There are many reasons and benefits of setting up a business in UAE. UAE strategic location, tax-free policy, free market and diversified economy and excellent infrastructure has transformed it into a regional hub and investment destination in many sectors of business. UAE major industries include Real Estate Development, Tourism, Shipping, Media, IT, Retail, General Trade, Gold & Diamond Trade, Exhibitions and Banking.
We offer full professional assistance to setup all types of businesses in UAE. Our business formation experts have been advising on business setup in UAE for many years and well aware of all the ins and outs. We will be happy to give you the advice that you need to establish your company in Dubai smoothly.
For setting up a business in UAE, it is very important to deal with professionals who can give you the sound advice and assistance to select the right legal form at the outset to ensure long term objectives of your business in UAE. Based on your requirements, budget and business goals, we can help you to select the right legal structure for your business in UAE. Our business setup services include:
- Business setup in Dubai onshore and free zones
- Advising on the corporate structure that best suits your current and future plans
- Obtaining all types of licenses such as commercial, professional/service or industrial licenses
- Preparation and review corporate legal documents such as Memorandum and Articles of Association, shareholder agreements, partnership agreements, agency agreements, board resolutions, amendments and other legal documents
- Registration of branches, subsidiaries and representative offices of both foreign and local entities
- We can also help you in finding a UAE national with good track records to be a partner or an agent for your business in the UAE
- Assistance with obtaining residency visas and work permits
- Assistance with opening bank accounts for your company
Business Setup in UAE Onshore/Mainland
Several types of companies can be established in Dubai onshore such as Sole Establishment, Limited Liability Company, Civil Company, Public or Private Joint Stock Company, Branch and Representative Office. The companies that are established in Dubai onshore can conduct business activities in Dubai’s local market. A key requirement for setting up a business in Dubai onshore is that it must be formed in association with a UAE national(s). UAE national act either as 51% shareholder in case of commercial company or as local service agents without having any shares in case of professional company or branch. Following types of companies can be setup in UAE:
- Sole Establishment – Sole Establishment or Proprietorship is a legal entity formed in the mainland under the name of a sole proprietor. The liability of the Sole Establishment is not limited meaning that the owner is personally liable, without limit and to the full extent of his assets, for the liabilities of the establishment. Find out more…
- Limited Liability Company – A limited liability company (LLC) is one of the widespread companies formed in the UAE. A foreigner can be a shareholder in LLC and the liability of the shareholder is limited only to the extent of its share in the capital of LLC. According to the UAE Federal Commercial Companies Law, 51% of shares of LLC shall belong to a UAE national and 49% of shares can be owned by a foreign individual or entity. Find out more…
- Civil Company – A civil company is an association or partnership wherein two or more persons agreed to carry out professionalor consultancy Professional activities are those that are being provided using intellectual abilities, know-how, acquired information or professional skills. Such activities include medical clinics, management consultancy, legal consultancy, IT consultancy, HR consultancy, training and similar services. Find out more…
- Public Joint Stock Company – Public Joint Stock Company (PJSC) is defined as an organization whose capital is divided into negotiable shares of equal value and a partner therein shall be liable only to the extent of his share in the capital of the company, in accordance with the UAE Federal Commercial Companies Law (the ‘Law”). The Law requires a minimum share capital of AED 10,000,000 of which a minimum of twenty-five percent (25%) must be settled on subscription. Find out more…
- Private Joint Stock Company – A Private Joint Stock Company is defined as an organization whose capital is divided into negotiable shares of equal value and a partner therein shall be liable only to the extent of his share in the capital of the company, in accordance with the UAE’s Commercial Companies Law (the ‘Law”). A Private Joint Stock Company has to have a minimum AED 2,000,000 share capital. Find out more…
- Branch or Representative Office – A branch is a legal entity that is separately registered but considered as part of a parent company. A parent company holds 100% ownership of a branch, which has to have the same name and conducts the same business activities as its mother company does. For example, a parent company is engaged in trading business, so its branch in the UAE shall be licensed to do the same type of trading. The branch must have its own budget and profit/loss statement. Find out more…
Business Setup in Dubai Free Zones
In addition, there are many free zones in Dubai where you can establish free zone companies with 100% foreign ownership and without collaborating with a UAE national. The legal structure of your business will depend on the type of your business activity, number of shareholders and some other factors.
In Dubai, there are over twenty free zones. Each free zone has its own rules and regulations such as company laws, employment laws or specific laws that regulate the business activities that can be conducted with that free zone. The free zone entities are considered as resident companies in UAE and they acquire UAE nationality.
Types of legal entities in Dubai free zones may differ depending on the free zone. However, in general following types of companies can be setup in UAE free zones:
- Free Zone Establishment (FZE) – FZE is an entity that is owned by one individual. Liability of a shareholder in FZE is limited to the extent of its share capital.
- Free Zone Company (FZCO or FZ-LLC) – FZCO can be formed by minimum two (2) and maximum five (5) shareholders who can be either individuals or corporate bodies. Liability of shareholders in FZCO is limited to the extent of their share in the capital.
- Branch – A branch is a legal entity that is separately registered but considered as part of a parent company. Both local and foreign companies can establish their branches in Dubai free zones.
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Offshore Company Setup in UAE
In 2003, Dubai became one of the tax-free jurisdictions that register offshore companies for doing international business. Offshore Company in UAE is registered by Jebel Ali Free Zone Authority. In general, UAE Offshore Company is setup for following purposes:
- to own and invest in real estate properties in UAE
- to hold shares in local or overseas entities
- for tax optimization
- for estate planning
- for conducting business activities abroad including trading, investment and consulting activities
- to have corporate address in Dubai
- to have a cororate bank account in Dubai
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If you are looking to set up a business in Dubai whether its an on-shore or a free zone company, please get in touch with us for sound advice and professional assistance. You can call us on +971 55 465 9836, send us an email at email@example.com or use the contact us form on this website. First consultation is FREE.