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Business setup in UAE, Business Setup in ADGM, Corpin Consultants
Business Setup

Setting Up An SPV in the ADGM

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Setting Up An SPV in the ADGM The Abu Dhabi Global Market (ADGM) has been serving us as a major ecosystem for many ambitious organizations handling banking, insurance, wealth management, asset management, and capital market activities. Recently the ADGM has implemented a cost-effective and flexible SPV system, which is attracting a significant number of investors in the UAE and MENA region. Special Purpose Vehicles (SPVs) are passive holding companies established with the agenda of isolating financial and legal risk by guaranteeing certain assets and liabilities. These companies can be set up as subsidiaries, projects or joint venture vehicles so any assets related to a transaction are exposed to the liabilities associated with that transaction.  Major Attractions for setting up a Special Purpose Vehicle (SPV) in the ADGM No attestations Corporate documents do not require any attestation and there is no need for filing audited financial statements. Shelf SPVs are permitted ADGM enables the setup of shelf SPVs wherein a business, law firm or corporate service provider needs ready SPVs for a transaction. No restrictions on the nationality of ownership and share capital There are no restrictions on the nationality of shareholders and minimum share capital. Apart from that there are no mandatory requirements for the maximum number of shares or shareholders; just one shareholder and a director are required. No physical office space required SPVs can keep the address of an agent, existing or holding company, or virtual office. This may reduce set-up costs. Uses of SPV Securitisation An originating party can offer security for loans by creating an SPV that purchases assets by issuing debt, secured on the underlying assets. Real Estate Investment Can be used for acquiring title to real property and limit recourse of mortgage lenders based on the location of the asset. In some jurisdictions, the sale of the SPV’s shares can reduce taxes and transaction fees. Asset Transfer Can be used for transferring assets along with material agreements. Risk Sharing Joint ventures can form project-based companies and allow equal sharing of risks between both partners. Raising Capital Can be used for raising capital, with creditworthiness determined by the collateral of the SPV Intellectual Property Can be used for separating Intellectual Property into a different structure with less liabilities, increased funds and signing license agreements with third parties. If you have any questions or need any assistance for setting up an SPV in the ADGM, get in touch with us at +971558432911 or ek@corpinconsultants.com.

free zone business setup, Mainland business setup, Corpin business setup consultant
Business Setup

Free Zone Business Setup or Mainland Business Setup- Which One You Should Opt?

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Free Zone Business Setup or Mainland Business Setup – Which one you should opt? Are you an aspiring entrepreneur planning to set up your dream business in the UAE? While performing research, you may often come across these two terms, mainland business setup and free zone business setup. These are two different business jurisdictions with their advantages and disadvantages. You need to choose one depending on the nature of your business. This article will help you understand the major differences between a mainland company and a free zone company in the UAE. Ownership Structure : Foreign investors who wish to set up a business in the UAE mainland should mandatorily have a local partner or a national service agent. Out of 100% shares, 51% of shares must be held by the local partner and only 49% of shares will be allotted to the expat partner. However, for service businesses such as consultancy, an expat partner will receive 100 % ownership. A local sponsor will act like an agent but does not own any shares of the company. For a free zone business setup in the UAE, there is no such restriction. A foreign investor can get 100% ownership regardless of the type of activity, commercial or professional. Scope of doing business in Dubai : A mainland company is allowed to perform business activities throughout the UAE market as well as outside the UAE. A free zone registered company can do business only within the respective free zone and outside the UAE. Office Space : All mainland companies must have at least 200 sq. ft of physical office space. (can be even leased out on an annual basis). A free zone company does not require a physical workspace. It may or may not have offices depending on the nature of work. Nowadays, there are even flexi desk and virtual office facility for free zone companies. Visa Facility : Mainland companies do not have any limitations for the issuance of visas for their employees. Ministry of Labor issues an E-quota to each mainland company that shows their eligibility for visa acquisition. It can be enhanced further if more employees need to be recruited. The eligibility of visa majorly depends upon the office space and the nature of the business activity. The more space you have, the more visas you can apply for. However, outdoor sales staff, PRO’s and drivers are not eligible for this facility. For free zone companies, only two to three visas are offered under the smart office package. In case if you require more visas, you need to lease out a bigger office space. Government Approvals : A mainland company needs approvals from standard government authorities such as DED (Department of Economic Development), DM (Dubai Municipality), Ministry of Labor (MOL), Department of Naturalization and Residency affairs of Ministry of interiors or Immigration (MOI). Also for medical or food license requirements, approval is required from Dubai Health Authority and Food Department of Municipality respectively. Free zone companies generally do not require any government approvals unless there is a specific activity that requires approval. When you seek advice from a trusted business setup consultant, your company formation becomes less tedious and fast. Corpin Consultants is one of the most sought-after company formation consultants in Dubai with a team of experienced professionals who will guide you in every step of the process. If you wish to set up your business in the mainland or free zones in the UAE, feel free to contact us at +971 55 843 2911 or info@corpinconsultants.com.

pharmaceutical company setupin dubai, business setup dubai, corpin business setup consultants
Business Setup

Pharmaceutical Company Setup in Dubai UAE

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Pharmacy or pharma is the knowledge and procedure of manufacturing and administering drugs. It is a health profession where health sciences meet chemical sciences to provide valuable usage of the drugs prescribed. Pharmacy includes services like combining and dispensing medications, clinical services, reviewing the safety and efficiency of the medicines, and providing vital information regarding the same. Setting up a pharmaceutical company in Dubai involves navigating a complex regulatory landscape and meeting stringent requirements to ensure compliance with local laws and international standards. The pharmaceutical sector is rapidly increasing in the UAE. Seeking professional guidance and local expertise can greatly ease the process of pharmaceutical company setup in Dubai and ensure adherence to all necessary regulations, allowing companies to focus on growth and expansion in the flourishing regional market. How To Setup A Pharmaceutical Company in Dubai / UAE Dubai Mainland is the preferable location to setup a pharmacy since it provides better opportunities as compared to a Free Zone setup. The Department of Economic Development (DED) is the regulatory body responsible for all kinds of businesses in mainland Dubai. The Steps Included In Pharmaceutical Company Setup:-  To identify a local sponsor with a good profile  Collect the passport copies of your partners and the sponsors  Decide on a suitable name for your company/store  Submit an application for the enterprise’s name approval and for initial approval from the DED  After the approval is received, submit the application to Dubai Health Authority (DHA) Initial approval from the Dubai Health Authority (DHA)  Create an account on their portal to start the initial process of approval Upload the proposal letter Appoint the medical director and pharmacist  Identify the premises for the pharmacy  Upload the engineering layout as per the DHA guidelines  After obtaining the approval from DHA, get the tenancy contract along with Ejari for the premises  With the initial approval from DED and DHA, draft the Memorandum of Association and side agreement with the local sponsor Notarize the Memorandum of Association from the court Submit all the documents to DED and obtain a pharmacy license After issuing the license from the DED, submit the documents for final approval from the DHA Final approval from Dubai Health Authority (DHA) Interior fit-out construction as per the layout approved by DHA in the initial approval  Professional approval for the medical director Final fit-out inspection report and inspection from DHA After the completion of the above steps, DHA will issue a license for the business. The expected time frame for the project would be 5-6 weeks. Documents required: For the Department of Economic Development (DED): Passport copies of the owners, manager, pharmacist, and medical director Unique Identification Number (UID) of the owners and manager Attested qualification and experience certificate of the Manager, pharmacist, and medical director Application form for the name and initial trade approval Initial approval from DHA NOC from the sponsor to verify whether the manager is holding a valid visa or not Tenancy contract (for final submission to the DED)  Passport copy, Emirates ID, and Gincia of Local sponsor (UAE National) For Dubai Health Authority Initial approval  DED trade name reservation  Dubai Municipality affection plan of the plot/building Passport copies and UID numbers of partners Engineering layout as per DHA guidelines Proposal and Undertaking letter Passport copies and attested qualification certificates of the medical director and pharmacist (Two pharmacists are mandatory and one among them can be the medical director of the company)  Offer letters of the medical director and pharmacist Final approval The documents are the same as mentioned above in the clause for Final Approval from DHA Note: Document lists provided here are not final/complete, any additional document/information required further by the Govt. Authorities need to be provided. The medical director’s name will appear on the DHA license. Written By Ebi Kadavan

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