTABLISHMENTS BY GCC CITIZENS
The states of the Gulf Cooperation Council (the UAE, Saudi Arabia , Sultanate of Oman, Qatar , Kuwait and Bahrain ) signed the United Economic Agreement in Riyadh on 7th June 1981 , with a view to coordinate and unify economic, financial, monetary, commercial and industrial legislations and UAE endorsed this agreement in 1982. It is conditional as per the Federal Law No. 2 of 1989 concerning permitting the GCC citizen to conduct a business operation in UAE that the investor should be a natural person residing in UAE and practice the required activity by himself and have a license to practice the activity in his country of origin. In case the investor is a juridical person wishing to conduct retail or wholesale trade then the investor must be in the form of a company of which the share owned by UAE nationals is not less than 50% of the capitals