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Company Formation in Dubai & Registration Process

Our company formation in UAE and registration processes are tailor-made to suite the unique needs of each business or office set-up. UAE being the centre point of world commerce offers a host of advantages like low or no taxes, technology advanced community, free trade zones, strict levels of confidentiality and rapid development making it a fantastic choice for doing business; Avyanco takes care of your Company Formation, documentation, licenses, registrations and legal processes making it time and cost-saving, leaving you to focus on your core business.

Steps for company registration in Dubai

  • To start a business in Dubai, the investor must first select the type of license (trade, industrial, and/or professional) for the Dubai mainland.
  • The investor has to choose a business activity like trading, service, restaurant, etc.
  • After choosing a suitable activity, the investor needs to select the proper legal structure for the company registration in Dubai, i.e., sole establishment, Civil partnership, Limited liability Company (LLC).
  • Choose a local UAE national either as a local agent or sponsor for the company. As stated by federal law No. 2 of 2015, a UAE national must be appointed as a 51% shareholder.
  • Register the trade name of the business.
  • Submit the company registration application and the proposed company name to the Department of Economic Development (DED) for initial approval.
  • Notarize the company’s Memorandum of Association either in notary public or at Department of economic development (E notary).
  • Choose your office location and get a lease agreement. There are multiple options available like share desk, virtual office, flexi-desk office, shared office, and standard office. The government also provides an instant business license. The investor can take up an office only from the second year onwards and does not need an office space in the first year.
  • File company documents with the Department for Economic Development (DED) and obtain trade license and the Chamber of Commerce and Industry.
  • Make the company stamp.
  • Register a company license in the immigration department.
  • Issue a partner or Investor visa for the owner of the company.
  • Register a company license in the Ministry Of Human Resource And Emiratization (MOHRE).
  • Create a name board.
  • Apply for the employee visa under the company.

FAQs on Company Registration in Dubai

1. Why setup a company in Dubai?

Dubai is strategically located and has already made its mark as a global hub for trade. It is also one of the easiest places to conduct business with minimal red tape. It has a robust infrastructure that supports setting up and running a business. Moreover, companies in Dubai are not subject to corporate tax, Income Tax, capital gains tax, or withholding tax.

2. How can I form an LLC company in Dubai?

The following steps can guide you in forming an LLC company in Dubai:

  • Select a local sponsor for the company
  • Select the right business activity and legal structure of the company
  • Reserve a trade name of an LLC company
  • Get pre-approval (Initial approval) from the relevant authority
  • Sign the memorandum of the company either in Notary public or DED E notary
  • Prepare the lease agreement of the office
  • Submit the documents to the Department of Economic development
  • Pay for your company license

3. What is the minimum capital to form an LLC company in Dubai?

AED 100,000/- (USD 27,322/-) is the minimum capital requirement for business setup in Dubai as the company’s authorized share capital. However, this share capital does not require depositing in the bank. The investor needs to pay only setup costs for company registration, issuing license, office rent, and visa cost. To get Avyanco’s offer for company registration in Dubai, visit www.avyanco.com

4. Can foreign nationals get 100% ownership of a business in Dubai?

Yes, they can. Suppose the nature of the business is providing services in the UAE. In that case, a foreign national can get 100% ownership of the business. However, they must appoint a UAE national as an agent of the company. According to the new FDI guidelines, the UAE government allows 100% ownership for foreign nationals in certain business activities in the manufacturing and agriculture sectors. Earlier, only a maximum of 49% ownership was allowed to foreign nationals.

5. If I set up a company in Dubai and get a residence permit, can I travel to other Emirates freely?

Yes, you can. A residence visa for foreigners is issued by the UAE government. So, they can travel to any of the emirates in the UAE.

6. How much time is required to set up a business in Dubai?

Company formation in the free zones will take around 1-5 days. In contrast, an offshore company can be established in 48 hours if the proper documentation and resources are presented. Mainland company formation, business license, as well as registration, depends on the necessary paperwork and documentation requirements. However, these licenses also can be obtained in a day or two. We at Avyanco make it easy for the investor to start their business in Dubai.

7. What is the cost of setting up a business in Dubai?

The cost for company registration in Dubai depends on the business location, the number of visas required, and the size of the office.

A minimum amount of AED 8050/-* will be needed to set up a free zone company or for company registration in UAE free zone. The cost for the owner’s visa, registration in immigration, and getting an establishment card is additional.
A minimum amount of AED 14,999/-* is needed to set up a mainland company for a professional business license. There will also be visa costs for the owner, registration in immigration, and an establishment card.
The minimum registration fee for setting up an offshore company is AED 9000/-*.

8. Can a company established in Dubai operate in other emirates?

No, a local branch of the Dubai company must be established in another emirate where the company plans to operate.

9. Do I require a physical office for Company Formation in UAE?

A registered address is a mandatory requirement to open a bank account for the new company. Until recently, DED mandated a permanent office of a minimum of 200sqft to issue its license. However, in keeping with the different developments to attract investors, Department of Economic Development has started issuing Licenses without office space. Instead of getting a permanent office space, you can get an Estidama/Sustainability Contract like a virtual office. You get a Lease Agreement for the company, enabling you to get up to 4 employment visas.

Free zones offer Shared or Hot Desks for those looking to minimize their office expenses and apply for 1-2 visas.

10. Can a foreign trading company open its branch in the UAE?

No, Foreign trading companies cannot open a branch with the same activity mentioned in the parent company however the foreign company can have a Representative office in Dubai to expand its business in Dubai and provide support to its client in the country.

Options for Company Formation in UAE:

  • Investor can either choose a Free zone or Mainland or Off -shore to operate their business in UAE.
  • Company can be registered either under an individual name or under a corporate entity registered in UAE or outside of UAE.


Company Registration in Dubai

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