Before 1984, Fujairah, like the other emirates in the UAE, followed its guidelines governing the actions of foreign corporate interests in the Emirate. Federal Law No. 8 of 1984, as amended by Federal Law No. 13 of 1988 - the "Commercial Companies Law," as well as its by-laws - were issued in 1984. According to the law, companies must be wholly owned by UAE nationals or have at least 51 percent of their share capital owned by UAE nationals, with the remaining 49 percent owned by investors. Commercial companies established in the United Arab Emirates must take one of the following legal forms, according to the decree:
SOLE PROPRIETORSHIP: Without a national partner, an investor is allowed to engage in specific types of corporate activities that are permitted for ex-pats. Medical services, legal practice, engineering consultancies, computer consultancies, and similar facilities are examples of such ventures, as long as the investor has a legal UAE residence permit. However, it is a requirement that they have a local services agent, which necessitates the signing of a service agency contract between the investor and a UAE national.
LIMITED LIABILITY COMPANY: In Fujairah, this is the most common corporate structure. A limited liability company (LLC) can be formed by a group of two to fifty people whose liability is limited to the value of their shares in the company.
GENERAL PARTNERSHIP COMPANY: This company is made up of two or more partners who are jointly and separately liable for the firm's liabilities. Partnership companies are limited to UAE nationals only because partners are liable for the business's obligations with all of their assets, which may not apply to ex-pats because their assets are usually located outside of the UAE.
PROFESSIONAL COMPANY: A professional company in Fujairah is one that has a profession as its primary goal and whose partners rely on their conscious effort rather than earning from the business of others for their livelihood.
JOINT VENTURE: A joint venture is when two or more partners agree to share the losses and profits of one or more commercial companies, which will be passed on in one of the partners' names.
PUBLIC SHAREHOLDING COMPANY: A public shareholding company (PSC), also known as a public joint-stock company (PJSC), is a corporation with a capital divided into negotiable shares of equal value. A shareholder's liability in such businesses is limited by the number of shares they own.
PRIVATE SHAREHOLDING COMPANY: A Private Shareholding Company is formed by a group of three or more people. A private shareholding company, unlike a public shareholding company, cannot invite the general public to subscribe to its shares.
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