Company Formation in Dubai

The formation of a company in Dubai does not hold any legal burdens relatively due to the international investments pouring in making it a flourishing economy with global output. The provisions of the state are extensively supportive for such company formation processes and new ambitious projects.

The laws are vividly jurisdiction-specific and hold underlying differences between mainland operations and free-zone operations.

The investment rates are still growing with extensive growth frequency of the gold mine economy.

Companies can claim tax exemptions of up 100% if they have the right business approach, propaganda, location, and variable factors that compromise with the issued guidelines. The port duties are significantly low, therefore it is the major game changer when comes to the provision of raw materials.

Possible Establishments:

Mainland operations in Dubai can be classified as of the given forms:


Limited Liability companies enjoy a good amount of flexibility for the investments to pour as large-scale industries or small-scale industries.

The majority of establishments in the UAE are LLC and the jurisdictional guidelines direct the companies to have a UAE national to be the major stockholder with a minimum of 51% shares.


The license for this endeavor can be obtained from the Department of Development (DED) and ensures complete ownership to the investors.

The key factor of the establishment is that it constitutes only professional services that include medicine, law, and engineering.

Representative Companies

The representative companies are an extended office of the establishments in foreign jurisdictions and are inclusive of the free-zone enterprises. These companies are for their free operation in the mainland.

Free Zone Company Formation and Registration In the UAE

The free-zones are specially designed zones of the state intended for business and industrial growth and have slots which can be obtained on registration for business after complying with the guidelines that will make the establishment eligible but has a minimum capital requirement for the same.

Offshore Company Formation and Registration In the UAE

Offshore companies are indirect investors in the state economy. However, they do not have any direct operations within the state. Also, they do not have direct or stringent bonds with the jurisdictional guidelines. Yet, they must satisfy a few conditions to operate within the UAE.

These global investors cannot trade in the local market but have a grasp over the real estate, consultancies, etc.

Initial approval:

To obtain the initial approval, companies need to submit the following documents.

  • First, the management must decide on what type of company they want to start.
  • Then, the management must agree on a name for the company, and register the decided name.
  • Third, the investors and on-site supervisors must submit copies of their passports.
  • Next, all active members of the organisation must produce their approved visas.
  • Furthermore, the establishment must start and open a bank account within the state’s jurisdiction. Then, the company must provide the investment proof as an advance.
  • Also, the company must produce some initial Capital proof.
  • A local agent or approved manager of the UAE nationality must be part of the stakeholders in case of mainland operations holding about 51% of the shares.
  • In the case of free-zones, a local agent is necessary for mediation but does not hold an obligatory position to hold major stakes.

Mainland vs. Free Zones:

The mainland operations are under higher legal scrutiny in comparison to the free-zones. However, mainland operations have fewer exemptions when compared to free-zones.

The formation of the establishment is easier in the free-zones with fluidity in its taxation and recruitment guidelines. The area allows certain flexibility to the investors, therefore they are financially cost-effective to new investors and laterally to heavy investors.

The infrastructural advancements tend to be industry oriented. Hence, they vary from various large-scale to small-scale establishments. Companies with a single investor can register as a free zone establishment (FZE).

Companies with more than 2 investors can register themselves as Free Zone Company (FZC).

The initial capital required as investment varies from 14 USD to 300,000 USD which depends on the type of establishment, their manufacturing agenda, and various enterprise speculation propaganda.

Trade License:

Documents required for the license:

  • License Application
  • Attested LLC agreement
  • Name reservation certificate as provided by the DED
  • Initial approval certificate as provided by the DED
  • Tenancy contract
  • Certificate of registration to EJARI
  • Passport copies of all the stakeholders
  • Non-Objection Certificates from all the partners.
  • The proof of registration to the Dubai Chamber of Commerce and Industry

In the case of mainland operations, the trade name has to be approved by the Department of Development (DED).

The initial approval documents must be submitted to the department as soon as possible. Afterwards, the company’s name shall be registered as a unique trademark completely authorizing the establishment.

The process will be over in about three days after which the aforementioned documents must be produced along with the registration for the approval of the final trade license.


Obtaining visas is a very important factor. Although the investors and mainland managers visa are produced during the initial approval process, the visas of the family and recruited staff is necessary.

The visa process occurs smoothly in the free-zone. Hence, after producing recruitment documents the company can apply for the visas of their recruitments even in the mainland jurisdictions.

Investments in Dubai is always one of the main strategies for the expansion of wealth statistics of an establishment.

Leave a Reply

WhatsApp chat