Types of Companies in Dubai

Both local and foreign entrepreneurs can choose the types of companies they are interested in and register them in accordance with the legal requirements imposed in Dubai. It should be noted that these requirements are slightly different for local and foreign investors coming to Dubai. Our agents for opening a company in Dubai explain below the main requirements imposed for setting up various types of business forms.

Available types of companies in Dubai

Before starting a business in Dubai you must select the appropriate type of entity. There are four main types of companies in Dubai, however, each category has its subdivisions. The categories of companies to be registered in Dubai are:

• companies,
• partnerships,
• branch offices,
• free zone companies.

Exactly like many European jurisdictions, for example, Switzerland, Dubai offers the possibility for foreign companies to open branches or subsidiaries.

Business forms available for foreign investors in Dubai

Foreign companies interested in establishing a presence in Dubai can choose between the branch office and the subsidiary. While the first type of company will be required to complete the same activities of the parent company, the subsidiary offers greater flexibility in terms of activities to be carried out.

Both subsidiaries and branch offices can be set up in Dubai mainland, as well as in Dubai free zones. The subsidiary will take the form of a limited liability company most of the time.

Among the companies, the Dubai limited liability company is the most employed. The other types of companies available for registration in Dubai are:

•  the civil company,
•  the joint venture company,
•  the private shareholding company,
•  the public shareholding company.

Partnerships are divided into general, simple limited partnerships, and partnerships-en-comandite, but there is also the notion of a partnership company. Partnership companies, however, are usually limited to Dubai citizens.

Dubai branch offices can be divided into:

• branches of foreign companies,
• branches of civil companies,
• branches of Dubai and UAE companies,
• branches of GCC companies,
• branches of free zone companies.

If you need to open a company in another country in the Middle East, such as Oman, we can help you with the company formation. The timeframe for incorporation is up to one month and there is no requirement for a local director.

Requirements for opening a limited liability company in Dubai

The most employed type of company in Dubai is the limited liability company. It can take the form of a private or public company and is subject to various requirements. The shareholding structure of such a business type depends on whether the company will be registered in Dubai or one of its free zones.

Those who want to open limited liability companies in Dubai must comply with the following requirements:

• the company must have at least 2 shareholders if registered in Dubai, and at least 1 if set up in a Dubai free zone;
• in terms of share capital, a Dubai-based company does not need a minimum amount, however, in a free zone the amount of money required is established by each free zone authority;
• the Memorandum and Articles of Association are the documents which need to be prepared for the registration of a limited liability company;
• the company will need a registered address in Dubai or in the free zone it will operate in;
• the company will also need to have a bank account set up with a local bank;
• the business license must be obtained in accordance with the activities to be undertaken.

No matter the chosen business form, a local agent must be appointed to register the company with the Dubai Department of Economic Development. This procedure can be successfully completed by our Dubai company incorporation representatives.

Here is an infographic with information about some of the available types of companies in Dubai:

Setting up sole traders and partnerships in Dubai

The sole proprietorship is the simplest type of company in Dubai and does not impose any special requirement other than having a residence permit in the case of a foreign citizen. The operations of the sole trader can be completed by the owner of the business who will receive all the profits of the business, however, he or she will be fully liable for the company’s debts and obligations.

The partnership can be a great solution for foreign entrepreneurs with specific professions who want to relocate to Dubai. The creation of a partnership, whether general or limited, is based on drafting a partnership agreement. There are no share capital requirements for establishing sole proprietorships or partnerships in Dubai. Assistance in company formation in Dubai can be provided by our local consultants.

You can also watch the video below for information about the types of companies available for registration in Dubai:

How to open a representative office in Dubai

A liaison office in Dubai is an option for foreigners who want to research the local market and advertise their business. This structure does not allow the development of economic activities in Dubai. Here are other features:

• Must have a representative officer in charge of daily operations, marketing campaigns, and more.
• A preliminary approval is required to register a liaison office in Dubai.
• Through a representative office in Dubai, one can contact potential customers and local partners.
• The liaison officer is responsible for communication with the parent company interested in advertising the business in Dubai.
• AED 10,000 is the minimum deposit for opening a liaison office in Dubai.
• Dubai Trade Register issues approvals for opening a representative office in Dubai.
• Marketing and promotion activities are conducted through a liaison office in Dubai.

Therefore, if you are interested in this business structure, we invite you to discover more information by contacting one of our local representatives in Dubai.

Buying a shelf company in Dubai

A shelf company in Dubai is the same as a ready-made company. This structure is already registered and can be bought by foreign entrepreneurs who want a turnkey company, without going through the incorporation formalities. A shelf company in Dubai presents various advantages. For example, because it is already registered with the local authorities, it benefits from a tax ID and a bank account. Moreover, once the ownership transfer is concluded, the new owner of the company can already start its activities. In addition, the transfer takes place between the interested parties, i.e. the local/foreign entrepreneurs and our team of company formation agents. We can make recommendations regarding available shelf companies in Dubai.

Offshore companies in Dubai

Offshore companies in Dubai are also preferred by foreign entrepreneurs due to the benefits offered. For example, information about shareholders, managers, and secretaries is not available for public disclosure. In fact, there are no reporting requirements when having an offshore company in Dubai, UAE. Another important aspect to specify in this case is the fact that solid asset protection and low taxes are offered.

Types of business licenses in Dubai

Foreign investors can set up several types of companies in Dubai depending on their business objectives. Before deciding on the type of company they must select the category of business license as the Dubai Department of Economic Development regulates three types of business licenses. These are:

• the commercial license,
• the industrial license,
• the professional license.

The commercial license is available for types of companies involved in trading activities, among which sales. The industrial license applies to companies involved in manufacturing, processing, and packaging activities. The professional license applies to personally offered services such as consultancy and is suitable for sole proprietors in Dubai.

The same business license categories apply in case the entrepreneur decides to open a company in Dubai in the available free zones.

The Company Law in Dubai

The creation of various types of companies in Dubai falls under the provisions of the Company Act which covers a wide range of business forms.

Foreign investors interested in opening companies in Dubai should know that the requirements for a specific business form will depend on where the company is located – in mainland Dubai or one of its free zones.

In case a foreign entrepreneur decides on a Dubai onshore company, he or she will need a local partner or sponsor. In the case of a free zone company, full foreign ownership is allowed.

Our local consultants can offer more information on the requirements imposed by the Company Act when it comes to foreign investors interested in setting up a company in Dubai.

Economy facts about the UAE

Below are some statistical data about the UAE economy, if you want to open a company in Dubai:

• An economic growth of approximately 4% is expected in the UAE in 2024.
• The UAE’s non-oil foreign trade achieved a record of around USD 337.3 billion, in the first half of 2023.

If you plan on company incorporation in Dubai and need guidance in choosing the right business form, our local consultants are at your disposal with detailed information. In addition to the registration services of a company, we emphasize that you can also opt for assistance for immigration to Dubai. For details about the requirements for setting up a company in Dubai, you can contact our company registration in Dubai agents.