Dubai business structure - definitions

[debudubai]

Perhaps a silly question, but just want to make sure.

I will need to use Stripe in order to accept payments. As per Stripe docs, they have different requirements depending on the business setup in Dubai.

For sole establishments, branches of sole establishments and free zone establishments, the requirements:

- a valid (non-expired) trade licence issued within the UAE

For LLCs, branches of LLCs and free zone LLCs:

- A valid (non-expired) trade licence issued within the UAE:
- A memorandum of association (or equivalent document)
- Proof of active bank account
- Includes the business name
- A non-password protected PDF exported from your bank’s online portal or app
- We cannot accept screenshots from apps or online portals
- A scan/photocopy of a physical letter or statement issued by your bank
- The bank account must be based in the UAE

My question: a company that's set up in the DMCC (as an example) with one director, shareholder and UBO, is this a free zone establishment, or considered a free zone LLC?

Perhaps a silly question, but just want to make sure.

I will need to use Stripe in order to accept payments. As per Stripe docs, they have different requirements depending on the business setup in Dubai.

For sole establishments, branches of sole establishments and free zone establishments, the requirements:

- a valid (non-expired) trade licence issued within the UAE

For LLCs, branches of LLCs and free zone LLCs:

- A valid (non-expired) trade licence issued within the UAE:
- A memorandum of association (or equivalent document)
- Proof of active bank account
- Includes the business name
- A non-password protected PDF exported from your bank’s online portal or app
- We cannot accept screenshots from apps or online portals
- A scan/photocopy of a physical letter or statement issued by your bank
- The bank account must be based in the UAE

My question: a company that's set up in the DMCC (as an example) with one director, shareholder and UBO (same person), is this a free zone establishment, or considered a free zone LLC?

 

[troubled soul]

My question: a company that's set up in the DMCC (as an example) with one director, shareholder and UBO, is this a free zone establishment, or considered a free zone LLC?

FZE has a single-shareholder (either an individual person or a company), while FZ-LLC requires 2 or more shareholders. Maximum of 5 shareholders.

So, The major difference between the two is that LLCs can be formed with multiple shareholders, while single person cannot.

 

[debudubai]

FZE has a single-shareholder (either an individual person or a company), while FZ-LLC requires 2 or more shareholders. Maximum of 5 shareholders.

So, The major difference between the two is that LLCs can be formed with multiple shareholders, while single person cannot.

So if I understand correctly, regardless of which free zone is used to set up a company, as long as it's a single-shareholder entity, it's a FZE.

Going deeper, does that mean a FZE does not have limited liability?

 

[troubled soul]

So if I understand correctly, regardless of which free zone is used to set up a company, as long as it's a single-shareholder entity, it's a FZE.

Going deeper, does that mean a FZE does not have limited liability?

Yes
I

 

[debudubai]

Yes
I

Interesting. Thanks for the insight.

I would assume that not having limited liability is quite a disadvantage in setting up a FZE? Is there a way to be a single shareholder but have limited liability just as you would have in a normal LTD company set up in Europe?

 

[troubled soul]

Interesting. Thanks for the insight.

I would assume that not having limited liability is quite a disadvantage in setting up a FZE? Is there a way to be a single shareholder but have limited liability just as you would have in a normal LTD company set up in Europe?

May be mainland Dubai company have this feature.
Well I am not expert .

You can contact @Gediminas ,@Fred or @CaptK .
They are expert in this area

 

[JackAlabama]

Perhaps a silly question, but just want to make sure.

I will need to use Stripe in order to accept payments. As per Stripe docs, they have different requirements depending on the business setup in Dubai.

For sole establishments, branches of sole establishments and free zone establishments, the requirements:

- a valid (non-expired) trade licence issued within the UAE

For LLCs, branches of LLCs and free zone LLCs:

- A valid (non-expired) trade licence issued within the UAE:
- A memorandum of association (or equivalent document)
- Proof of active bank account
- Includes the business name
- A non-password protected PDF exported from your bank’s online portal or app
- We cannot accept screenshots from apps or online portals
- A scan/photocopy of a physical letter or statement issued by your bank
- The bank account must be based in the UAE

My question: a company that's set up in the DMCC (as an example) with one director, shareholder and UBO, is this a free zone establishment, or considered a free zone LLC?

Stripe is easy to setup and it works.

You can contact @Fred. what he does will in the end make it possible for you to setup stripe (and pay their hefty fees ).

 

[CaptK]

Interesting. Thanks for the insight.

I would assume that not having limited liability is quite a disadvantage in setting up a FZE? Is there a way to be a single shareholder but have limited liability just as you would have in a normal LTD company set up in Europe?

SHAMS FZ is an LLC so that fits the bill.
An FZE is like a sole trader in the UK. So it's Bob trading as ABC Enterprises.
I don't know the definition in other countries.

 

[maxmoney]

When it comes to such business activity which involves credit card processing, you don't want to have any personal liabilities, I tell you, you don't want that.