What are Category 3 companies in UAE?

What are Category 3 companies in UAE?

In the United Arab Emirates (UAE), companies are categorized into different types based on their activities and ownership. One of these categories is Category 3 companies. In this article, we will explore what Category 3 companies are and provide an overview of their characteristics and requirements.

Definition of Category 3 companies

Category 3 companies in the UAE are entities engaged in general trading activities. These companies can participate in trade, import, export, distribution, and storage of goods within the country or internationally.

Characteristics of Category 3 companies

1. Ownership: Category 3 companies can be owned by UAE nationals or any other nationalities. There is no requirement for a UAE national to have a majority shareholding.

2. Business scope: These companies can engage in various trading activities, including buying and selling goods, as well as acting as intermediaries in trade transactions.

3. Licensing: Category 3 companies require a commercial license issued by the relevant regulatory authority in the UAE. The specific requirements may vary depending on the emirate where the company is registered.

Requirements for establishing a Category 3 company

1. Business setup: To establish a Category 3 company in the UAE, an investor needs to comply with the respective emirate’s company formation regulations. This includes selecting a suitable business activity, obtaining necessary approvals, and fulfilling financial requirements.

2. Local partner/agent: The involvement of a local UAE partner or agent is not mandatory for Category 3 companies. Foreign investors can have full ownership and control of their businesses.

What are Category 3 companies in UAE?

3. Physical presence: Category 3 companies are required to have a physical presence in the UAE, such as a registered office or a warehouse.

Benefits of Category 3 companies

1. International trade opportunities: These companies can engage in import and export activities, allowing them to tap into global markets.

2. Diversification of products: Category 3 companies can trade in various products, providing flexibility and potential for profitability.

3. Limited liability: The owners of Category 3 companies have limited liability protection, ensuring that their personal assets are separate from the company’s liabilities.

Category 3 companies in the UAE play a significant role in facilitating international trade and expanding the country’s economy. With their broad trading activities and ownership flexibility, these companies attract foreign investors looking for lucrative business opportunities in the region.

New Fees Work Permits Updates | Company New Categories | Easy Smart Forms

admin
uncategorized