Welcome to Dubiz

Mainland:

• Limited Liability Company (LLC): Popular choice, requires 2-50 shareholders, allows 100% foreign ownership in specific sectors with a local sponsor. Offers limited liability, access to local market and government contracts, and flexibility.
• Sole Proprietorship: Simplest and cheapest setup, but owner has unlimited liability for debts. Only for UAE nationals or residents with special permission.
• Civil Company: Two or more UAE nationals/residents can share profits and losses. Limited liability option available.
• Branch Office: Existing foreign companies can establish a branch, but limited activities allowed and requires a local service agent.

Free Zone:

• Free Zone Establishment (FZE): Single shareholder, 100% foreign ownership. Tax exemptions, simplified setup, limited liability. Restricted to specific activities within the free zone.
• Free Zone Company (FZC): Two or more shareholders, 100% foreign ownership. Similar benefits to FZE, but more complex structure.

Offshore:

• Offshore International Business Company (OIBC): Registered in specific offshore jurisdictions within Dubai. No corporate or income tax, ideal for international investment holding or trading activities. Cannot trade within the UAE mainland.

Important factors to consider when choosing a structure:

• Number of shareholders: Some structures have minimum or maximum shareholder limits.
• Foreign ownership: Not all structures allow 100% foreign ownership.
• Business activities: Some structures are restricted to specific activities.
• Liability protection: Consider how much personal liability you're willing to accept.
• Tax implications: Understand the tax benefits and obligations of each structure.
• Compliance requirements: Each structure has different administrative and reporting requirements.

Mainland:

• Pros:
• Access to the local market: You can operate within the entire UAE, not just within a specific free zone.
• Wider range of business activities: More flexibility in choosing your business activities compared to certain free zones.
• Government contracts: Eligible for bidding on government contracts, which can be lucrative opportunities.
• No restrictions on nationality: Foreigners can own 100% of the company.
• Cons:
• More complex setup process: Requires navigating various government departments and procedures.
• Higher fees: Higher license fees and renewal costs compared to some free zones.

Free Zone:

• Pros:
• Simpler setup process: Streamlined procedures and faster turnaround time.
• Lower fees: Typically lower license fees and renewal costs.
• 100% foreign ownership: No local sponsor required, allowing full ownership and control.
• Repatriation of profits: Easier to repatriate profits earned within the free zone.
• Cons:
• Limited to specific activities: Each free zone restricts business activities to specific categories.
• Limited access to local market: Can only operate within the designated free zone unless obtaining additional licenses.
• Restricted visa options: Visa options for employees might be limited compared to the mainland.
• Import/export restrictions: May face additional fees or restrictions on importing and exporting goods.

Choosing the right option:

Consider these key factors to make an informed decision:

• Your business activity: Does your business fall within the permitted activities of any free zone?
• Target market: Who are your customers? Do you need access to the local market or can you operate solely within a free zone?
• Budget: Can you afford the higher setup costs and potential corporate tax of the mainland?
• Growth aspirations: Do you plan to expand beyond the UAE in the future?

Ultimately, it's recommended to consult with a business setup specialist in the UAE. They can assess your specific situation and provide tailored advice on the best location and structure for your business.

Setting up an LLC company in Dubai involves several steps and decisions. Here's a comprehensive guide to help you navigate the process:

1. Choose Your Business Activity:
   Decide what business activity your LLC will engage in. Different activities require specific approvals and licenses.
2. Select a Location:
   Decide whether you want to operate on the mainland (wider market access but more complex setup) or within a free zone (streamlined setup but restricted operations). Consider your target market and budget when making this choice.
3. Select a Trade Name:
   Choose a unique and relevant name that complies with naming regulations. Conduct a trademark check to ensure availability.
4. Prepare Required Documents:
   This includes your passport, visa, business plan, Memorandum of Association (MoA), and other specific documents depending on your activity and chosen location.
5. Apply for Initial Approvals: Depending on your business activity, you might need approvals from additional government agencies beyond the Department of Economic Development (DED).
6. Draft the Memorandum of Association (MoA): This document outlines the company's purpose, share capital, and internal governance structure. All shareholders must sign it before a notary public.
7. Choose a Registered Office: Secure a physical office space within your chosen location or free zone.
8. Apply for a Trade License: Submit all required documents and fees to the DED or relevant free zone authority.
9. Open a Corporate Bank Account: Choose a bank and open a corporate bank account for your LLC.
10. Obtain Visas for Employees (if applicable): Apply for work visas for any foreign employees if operating on the mainland.