The International Company in UAE and the Agent

Any International Company has to appoint a selling agent, purchase the commodities in UAE. This agent is like representing an international company in the UAE on behalf of the company. He is responsible for the profits, sales, discounts, losses, etc. As we all know that Law is federal in UAE therefore the Agency Law UAE is also federal and applicable in all the Emirates of UAE. Article 2 says that the agent should be a UAE National. It can also be a company that owns by an Emirati National. Ownership must be One Hundred Percent. Article 4 says that both parties need to have an agreement with each other. There is no acknowledgment of any deal like this if both parties are not bound by any agreement.

Here is the article to explain, The International Company in UAE and the Agent!

CAL or Commercial Agency Laws also restrict the other importers and exporters not to indulge in the import and export of goods which only allow a few companies and enterprises. In case of any dispute, the committee which makes to resolve the CAL disputes is responsible to resolve the disputes. Commercial Agency Arrangement has to register with the Ministry of Economy. The Local Agent should be and he has to be a UAE Citizen or a private business with full local citizen ownership.

We will not throw light on the types but we can name them here and those are; Commercial Agency Agreements and the Distribution Agreements. We would like to give a reference here from the CAL Articles and that is Article 3 which says that “No Person shall engage in the business of commercial agencies in the UAE unless his name has been recorded in the register of commercial agents maintained in the ministry”.

Types of Companies:

UAE offers you to open companies in a few formats like Sole Proprietorship, LLC, and Free Zone. Free Zone companies allow you to get 100% ownership. Sole Proprietorship is also 100% ownership but this facility is only for UAE Nationals or GCC Nationals. The owner must have to qualify and have professional education and the qualification whatever require for opening a sole proprietor company and to offer particular services.

This format can have more than one branch while operating. Limitations regarding managers should keep in mind. The first and start approvals have to obtain from Dubai Economic Department. Patent rights, office, etc. are the mandatory things to offer. LLC and Free Zone companies are not going to discuss here. It can check with quality Lawyers in Dubai by Emirati Law Firms.

Business Freedom and Security:

Dubai and the entire UAE government allow the people complete freedom and security to invest in the UAE. UAE ranks 11th position among the world for having a business or opening an office of your international company business. Free Zones will provide you 100% ownership and you can operate here as a sole owner. UAE is the most protected place for women to live. A most protected place to raise the children. Law and order are quite well so investments of people protect. If a person (reader) is concerned about freedom and security then he can confidently come to Dubai.

Support by Law Firms:

Yes, the answer is yes. Support from Law Firms require. The company set up, logo and patent registrations, Labor and Employment agreement drafting, internal agreements and offer letter drafting. These Law Firms can also help to establish the hiring process, staffing, recruitment, establishing the HR, or establishing the internal legal department if it is a requirement of a company that is quite great in its operations.

Business Growth:

Yes, business growth is greater in size. Investment in Dubai can let you have multiple times more than your investment due to the opportunity available in the market. Business growth is not risky in Dubai and UAE. 2008 was the recession, a global recession. Dubai also got hit due to its global recession. But the business survives instead, doing a good business during the recession, post-recession even after or during the covid-19.

The reason is that the Economic pillars of the region are based on a well-defined system. If anybody breaches the Law, then he is accountable. Even if you are a national then you cannot escape from the law. Business growth in Dubai and the rest of the UAE is amazing. Businessmen across the world can come and enjoy the business expansions in Dubai and multiply their investments. 

Civil Cases:

Cheque Bounced Cases treat under Civil Law. Civil Law allows people to get their money back, with legal expense, legal rewards. For the compensation, a separate case can fill. Criminal Cases can only be for arranging the punishment by the Law, and civil litigation is for collecting the liquid cash or recovery of assets lost before. Civil Cases and Commercial cases though similar but different types of cases. Both cases are dealt with in the same Dubai Court (For Dubai) and dealt with by the same judges called Qazi, in the local language. We must differentiate that it is quite different indeed.

For Civil Cases, the lawyers which hire, call different names. They know as Civil Lawyers, Commercial Lawyers, Business Lawyers, Corporate Lawyers, etc. Emirati Civil Lawyers are the Advocates who can hire only for a “Court Appearance” and full civil case representation in all the courts. Keep in mind if the claim amount is greater than 500000 AED then the third court also known as cassation court or high court can also be approached.

Whether this is a company setup, business management, resolving the dispute, or giving advice, lawyers are the need to do business very peacefully. Business always needs legal support and therefore the big business companies always open an inside legal department or sign the full-time Retainership with the companies. Dubai and UAE are good places to live and do business. People can come here confidently without any fear or hesitation.