A Joint Venture (JV) is one of the methods for foreign companies (investors) to execute their market entry or expansion strategy. JVs can help companies go the extra mile – beyond an agency or distribution arrangement (local business/ company), with specific strategic objectives to be achieved.
One of the advantages of setting up a corporate joint venture in UAE is that no license is required, as the local partner will have the business license to carry out the activity.
Setting up a joint venture is commonly done either contractually or through the formation of a limited liability company LLC under Federal Law No. 2 of 2015 (the Commercial Companies Law) allowing foreigners to own 49 percent of limited liability in the UAE outside any of the various free zones.
The key to the venture’s ultimate success lies in choosing the right JV partner through multiple structures available to establish a JV in the UAE in which foreign equity participation is permitted such as :
CBE possesses the required expertise to execute any of the above arrangements. Once the circumstances of the joint venture have been agreed upon, the parties must list the agreement with the Department of Economic Development in Dubai, Abu Dhabi or other emirates (DED). The agreement must have a certain form issued by the DED or equivalent government entity in the emirate and must be signed before a public notary.
To know more about the steps to set up a joint venture in Dubai and the documents required, please do not hesitate to get in touch with our professional team at CBE who will guide you towards the finishing line.