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Dubai welcomes start-ups, entrepreneurs, and global corporations with its many incorporation options and accommodating regulations. Furthermore, there are options for every facet of forming a company in Dubai, including the budget, location, premises, license, and Dubai visa. Each of the seven emirates has its own regulations governing economic activity, and the UAE’s authorities have established an environment that is ideal for conducting business, complete with first-rate infrastructure, sound governance, and advantageous taxation. The different options for incorporation are:

 

Onshore

Intended for trade. A Doorway to Global Growth and Trade.

Mainland, or onshore, businesses are permitted to conduct business both domestically and abroad, i.e., outside of free trade zones, and they are also permitted to enter into agreements with governmental bodies. Although they can be included in any of the UAE’s seven emirates, the license will…

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LLC

Creating an LLC (Limited Liability Company)

An LLC is a vehicle for conducting business for foreign investors.Although they can now be incorporated for some professional activities, LLCs are typically incorporated to engage in trading and other commercial activities.

It is possible to incorporate an LLC with as few as two and as many as…

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Branch or Representative Office

Creating a Commercial Companies Branch

A foreign company’s branch is usually established to conduct business in the professional or services sector. Some foreign companies find the prospect of having a branch appealing because it allows them to maintain 100% legal ownership. But in their home jurisdiction, this might have tax ramifications…

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Professional Service Licence/Civil Company

The creation of a Foreign Commercial Companies Representative Office

A person wishing to work in a profession or consultancy, such as an engineer, lawyer, doctor, or accountant, may form an Establishment (sole trader) or Civil Company (professional partnership).

In every instance, a national local services agent from the UAE must be appointed.

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Freezone

A company’s establishment in a UAE free trade zone

With more than 40 specialized free trade zones, the United Arab Emirates provides a plethora of benefits to foreign investors, such as full foreign ownership, zero-tariff customs duties on imports and reexports, and a 50-year corporate tax moratorium.

Every Free Zone has a unique…

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Financial Zone

Located in a Financial Zone with Awards The Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM) are the two primary financial freezones.

Onshore

Intended for trade. A Doorway to Global Growth and Trade.

Mainland, or onshore, businesses are permitted to conduct business both domestically and abroad, i.e., outside of free trade zones, and they are also permitted to enter into agreements with governmental bodies. Although they can be formed anywhere in the seven Emirates of the United Arab Emirates, the license will be granted by the licensing body in each of those emirates; in Dubai, this is the Dubai Economy, or the “DED.” Government agencies may need extra permissions for certain corporate operations, like building, providing healthcare, or engaging in sports.

Starting a business as a mainland company has advantages. Mainland businesses provide a wide range of trade with no trade limitations, as well as location flexibility. Additionally, a mainland business can build several branches, creating a chance for expansion throughout the Emirates.

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LLC

Incorporating a Limited Liability Company (LLC)

Foreign investors can conduct business through a Limited Liability Company (LLC).LLCs are generally incorporated to carry on trading and other commercial activities, although may now be incorporated for some professional activities.

An LLC can be incorporated with a minimum of two and maximum of fifty shareholders, in many cases, not less than 51% percent of the company shares must be held by a UAE national.

An LLC must take a lease of suitable office premises from which to operate and be managed by a General Manager who must be or become a resident of the UAE. There is no minimum share capital for an LLC, but the capital must be adequate for the activities to be carried on e.g. some insurance-related activities command a higher share capital.

Given its limited liability status, an LLC is one of the most preferred corporate structures adopted by foreign investors and entrepreneurs wishing to establish a solid foothold in the region.

Some LLCs can now be 100% foreign-owned depending upon the activities to be carried on. In this instance, the General Manager must be a resident of the UAE prior to incorporation and will be responsible for maintaining the LLC’s labour and immigration accounts (which enable it to hire and provide visas for its people).

CBD can carry out licensing feasibility to determine the most up-to-date ownership requirements.

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Branch or Representative Office

Establishing a Branch of Commercial Companies

A foreign company’s branch is usually established to conduct business in the professional or services sector. Some overseas corporations find the notion of having a branch appealing since it allows them to maintain 100% legal control. However, they should seek appropriate tax guidance as this can have tax ramifications in their own jurisdiction.

Depending on the size of its operations, a branch may need a “hot desk” in a business center in addition to appropriate commercial space from which to function. Even though there are still a lot of useful advantages to this arrangement, some branches are no longer required to use a UAE national as their national services agent.

Branch offices need to apply for an operating license from the Department of Economic Development of the relevant Emirates.

Establishing a Representative Office of Foreign Commercial Companies

You might choose to use this kind of corporate structure if you are a foreign firm trying to expand and have appointed a distributor or commercial representative in the United Arab Emirates. Although they are not permitted to trade, it is a helpful tool that allows foreign investors to have a legitimate presence in the UAE to market and promote their products.

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Professional Service Licence/Civil Company

Establishing a Representative Office of Foreign Commercial Companies

A person desiring to work in a profession or consultancy, such as an engineer, lawyer, doctor, or accountant, may form an Establishment (single trader) or Civil Company (professional partnership).

Each time, a national local services agent from the UAE must be appointed; however, they are not financially liable, have no management authority, and have no other control. However, as limited liability protection is not provided by these corporate arrangements, the owners’ personal assets can be in jeopardy.

LIVING AND WORKING IN DUBAI

Once your UAE business is established, it must be registered with the Labour and Immigration authorities in order for it to sponsor its people and their families. License Doctor’s experienced labour and immigration team will ensure that this process is handled in a timely manner so that new, or existing, businesses have the resources they need for unrestricted operations.

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Freezone

Establishing an entity in a UAE Free Trade Zone

With more than 40 specialized free trade zones, the United Arab Emirates provides a plethora of benefits to international investors, such as full foreign ownership, zero-tariff customs charges on imports and reexports, and a 50-year corporate tax moratorium.

The registration and functioning of a business within a Free Zone are regulated by laws, regulations, and licensing authorities that are unique to each Free Zone. Free Zones are only permitted to conduct business in “mainland” Dubai through a commercial agent or distributor who is in possession of the particular license that the Economic Department in the region where they are registered has issued.

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