Business, its structure and types and business in UAE

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A business is any sort of organization that deals with the manufacturing or trading of goods and for providing services to consumers and customers. Business may be a set-up between private individuals that are forming the business with the primary motive of earning profits or it may be owned by the government with the basic aim of providing services and provisions to the citizens. A private business may also be not for profit and may have been established to provide services and goods to the inferior class of the community. Charities are a type of this kind of set-up. A business can be done anywhere and at any place. It can be a huge building in which business is being conducted, a shop or a person simply standing on the street and selling his expertise or goods to people. Therefore a business does not need proper premises and location to be conducted though mostly businesses have a proper office setup.

Business has a number of forms in which it normally exists. It can be a sole proprietorship, partnership, corporation and co-operative business. Sole proprietorship is a form of business that is normally owned by a single person with the motive of earning profit. Though he may still hire someone to help him in running the business but he alone remains the owner of it. The owner of the business has unlimited liability for the debts and obligations incurred in the course of the business. A partnership is a business being owned mutually by more than one person. Normally all the partners are considered the owners of the business and they all may take part in the management of the business. The liability of the partners is normally unlimited in a partnership with the exception of limited partnership and limited liability partnership. A corporation or commonly known as company is a business set up in Dubai UAE in which the company has a separate legal entity from its owners or shareholders. The liability of the shareholders of a company is limited only to the amount of the shares. They are normally not liable for any debt or obligation of the company. Companies are normally formed for the purpose of earning profits and may be owned by private individuals or government. There is a law in statute that governs the formation and running of the company. There are strict rules regarding how to setup Dubai company formation outlined by the Company law. A co-operative is also a form of limited liability Company which has members instead of shareholders.

Due to the recent rapid developments in UAE, a lot of new businesses are being setup all over the region. UAE Abu Dhabi company set-up is governed by the UAE company law and other laws in statute. It is a requirement for all UAE business setup being invested in by foreigners to be at least 51% owned by UAE locals. It is also a condition for a business to start trading and conducting business after obtaining the trading certificates depending on the type of industry the business falls in. These licenses can be trading, profession or industrial licenses.

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