There is no doubt in say that Dubai is one of the world’s best corporate business hubs. The reason behind this, The Dubai government is very keen and supportive in the development of a fast paced corporate structure in the emirate. Dubai provides favorable business opportunities of Company formation in Dubai for various types of business structures in their respective fields. Therefore, it is profitable to setup any type of company in Dubai as the government warmly welcomes entrepreneurs from all parts of world for this purpose.

Starting a business in Dubai need a clear understanding on choosing the suitable business structure in Dubai so you need to understand, that what the best business structure in Dubai is as it could be Dubai mainland Company, Free Zone Company or offshore company formation. Followed by that you need to choose the right type of company, Type of license and type of business activities you wish to provide.

Are you looking for Company Formation in the UAE?

With Smart Business Creation, Company Formation in Dubai has ever been so smooth and speedy with over a decade of its experience in the related field. Our professional business consultants are well aware of rules, regulations and procedures setting up business in Dubai and in UAE Free Zones.

Types of Company Formation in Dubai

There are 3 different types of jurisdictions available for company formation in Dubai. All these jurisdictions have their own rules and they prove beneficial for different types of businesses.

Mainland Company

A Dubai mainland company is also called an onshore company which is licensed by the Department of Economic Development (DED) of Dubai. Mainland Company is allowed to conduct business in the local market as well as outside UAE without any restriction.

Free Zone Company

Free zones in Dubai or in UAE are design to conduct the international business or business between the free zones. Free zone Company Formation is a highly favorable among the investors or in Corporates because of incentives like:

  • 100% foreign ownership
  • Customs privileges
  • Exemption of taxes
  • Cost Effective and affordable
  • Well established transport network and road connectivity
  • Affordable cost for high-quality labor

Offshore Company

Most of the businesses prefer to set up an offshore company, also known as non-resident company, in Dubai or in RAKEZ however this is the best option to conduct the international business only and you cannot do business in UAE under offshore company. People also prefer to setup an offshore company as a holding company so that they can hold:

  • The shares of other companies in other jurisdictions as holding company
  • Intellectual property rights like patent, trademark, copyright, etc.
  • Licensing of franchises of companies

Types of Entities for Company Formation in Dubai

Foreign companies planning to setup a venture here in Dubai, like company formation in Dubai or business formation in Dubai, a person can get eight main legal entity options. These are as follows:-

Limited Liability Company formation

Free zone company formation in Dubai

Offshore company formation in Dubai

Dubai Mainland Company Setup

Branch and representative offices

Professional firms in Dubai

Shareholding companies

Joint venture companies

Company Formation in Dubai and Across UAE

  • 100% Foreign Ownership (Professional Licenses)
  • 49% ownership, and majority profit sharing arrangement
  • No corporate taxation
  • Simple staff recruitment procedures
  • Business Friendly Environment
  • World Class Infrastructure
  • Multi-currency bank accounts
  • Get access to the UAE local market and international markets
 
  • No personal income and capital taxes
  • No corporate taxation
  • Zero Tax on income returns
  • Competitive import duties
  • Simple staff recruitment procedures
  • Competitive freight charges

What are the Types of Business Licenses Available in Dubai?

The Department of Economic Development (DED), Dubai is the main licensing authority that issues licenses for all sorts of business activities in Dubai. A major prerequisite for all business licenses is to choose the suitable license category from the following 3 categories of licenses:

Dubai Commercial License

Dubai Commercial License includes all kind of trading activities. It is a type of Limited Liability Company (LLC). As per Article 22 of the Companies Law, specifies that there should be minimum 51% shares of the UAE National. This commercial license will have a local Emirati (Dubai Local Sponsor) who will hold 51% shares in the company and for which Local Emirati will be paid annually. The local sponsor can either be an individual or a corporate sponsor.

Dubai Professional License:

It is a type of Sole Establishment or a Civil Company depends on No of investors/partners. The license holder is permitted 100% foreign ownership. In order to obtain this license a UAE national must be appointed as Local Service Agent but he will not hold any share in the company. The sponsorship fee is paid on a yearly basis.

Dubai Industrial License

For setting up a manufacturing or industrial activity

Benefits of Company Formation in Dubai

  • Complete repatriation of profits and capital for all types of companies
  • 100% foreign ownership for free zone companies, offshore company and (professional license holder) mainland companies
  • No need of local sponsor for free zone companies and mainland companies with professional license
  • Offshore companies and several free zones are completely tax free. Very small tax on other business jurisdictions
  • Relatively cheaper, easily available and competent labor and staff
  • World class infrastructure (offices, warehouses, roads etc.) and proximity to important airports and seaports
  • Flexible bank account opening and maintenance with availability of multi-currency bank accounts
  • 3 year visas for investor, family members and staff
  • Company registration process is simple and quick due to use of modern technology
  • Best residential and commercial structures with state of the art telecommunication and reliable utility system
 

What is the Procedure for Company Formation in Dubai?

Choose the Name of the Company

Choosing the name of the proposed company is the first step when it comes to company formation in Dubai. Every company will select a trade name before its formation. This trade name must be unique and according to rules and regulations of DED. This name has to be approved by DED (Department of Economic Department)

Choose the right business activity.

You must be aware of your business activity as if you are conducting trading business you need to setup a commercial license and in case of services you need to setup a professional company.

Hire the Local Sponsor

A local sponsor (Local Emirati) is required for Dubai mainland company formation (except for those with professional license where local Emirati will be act as a local service agent). Local sponsor will hold 51% shares of a company against an annual fee.

Local service agents are required in case of professional license. The UAE national will not hold any company shares in professional company.

Select the office Location

Selecting appropriate location and making a tenancy contract is also necessary for registration of company in Dubai. You can also choose virtual office in any of the business centers but it depends on the business activity.

Preparation of the M&A

The next step is to prepare MOA (memorandum of association) of the new company.

Final Submission

License application, MOA, tenancy contract and several other documents will also be required for final submission according to the type of company and jurisdiction selected for your business.

 

How Smart Business Creation Consultancy Can Help You?

We are specialized in all types of company formation in Dubai and UAE, Starting from Onshore to Offshore and Free Zones.

  • We can advise and consultant on what is the best and suitable business structure you need for your current and future plans.
  • We provide services in all business jurisdictions of Dubai for all types of company formation
  • We assist in completion of the whole process from finding local sponsors to attestation of documents and ensuring quick and problem-free company registration process in relevant authorities
  • We provide legal services, translation services, bank account opening, visa services and all other services required during and after the registration and licensing process of company formation
  • We have a good reputation and complete knowledge of local market due to years of experience and number of satisfied clients in Dubai and other emirates of UAE