Start Company in Dubai
Company Registration in DUBAI
The United Arab Emirates (UAE) offers endless investment opportunities to local and international investors and attracts trade due to a number of free zones located throughout the Emirate which offer lucrative incentives attracting investment. Significant among these are no corporate or income tax, no personal income tax, no foreign exchange controls, 100% repatriation of capital and profits, amongst many other benefits which attract foreign investors to the region.
There are many options open to international companies seeking to setup a business in the UAE. Apart from forming a trading relationship through commercial agencies, for many companies there are distinct advantages in having a local presence. This makes it easier to research market prospects, make contacts, liaise with customers and see through the details of any transactions.
The UAE is a constitutional federation of seven emirates; Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ras Al Khaimah and Fujairah. Dubai is one of the world's best destination to start a business.
Typers of companies one can open in Dubai:
Three are three types of Companies you can open in Dubai.
(1) Mainland Company,
(2) Free Zone Company and
(3) Offshore Company.
Again these are devided into different types. One should choose a company type based on thier nature of business.
Mainland Company:
Mainland Company is a company registered by Department of Economic Development (DED), Government of Dubai, which is a local company and can do borderless business in UAE. There are three types of licenses issued under MainLand:
Legal Structure of Mainland Company:
The Mainland Company may be registered anywhere in the UAE in the fllowing ways:
These licenses are issued by the Department of Economic Development with the exception of licenses for hotels and other tourism related businesses which are issued by the Department of Tourism and Commerce Marketing. However, licenses for some categories of business require prior approval from certain ministries and other authorities, such as:
In general, all commercial and industrial businesses in the UAE should be registered with the Chamber of Commerce and Industry.
The UAE Commercial Companies Law requires that each company established in the UAE have one or more UAE national partner(s) who hold at least 51% of the company’s capital. Companies that undertake certain activities are exempt from the 51% requirement, including oil companies with concession agreements, companies involved in the oil and gas industry, companies that produce electricity and gas, companies involved in treatment of water and transmission and distribution. Foreign banks are exempt from having to appoint a sponsor. Professional licenses covering professions, services, craftsmen and artisans are exempted from 51% requirement, they need to appoint a Local Service Agent on a fixed remuneration payable on yearly basis.
Free Zone Company:
The Free Zone or Free Trade Zone provides free trading and an industry ecosystem within that particular jurisdiction. Free zones are usually attached to ports (such as JAFZA) and/or are industry specific. The UAE has over 50 free zones and each Free Zone is designed around one or more commercial categories and only offers licences to companies within those categories. The following are the few of the free zones in UAE.
Types of Licenses issued by Free Zone Authorities:
Each free zone will have Registrar of Companies and these free zones may issue following business licenses:
Benefits of Free Zone Company:
The following are the benefits of Free Zone Company:
Legal Structure of Free Zone Company:
The Free Zone Company may be registered in that particular free trade zone and the operations are restricted to that jurisdiciton only except for national industrial license companies.
Offshore Company:
An Offshore Company is a legal business entity that is set up with the intention of operating outside its registered jurisdiction and/or the location of its ultimate ownership. Offshore companies can feature in most financial planning scenarios when trying to mitigate tax exposure and/or with regards to passing assets on to beneficiaries freely in the event of death. Sometimes referred as Special Purpose Vehicles (SPV). At present Two Free Zones are providing Offshore company licenses. ie. JAFZA and RAKFTZ. The following are the benefits of Offshore companies in UAE.
Comparision between Mainland, Free Zone & Offshore Companies:
| Particulars | Mainland Company | Free Zone Company | Offshore Company |
|---|---|---|---|
| Registering Authority | Department of Economic Development (DED) | Registrar of Companies, Free Trade Zone | Registrar of Companies, Free Trade Zone |
| Ownership | Expat 49% & Local Sponser 50% For Professional Company Expat 100% |
Expat 100% Incae National Industrial License Expat 49% |
Expat 100% |
| VISA | Allowed for 2 years | Allowed for 3 years | Not allowed |
| Cost of Formation | High | Medium | Low |
| Area of Opetation | No restrictions | With in the Free Zone | Not allowed in UAE or Home Country |
| Repatriation | No restrictions | No restrictions | No restrictions |
| Office Space | Required Min 200 sft | Not required. They can have virtual space | Not required |
| Audit | Required | Not required except for Free Zone Companies and Free Zone Establishments | Allowed to be registered |
| Company Secretary Services | Not required | Required | Not required |
| Registered Agenet | Not Required | Not Required | Required |
| Local Sponsor | Required for all except professional license where Local Service Agent is required | Not Required except where National Industrial License | Not Required |
Documents Required for Company Registration in Dubai:
-
For Mainland Company
- Application Form
- Certified passport copies for all shareholders and managers
- Copy of the UAE residence visa, if applicable
- No Objection Certificate (NOC) from current UAE residence visa sponsor
- Shareholder address proofs duly certified in 2 sets
- Shareholders CV
- Bank Reference letter for each shareholder
- If the shareholder is a corporate entity, MOA, Certificate of Registration, Board Resolution & Power of Attorney
- All documents should be notarised in home country and UAE consulate
- All documents must be translated into Arabic
- Tenancy Contract Authenticated by RERA
- Service Agent Agreement Certified by Notary Public
- Proof from the Department of Naturalization and Foreign Affairs stating that partner has lived for at least 6 months outside the country
- Letter from Ministry of Labor for Proof of No Employees
- Court Permission for Minors Under 21 to Practice License Activity in case of minor
- Present Unified No. from the Department of Naturalization and Foreign Affairs
- External Approvals if any required
-
For Free Zone Company
- Application Form
- Certified Passport Copy and UAE Visa/UAE entry stamp (if non-resident)
- Shareholder address proofs duly certified in 2 sets
- Bank reference letter
- Shareholders CV
- These documents vary from Free Zone to Free Zone
-
For Offshore Company
- Application Form
- Certified Passport Copy and UAE Visa/UAE entry stamp (if non-resident)
- Shareholder address proofs duly certified in 2 sets
- Bank reference letter
- Shareholders CV
Why CompaniesHouse?
No Hidden Charges:
We believe in clear and transparent pricing. The price advertised is the price you pay. There are no additional costs to register your business.
Speedy Service:
In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered.
20+ Years of Exp:
We are experts in our field, our team has over 20 years of experience. Take the hassle out of setting up your business, rest assured that you are backed with the support you need to succeed.
Trusted Service:
Today our clients expect outstanding service. That's why we are so proud that 99% of our clients rate us "Great" and "Excellent" on Google.
Simplicity:
The whole process, from ordering to using your company registration license, is made as simple and easy as possible to help you build your business.
Privacy & Security:
Customer privacy and security is paramount. We ensure your payment, company and personal information is protected at the highest level.
What Client Says?
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Ram Kumar Chilukuri Director, Anewa Engineering Pvt Ltd
Thanks for your continuous support. God bless you!
Nrupesh CFO, Blujay Solutions Private Limited
Thank you CompaniesHouse for saving in Income Tax!
Avtar Singh Managing Partner, Chetak Transporters
We are surprised to get our Company registered in one day. Thanks.
Mohammed Fasiuddin Director, Avidus Engineering Pvt Ltd
Thank you for the initial discussion as we choose best business format!
Lakshmi Keerthi Reddy Director, Lavanar Sea Food Farming Private Limited
Thank you CompaniesHouse for reminding on timely statutory compliance!
Rambabu Director, Cybervillage Solutions Pvt ltdLet's Clear Your Doubts
What is Mainland Company?
A company registered with Department of Economic Development (DED), Government of Dubai.
Is there any restrictions on area of operations to Mainland Company?
No restrictions. It can do business anywhere.
Is it mandatory to appoint Local Sponsor in Mainland Company?
Yes except Professional License a Local Sponser is not rquired, Local Service agent is required in this case.
Is there any minimum capital requirement in Mainland Company?
No such minimum sharecapitl is required.
With in how many days a Mainland company will be registered?
60 to 80 days.
On Fast track mode, you will get the certificate in 15 minutes.
Is there any repatriation, tax restrictions there on Mainland Company?
No restrictions.
What is Free Zone Company?
A company registered within Free Trade Zone is called Free Zone Company.
Is there any restrictions on area of operations to Free Zone Company?
Free Zone Company not authorised to operate outside the jurisdiction of Free Zone for Manufacturing & Trading activities. Each Free Zone has it's own rules.
Is it mandatory to appoint Local Sponsor in Free Zone Company?
Not required except National Industrial License.
Is there any minimum capital requirement in Free Zone Company?
Yes for Free Zone Company or Free Zone Establishment. But not for Branch office. It is again diferrent from Free Zone to Free Zone.
With in how many days a Free Zone company will be registered?
10 to 15 days.
Is there any repatriation, tax restrictions there on Mainland Company?
No restrictions.
What is Offshore Company?
Offshore Company is a legal business entity that is set up with the intention of operating outside its registered jurisdiction and/or the location of its ultimate ownership. Offshore companies can feature in most financial planning scenarios when trying to mitigate tax exposure and/or with regards to passing assets on to beneficiaries freely in the event of death.
Is there any restrictions on area of operations to Offshore Company?
Yes. It can not carry business with in the UAE.
Is it mandatory to appoint Local Sponsor in Offshore Company?
Not Required.
Is there any minimum capital requirement in Offshore Company?
No such minimum sharecapitl is required.
With in how many days an Offshore Company will be registered?
3 to 5 days.
Is there any repatriation, tax restrictions there on Mainland Company?
No restrictions.
