FAQ’s

Licensing to carry out business activities in Dubai happens in three stages.

• Initial approval where an individual or a company submits an application for approval of the activities intended for the said business.
• Ensuring all legal requirements are met by the investor. This includes authentication of the investor’s identification, educational qualifications and all financial matters involved in the establishment of the business.
• Verification of the business premises and issuance of the investor visa.

UAE allows company formation in free zone, mainland, or offshore. Business setup in UAE mainland requires a local sponsor and the license is issued by DED. Free zone companies can operate within a limited geographical region and the license is issued by particular free zone authority. Offshore businesses in UAE allow your company to trade outside UAE as well as take efforts to safeguard your wealth and assets. Offshore companies get a certificate of incorporation and not a trade license. All types of companies can be started in UAE and more than thousand activities are allowed by the Economic department.

To establish your LLC Company in Dubai mainland or anywhere else in UAE, you have to reserve a trade name and other necessary preliminary approvals from concerned authorities. You get an MOA from the company and also, submit the lease contract to the licensing authority. Also, find a local partner and rented office space to start your business.

A&A Associate offer few inclusive and affordable packages according to your business setup requirements.

Depending on the company type, there are different types of visa requirements in Dubai. To live and work in Dubai, every foreign national needs a residence visa and in order to employ staff in your organization the manager of the company must have a residence visa which will then allow the company to recruit staff. Offshore incorporations do not require residence visas as these do not entitle the holder to do business in UAE. Free zone incorporations allow for the issuance of residence visas depending on the size of the establishment.

It can take as little as five days or can take up to six weeks to start your business in Dubai depending on the company type and structure. Company registration is the initial step of which it is a matter of gathering all documentation.

An employment contract is an agreement with a limited or unlimited period, between an employer and an employee whereby the employee commits to work for the employer and agrees to work under the employer’s management and supervision, for which the employee receives remuneration from the employer

DMCC provides an employment contract template through the DMCC portal, which covers all of the provisions required under the UAE Labour Law to be included in the employment contract, including the date of the contract, date of commencement, nature of the work, place of work, duration (if a limited period) and remuneration.

Yes. An employment contract may be for a limited or an unlimited period. A limited contract is for a fixed period whereas an unlimited contract is open ended contract. If a limited contract is terminated before expiry of the fixed term, compensation may be payable by the terminating party (either the employee or employer) as explained below. There are significant differences in the calculation of the end of service benefits for limited contracts and unlimited contracts in cases where an employee’s employment terminates by reason of resignation.

The differences are outlined in the DMCC End of Service Benefit Calculation guidance:http://www.dmcc.ae/content-page?Guide-to-DMCC%u2019sPopular-Employment-Services&Articleid=a055F00000kguuIQAQ

Limited Contract

• The contract has a commencement and termination date or specifies the duration of the contract.
• Term cannot exceed four (4) years.
• May be renewed through mutual consent for a similar or lesser period, which will be added to the total period of service.

Unlimited Contract

• The contract has a commencement date only.
• Also considered “unlimited” if: ü it is an oral contract; ü it is not for a specified period; ü if a limited contract is not explicitly renewed by mutual consent and the employee remains in service, then the employment will continue on the basis of an unlimited contract with all other terms unchanged; ü the purpose of the employment is to complete specific work but not in a specified time-frame; or ü it is by its nature likely to be renewed and the contract continues after the work agreed upon is completed.

If a limited contract is not explicitly renewed by mutual consent and the employee remains in service, then the employment will continue on the basis of an unlimited contract with all other terms unchanged.

Break times are not counted in working hours. Employees must not work over five (5) hours consecutively without a break for rest, food or prayer with a total break of at least one (1) hour.

Eight (8) hours per day or forty-eight (48) hours per week (assuming a 6 day working week) for an adult. Where an employer operates a five (5) day working week, the total working hours may not exceed 40 hours per week (i.e. 8 hours per day). In the case of commercial establishments, hotels, restaurants, watchmen and similar operations working hours may be increased to nine (9) hours per day. The commute to work is not included in working hours.

During Ramadan there is a two (2) hour reduction in working hours per day

Yes. If the employee passes the probationary period, and remains in service, the probation period is included in the period of their service.

Yes, the employer may terminate the services of the employee without notice and without payment of end of service benefit during the probation period.

The employee may be required to complete a probation period not exceeding six (6) months.

The employer must obtain the correct permits for the employee to work from the DMCC free zone. Refer to the Employment Matters Decision Charts

Yes, however, overtime may not exceed two (2) hours per day unless work is necessary to prevent substantial loss, serious accident or to eliminate or alleviate both.