COMPANY
FORMATION

Depending on the legal structure and particular criteria of the chosen jurisdiction (mainland or free zone), the minimum capital requirement for establishing a business in Dubai and the UAE can vary. Certain licensing authorities may require paid up capital whereas, other licensing authorities do not require paid up capital.

Yes, foreigners can own 100% of a company in Dubai and the UAE. According to Federal Decree-Law no. (32) of 2021, foreign investors are allowed to own 100% of their companies in some sectors of the economy.

However, while certain industries and free zones allow 100% foreign ownership, there are still limitations in place for certain activities and licenses.

For an expert consultation to register your company, contact Creation Business Consultants via email at [email protected] or call +971 4 878 6240 today.

The process of business setup in Dubai and the UAE involves:

STEP 1: Expert Consultation

This stage typically involves consulting with Creation Business Consultants to provide accurate and up-to-date details on company formation in Dubai and the UAE.

STEP 2: Business Review and Strategy

This is where our Corporate Structuring team works with the business owner/investor to choose the business activity, company license, and shareholding structure.

STEP 3: Business Licence, Bank Account Opening and Obtaining Visas

Creation will assist the company owner to:

• Select a preferred company name and secure the initial or preliminary approval.
• Secure any third-party government approval, if applicable to the selected business activity.
• Complete the company’s Memorandums and Articles of Association.
• Finalise the company’s registered address – a physical office, retail shop, or warehouse.
• Complete the business license and registration with the Department of Economy and Tourism in Dubai.
• Register the company with the Immigration Department to secure an Establishment Card.
• Register the company with the Ministry of Human Resources and Emiratisation (MOHRE).
• Apply for the investor, employee, and dependents visas, etc. as required.
• Complete all post-license processes such as Ultimate Beneficial Ownership registration.
• Open a corporate bank account.

Please note that depending on the specific needs of your company, such as location, timeline, nature of business, budget, and staffing, we are here to help you choose between forming a company in one of the many free zones or in mainland Dubai and the UAE.

For expert advice on opening an entity or expanding your business to Dubai and the UAE, contact Creation Business Consultants on email [email protected] or call +971 4 878 6240.

No, not all businesses require a local sponsor to setup a company in Dubai and the UAE. According to Federal Decree-Law no. (32) of 2021, also known as the Commercial Companies Law, Department of Economy and Tourism in Dubai permits full ownership for foreign investors for many activities.

In general, freezone and certain mainland company structures that are basic can take about 3 days. However, for complex structures the timeframe for setting up a company in Dubai and the UAE can vary depending on several factors, including the type of company, ownership and structure, and business activities.

For an expert consultation contact Creation Business Consultants via email at [email protected] or call +971 4 878 6240 today.

The UAE imposed Corporate Tax on the profits of mainland businesses starting 1 June 2023. The Corporate Tax rates are:

• 0% for taxable profits up to AED 375,000.
• 9% for taxable income above AED 375,000.

For more information on tax services, visit our UAE Tax Consultancy Services page or contact Creation Business Consultants by email at [email protected] or call +971 4 878 6240.

• Documents required to establish a Limited Liability Company in Dubai and the UAE include:
  • Identification documents of General Manager and Shareholder an (Passport, Entry Stamp/ Residence Visa, Emirates ID)
  • No Objection Certificate if General Manager and Shareholder have an existing UAE residence visa
  • Initial Approvals from the Department of Economy and Tourism and Ministry of Economy e.g., Trade Name Reservation Certificate
  • Business Activities
  • Ejari Certificate
  • Notarised Memorandum of Association
• Documents required to establish a mainland branch in Dubai and the UAE include:
  • Parent Company Documents – Memorandum of Association, Articles of Association, Certificate of Incorporation, Trade License, and Certificate of Good Standing
  • Board Resolution from the Parent Company
  • Power of Attorney for the General Manager
  • 2-year Audited Financial Statement 
  • Identification documents of Local Service Agent
  • Identification documents of the General Manager
  • Local Service Agreement
  • Initial Approvals from the Department of Economy and Tourism and Ministry of Economy e.g., Trade Name Reservation Certificate
  • Proof of address of the owners (Ejari Certificate)
  • Notarised tenancy contract for the business location
  • Completed and signed registration forms
• Documents required to establish a freezone company in Dubai and the UAE include:
  • Corporate Shareholder: Parent Company Documents – Memorandum of Association, Articles of Association, Certificate of Incorporation, Trade License, and Certificate of Good Standing, Board Resolution, Power of Attorney
  • Individual Shareholder:  Identification Documents of the Shareholder (Passport, Entry Stamp/ Residence Visa, Emirates ID)
  • Identification documents of General Manager (Passport, Entry Stamp/ Residence Visa, Emirates ID)
  • Business Activities
  • Memorandum and Articles of Association

Yes, a director or shareholder of a UAE company can be non-resident of the UAE. The citizenship and nationality of shareholders and directors of businesses registered in the UAE free zones are not subject to any limitations. Certain activities call for the mandatory involvement of a local resident in the company as a shareholder for companies registered on the mainland. However, when it comes to corporate bank account opening, the director and authorised signatory of the company will require a UAE resident visa.

To explore your options for a UAE company formation, reach out on email [email protected] or call +971 4 878 6240.

The cost of setting up a company in Dubai and the UAE will vary on many factors such as depending on your type of business, the different free zone company setup packages, license type, legal structure and ownership type, and business facilities you wish to rent. The cost can often range from USD $5,000 to USD $10,000.

Contact Creation Business Consultants by email at [email protected] or call +971 4 878 6240 for an expert consultation to discuss your UAE company setup requirements, process, and fees.

Once you establish and register your UAE company, you will need to consider how to stay compliant with the UAE company laws and requirements. Some areas to consider are:

• Banking services
• Obtaining visas
• Wage Protection System (WPS)
• Payroll services
• Accounting & bookkeeping
• VAT and Corporate Tax registration
• Compliance with several legislations such as Ultimate Beneficial Owner (UBO), Economic Substance Regulations (ESR) and Anti-Money Laundering & Counter Finance Terrorism (AML / CFT)
• Human Resources services

Should you decide not to renew your company trade license and want to liquidate the company, you must follow the formal company closure process regulated by your licensing authority.

Visit our company liquation page for more information or contact our experts via email at [email protected] or call +971 4 878 6240.

On 9 December 2022, the UAE released the Federal Decree-Law No. (47) of 2022 on the Taxation of Corporations and Businesses (Corporate Tax Law) which forms the basis for the implementation of the new Corporate Tax regime.

Visit our Corporate Tax page for more information or contact our experts via email at [email protected] or call +971 4 878 6240.

Through careful planning and professional advice, the risks connected to company formation in the UAE can be reduced. You can handle the registration procedure easily with the assistance of professional consultants, ensuring adherence to legislations and reducing potential risks.

For an expert consultation contact Creation Business Consultants via email [email protected] or call +971 4 878 6240 today.