Launching a business in Dubai implies several steps, however, they are dictated by the legal form chosen to operate under. Just like in other countries, there are various types of entities you can choose from. However, the most important aspect to consider in the UAE is where you want your enterprise to carry out its activities. Below, apart from presenting the main types of Dubai companies, you will also get some information on their best uses.
Dubai business forms based on location
Once you have decided to incorporate a Dubai company, the main aspect to establish is where you want to operate it. You have several options from this point of view, and to make sure you understand how which one works, you can get personalized advice from BridgeWest Dubai, which can also help with its registration after making sure you made the right decision.
Generally speaking, you can choose between
- mainland companies, which enable you to operate locally and internationally;
- free zone companies, which allow you to operate in the respective free zone;
- offshore companies, which can be used for international operations only.
Apart from this aspect, there is the legal structure that differentiates between company types in the Emirate.
Legal structures for companies in Dubai
From this point of view, the UAE is no different from other countries, as it enables you to register:
- a sole proprietorship, if you are a single entrepreneur or professional and can carry out an economic activity on your own;
- the civil company, which can also be created by professionals in fields like medicine, engineering, architecture;
- the limited liability company, which is widely used around the world and enables the owner to operate in various sectors (most of them, actually), while having limited responsibility for the obligations of the enterprise;
- the free zone company, which is also a limited company with at least 2 shareholders;
- the free zone establishment, which is a limited entity with one shareholder;
- the joint stock company, which is suited for large operations, and is not often used.
Apart from these, you may already be a business owner in another country. So, what do you choose in this case? You have two options:
- the subsidiary, you can register as a limited liability company;
- the branch office, which is an extension of your foreign enterprise.
How do you choose between these two? It depends on how much control you want to have over the Dubai operations. For full control, the latter is preferred. If you want to obtain the tax benefits available in the UAE, however, the former is recommended.
Types of companies by registration requirements
The registration conditions can significantlyinfluence the type of entity you choose in Dubai. The best example in this case is the sole proprietorship, for which, if you are a foreigner, you need to appoint a licensed service agent to incorporate it. You will also need to obtain a residence permit to move to Dubai and work from here.
For limited liability companies, onshore or free zone, you are not required to relocate here, and the registration requirements are simpler, as you can complete it yourself. In practice, due to the owner not coming to Dubai, a licensed agent is also used in this case.
From a capital point of view, free zone companies may be subject to specific requirements. In this case, you need to address the local authority directly.
These are the main types of companies you can set up in Dubai. The choice should be based on the size of your business and the type of operations you plan to establish here, as, from a registration point of view, the differences are minor.
