Company formation

With a multitude of incorporation options and flexible regulations, Dubai caters to start-ups, entrepreneurs, and multinational corporations alike. Furthermore, multiple choices are available for every aspect of company formation in Dubai: budget, licence, location, premises and the Dubai visa. Economic activity is regulated separately in each of the seven emirates, and UAE authorities have created a highly conducive environment to running and operating a business, with superior infrastructure, good governance, and tax benefits. The various incorporation options are:

Onshore Company Formation

Built for trade. A Gateway to International Trade and Growth.

Mainland, or onshore companies, can operate internationally and within the UAE’s onshore market i.e. outside of Free Trade Zones, including contracting with government entities. Whilst they can be incorporated anywhere within the seven Emirates of the UAE, the license will be issued by the licensing authority in each Emirate; in Dubai, this is the Dubai Economy, more commonly referred to as the ‘DED’ Additional approvals may be required from government bodies for specific business activities, such as construction, healthcare and/or sports-related activities.

There are benefits for establishing a business as a mainland company. Mainland companies offer location flexibility and a broad scope of trade with zero trade restrictions. A mainland company can also open multiple branches, driving opportunity to scale across the Emirates.

LLC Company Formation

Incorporating a Limited Liability Company (LLC)

Foreign investors can conduct business through a Limited Liability Company (LLC).LLCs are generally incorporated to carry on trading and other commercial activities, although may now be incorporated for some professional activities.

An LLC can be incorporated with a minimum of two and maximum of fifty shareholders, in many cases, not less than 51% percent of the company shares must be held by a UAE national.

An LLC must take a lease of suitable office premises from which to operate and be managed by a General Manager who must be or become a resident of the UAE. There is no minimum share capital for an LLC, but the capital must be adequate for the activities to be carried on e.g. some insurance-related activities command a higher share capital.

Given its limited liability status, an LLC is one of the most preferred corporate structures adopted by foreign investors and entrepreneurs wishing to establish a solid foothold in the region.

Some LLCs can now be 100% foreign-owned depending upon the activities to be carried on. In this instance, the General Manager must be a resident of the UAE prior to incorporation and will be responsible for maintaining the LLC’s labour and immigration accounts (which enable it to hire and provide visas for its people).

CSP Group can carry out licensing feasibility to determine the most up-to-date ownership requirements.