Are you thinking about starting a business in Dubai? You’re not alone. In the first three quarters of 2024, Dubai saw a whopping 68.8% increase in new company setups compared to the same period in 2023. This surge highlights Dubai’s growing appeal as a top business destination.
Dubai has emerged as one of the world’s most attractive destinations for entrepreneurs and investors looking to establish their businesses. Dubai offers a seamless business setup process for companies of all sizes along with its business-friendly policies, tax-friendly environment, and government support.
Dubai company incorporation is a straightforward process, offering various options, including mainland, free zone, and offshore company setups. Each jurisdiction provides unique benefits, catering to different business needs and objectives.
If you’re also considering company registration in Dubai, we’ll walk you through everything you need to know about incorporating a company in Dubai, from choosing the right business structure to understanding licensing requirements, costs, and benefits.
What are the benefits of Dubai company incorporation?
Business incorporation in Dubai isn’t just about tax advantages or global connectivity; it’s about accessing a business-friendly environment that supports growth, innovation, and long-term success.
Here are some of the key reasons why entrepreneurs and investors choose Dubai for business incorporation:
1. Stable and Business-Friendly Economy
Dubai has a resilient and diversified economy that is not solely dependent on oil. Key industries such as real estate, tourism, logistics, trade, and technology are thriving, making it a sustainable business environment for the long run.
2. Fast and Efficient Business Setup Process
Unlike many other countries where incorporation takes weeks or months, Dubai offers quick and hassle-free company formation, often within a few days. Government initiatives like paperless transactions and e-government services have streamlined the process significantly.
3. 100% Foreign Ownership
Entrepreneurs can now own 100% of their business in various sectors, including free zones and selected mainland activities, eliminating the need for a local sponsor.
4. Multiple Visa & Residency Options
Investors and business owners can obtain long-term visas, including Golden visas and Investor visas, for themselves and their families. Employees can also benefit from company-sponsored work visas.
5. Flexible Business Structures
Whether you want to establish a mainland, free zone, or offshore company, Dubai offers flexibility in business ownership and operational models, allowing businesses to choose the best structure for their goals.
6. High Standard of Living & Safety
Dubai is consistently ranked as one of the safest cities in the world with excellent healthcare, world-class infrastructure, and a tax-free lifestyle, making it an attractive destination for business owners and their families.
Business Structures in Dubai
When incorporating a business in Dubai, choosing the right business structure is crucial. Dubai offers three primary business jurisdictions, each catering to different business needs: Mainland, Free Zone, and Offshore.
1. Mainland Company
A mainland company is a business entity established in the mainland of Dubai, subject to the regulations of the Department of Economic Development (DED). It allows conducting business anywhere in the UAE, including government contracts. Mainland company incorporation in Dubai is subject to corporate tax (9% for taxable income exceeding AED 375,000).
Key Features:
- 100% foreign ownership in many sectors.
- No trade restrictions in the UAE and internationally.
- The company is eligible to apply for an unlimited number of visas, based on the office space.
- The company is eligible to bid for government and semi-government projects.
2. Free Zone Company
A free zone company is a business entity established within a designated free zone area in Dubai, governed by the specific free zone authority’s regulations. The incorporation of a Freezone Dubai company restricts its business operations to within the free zone and internationally. Still, they can trade with the mainland market through a local distributor.
Key Features:
- No local partner or sponsor is needed.
- 0% corporate tax (subject to UAE corporate tax policies) and 100% profit repatriation.
- Minimal paperwork and a faster registration process.
- No customs duty for Free Zone companies trading within the zone or internationally.
3. Offshore Company
An offshore company in Dubai is a business entity registered in a free zone but not allowed to operate within the UAE. Businesses primarily use offshore companies in Dubai for international trade, protecting assets, and planning taxes.
Key Features:
- No need for a local sponsor.
- Offshore companies enjoy full tax exemptions.
- No physical office is required.
- Offshore companies in Dubai are suitable for establishing holding companies, owning real estate, and managing wealth.
- Only for international operations and holding assets.
Need help selecting the right structure? Shuraa Business Setup can guide you through the process and ensure a hassle-free Dubai company incorporation.
Types of Trade Licenses in UAE
The Registrar of Companies in Dubai issues the following business licenses.
1. Commercial Business License
The government issues a Commercial business license to businesses engaged in trading activities, such as general trading, import/export, and retail operations.
2. Industrial Business License
The UAE Industrial license is designed for businesses engaged in manufacturing, production, and other industrial activities. To obtain this license, companies must secure approval from the relevant authorities and establish an operational facility, such as a warehouse or factory.
3. Professional Business License
A Professional license is required for service-based businesses like consultancies, legal firms, IT services, and freelancers.
Documents Required for Business Incorporation in Dubai
Below is a general list of documents needed for company incorporation in the UAE:
- Passport copies
- Visa copy & Emirates ID (if applicable)
- Two passport-sized photos
- Business activity details
- Trade name reservation certificate
- Office lease agreement (Ejari Certificate)
- No Objection Certificate (NOC) (if applicable)
- Bank reference letter
How to Incorporate a Company in Dubai? Step-by-step
Company incorporation in Dubai involves several key steps, depending on the business structure (mainland, free zone, or offshore).
Here’s a simple step-by-step process:
1. Choose the Right Business Structure & Jurisdiction
To incorporate a company in Dubai, choose the right structure between mainland, free zone, or offshore. Your choice depends on business activity, ownership needs, and long-term goals.
2. Select a Business Activity
Determine the nature of your business from the approved list of activities by the Dubai Department of Economy and Tourism (DET) for the Mainland or the respective Free Zone authority. Ensure that the chosen activity aligns with licensing requirements (e.g., commercial, professional, industrial, or service licenses).
3. Reserve a Trade Name
Choose a unique business name that follows UAE naming guidelines. Submit the name for approval from the DED (for Mainland) or Free Zone authority.
4. Choose a Business Location
Mainland companies must lease a physical office and register it with Ejari. Free Zone companies can opt for a flexi-desk or office space within the respective Free Zone.
5. Apply for a Business License
Apply for the necessary business license from the DED or the free zone authority. Ensure you meet all licensing requirements and pay the applicable fees.
6. Open a Corporate Bank Account
Choose a UAE bank that suits your business needs (e.g., Emirates NBD, Mashreq, ADCB). Submit necessary documents such as the trade license, MOA, and shareholder details.
7. Apply for Visas & Labour Approvals
Obtain an Establishment Card from the General Directorate of Residency and Foreigners Affairs (GDRFA). Apply for residence visas for shareholders, employees, and dependents. Register with the Ministry of Human Resources and Emiratisation (MOHRE) to hire employees (for mainland companies).
Note: If your annual turnover exceeds AED 375,000, register for VAT with the Federal Tax Authority (FTA). Maintain proper bookkeeping and accounting to comply with UAE tax regulations.
What is Dubai Company Incorporation Cost?
Dubai company incorporation cost starts from AED 14,900, depending on the business structure, license, location, and required approvals. Mainland company setup includes trade license fees, office rent, and local service agent charges, while Free Zone companies offer cost-effective packages with visa options.
For an exact cost breakdown, consulting experts like Shuraa Business Setup ensures a hassle-free process.
How Shuraa Business Setup Can Help
Starting a business in Dubai is an exciting opportunity, but the Dubai company incorporation process can feel overwhelming. That’s where expert help can make all the difference. Shuraa Business Setup takes care of everything, from choosing the right business structure and getting your trade license to handling all the paperwork, visa processing, and even opening your corporate bank account. We also assist with tax registration and compliance, so you don’t have to worry about legal formalities.
With over 25 years of experience, we’ve helped thousands of entrepreneurs successfully set up their businesses in the UAE. Get in touch with us today and make your business setup hassle-free.
Frequently Asked Questions
1. How to incorporate a company in Dubai?
To incorporate a company in Dubai, choose a business structure, select a trade name, obtain initial approvals, prepare documents, secure a trade license, and complete visa and bank account processes.
2. What is the cost of incorporating a company in Dubai?
Dubai company incorporation starts from AED 14,900, depending on business type, jurisdiction, license fees, and additional approvals.
3. Can a foreign national set up a company in Dubai?
Yes, you can establish a corporation in Dubai with full ownership and tax advantages for repatriation.
4. Can I open a corporate bank account after incorporating my company?
Yes, after obtaining your trade license, you can open a corporate bank account in Dubai. Shuraa Business Setup can assist with the process for a smooth experience.
5. Can I get a UAE residency visa through company incorporation?
Yes, business owners and employees can apply for a UAE residency visa after incorporating their company. The number of visas depends on the company structure and office space.
*Note: The information in this post is for general guidance only and may change due to updates in government policies or regulations.
