Business Setup

Joint Venture Company Formation in Dubai, UAE

Joint Venture Company Formation

A joint venture company formation in Dubai is a popular way to enter the markets in the country. This is because you can easily start a joint venture in the country with a local company that already exists in the country.

Alternatively, you can choose a local sponsor for your joint venture who will share the ownership but will not take a share of the profits you make here. So, let us see how you can form a joint venture company in the UAE.

A joint venture company or consortium in Dubai alludes to an authoritative agreement between a foreign party and a local party licensed to direct the ideal business movement.

The value of the local party in the joint venture must be at any rate of 51%, however, the benefit and misfortune appropriation can be founded on the terms chosen by the partners.

For the most part, no extraordinary license is issued in the name of the organization, since the license having a place with the first partner is sufficient for the execution of the undertaking with the coordinated effort of the other partner who takes part in running of the organization. 

Do You Want to Joint Venture Company Formation in Dubai, UAE! Send Us Your Inquiry

    In a joint venture, the partners concur by contract to share the benefits or misfortunes of at least 1 commercial enterprise, which can in the name of 1 of the partners. Contracts of joint ventures might be composed or oral and are not required to be legally approved.

    Third gatherings have a response against just the partners with whom they bargain. Be that as it may, every one of the partners is at risk to the third gatherings should the joint venture be uncovered to them. 

    There is no compelling reason to license the joint venture or distribute the agreement. The foreign partner manages third parties under the name of the local partner who – except if the agreement is publicized – bears all liability. Joint ventures are perfect for organizations cooperating on explicit undertakings.

    ALSO READ  How to Start an Information Technology Business in the UAE

    Joint Venture Company formation in dubai

    Steps to Set up a Joint Venture Company Formation in Dubai

    Here are the steps you need to follow in order to start a joint venture company in Dubai:

    1. Choose a business name
    2. Determine the business activities
    3. Select a location
    4. Register the Joint Venture Partnership agreement
    5. Submit required documents
    6. Pay the required fees
    7. Obtain an office space
    8. Fulfill visa requirements
    9. Obtain the trade license
    10. Comply with ongoing obligations

    Benefits of Joint Venture Company Formation

    Here are the benefits of a joint venture company formation in Dubai:

    • There are no  personal income and capital taxes.
    • No corporate taxation
    • 100% repatriation of capital and profits
    • Competitive freight charges
    • You can easily find a local sponsor to form the joint venture.
    • Modern infrastructure that is specially designed for businesses of all kinds.

    Documents Required to Set up a Joint Venture Company in Dubai

    Documents Required for Initial Approval

    • Registration and licensing application, as well as proof of reserved exchange name. 
    • Photocopy of applicant’s passport 
    • Photocopy of applicant’s naturalization ID. 
    • Permission from the court to rehearse business, for applicants under 21 years. 
    • Approval issued by other Government authorities as per the kind of movement.

    Documents Required in the wake of Getting the Initial Approval

    • Initial Approval receipt. 
    • All documents submitted before so as to get the Initial Approval. 
    • Photocopy of office lease including the plot number. 
    • Unique photocopy of the Memorandum of Association properly validated by the Notary Public.

    How can Company Setup Consultants help you?

    If you want to get started with your joint venture company formation in Dubai, UAE but you do not know where to get started, then you are in the right place. This is because Company Formation Consultants have started various businesses all over the UAE. Contact us today and hit the ground running.

    To Speak with our Experienced Business Consultants for further information and assistance, call us at +971582595164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.

    Frequently Asked Questions on Joint Venture Company Formation in Dubai

    What is the formation of a joint venture?

    A joint venture company formation is a company that is formed by the partnership between a foreign party and a local party in the UAE. This means that a joint venture is a general partnership between a foreigner and a local in the UAE.

    Additionally, there are a few conditions like the percentage of ownership each party can have and the profit-sharing model. For example, the foreign party can have 49% ownership of the company, while the local party must have at least 51% ownership of the company.

    How do I set up a joint venture business?

    You can set up a joint venture company in Dubai by following these six easy steps:

    1. Determine the business activities of the joint venture company.
    2. Register a joint venture agreement from the Department of Economic Development in Dubai.
    3. Complete and sign the form from the DED in front of a public notary.
    4. Get the initial approval from the DED.
    5. Obtain office space for the joint venture company formation.
    6. Submit the required documents and complete the payment for the business trade license.
    ALSO READ  How to Open a Travel Agency in Dubai, UAE ?
    What are the 4 various forms of joint ventures?

    There are four types of joint venture companies you can form when starting out. They are:

    1. The project joint venture where you create the company for the purpose of completing one or more projects like creating infrastructure or providing timed services.
    2. The functional joint venture is where you create the company to combine the expertise of two businesses. For example, a transportation company and a warehouse facility may create a functional joint venture for the betterment of both businesses.
    3. A vertical joint venture is a company formed by two businesses that partake in the same supply chain. For example, if one company produced the raw materials and another company refines them, then they may form a vertical joint venture.
    4. A horizontal joint venture is a company formed by two businesses that provide the same services or deal with the same goods. This may be formed to enter a new market or compete with a leading firm.
    What documents are needed for a joint venture?

    There are a few documents that you need to provide to the Department of Economic Development in Dubai for a joint venture company formation. These are the documents you need for your joint venture company formation in Dubai:

    • The initial approval certificate from the Department of Economic Development in Dubai.
    • The external approval certificates.
    • The tenancy contract and EJARI for the office space.
    • A copy of the signed association agreement that is notarized by a public notary.
    What are the 3 types of joint ventures?

    There are three types of joint ventures with a different company structures that you can form. Each of them has its own advantages, so select the one that is best suited for your needs. Here are the three types of company structures you can form in Dubai:

    1. Limited Joint Ventures have the Limited Liability Company structure. This means that the owners of the company and their personal properties will be safe from the liabilities of the company in case of bankruptcy.
    2. Separate Joint Ventures are where different businesses create a joint venture for the purpose of completing a particular contract or a project. The joint venture will be dissolved when the contract or project is completed.
    3. Business Partnership Joint Ventures are where two businesses join to create one company. They can create a Limited Liability Partnership or choose any other company structure that best fits their needs.
    How many joint ventures can a company have?

    A company can have multiple joint ventures in the UAE. However, it is suggested that you take caution when forming a joint venture with a different company if you have limited knowledge about that particular company. This is because not every company in the UAE will have the same goal as you.

    What is the legal structure of a joint venture?

    When starting a joint venture in the UAE, you will have to select a legal structure for the newly formed company. You can select from a wide array of options when selecting a structure for your Joint Venture Company Formation in the UAE. The most popular legal structure in the UAE is a Limited Liability Company.

    Rate This Article

    Leave a Reply

    Your email address will not be published. Required fields are marked *