Incorporation in Dubai

• Dubai is the gateway to the massive Middle Eastern and African markets;
• The most popular business vehicle for foreign company registration in Dubai include the LLC, the free zone company and the branch office;
• In Dubai, only a free zone company can be wholly foreign owned. An LLC must be 51% owned by a local shareholder;
• A Dubai LLC can trade within the UAE. However, a Dubai free zone company may only transact within the UAE through resident agents;
• Dubai Branch cannot be engaged in manufacturing, import and export of products to/from UAE;
• There are no corporate income taxes or withholding taxes in Dubai;
• From January 2018 Federal Tax Authority implemented a Value Added Tax of 5% and applies on a broad range of good and services.

• A Dubai company faces no company tax, personal tax, withholding taxes, import/export taxes and capital gains tax, payroll tax.
• Dubai’s offshore business solutions to register a legally tax-exempt company to extract funds in the form of dividends, management fees, and royalties from regional subsidiaries.
• Dubai is the financial capital of the MEA region. The city’s financial centre (DIFC) is used by several bank and non-bank financial institutions, insurance firms and asset management firms;
• Minimum capital requirement for incorporating an LLC was removed in 2009.
• The UAE cabinet has begun the implementation of 100% foreign ownership and 10-year residency visas for expats, investors and business people.
• There is no public disclosure of the company’s shareholders and directors in UAE. Therefore, entrepreneurs can enjoy full confidentiality.
• Dubai Free Zone Council has implemented new guidelines for free zones to boost foreign direct investment in the e-commerce sector, which shall create attractive environment for major global e-commerce companies.

1. Commercial license: for companies engaged in trading activities.
2. Industrial License: for companies engaged in manufacturing.
3. Professional License: for companies working as service providers, professionals, artisans & craftsmen.

Most of the Limited Liability companies in Dubai choose a UAE local sponsor as a silent partner. In such partnerships the local sponsor is given an annual sponsorship fee in exchange for the controlling interest. One can decide the way in which they wish to distribute the profit/loss of the company. It is mandatory to execute a management agreement between the foreign partner and the UAE national on the beneficial ownership of the shareholding, as well as profit sharing.

• Application for company registration and license, along with reserved trade name.
• Copy of Identification certificate (for UAE nationals only).
• Copy of passport and visa details, other than residence permit of foreign investor.
• Copy of passport of shareholders, proposed directors and general manager.
• Copy of no-objection certificate from applicants’ current sponsor.
• Copy of government authorization letter for the proposed business activity.

Those who get initial approval letter can step forward and apply for other certifications in various other government departments depending on the type of business activity. One should sign the Contract of Establishment before a notary and submit it before the Dubai department of Economic development for the final approval. In this agreement there should be details related to the trade name of the company, its primary business objectives, head office, office address, name of shareholders, their permanent address and nationality, place of residence, profit/loss sharing details, capital investment, complete address of the office managers and the notification method to be initiated in the office.

• Copy of initial approval letter.
• Copy of documents submitted for initial approval.
• Copy of office lease agreement, including the address of the plot.
• Memorandum of Association duly signed by a notary.
• Contract details of the limited company.
• Commercial registration certificate attested by UAE Embassy or consulate.