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| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) | UAE Company Law |
Best used for | – oil&gas, – banking, – insurance, – trading |
Minimum share capital | No, except mainland Dubai |
| Time frame for the incorporation (approx.) | Around 2-3 months |
| Management (local/foreign) | Local |
| Legal representative required | No |
| Local bank account | Yes |
| Independence from the parent company | Yes |
| Liability of the parent company | No, the subsidiary is fully liable |
| Corporate tax rate | No, except the oil&gas and banking sectors |
| Possibility of hiring local staff | Yes |
Table of Contents
Is a subsidiary in Dubai 100% foreign owned, or do I need a local partner?
There is no need for a local partner to set up a subsidiary in Dubai, except in strategic business sectors (banking, oil & gas, etc.).
What are the key features of a subsidiary in Dubai?
- it is an independent legal entity,
- it enjoys high levels of operational autonomy,
- it can carry out different activities than the parent company and can have its own name,
- it is limited to the subscribed capital, etc.
Where do I register a subsidiary in Dubai?
At the local Trade Register – the Dubai Department of Economy and Tourism, formerly the Dubai Department of Economic Development (DED).
What is the proper business structure for a subsidiary in Dubai?
- the limited liability company,
- the joint stock company.
We invite you to see our scheme on how to create a subsidiary in Dubai:
What is the minimum share capital for a Dubai subsidiary?
- LLC – no minimum share capital,
- JSC – AED 10 million.
NOTE: Subsidiaries established in the banking & insurance sectors have higher minimums, AED 25 million to AED 40 million.
What are the main conditions to set up a subsidiary in Dubai?
- decide whether you want to open in Mainland Dubai or in the available free trade zones,
- reserve the company’s business name after a short verification with DET,
- obtain approval from the DET for the trading activities to be undertaken,
- draft and notarize the Memorandum and Articles of Association for the subsidiary,
- submit information about the shareholders to the DET,
- VAT registration is also mandatory when opening a subsidiary.
How can I obtain a business license in Dubai?
In order to obtain a business license, the following documents must be submitted:
- the Memorandum and Articles of Association of the Dubai subsidiary in original and copy,
- an application form,
- a name approval letter issued by the DET,
- a company approval letter issued by the DET,
- copies of the shareholders’ passports.
IMPORTANT: The Dubai subsidiary will also need to obtain clearance from the Municipality Building Department, as it must have a registered office in the Emirate.
Is a representative agent needed for opening a subsidiary in Dubai?
Not required.
What is the taxation of subsidiaries in Dubai?
- no CIT for up to AED 375,000 annual net taxable profits,
- 9% CIT on the amount exceeding AED 375,000/year,
- 15% Domestic Minimum Top Tax (DMTT) for big multinational companies, etc.
What is the time frame to set up a subsidiary in Dubai?
Around 5-10 weeks.
Are there any business updates to consider when opening a subsidiary in Dubai?
- all companies in Dubai must execute the ESG reporting requirements in 2026. These refer to tracking and reporting carbon emissions as part of the UAE’s net-zero transition.
- subsidiaries in Dubai must implement a national real-time digital invoicing system, as part of the government’s effort to enhance tax transparency in the Emirate.
- the sector-wide AI deployment infrastructure in Dubai already sees major changes in sectors like logistics, retail, and finance, among others.
Immigration to Dubai might come to the attention of foreign investors interested in relocating to the UAE for business purposes. For information related to setting up subsidiaries in the Emirate, please contact our experts in company incorporation in Dubai.