Company Formation in Dubai
- International Jurisdiction
- UAE Jurisdictions
Are you looking to set up a business in the UAE? At SFM, we’re here to make your company formation in Dubai an easy process and help you pursue your business activities in a way that supports your growth. From the different jurisdictions where we offer incorporation services to the benefits of choosing the United Arab Emirates for your company registration, here’s everything you need to know.
The below comparison table will provide you with basic information about each jurisdiction where we offer incorporation services,. For more information about each jurisdiction, please click on the “Details” button or simply contact us.
This column describes if the names of Shareholders/Directors appear in a public register. 
United Arab Emirates
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. 
This column describes if the names of Shareholders/Directors appear in a public register. Why Set Up a Company in Dubai?
Choosing to set up your business in Dubai combines several advantages. The government is highly supportive of new business ventures and provides a favourable environment for various types of activities. Here are some of the benefits of opting for a company registration in the UAE.
A Dynamic Business Hub
Dubai has emerged as a thriving business hub in recent years, attracting a diverse range of successful companies from around the world. The city’s strategic location, modern infrastructure, and supportive environment have made it an ideal destination for entrepreneurs and investors seeking to establish or expand their operations. In turn, this keen interest has cemented Dubai’s claim as one of the world’s leading economic centers.
A Supportive Tax System
Taxation laws may be what the UAE is best known for since startups that choose to handle their company registration in Dubai enjoy a more advantageous taxation framework. While every business established in the UAE must register for corporate tax, taxable income is determined by your status (resident or non-resident), your company’s net profit or loss in financial statements, and transfer pricing rules. The standard corporate tax rate is 0% for taxable income up to AED 375,000. Over that threshold, businesses in the UAE are subject to 9% corporate tax.
Modern, Reliable Banking
Accessibility to banks and ease of banking can do much to support a company’s growth. A business set up in Dubai allows you to count on international banks with straightforward, smooth services designed to help your company thrive.
A Stable Government With a Competitive Economy
The rules and regulations laid down by governments greatly affect companies. For your business to prosper, you need to be based in a country with the stability to encourage innovation, competition, profitability, and returns. In addition to being a destination with a more advantageous taxation system, Dubai is known for the balance of its government and high standards of living.
Do I Actually Have to Live in Dubai to Register My Company There?
The short answer is no, and SFM is here to make the whole process even more straightforward. The UAE and the Emirate of Dubai actively welcome entrepreneurs and investors, and foreigners are not required to live there to start a business. Although some limitations may apply based on your nationality, your tax residence status, and the nature of your business venture, most non-residents can launch a business in Dubai from anywhere in the world. Opening a bank account and generally running your business, however, does require UAE residency (with no obligation to live in the country). We’re here to help you obtain your UAE Residence Visa, guiding you step by step through the immigration formalities.
If you opt for a DMCC company formation, an ADGM business setup, or a DIFC company registration, for instance, you can own 100% of the structure and operate without a physical presence, so long as you hold a residency permit. With our experts by your side, you can select the most appropriate Free Zone for your company formation in Dubai and enjoy one of the most business-friendly environments in the world.
Opening a Mainland company (outside of Free Zones) also allows 100% foreign ownership.
SFM is there to provide expert guidance and help you start and run your Dubai company from anywhere in the world. From selecting the ideal jurisdiction to setting up your structure, opening a bank account, and managing administrative tasks, we’re here to make sure you receive all the support you need.
What Are the Different Types of Company Formation in Dubai?
Your jurisdiction and the nature of your business activities will help you determine your ideal type of company set up in Dubai. For instance, if you set up your structure in a Free Zone, you will be guaranteed 100% ownership of your operations, 100% repatriation of capital and profits, and customs tax exemption. Dubai has three main categories of entities, each with its own subdivisions.
Offshore Company
This type of structure, also known as non-resident company, is suitable for entrepreneurs and investors looking to trade exclusively outside the UAE, as a RAK company formation for example. Offshore company formation in Dubai and RAK lets you conduct business internationally, requires no local sponsor and allows foreigners to own 100% of the business’ shares without the need for a local sponsor.
This type of structure is, therefore, most suitable for holding companies, allowing you to hold shares of other companies in different jurisdictions, as well as intellectual property rights, trademarks, copyrights, patents, etc.
With this model, you may hold UAE as well as international bank accounts in your company’s name. Note that opting for an offshore company won’t grant you the right to apply for a residence visa.
Free Zone Company
Free Zone Companies are authorized to trade within the designated UAE Free Zones and elsewhere in the world. Foreigners can own 100% of the shares and be issued residence visas, open bank accounts in the UAE and worldwide, and join the Chamber of Commerce through the relevant local office, all without the support of a sponsor. Note that you will be required to secure a registered business address (flexi-desk or an office) within the Free Zone.
A RAK DAO business setup for instance, may be advantageous for businesses dedicated to digital and virtual assets, Web3 and similar blockchain activities.
If you are looking for a favourable business environment within a leading Free Zone community, an IFZA company registration or JAFZA business setup could be the ideal match for your structure.
This type of company formation in Dubai comes with several other corporate incentives, such as:
- Custom privileges,
- Favourable taxation system,
- Cost-effective registration,
- Reliable transport network and road connectivity,
- Local talent availability.
Limited Liability Company (LLC) or Mainland Company
This formation model is commonly used worldwide, not exclusive to the UAE. LLCs accommodate foreign ownership and are permitted to conduct a wide range of activities in the UAE, except for finance-related operations such as banking and insurance. This type of company formation in Dubai requires at least one partner and on-site office space. The liability of each shareholder is limited to the value of their shares and the minimum share capital is AED 100,000.
Under this model, you can opt for a Professional Licence Company suitable for owners/managers looking to conduct business only within their specific area of expertise.
This structure may be 100% foreign-owned. It comes with a residence visa and allows you to open UAE and international bank accounts, access other GCC markets through UAE incorporation, and register at the Dubai Chamber of Commerce.
Commercial Licences and Industrial Licences are also available.
For example, having a DED business setup, will allow you to conduct business freely in the local market or outside the UAE.
What Are the Types of Business Licences Available When Setting Up Your Company in Dubai?
Foreign investors who opt for a company formation in Dubai must select an appropriate business licence based on their objectives. The Dubai Department of Economic Development regulates three types of licences.
Professional Licence
The professional licence applies to sole proprietors and personally offered services such as consultancy. This type of LLC or Sole Establishment is suitable for 100% foreign ownership.
Industrial Licence
The industrial licence applies to companies whose activities include manufacturing, processing, and packaging.
Commercial Licence
The commercial license applies to LLC-type companies involved in all trading activities. It is compatible with 100% foreign-owned structures registered in the Mainland or Free Zones.
Embark on a transformative journey with SFM Corporate Services as your preferred Corporate Service Provider with extensive experience in the dynamic landscape of Dubai.
We take pride in our established expertise and look forward to supporting your business growth with a wealth of knowledge and a commitment to excellence.
To discuss your business needs contact our dedicated team at info@sfm.com.
