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Business Registration of the Company in Dubai, UAE Complete Guide

All entrepreneurs who have businesses, surely, want to place branches of their companies in another country. It can also happen that entrepreneurs do not know where to establish their new company. The best place where you can open your business is in the growing market in the UAE. The emirates offer many opportunities for any entrepreneur. But, to start carrying out your commercial activities in this country, you must carry out the registration of the Company in Dubai.

In this article, you will see all the relevant information about the registration of the Company in Dubai. The first thing will be that you see the types of registration of companies in Dubai. As a result, you will see all the reasons why opening a business in the UAE is an excellent idea. In addition, we will let you know some eligibility criteria. Finally, we will give you a step-by-step guide for business registration in Dubai.

1. Do you know the types of registration of the companies in Dubai?

Registration of the company in Dubai

A very frequent question is how can I start my own business in Dubai. In addition, there is also another question when one wants to start a new company in Dubai and that is what type of company can I open. This is important since you must know the steps to follow to open any type of business.

No matter you want to open an ice cream shop in Dubai or open a grocery store in Dubai, there are steps to follow depending on the type of business. As is known, Dubai belongs to the UAE and this is a country that offers great benefits to businessmen. In this way, many people know the benefits of creating a company in the UAE.

For this reason, if you want to make you are registering a company in Dubai you should know the types of company registration that exist in Dubai. Next, we can see the different types of records that exist:

1.1 Free zone companies/establishment

These are companies/establishments that are located in the free zones. In these areas, there are special laws that are related to taxes, customs, property, etc., which are different from mainland Dubai. The foreign businessman may have 100% ownership of the company that has been established in this area.

In this case, entrepreneurs may establish two types of companies. For the first type, it would be a free zone establishment and the other type would be a free zone company. In addition, a single limited liability shareholder may establish a free zone establishment. A natural or legal person can establish a free zone company or a free zone establishment.

All the legal requirements to be able to establish a free zone company/establishment; will be established in the rules and regulations framed by their respective free zones. Being able to establish a business in this zone qualifies foreign investors to apply for a UAE-free zone visa.

1.2 The Limited Liability Company or LLC

With a minimum of two shareholders, the limited liability company can be established in Dubai. In these companies, there can be up to a maximum of 50 shareholders. These shareholders will be limited to their contributions to the capital stock. LLCs can carry on any type of business they want, except insurance, monetary investments, or banking.

1.3 The Onshore company

Onshore companies are companies that are established on the mainland of Dubai. In addition, they are directed by their directors from Dubai. In the case of foreign entrepreneurs, Dubai only allowed 49% ownership. Additionally, to this, they had to be established together with a national agent or with a sponsor.

However, this has been changed by the Dubai government. Currently, foreign entrepreneurs can have 100% ownership of Dubai onshore companies. In this case, those companies that are established for economic activities that have a strategic impact that is related to seven sectors are excluded.

1.4 The Offshore company

The businesses of these types of companies are formed and operate outside the jurisdiction of the country in a company known as offshore. These companies are wholly foreign-owned and registered in Dubai but headquartered in another country. Those foreign businessmen will have 100% ownership of the companies that are offshore.

It is important to know that establishing an offshore company brings many benefits to entrepreneurs and their employees. For international investors, this market offers many advantages that they can take advantage of with this type of company.

1.5 A branch

This is an extension of a parent company. Regardless of the foreign company, it can establish a branch in most Dubai-free zones and mainland Dubai. It is considered a good option for those companies that want to expand in the UAE markets.


2. Why is it a good idea to open your business in Dubai?

It is important to know what are the challenges of doing business in the UAE. However, it is more important to know why it is a good idea to carry out these businesses. For this reason, we will now look at the main benefits of opening your business in Dubai:

2.1 Dubai’s very business-friendly environment

The UAE has quickly adopted the technology for all company formation procedures in Dubai. Thus, we find the process of registering a company in Dubai very easy. The applicant person will be able to very easily complete the necessary procedure in a few days.

The incorporation of companies requires almost no paperwork and all the online steps are easy. Even for those more novice people in this type of procedure.

2.2 Whole ownership of the business to those foreign nationals

In the emirates, certain amendments were made to the law on commercial companies. In this way, it allows foreign investors to have 100% total ownership of their businesses. This became a very big step to be able to invite more foreign investors to the city.

In addition, it is foreign investors and establishments that carry out the majority of the total economic activities in Dubai.

2.3 It has more than 30 free zones

All foreign investors will be able to establish their companies in the mainland area of ​​Dubai, which consists of free zones. In these zones, you can do business where 100% ownership of the foreign business is allowed. Additionally, you will have a full claim for your earnings with repatriation provisions and the capital that was invested without tax reduction.

In Dubai, there are more than 30 free zones for business investors from all over the world. All investors will be able to collaborate even more with other players who are in the same economic sectors.

2.4 They have a flexible tax regime and tax benefits for corporate entities in Dubai

One of the main benefits offered by registering your business as a company in Dubai is that you do not need to pay any tax. The authority does not charge your personal or corporate taxes in Dubai. However, some companies are subject to paying a 5% VAT on specific commercial activities. This will be, as applicable by corporate laws in Dubai.

2.5 The very strategic geographical location of Dubai

Dubai has a location that is strategically very advantageous. This is because it is located at a crossroads that connects from all directions both by sea and by land. In addition, this city is one of the world’s largest re-export centers. It has one of the busiest and busiest seaports and airports in the world.

Dubai also has one of the most efficient logical infrastructures. The UAE government has invested a lot to make Dubai the best business hub in the UAE. In addition, it also makes it one of the most important and largest tourist centers in the world.

3. Step-by-step guide on how to register a company in Dubai

Registration of the company in Dubai

Company registration in UAE can be considered a relatively simple process. The main thing is to deliver the documentation to the relevant entities, and your company will be registered in the minimum time. Next, you will see a step-by-step guide to being able to register the company in Dubai.

3.1 Choose the commercial activity

Before starting a company, you must choose a business activity. Currently, there are many business opportunities in the UAE and you can choose the one of your preference. On the other hand, it is important that you review the list of possible commercial activities that you can carry out issued by the DED.

3.2 In case you need it, get a local business partner

Currently, some changes have been implemented in the commercial companies’ law; the most important is that the need for foreigners to have a local partner from the UAE is eliminated. However, this requirement for company register Dubai was removed; but different business activities still require you to have a local sponsor.

3.3 Choosing a business structure

Applicants must choose the business structure before proceeding with the registration of the company in Dubai. This choice will depend on the availability of capital, the commercial activities to be carried out, and the number of partners. There are different business structure options; for instance, LLC, a branch, or free zone establishment.

3.4 Make the reservation of the company name

This step consists in registering the name of the company, that is, carrying out the trade name registration. Before making the reservation of the name of your company you should know that the UAE has certain laws in this regard that you must follow. For instance, it cannot be similar to another company name, it cannot be insulting or controversial, and many others. In addition, it is important that you propose the DED so that they can confirm if it is available or not. This is because there cannot be two companies with the same name.

3.5 Decide where you are going to carry out the commercial activities of the company

To choose the office where the company is going to be developed, a location must be chosen. It is important to mention that applicants are given the possibility of buying a piece of land that is special for the workspace.

3.6 Rent a workspace or office

Regardless of the commercial activity you decide to carry out, you need a workspace or office, which is granted by a lease. He is also known by the name of Ejari, translated into Arabic. To do this, you must carry out the Ejari registration, which is not a complicated process. The size of the office depends on the number of employees and the budget that the owner has. This is part of obtaining the business license to complete the registration of the company in Dubai.

3.7 Open a bank account and make the relevant payments

Once you get all the relevant approvals and registrations, the company must open a bank account. With it, you can make the payment of the corresponding fees and receive money for business matters. The best option to open your corporate bank account is to use one of the international banks.

4. Contact Connect Middle East and we will help you register a company in Dubai

To carry out the commercial activities of your company, you need a commercial license; which is obtained by completing the entire registration process of the company in Dubai. Without this, aspects of business cannot be carried out, for instance, hiring employees. In case you want to hire a company that supports you in these procedures, contact Connect Middle East. To contact us you can call us at +971 43 316 688, or write to the following email

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