Company Formation In Dubai

Company Formation In Dubai

A Closer Look At Company Formation In Dubai

Are you an investor or entrepreneur enthusiastic about planning or looking to set up a business in Dubai? The following article will guide you through it.

Dubai is the heart of the UAE, and In the business world, Dubai is a thriving local and foreign investment centre. Investors with various business requirements can also use the mainland, free zones, and offshore nations. It lures new entrepreneurs’ attention to forming a company here and offers various benefits, such as high-tech facilities, excellent infrastructure, tax benefits, etc.

The government invites businesspeople from all over the world, making the setup simple. The legal procedures are quicker, registration is straightforward, and there is less paperwork.

Various Types Of Zones for Company Formation in Dubai

Customised Packages


Investors who want to conduct business in the UAE frequently choose to create their companies in free zones in Dubai. Due to its low costs and rapid business creation procedures, Dubai’s free zone company formation appeals to investors who serve clients worldwide.


The relevant free zone authorities, who also provide investors with a trading licence in Dubai, manage and regulate the free zones. You can run a business internationally or within the region with the free zone company. It offers benefits such as special customs treatment, tax exemptions, and 100% foreign ownership. These zones don’t need a local partner with a 51% ownership stake; they can be entirely foreign-owned.

Dubai Offshore Company Formation


Setting up an offshore company in Dubai is a smart option for international investors looking for tax advantages, asset protection, and investment growth. Establishing an offshore corporation in Dubai is quick and straightforward compared to other business choices.


Setting up an offshore company is motivated by providing complete financial secrecy. Dubai, United Arab Emirates, provides foreign investors a fantastic chance to be paid in the UAE and their home nations. Offshore company formation in Dubai is an excellent method to take advantage of the Double Taxation Avoidance Agreements (DTAAs) the UAE has negotiated with about 115 other nations.

Dubai Mainland Company Formation

A mainland business is famous as an onshore company. It is an opportunity for foreign entrepreneurs to commence a business in the broader UAE marketplace. This kind of business may operate without limitations both inside the UAE and on the international market.

You will require a regional sponsor holding 51% of the company’s shares. You will also require a physical office to conduct business on the Mainland. The following legal structures can be established in Dubai depending on the ownership arrangement.

  • Civil Company
  • One-Person Company
  • Partnership Company
  • Public Shareholding Company
  • Limited Liability Company (LLC)
  • Simple Limited Partnership
  • Private Shareholding Company.

Difference Between Mainland and Freezone



Free Zone


Ownership Restrictions

There is a requirement for shareholding (holding a 51% share in the company).

Offers 100% ownership.

Offers 100% ownership.

Government Approvals

Require government approvals.

Require government approvals.

Require government approvals.
It provides flexibility for setting up a business anywhere in the UAE.

It puts restrictions on business activities (within free zones or internationally).

It puts restrictions on business activities.

Number Of Visas

Freedom of obtaining visas.
Two visas permit the smart office package for more people needing physical office space.
The Smart Office package allows for two visas. For more, you need to have a physical office space.
Office Space Requirements.

Companies need to have a physical business address.

In this sense, companies do not require a physical office (the rest depends on the business activity).

Companies can have a flexi desk facility (common business centre desk).

Different Types Of Business License For Making Your Company Official

Commercial Licence


This licence is required when you engage in trading and selling certain services. For example- real estate businesses, construction companies, retail companies, etc.

Industrial Licence


This licence is required for industrial activities, For example- importing raw materials, aluminium, aerospace, pharmaceuticals, etc.

Professional Licence


To officially run professional services, you will need this license. Some professional activities include accounts, lawyers, carpenters, medical consulting, etc.

Tourism Licence


For tourism and travel agency businesses will require a tourism license. Some tourism services include- Travel, access to hotspots, etc.

Documents Mandatory For Company Formation In Dubai

To complete your company formation registration, you must submit the following documents:

  • Complete and detailed information about shareholders.
  • Passport copies of the owner and passport copies of managers and shareholders
  • Filled out the application form.
  • A complete, detailed PDF of the business plan.
  • Visa copy of the residence.
  • Board resolution documents
  • No objection certificate.
  • Identity and address proof for the shareholders.
  • Memorandum and article of association

Benefits Of Company Formation In Dubai, UAE

Some of the benefits to investors for starting a company in Dubai

  • Low cost for company setups.
  • Rapidly-growing economy.
  • Benefits of tax charges
  • There is no minimum capital requirement.
  • Freedom of location
  • 100% foreign ownership
  • Low import duty
  • Freedom on currency limitation.
  • Closure of seaports and airports.

Company Formation In Dubai Fees

The cost of forming a company in Dubai can vary depending on several factors, including the type of company you wish to establish, the location, business activities, and specific requirements. Here are some typical expenses you might encounter when setting up a company in Dubai:

  1. Company License Fees: This includes the cost of obtaining the necessary license for your business activity. The fees can vary depending on the type of license (commercial, industrial, professional, etc.) and the issuing authority (Department of Economic Development, Free Zones, etc.).
  2. Registration Fees: There are registration fees associated with setting up a company in Dubai. This includes the initial registration with the relevant authorities.
  3. Office Space Rental: If you’re setting up a company outside of a free zone, you’ll likely need office space. The cost of office space can vary depending on the location and the size of the office.
  4. Visa and Sponsorship Fees: If you plan to hire employees, you’ll need to consider the cost of obtaining employment visas and sponsoring your employees. This includes visa application fees, medical fitness test fees, Emirates ID fees, etc.
  5. Legal and Documentation Costs: You may need to engage the services of a local sponsor or a legal consultant to help with the company formation process. There will be fees associated with these services.
  6. Miscellaneous Costs: There may be other costs associated with specific requirements for your business, such as approvals from regulatory authorities, bank account opening fees, insurance, etc.

It’s essential to research and understand all the costs involved in setting up your company in Dubai and to budget accordingly. Costs can vary significantly depending on the complexity of your business structure and the services you require. Consulting with a business setup advisor or a legal expert familiar with Dubai’s regulations can help you get a clearer picture of the total expenses involved.

Procedure For Company Formation In Dubai

Dubai is a smart choice for investors to form a company. This also helps businesses grow internationally. Following are the procedures for business setup in Dubai:

The Name Of The Company


Choosing the company’s name is a challenging job, as the name will represent the public face and meaning of the company. So consider the name by investigating it properly.

The name should be unique, not taken from existing ones, and follow the Department of Economic Development guidelines. It shouldn’t be offensive to caste or any religion.

Choose The Business Structure


The next step is to finalise the business entity you wish to pursue so that you can apply for the business license accordingly. Choosing a business entity depends on various factors, including your budget, the number of shareholders, etc.

Also, choose the category of your business activity, such as agriculture, trade, or manufacturing.

Apply For A Business Licence​


After deciding on the business activity, register for a licence. To start your business correctly in Dubai, you must choose and apply for the appropriate licence. For example, certain company categories call for prior clearance from specific authorities. It will be easier for you to avoid the typical pitfalls that individuals encounter if you have a solid understanding of the dos and don’ts surrounding the establishment of your company licence.

Submission Of Documents


In the next step, The incorporation process will be finished once the documentation procedure has been completed. Pile up all mandatory documents relevant to the application and re-check if you miss something before submission.

Later, The government entity receives the documentation and decides whether to grant the license. If there are any rejections, double-check the documents and correct any errors.

Process Of Visa

Finally, to conduct business operations effectively, Open a corporate bank account to make transactions domestically or internationally.

Opening a corporate bank account in the UAE might be challenging for foreign business owners. Contacting your preferred bank requires excellent discussion, and there are several boxes to check to ensure everything is in order.

A Bank Account


This free zone makes fast business processes from approving the documentation for business registration to gaining a trade license within an hour.


It offers several warehouses for your needs and land for company formation.