At Dubiz, we understand the complexities & challenges of establishing a business in UAE’s evolving landscape. Our suite of expert business setup services is specially designed to support your venture at every stage, from inception to expansion.
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Dubai has become one of the world’s most promising business hubs in recent years. Acknowledged for its growing economy, strategic location, and business-friendly environment, the UAE has become the cornerstone for entrepreneurs. If you are planning to start your business here, then starting with company registration in UAE certainly puts you in the right direction.
This blog will help beginners get acquainted with all the important details related to business registration in Dubai and UAE.
Company registration in UAE, also known as company incorporation, is a formal process of establishing a business legally in the Emirates. Through it, the business gains the status of a distinct legal entity by the UAE government, enabling it to operate legally within the country’s boundaries.
You may come to the UAE with a business idea, and registration gives that idea a concrete shape and its own recognition. Once registered, your business can start enjoying the UAE’s top-notch business environment, with benefits such as tax advantages, global market access, e-governance facilities, luxury lifestyle, networking opportunities, and an economy that supports growth. UAE company registration remains a top choice for investors from around the world. But hold on. It is a complete procedure in itself, with several steps which we will discuss in detail later in this article. Whether you choose to operate in Abu Dhabi, Dubai, or any other Emirate, the process remains the same. Just a few steps, and your business era begins!
There are several benefits of company formation in the United Arab Emirates:
You will find three jurisdictions that function as economic zones where you can register company in UAE: Free Zones, Offshore, and Mainland. Each jurisdiction has its own set of rules and governance that oversee businesses operating within them. Every choice has unique qualities that fit various business structures and goals. Here are the three types of company registration in UAE based on jurisdiction:
Establishing a business in the mainland UAE allows you to conduct business both inside and outside the UAE. For mainland business setup, you would need to go through company registration with the Department of Economic Development (DED). Mainland businesses can operate across diverse industries, and many business activities now allow for 100% foreign ownership on the mainland.
Useful insights: Mainland company formation in Dubai.
There are several advantages to registering your business in a freezone, including duty-free imports and exports, 100% ownership, tax exemption, and more. With over 45 top-class freezones options in the UAE, you can start and register your business in your ideal one at affordable costs. You will need to register your company with the respective competent authority of the specific freezone you choose.
Discover more: Freezone company formation in Dubai.
While offshore companies are prohibited from conducting business within the United Arab Emirates, they enjoy benefits such as asset protection, tax discounts, and anonymity. For businesses that primarily engage in foreign commerce and activities, this is often the best option. Due to its unmatched tax advantages, the UAE stands as a top offshore business destination today.
Explore here: Offshore company formation in Dubai.
After deciding jurisdiction for your business, you can go ahead with company registration process. To ensure a seamless business setup, the UAE government has created a very straightforward and organized procedure for company registration in UAE.
Below is a step-by-step guide on how to register a company in Dubai:
Start by deciding your business operations. The nature of your business will determine the rules, regulations, and requirements your company must abide by. You must also ensure that your business activity aligns with one of the categories specified by the Department of Economic Development (DED), UAE. The activities you choose will dictate the type of UAE trade license you will need:
It is important that you get familiarised with the legal structure available for companies in the UAE. The most common ones include a sole establishment, branch, and a limited liability company (LLC). It is advisable you choose a legal structure as per your requirements.
Selecting a trade name that is reflective of your business activities is an important step. Ensure that your chosen name falls in line with the UAE naming conventions. The name should not contain any offensive word, and neither should the name be previously registered. To check the availability of your chosen name, you can visit the website of the Department of Economic Development.
The Department of Economic Development must approve before you register your business in the United Arab Emirates. The Memorandum of Association (MOA) for your business must be written and certified, and certain operations might require further clearances from relevant authorities or departments.
It is essential to obtain a lease agreement and secure a business space. Every UAE-based business needs a physical location for their business operations. The commercial building and its location must adhere to the zoning laws set forth by the municipality or other appropriate authority, as well as the requirements of the Department of Economic Development in each Emirate.
You need to apply for a business license, whether it be commercial, industrial, or professional, after completing all previous procedures. It will include submission of necessary documents, application form and payment of associated fees. In the case of mainland, you will need to approach DED. In case of freezone, respective government authority of selected freezone will issue your license.
To manage your company’s finances effectively, you need to open a business bank account. Mind you that you cannot use your personal bank account for business purpose in UAE.
Additionally, if you are a foreigner starting a business in the UAE, you will need the appropriate visas to live and work here legally. You can also obtain visas for your employees if they are joining you in the business.
Here are the popular types of legal structures available for business registration in Dubai and the UAE:
A sole establishment allows you to operate a business independently, where you single-handedly start and run the enterprise.
An LLC can have a minimum of 2 and more than 50 shareholders. The liability of each shareholder is limited to the shares they own in the company’s capital.
Also known as a professional company, this structure is for two or more experts in the same profession, such as consultants, doctors, legal advisors, and accountants, who come together to form a business.
A business partnership involves two or more parties who come together for a venture, sharing its profits and losses in a predetermined ratio.
Joint stock companies allow for shared ownership of the business and can be classified as either public or private joint stock companies.
Branches are representative offices of foreign or GCC companies that need to be registered according to UAE law.
Below is a list of the necessary paperwork required for company registration in UAE:
Please note that besides these documents, you may need some more depending on your specific business. Get to know more at Dubiz Business Setup.
The starting price for mainland company registration in the UAE is AED 17,900*. For Free Zone company registration, you can expect to pay starting from AED 11,050*, while offshore business setup starts at AED 14,900*. However, these costs can vary based on several factors, including your business activity, the license you are applying for, the number of visas you need, the location, and additional services like PRO, marketing, and accounting services.
For an accurate cost estimation, you can seek guidance from Dubiz experts.
Ready to explore the world of business opportunities? With the assistance of our professionals, discover the endless opportunities that the United Arab Emirates offers to its inhabitants. Our expert business setup advisors, with their in-depth knowledge and years of experience pertaining to company registration in UAE, will guide you through the entire process. We offer end-to-end business establishment services in Dubai, UAE:
To find out more about starting a profitable business in Dubai, schedule a free consultation with our experts at Dubiz today!
Call or Whatsapp us at +971563695485. You can also drop an email at info@dubiz.co for any inquiries.
You do not always need a local sponsor to open a company in Dubai. If you choose to operate a business on the mainland, you may need to have a local sponsor, which can be either an individual or a corporate entity. However, due to recent developments, more than 1,000 commercial activities on the mainland now allow 100% foreign ownership. Additionally, with a freezone business setup in Dubai, you can skip the need for a local sponsor completely.
Company registration in UAE takes around 1 to 2 weeks. However, the time can vary based on your business nature, needs, location etc. In freezones, it may even take lesser time to register your company.
The cost to register a company in UAE starts from AED 11,050* in freezone and AED 17,900* on mainland. You can get more details through our consultants.
Yes, foreigners can start and register a business in UAE. In freezones and for designated activities on mainland, they can even enjoy complete ownership of their business. That means no need for local sponsors!
Yes, you can register a company in Dubai yourself by applying in person at the Department of Economic Development (DED) of the emirate where you plan to start your business. In fact, there are digital platforms that facilitate the license application process. However, since there are legal formalities that must be strictly adhered to, it is better to hire a business setup expert for a faster process and to avoid delays and cancellations.
