The beginner’s guide for Company Formation in Dubai

The beginner’s guide for Company Formation in Dubai


Dubai is one of the most business-friendly city with a stable economy and highly friendly rules and regulations for investors. This magical land of tremendous opportunity has a growing business market, where markets are generally making a notable trend and scope.

Dubai government is highly focused towards any business intervention that will bring enough foreign investment and talent to Dubai. The growing network of business in the private and public sector have made this land most flexible to any kind of business. Over the last few years, Dubai has enriched with various business leaders and entrepreneurs in the private sector. The Incubation facilities such as the Dubai Silicon Oasis, Dubai Science park, 5Dubai, etc. contribute more towards the Startup growth in Dubai.

Continuous innovations in the technology and other developments in UAE has made it an ideal destination for startup ventures. Preference of the government to nurture non-oil economy has put wide scope for various business ventures. E-commerce, marketplaces, soft wares, etc. are the major startups in Dubai.

Why you should open a company in Dubai?

Dubai has grown as the prime business hub in the middle east and one of the fast-growing business destination across the globe. Over the past few decades, Dubai has been showing exemplary growth in every sector. Potential investors can explore every favorable condition for the business easily in this land. Following are the pull factors for startups in Dubai.

  1. Government Support for startups
  2. Strong economy
  3. Attractive infrastructure facilities
  4. Technological developments
  5. Zonal categorization for business setup. Free zones are attracting the mass volume of potential investors
  6. Easy and hassle-free procedures for company setup
  7. Tax exemption benefits
  8. The high living standard of Dubai paves the way to various business
  9. Easy access to the international market

How To Set Up a Company In Dubai?

Here is a quick guide for company formation in Dubai!

Depending on the type of company, company formation procedures will take different formalities and steps in Dubai. Various business consultancies are found in UAE, who gives company formation assistance in UAE. Dubai provides a hassle free and quick procedures for any type of business setup in Dubai.

Start your own company in Dubai!!

  1. Choose on the legal form of company in Dubai
  2. Find a local sponsor
  3. Identify the type of License
  4. Select a unique business name
  5. Apply for commercial/Industrial or professional license
  6. Find a space and build your office
  7. Register your company

Planning on a company formation in Dubai?

In the United Arab Emirates, Dubai provides magnificent infrastructure, intense and quick growing horizons, to be the biggest business hubs in the world. With the best business strategies in wide options to opt for different types of company formations, Dubai invites aspiring business people around the globe.

Dubai government rules and regulations on a business set up by a foreign investor requires more government and legal procedures. For this an expert hand in this field is must to accompany with all kinds of business set up procedures.

UAE offers vast opportunities to form different kinds of companies in UAE. Thorough study on the possibilities and scope raised by each type of company will give idea about various types of companies.

Find an Office for your business in Dubai

Companies in the UAE can be registered under various jurisdiction. Major legal forms of companies are:

  • UAE Free Zone Company Formation
  • UAE Mainland Company Formation
  • UAE Off-Shore Company Formation

 Free Zones Company Formation in Dubai

Planning on a free zone company formation in Dubai?

Following are the multiple free zone opportunities in the UAE. A few of them are listed below.

  • Jebel Ali Free Zone (JAFZA)
  • Dubai Multi Commodities Centre (DMCC)
  • Dubai Airport Free Zone (DAFZA)
  • Dubai Silicon Oasis (DSO)
  • Dubai International Financial Centre (DIFC)
  • Dubai South
  • Sharjah Media City (SHAMS)
  • Sharjah Airport International Free Zone (SAIF)
  • Ajman Free Zone (AFZ)
  • Fujairah Free Zone (FFZ)
  • Hamriyah Free Zone (HFZ)
  • Umm Al Quwain Free Zone (UAQ FTZ)

UAE On Shore Company Formation

Onshore company does not allow full foreign ownership and possess tax obligations as they are operating within UAE.

  • Dubai Commercial License
  • Dubai Professional License
  • Dubai Representative Office

Off Shore Company Formation in Dubai

This kind of company does not impose any limitations or demands on owners/shareholders of the company and no need to pays 0% corporate tax as they are not actively operating within the UAE.

  • Jebel Ali Offshore Company (JAFZA)
  • RAK International Corporate Centre (RAKICC)

Find a local sponsor

The next step in the company formation in Dubai is to get a reliable Emirati sponsor for the business. UAE Companies Law and UAE Civil Law, to start a company with limited liability in a mainland, that is, a non-offshore company in a non-free zone, a minimum of 51% local equity is a must. Despite foreign equity in such a company not exceeding 49%, the profit distribution from it can be mutually agreed upon by concerned parties. If the business setup is on any free zones, local sponsors are not required. Finding the right sponsor for your business will define the future of your dream.

  • Individual local sponsorship – The sponsorship is given by a local individual in UAE.
  • Corporate sponsorship – Sponsorship is given by a corporate sponsorship service provider.

Identify the type of License

The next step for company formation in Dubai is deciding on the type of license that has to be applied for business. Company formation can be of different types, based on the mode of investments from the partners or shareholders. You can apply for following types of licenses in Dubai.

  • Limited liability companies
  • Private and public joint stock companies
  • Partnerships
  • Branch offices
  • Subsidiaries
  • Free zone limited liability companies
  • Free zone establishments

Select a unique trade name

One of the prominent step in the startup of deciding on the trade name for your business. The trade name should be consistent and in proportion with the commercial activity of the firm. The firm name also should be identical to the trade name. Name play a major role in the establishment of company in market. Catchy and attractive names will cause on the acceptance in market and even for the rise in productivity.

Apply for commercial/Industrial or professional license

New company formation in Dubai should apply for any of the license from different type of license issued in Dubai. The Department of Economic Development (DED), Dubai is the licensing authority that issues a license for major activities. This is the fundamental prerequisite for all business activity in Dubai is to apply for and procure one of the following 3 categories of licenses:

Commercial License -Usually given for business focusing on any kind of trading activity in Dubai.

Industrial License – For setting up a manufacturing or industrial activity, application to granny industrial license is required.

Professional License-Meant for artisans, craftsmen, and other professional service providers. Any professionals such as Doctors or Engineers can begin their own firm upon obtaining a professional license from concerned department.

Find a space and build your office

The next step in the company formation in Dubai is to find a suitable office for performing business activities. As setting of new office is of higher part on cost, most of the investors of this time are going for rented office space or sharing office space with furnished or non-furnished option.  Getting an office arranged in prior is required as to provide contact address and location. It is also required to complete inspection or any other procedures from government towards the license or visa approval.

Getting an office space in Dubai is not a great deal.  You can setup high class office to cheapest facilities in Dubai with differential budget. Various real estate groups and commercial brokers are providing flexible rent packages for rental office spaces or sharing office spaces. Based on the business behavior and target customers, company investors can choose on office location.

Register your company

Arrange all the further documents and papers to make the company registered and go ahead with further business operations. Upon the submission of MOA with sponsor, tenancy contract of office along with license application in DED will finalize your company setup procedure. Each type of business will require approval from concerned ministry and once all the documents are verified, company formation will come to an end by registering your new company in Dubai chamber of commerce, UAE.

Better seek experienced company formation professional

Being new to the Dubai business market, it is always advised to get professional assistance to complete company formation procedures in Dubai. Company formation consultants in Dubai will support the investors by combining first-hand knowledge of the UAE market and its business culture with an excellent network of investors, partners, vendors, Govt. departments and agencies. This way, company formation consultants in Dubai will help you with every aspect of starting and running a company in the UAE.

Choose your business need in Dubai or UAE to continue