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Dubai Incorporation


Every businessman in the world aspires to launch his own enterprise in Dubai, but the procedure is not simple. Company registration in Dubai is a challenging and troublesome task due to the government's strict rules and regulations and the lengthy process. At this point, one might feel stuck with the complexities of law, but Actolegal is there to help you!

Before launching a business in Dubai, one must conduct extensive study into every aspect, read up on all the relevant details regarding the business activity they intend to engage in, and make sure they are in compliance with all business license laws.

In Dubai, a trade license is required before beginning any company activity. The Economic Development Department, which operates in various locations, is the relevant authority in charge of providing local Dubai firm licenses.

Types of Licenses in Dubai

  • Commercial Licenses - Issued to companies engaged in trading activities.
  • Industrial Licenses - Issued to the companies engaged in manufacturing.
  • Professional Licenses - Issued to the companies working as service providers, professionals, artisans, and craftsmen.

Types of Companies Incorporated in Dubai

There are numerous types of entities which can be incorporated in Dubai such as:

  • Limited liability companies,
  • Private and public joint stock companies,
  • Partnerships,
  • Branch offices,
  • Subsidiaries,
  • Free zone limited liability companies,
  • Free zone establishments.

Let us take a look at the various types of companies and their explanation:

Limited Liability Company(LLC)

In the Limited Liability Company, the liability of the shareholders is limited to their capital. The maximum number of shareholders in an LLC in Dubai is 50 and minimum is 2. Except for insurance, banking, or monetary investment, the company can carry any business activity.

Onshore Company

An onshore company is a business firm that is established and operated within the company's country of incorporation. Having an onshore firm has many benefits, such as favourable legislation, taxation rules for businesses based outside the jurisdiction, extensive networks of tax treaties, developed business, banking, and supporting industries, etc. It is important and advantageous for the onshore company to register in the UAE. Owners typically run their businesses while seated in their home country, but an onshore corporation makes it simple to have a working office and run things effectively.

Offshore Company

An offshore company is a legal business configuration that is formed and managed outside the jurisdiction of the company.

Benefits of setting up your business in Dubai Free Zone are:

  • 100% exemption from taxes on personal or corporate income.
  • Complete ownership for investors regardless of their nationality and domicile.
  • 100% repatriation of capital and profits.
  • Exclusion from all import and export duties .
  • Exemption from all the corporate taxes for 15 years, with a renewal option for 15 years with no requirement of deposit of capital.

Documents for Business Registration in Dubai

  • The articles of association of the company which should contain information about the shareholders, directors and business activities of the company.
  • Translated and notarized copies of the passports of the shareholders and the directors of the company.
  • Duly completed forms issued by the Trade Registrar.
  • Registration in Dubai can be complicated hence it is advisable that you seek the assistance of an expert company registration consultant to proceed with your registration.

FAQ about Dubai-Incorporation