Company Formation in Dubai, UAE

The largest city in the Middle East is Dubai. Due to Dubai’s amazing tax structure, starting a business there is a dream for many investors. This city has increased its opportunities such that the economy is always growing. One of the biggest oil exporters in the world is this nation. Therefore, more people are forming businesses in Dubai as a result of all these prospects.

In Dubai, who can establish a business?

The UAE makes it quite simple to launch a business, and many companies, including foreign ones, are trying to seize this opportunity. Anyone who wants to open a business in Dubai can actually do so.

Since there are several government incentives available to start a business in Dubai. The essential point to keep in mind is that, except from a sole proprietorship, most business kinds require a partner who owns at least 51% of the company. After that, Dubai business formation can proceed with the registration and licensing processes. The minimal capital may also be necessary in specific circumstances. The UAE Free Zones are the best feature that attracts investors to open businesses in Dubai. These regions are well-liked by international investors because they provide 100 percent foreign ownership, zero percent corporate and personal tax, and exemptions from import and export taxes.

Important Steps for Company Formation in Dubai

Here is a list of the six simple processes needed to form a company in Dubai:

1. Pick a business name

The name of the firm needs to be distinctive and memorable to draw in clients. Additionally, the investor must abide by all policies and guidelines established by the Department of Economic Development. After the name is selected, the DED will issue the final permission. If a person chooses to name their firm after another person, they must be either a partner or an owner in the business, and they must use their complete name—no initials or abbreviations are permitted.

2. Pick a business activity

In order to determine what kind of business license to apply for, the next step is to decide what kind of business operations will be conducted. Which Free Zones the person should set up their business in may depend on the type of business.

For instance, the person may wish to select a free zone that is close to an airport or port if their company significantly relies on imports and export.

The choice for the preparation process can then be made, but deciding on the business activity will undoubtedly provide the entrepreneur direction and aid to rule out some choices in advance.

3. Engage a local sponsor

Any legal concerns that arise will be assisted by a local sponsor. In order to start a firm on the Mainland, a sponsor is necessary. Additionally, they will own 51% of the stock in the company.

4. Complete the incorporation documents.

An application must be submitted to the appropriate government agencies with copies of shareholders’ passports in order to use the chosen company name and activity. Some free zones demand extra paperwork, including a business plan or a Non-Objection Certificate, which is a letter from an existing sponsor stating that the person is permitted to open a business in Dubai. The company setup partner can help the individual with the necessary documentation and provide advice on how to complete it.

5. Receive notification of your license and open a bank account

The simplest step is this one. The government will grant the business license after processing the application. The person will have all the necessary paperwork to open the business bank account after the paperwork has been returned. To help him select the best alternative, the person can either approach the bank of his choice or ask his business partner to set up meetings with many institutions.

6. Complete the visa process

The last stage in forming a corporation in Dubai is to submit an application for their own visa. Therefore, it is important to get professional assistance to confirm that obtaining visas for a spouse, child, maid, or driver is feasible in the selected free zone. These five steps are part of the procedure:

  • Permitting entry
  • Status modification
  • Test of medical fitness
  • Registration of Emirates ID
  • Visa Attestation

Documents required for company formation  in Dubai

The list of documents needed for company registration in Dubai is as follows:

  • It is necessary to submit a Business application form.
  • You need a business plan.
  • It is required that the MOA and AOA be properly notarized by the authority.
  • It is necessary to have the business managers’ passports.
  • To demonstrate that the applicant is a national of the UAE, the sponsor’s passport is necessary.
  • The Sponsor must give their NOC.
  • For each shareholder, a letter of bank recommendation is required.

Along with the documents mentioned above, the following documents are required for an industry license:

  • You must have a copy of the feasibility study.
  • There must be an existing company profile.
  • It is necessary to have information on the Investor.
  • It is necessary to have an authenticated copy of the MOA, AOA, and Certificate of Incorporation.
  • A Company Board Resolution is required.
  • It is necessary to provide a bank statement for the parent firm dating back at least three months.
  • You require an original Power of Attorney and a copy of your passport.

Different License Types Needed For Company Formation In Dubai

The first requirement regardless of the kind of company one wishes to establish in Dubai, is to get a license. A license identifies the person and his business venture and confirms the company’s status as a legal entity. Anyone who operates a business in Dubai without a license is breaking the law. Before forming a corporation in Dubai, the person must make sure to adhere to all rules.

A person can apply for one of four distinct licenses in Dubai:

1. Commercial License

If the person intends to engage in any trading, they must possess this form of license. Businesses engaged in general trading, retail, real estate, and construction must apply for this license. An advantage of a business license is that it

  • Trade on a local and global scale
  • Tax-free advantages
  • Trade a wide variety of goods and services.
2. Industrial Licence

A person must submit an application for this license if they intend to start a business that engages in industrial operations. Large businesses that need an industrial license include those in the aerospace, maritime, aluminum, and fabricated metals, pharmaceutical, food and beverage, machinery, and equipment industries. A warehouse must be located in the nation for someone to obtain an industrial license.

3. Professional Licence

This license is intended for service-based businesses including carpenters, doctors, beauticians, accountants, attorneys, and many more. A person who holds a professional license is able to deal with a wide range of customers and markets, have 100% foreign ownership, and renew their license at a reasonable price.

4. Tourism License

The government wants to ensure that tourism is given top attention because Dubai is known for its thriving tourism business. An individual can apply for one of three licenses for the tourism industry: an outgoing tour operator license, an incoming tour operator license, or a travel agent license. Dubai’s strategic location, ease of access by air and sea, excellent infrastructure, and tax-free status are just a few of the major benefits that draw both businesspeople and tourists to the city.

Benefits of Company Formation in Dubai

The following are the main factors that attract investors to Dubai:

  • Due to its economy’s fastest growth.
  • In Dubai, forming a company is inexpensive.
  • The tax advantages are fantastic.
  • There isn’t a minimum capital requirement.
  • Locations for trade are not constrained.
  • With 100% foreign ownership, there is a Free Zone benefit.
  • It is close to seaports and airports and boasts first-rate infrastructure.
  • There are no restrictions on cash usage.
  • The import tax is very little.
  • There are numerous possibilities for conducting business.
  • There are no restrictions on how many visas a company can obtain for the Mainland.
  • The labor force is accessible and reasonably priced.


In Dubai, starting a business was never an easy procedure. Of course, it is possible to complete it without incident if all the conditions are met and the instructions are completely followed. You can get help from Intellect at every stage of company formation in Dubai. Contact Us for further details. We’ll be happy to help you out!

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