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Business Start up
Dubai offers a diverse range of business setup options to cater to the varying needs of entrepreneurs and investors. Understanding the types of business setups available is crucial for making informed decisions that align with your business objectives and operational requirements. Here are the main types of business setups in Dubai:
3 Types of Business Setup
Mainland
A mainland company is registered under the Department of Economic Development (DED) in Dubai and is
allowed to operate within the local market as well as outside the UAE without any
restrictions.
Advantages: Offers a high level of privacy, asset protection, tax optimization, and is relatively easy to set up with minimal paperwork.
Suitable for: International businesses seeking asset protection, those looking to optimize taxes, or businesses that do not require a physical office space in the UAE.
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Freezone
Free zones are special economic zones offering tax exemptions, 100% foreign ownership, and benefits of
repatriation of profits and capital. Each free zone is designed around one or more industry categories and
only offers licenses to companies within those categories
Advantages:100% foreign ownership, full repatriation of profits and capital, no import or export duties, and no personal or corporate taxes for a certain period (renewable).
Suitable for:Businesses looking for a quick start-up process, those engaged in international business, or those requiring 100% ownership by foreign nationals.
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Offshore
An offshore company is registered in the UAE but is intended to operate outside its borders. It is not
allowed to conduct business within the UAE except for banking transactions and real estate ownership in
designated areas.
Advantages: Allows international companies to have a presence in the UAE market to oversee business activities, conduct market research, and establish business relationships.
Suitable for: Foreign companies looking to explore the UAE market without setting up a separate legal entity or those in the process of establishing a more permanent presence.
Branch/Representative Offices
Foreign companies can establish branch or representative offices in Dubai. While branch offices can engage in commercial activities and bill clients, representative offices are limited to marketing and promoting their parent company’s activities.
Advantages: Allows international companies to have a presence in the UAE market to oversee business activities, conduct market research, and establish business relationships.
Suitable for: Foreign companies looking to explore the UAE market without setting up a separate legal entity or those in the process of establishing a more permanent presence.
Professional License
For individuals or civil companies wanting to practice professional services in Dubai, a professional license is issued. This setup allows for 100% foreign ownership but may require a local service agent.
Advantages: Enables professionals to offer their services directly to the local market, with the possibility of 100% foreign ownership and the ability to repatriate all profits.
Suitable for: Service providers such as consultants, lawyers, accountants, and IT specialists.
Choosing the right type of business setup in Dubai depends on your business activities, target market, ownership preferences, and long-term business goals. Each setup has its unique advantages and regulatory requirements, making it important to thoroughly evaluate your options or consult with business setup experts in Dubai to find the best fit for your business aspirations.
We support you at every step
To run a company in Dubai, one must acquire a valid license from the government. Once a company is registered with DED, you are allowed to then conduct business in the local market without any restrictions. The Business Setup license types are
Professional License
Commercial License
Industrial License
Some activities may require additional approval from other ministries or different authorities
Establishment and Sole Proprietorship
An investor can set up an establishment with sole ownership they will have complete control over the firm. This proprietorship can be established for any major industry sector. Under the laws of the region, this firm will still have an acting service agent who needs to be a UAE national.
Civil Companies
Civil companies can be set up for business owners who hold professional qualifications in their respective fields of specialization. If you are qualified and licensed professional in specialized sectors including law, accountancy, medicine, engineering, and more, you can apply for civil company formation. It allows 100% ownership and offers access to the local market, but entails unlimited liability and a local service agent to be kept on retainer.
Forming a Limited liability company in Dubai (LLC)
A Limited Liability Company (LLC) is an enterprise of flexible form that blends the elements of partnership and corporate structures. According to the law, total equity of 51% should be held by a U.A.E. national in any commercial company and must have 2 to 50 shareholders. Each of these shareholders is liable only to their share in the capital of the company.
Establishment and Sole Proprietorship
An investor can set up an establishment with sole ownership they will have complete control over the firm. This proprietorship can be established for any major industry sector. Under the laws of the region, this firm will still have an acting service agent who needs to be a UAE national.
Civil Companies
Civil companies can be set up for business owners who hold professional qualifications in their respective fields of specialization. If you are qualified and licensed professional in specialized sectors including law, accountancy, medicine, engineering, and more, you can apply for civil company formation. It allows 100% ownership and offers access to the local market, but entails unlimited liability and a local service agent to be kept on retainer.
Forming a Limited liability company in Dubai (LLC)
A Limited Liability Company (LLC) is an enterprise of flexible form that blends the elements of partnership and corporate structures. According to the law, total equity of 51% should be held by a U.A.E. national in any commercial company and must have 2 to 50 shareholders. Each of these shareholders is liable only to their share in the capital of the company.
Branch or Representative of a Foreign Company
A branch that will become an extension of a company or a business shall be subject to the laws of Dubai. The marketing and promotion of products will be carried under the same name, but cannot import goods into Dubai. The branch office will have an independent budget, with its own profit/loss statements and must appoint a UAE-accredited auditor.
