Definition of Commercial Companies
When defining the establishment of commercial companies in the Commercial Code we find that commercial companies are a company dedicated to the purchase and sale of products or goods, legally registered and operating in accordance with socially accepted commercial standards, which acts as an intermediary between producers and consumers according to their type, commercial companies can be classified into wholesale companies, retailers and commission agents, and according to their size they are classified into large, medium, small and micro enterprises, and there are mixed companies, in addition to the sale and purchase of products, providing services in Its area of competence, making them commercial and service companies at the same time, this type of company performs the function of brokerage, distribution and exchange of products in the market, the commercial company is responsible for connecting the product to the market.
Establishment of commercial companies
The establishment of commercial companies is desirable for many businessmen because companies are the most used legal means of running a business, while the legal details of the formation and organization of the company vary from place to place but most of them share some elements, and most businessmen resort to offices that provide company formation services in the UAE to complete these procedures, and the most important steps of establishing commercial companies include:
Drafting the memorandum of association and agreeing on all the basics which lists the basic purpose of the company signed, along with the number of shares and the class of shares to be issued if any.
Determine the type of company, the nature of its work and the number of shareholders and partners depending on the type of company.
Start paying shareholders' shares to establish a trading company, agree on the method of profits and how to divide them.
The administrative and legal structure of the company is determined by agreement between the partners and shareholders and also varies according to the type of company.
Initiating the termination of contracts and registering them with the competent authorities, which are among the most important provisions of the establishment of commercial companies in the Commercial Law.
Nature of Commercial Companies
The establishment of commercial companies in commercial law has a special nature, as the nature of commercial companies is different from other types whether industrial or so on, the most important of which are the following:
Its main characteristic is that its activities do not include any kind of production process, whether the conversion or completion of raw materials, as manufacturers do as their activity is only commercial.
In its function as an intermediary between producers and consumers, it is responsible for the distribution, transportation, storage and direct sale of products.
As for the ownership system, it can be a public, private or mixed company.
They can also be mixed in terms of the service they provide for example, if they also provide repair and maintenance services in addition to selling products.
Establishment of Commercial Companies in Commercial Law
The establishment of commercial companies in the UAE Commercial Law requires taking several basic steps to conduct things officially and legally, and the most important steps when establishing commercial companies in the Commercial Law include the following:
Registration at the tax office in the area where the company is incorporated.
Register with the Regional Social Security Office.
Obtain permits from the municipal authorities to start the rest of the procedures for registering companies and start incorporating them.
Entities operating in commerce must also register with the Chamber of Commerce.
Taxpayers are required to notify the tax office in the event of the initiation of a legal entity, as well as in the event of an address transfer, job change, change of business or closure.
The officer of the tax office in question will visit the address of the registered office of the company to conduct the inspection.
The employer is required to submit a work permit, prepared according to the form submitted, to Social Security before any employee starts working.
According to the Municipal Revenue Code, a workplace cannot be opened and operated without first obtaining a permit to start operations.
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