Company formation in Dubai

Company formation in Dubai

Company formation in Dubai enables one to experience a favorable business climate by taking advantage of the numerous benefits provided by the UAE. The company can be established with 100% foreign ownership, which attracts many foreign investors. Investors may set up their businesses more easily because of reduced taxes, simplified corporate operations, and upgraded business infrastructure. 

Dubai is the best option because of its top-class lifestyle and expanding commercial chances. The government of Dubai is primarily interested in and supportive of the creation of a quick-moving business organization in the UAE. The ideal company structure in Dubai must be understood before starting a firm there. In Abu Dhabi, there are 3 different jurisdiction options available for company formation which are Mainland Company, Freezone, and Offshore Company. Depending on the chosen business activity, the cost of forming a company in the UAE varies among these business jurisdictions.

Must Read: How to Open a Zero Balance Account in UAE?

Mainland Company:

Mainland Company can now be formed in the UAE as a complete foreign-owned business, following the most current Cabinet Resolution from 2021. However, there are some requirements that the investor must meet based on the company’s activity and industrial sector. Without any limitations, Mainland Company is permitted to operate business both inside and outside of the united Arab emirates. It is also known as an onshore company.

Raed More about Information: How to Apply For Ratibi Card?

Freezone Company:

Freezone Company:

Dubai’s free zones are formed to conduct international commerce. It is quite popular with investors as it offers benefits including custom rights, tax exemptions, and a well-established transport system and road connectivity. Also, it is highly economical and offers low rates for skilled employees and is possible to set up a free zone company with a 100% foreign shareholding.

Offshore Company:

Offshore Company

Most businesses choose to establish offshore companies since it is the ideal way to conduct exclusively international business; nevertheless, local business in the UAE cannot be conducted under an offshore company. Investors want to establish an offshore company as a holding company to hold intellectual property rights, license franchises of other businesses, and the shares of other businesses in other countries.

More Information:How to Check Etisalat Balance in the UAE?

Step-by-step process of company formation in Dubai

To begin the process of business formation in Dubai, picking the appropriate tradename is essential. Under the terms of their trade license, the investor must select the appropriate business ventures. According to the selected business activity, the corporation is legally permitted to engage in commerce or provide services.

The appropriate authorities must receive the application form, investor profile, supporting documents, etc. To get the company documentation and the trade license, the investor must pay the trade licensing charge. They may now apply for a bank account and an investor visa. Below is the complete guide.

Best Places to Visit in Dubai

Company Name Approval

Company Name Approval

Choose the appropriate name of your company. Every company will choose a name for its brand before it is incorporated. This name must be distinctive and per the policies of the department of economics development. The DED should authorize this name.

Choose the Business Activity

Choose the Business Activity

You should pick the appropriate business activity, for example, setting up a professional company for services and a commercial license if you are doing a trade business.

How to Check Credit Score in UAE?

Local Sponsor Hiring

Local Sponsor Hiring

A local sponsor is necessary for the creation of a business on the Dubai mainland except for those with a professional license, where a local sponsor will serve as a local service agent. In exchange for an annual fee, a local sponsor will own 51 percent of the company’s shares.

Local service agents are required in situations that involve professional licensing. The citizen of the UAE will not own any shares in a professional firm.

Residence Selection

Residence Selection

Among the other things required for the formation of company in Dubai is location selection and the preparation of a rental contract. In any of the business centers, you can also choose a virtual office, although this will depend on your line of work.

MOA preparation

MOA preparation

Next, you will have to prepare a memorandum of association (MOA) for the new company.

Final Submission

Final Submission

Depending on the type of organization and the jurisdiction you chose for your business, you will need to provide all the aforementioned documents for the final submission.

Cost of company formation in Dubai

Cost of company formation in Dubai

Depending on the type of business, there may be a difference in the cost of company formation in Dubai. The cost of forming a company is generally clear and there are no additional fees. The cost component is primarily divided into the following headings: Immigration, Business License, Visa Processing, and Documentation & Attestation.

Additional permits and document clearance from the relevant authorities are necessary for some commercial activity. For completing the tasks related to company formation and PRO Services, consulting firms will charge a service fee.

The price to register a business in Dubai is AED 17,000 for just a civil business with a virtual office and a one-year trade license.

Business licenses available in Dubai include 

Dubai’s Department of Economic Development (DED) is the primary licensing body for all commercial activities. For all company licenses, it is necessary to select the appropriate license type from the three categories below: License for commercial activities With a Dubai Commercial License, you can engage in any form of trading. Limited Liability Companies (LLCs) fall into this category.

In accordance with Article 22 of the Companies Law, 51 percent of shares must be owned by UAE citizens. An Emirati resident will hold the commercial license and receive an annual payment if he owns 51% of the shares. Individuals and businesses may sponsor local events.

Professional License: The company can be a sole proprietorship or a civil company depending on how many investors or partners it has. License holders may own 100% of the company in foreign currency. To receive this license, a UAE national must be chosen as the local service agent; however, he will not own any shares. Every year, the sponsorship fee is paid. Industrial License For establishing an industrial or manufacturing enterprise. 

Benefits of company formation in Dubai

1. Full capital and revenue returns for all business types

2. Businesses in free zones, offshore, and on the mainland with professional licenses are all wholly owned by foreigners.

3. Without a local sponsor, free zone businesses and mainland companies with a professional license can function.

4. Offshore businesses and several free zones are entirely tax-free. Very low business taxes in other areas 

5. Professionals who are readily available, reasonably priced, and skilled 

6. Offices, warehouses, roads, etc. of exceptional quality, as well as accessibility to major airports and seaports

7. Bank account creation and maintenance are versatile, and multi-currency bank accounts are easily accessible.

8. Three-year visas for family members, employees, and investors 

9. Modern technology are utilized, making the process of forming a company simple and quick.

10. Best buildings for homes and businesses with modern telecommunication and efficient utility systems


We have simplified the procedure for you by providing a step-by-step manual and outlining the advantages of company formation across the United Arab Emirates. So, if you want to invest for a brighter future, pick the correct company and get started!

Leave a Reply

Your email address will not be published. Required fields are marked *