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EWmums

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ewmoda

Is it illegal?

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1618

Posts

EW EXPERT

Latest post on 24 January 2012 - 15:13

I'm possibly digressing, but curious. I've heard a lot about businesses opened by ex-pats being obliged by law to set up with the help/sponsorship of a local who owns 51% of the company. Is this true and would it apply in Lost's case, or is that something completely different? yes, within Dubai, you need to have a local sponsor that theoretically owns 51% (in reality, you can just pay him annual sum on whatever you agree between each other). within freezones, same rule will apply, but the freezone will act as local sponsor. It depends on what type of license a professional license you are 100% owner but need a local to act as an agent which you pay a yearly fee. If you have a trading LLC license then you need the 51% local as a partner, sub contracts are no longer legal and I do believe the law on percentage is being changed or has changed.

1234

Posts

EW OLDHAND

Latest post on 24 January 2012 - 13:57

I'm possibly digressing, but curious. I've heard a lot about businesses opened by ex-pats being obliged by law to set up with the help/sponsorship of a local who owns 51% of the company. Is this true and would it apply in Lost's case, or is that something completely different? yes, within Dubai, you need to have a local sponsor that theoretically owns 51% (in reality, you can just pay him annual sum on whatever you agree between each other). within freezones, same rule will apply, but the freezone will act as local sponsor.

5400

Posts

EW MASTER

Latest post on 24 January 2012 - 13:43

I'm possibly digressing, but curious. I've heard a lot about businesses opened by ex-pats being obliged by law to set up with the help/sponsorship of a local who owns 51% of the company. Is this true and would it apply in Lost's case, or is that something completely different?

lost_in_the_city

40

Posts

EW NEWBIE

Latest post on 24 January 2012 - 13:31

Thank you very much ladies! Best I get onto organising the licence straight away... Thanks again for your helpful replies!! :)

glenfiddich49576

510

Posts

EW GURU

Latest post on 24 January 2012 - 13:29

I think it really depends on what you are approaching them for and how you do it. For example, if you are selling a soap and want to approach stores to stock your soap, you can go and ask them if they would stock your soap hypothetically - and you can do that without a business license. That's just information gathering, and lots of people do that. In fact, it would be silly to start a business without having done that.

1617

Posts

EW EXPERT

Latest post on 24 January 2012 - 13:28

My DH works remotely from here, for a company in the UK; most recently as a consultant however before that he was a partner (he's a lwayer). We're here under my sponsoprhsip and my employer sought external legal advice on the postition; we were told that he would need to have a trade licence if he worked for UAE clients while based here but it wasn't an issue if he carried on working for UK ones. On that basis it sounds like it would be illegal. Hope that helps

STILLadviceseek...

425

Posts

EW EXPLORER

Latest post on 24 January 2012 - 13:27

it is illegal to do this without a business license

206

Posts

EW NEWBIE

Latest post on 24 January 2012 - 13:20

if you don't have a business license then it's not legal. Do you have residency?

lost_in_the_city

40

Posts

EW NEWBIE

Latest post on 24 January 2012 - 13:08

Hello ladies, I hope you can help me with my question: I work for a company in the UK, however I am based here in Dubai. The plan is to try and build up a client base for the business before opening an official branch here. My question is: Am I allowed to approach local business on behalf of my company even though it has not yet registered a branch here? By the way all the technology and services will be done form the UK, if this makes any difference... I would really appreciate it if you can help me with this a I am rather confused on the topic. Thank you! Lost as always ;) <em>edited by lost_in_the_city on 24/01/2012</em>

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