The UAE is a top destination for entrepreneurs and investors now. Due to favourable rules, tax-friendly environment, and strategic location, you must also look for company formation in dubai. Whether starting a new business or expanding an existing one, you must think about Dubai and know the essential information to form a company there.
Stepwise Process to start company formation in Dubai
1. Choose the Business Activity
The first step is to decide on a business activity approved by the relevant authority (DED for mainland, respective authorities for free zones).
2. Choose Your Location
Once you are done with the licensing process, you must educate yourself about different locations there and also decide between Mainland, Free Zone, or Offshore depending on your goals.
3. Select the Legal Structure
The next step is to decide the legal structure for your business. The options include:
- Sole Proprietorship
- LLC (Limited Liability Company)
- Free Zone Company
- Offshore Entity
4. Choose a Business Name
Once you know about the legal entities that you can form and decide one, you must apply for company name registration in Dubai. Company Names must comply with local guidelines. The company name should not be offensive, religious, or politically sensitive terms.
5. Apply for a Trade License
Once you are done with the process, you must apply for a business license that is necessary for your License types. This includes:
- Commercial
- Professional
- Industrial
See also: How many Types of Business Licenses in Dubai?
6. Submit Required Documents
The last step is to submit all the required documents to UAE Government. The list of documents required for company formation in Dubai are as follows.
7 : Open a Corporate Bank Account
To open the account, you’ll need to submit documents such as your business license, Memorandum of Association (MOA), passport copy, and a recent utility bill.
Documents Required for Company Formation in Dubai
- Passport copy of each shareholder
- Recent passport-sized photograph (white background)
- UAE entry stamp or visa page (if inside UAE)
- Proposed trade name options
- Description of business activities
- Proof of address (like a utility bill or tenancy contract)
- No Objection Certificate (NOC) from current sponsor (if applicable)
- Memorandum of Association (MOA) and Articles of Association (for LLCs)
- Bank reference letter or business plan (sometimes required for free zones)
See Also: How To Get A UAE Golden Visa For Business Setup?
You may also need to provide other documents that depend on your application or business type. So, it’s best to consult with E-Startup India Experts. Our team of experts can help you in document preparation, clear all your doubts and also file your application for company formation in Dubai.
Understanding the business entities available for Company Formation in Dubai
1. Sole Proprietorship
A Sole Proprietorship is a business owned and operated by a single individual.
Key Features:
- 100% ownership for UAE and GCC nationals. Foreigners can only establish it under certain professional license categories and may need a local service agent.
- No legal distinction between the owner and the business.
- Ideal for freelancers, consultants, and solo professionals.
- Personal liability is unlimited—this means your personal assets may be at risk in case of legal or financial issues.
Best for:
Professionals such as legal consultants, doctors, engineers, and accountants.
2. LLC (Limited Liability Company)
An LLC is the most common form of business in the mainland.
Key Features:
- Requires 1 to 50 shareholders.
- Foreign investors can now own 100% of the business (in most sectors, thanks to recent reforms).
- Offers limited liability, meaning personal assets of shareholders are protected.
- Can operate anywhere in the UAE and do direct business with the local market.
- Mandatory to have a physical office space in the UAE.
Best for:
Retail, construction, manufacturing, general trading, and service-oriented businesses that want full UAE market access.
3. Free Zone Company
A Free Zone Company is registered in one of Dubai’s many Free Zones.
Key Features:
- 100% foreign ownership allowed.
- No customs duties on imports/exports within the zone.
- Full repatriation of profits and capital.
- Fast and simple registration process.
- Limited to operating within the Free Zone and outside UAE. To trade within mainland UAE, a distributor or local agent is required.
- Offers visa packages and “Flexi-desk” options (shared or virtual office spaces).
Best for:
Startups, IT companies, consulting firms, media businesses, and e-commerce setups aiming for international operations.
4. Offshore Entity
An Offshore Company is registered for international business and asset protection but cannot operate within the UAE.
Key Features:
- Typically used for holding companies, investments, property ownership, and international trading.
- No office space requirement in the UAE.
- No UAE residency visa issued through offshore entities.
- Excellent for tax optimization and confidentiality.
- Registered under jurisdictions like JAFZA Offshore, RAK ICC, or Ajman Offshore.
Best for:
International investors looking for asset protection, tax planning, and owning property in the UAE or abroad without physical presence.
FAQs
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What is the expense involved in setting up a business in Dubai?
The costs associated for company formation in Dubai differ. To know exact costs, you will need to pay for your business, it’s best that you give us a call at: +91-8881-069-069.
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Is it a prerequisite to show up in person in order to register a company in Dubai?
Many Free Zones facilitate remote registrations via agents. So, you don’t need to visit Dubai, we will get all the company formation process done from wherever you are.
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Am I eligible for a UAE residency visa through my company?
Absolutely. A majority of these licenses provide visa eligibility for owners as well as their family.
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What distinguishes mainland companies from Free Zone companies?
Mainland companies are permitted to engage and deal within the UAE without restrictions. Free Zone companies need to rely on a regional distributor for trade in the mainland.
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How much time is required to complete the registration process?
Depending on the zone and application process, it’ll take between 3 to 10 working days.
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Does Dubai impose any business taxes?
From 2025, there is a 9% corporate tax on profits exceeding AED 375,000 for mainland companies. However, Free Zones maintain 0% tax under certain conditions.
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Is a physical office mandatory to register a business?
That’s the case for the mainland. Flexi-desk and virtual offices provided by Free Zones serve to meet legal requirements and are often labeled as ‘businesses’. So, a company formation in Dubai in the Free Zone may not require a physical office.
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Is it possible for me to sponsor employees under my company license?
Yes, after the setup of the office and approval of the license. Depending on the size of the office or package, the quota for employee visas differs.
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What documents are needed for opening a business bank account?
You will require a trade license, MOA, tenancy contract, and passport copies. There are times when a business plan or reference letter is also needed.
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Can I own multiple businesses under one license?
Some zones permit the use of several related activities and some do not. Otherwise, there is a need to obtain a different license.
Moreover, If you want any other guidance relating to VAT Registration in UAE, Corporate Taxes in UAE, or UAE Company Registration, please feel free to talk to our experts at 8881-069-069.
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