Registering a company in Dubai is one of the quickest, most reliable, and most advantageous ways to obtain a residency visa in the UAE. Moreover, given the significant growth in investments in recent years, the UAE has made significant strides in the field of international economics. By registering a company in this city, you can expand your business activities and expedite your import and export operations from Dubai.

But how do you register a company in Dubai? What documents are required to register a company in Dubai? Is it possible to register a virtual company in Dubai? In this article, we intend to provide you with useful information about how to register a company in the UAE and answer your questions in this regard. Stay with PSP Express.

What type of company can be registered in Dubai?

There are various types of companies operating in the UAE and the city of Dubai. Therefore, one of the most important issues to consider before registering a company is to identify the different types of companies and choose one based on your circumstances.

Types of companies in Dubai

In the following, we will introduce you to the different types of companies for registration in Dubai:

  • General Partnership Company:
    The establishment of a general partnership company is only possible for Emirati individuals. General partnership companies are established by two or more partners and only the names that are allowed to be included in the company name are the names of the partners. In this company, the partners are responsible for the profits and losses of the company.
  • Limited Partnership Company:
    In the UAE, limited liability companies are also known as Commendams. In these companies, each partner is responsible for the profits and losses of the company to the extent of their share in the capital. Also, in such companies, they cannot be part of the management and their names cannot be included in the company name.
  • Limited Liability Company (LLC):
    The most common type of company in Dubai is limited liability companies. To establish a limited liability company in Dubai, you need at least 2 and at most 50 partners and one Emirati partner. A foreign partner cannot have more than 49% of the company’s shares. The minimum capital required to establish a limited liability company in Dubai is from AED 20,000 to 30,000. However, this capital may vary depending on the field of activity. Note that by establishing LLC companies, you will not be allowed to engage in banking, insurance, and investment in other shares.
  • Civil Company (Joint Stock Company):
    Civil companies are 100% owned by professionals and the purpose of establishing such companies is to advance the interests of doctors, lawyers, accountants, and other professionals in various fields.
  • Joint Venture Company:
    Joint venture companies or consortia are established by two or more natural and legal persons. To establish such companies in Dubai, one of the partners must have UAE citizenship. Also, joint ventures can only be conducted under the private name of one of the partners.
  • Public Joint Stock Company:
    Public joint stock companies have the largest number of shareholders compared to other companies. Such companies must have at least 10 founders, although if a UAE government entity has shares in a public joint stock company, fewer than 10 founders are required to establish the company. The minimum number of directors to form a board of directors in a public joint stock company is three and the maximum number is twelve, and most of the directors in these companies must be Emirati. In these companies, the responsibility of each shareholder is determined based on the amount of their share. If the company’s financial loss is high and more than 50% of the company’s capital is lost, the general meeting of shareholders is held by the board of directors. If this meeting is not held by the board of directors, the partners can go to court to investigate the matter further and dissolve the company.
  • Private Joint Stock Company:
    To register a private joint stock company in Dubai, you need at least 3 shareholders.  The public offering of shares is not possible in these companies.
  • Branch or Representative Office:
    Foreign and domestic companies can establish branches and representative offices in Dubai (mostly in free zones). Branches usually perform the same commercial activities as the parent company, but they cannot import the products of the parent company. Branches can only upgrade the activities of the parent company.
  • GCC Companies (Gulf Cooperation Council):
    The Gulf Cooperation Council is a political and commercial union between six Gulf countries, including Saudi Arabia, Bahrain, the United Arab Emirates, Qatar, Oman, and Kuwait, whose members pursue common commercial and social goals. If you have a company in one of these countries, you can register your branch in Dubai. In the UAE, there are nearly 45 free zones, of which nearly 30 are located in Dubai. There are two types of companies in free zones. The conditions for registering free zone companies (FZC) are similar to the conditions for registering LLC companies in Dubai, and to establish a company, you need at least two shareholders. The main advantage of establishing such companies is that these companies can be fully owned by foreign entrepreneurs, and usually, these companies are tax-exempt. Free zone companies in Dubai can only operate in the free zone and can only carry out activities that are listed in their license.
  • Offshore Company:
    Offshore companies in Dubai operate outside the judicial, local, commercial, and legal systems of the UAE. These companies are a legal commercial entity whose purpose is to facilitate international trade. Offshore companies are outside the scope of value added tax and customs of the UAE and cannot benefit from the conditions of trade in local markets. International trading companies, consulting services, real estate investors, holding companies, etc. are usually in the category of offshore companies. Such companies cannot apply for residence visas for their employees, but it is possible to open bank accounts for employees. Registering such companies in Dubai is very secure and has many advantages such as return on investment, tax savings, etc.

Virtual Company Registration in Dubai

A virtual company license in Dubai is a regulation that allows investors and entrepreneurs from outside Dubai to establish a business and company without the need to be physically present or reside in Dubai. License holders can conduct many business affairs, including signing documents and other legal signatures, digitally.

Conditions for Virtual Company Registration in Dubai

Virtual company registration in Dubai is not possible for all countries. Residents of Afghanistan, Iran, Belarus, Oman, Serbia, Thailand, Venezuela, and Sri Lanka cannot register a company in Dubai virtually.

To establish a virtual company, the following conditions must be met:

  • The applicant for a virtual company registration license must not be a resident of the UAE.
  • The applicant must hold citizenship of one of the 101 approved countries, including Canada, the United States, Pakistan, China, Japan, India, and others.
  • The business activity must fall within predefined sectors such as computer programming, design and fashion activities, consulting, printing, and advertising.
  • The holder of a virtual company license in Dubai must register the company with the Dubai Federal Authority. Additionally, if the annual income exceeds $100,000, a 5% value-added tax will be applied.

Company Registration in Dubai Without a Sponsor

A sponsor is a local individual in the UAE who acts on your behalf when you are not physically present in the UAE. You are usually required to pay a certain amount to the sponsor each year for the services they provide to support your business.

If you are concerned about having a sponsor, you should know that the sponsor does not have access to the company’s accounts and only their name is mentioned in the contracts. Furthermore, 100% ownership of the company will be in the name of the applicant.

Typically, you need a sponsor to register a company in Dubai; however, in cases such as setting up a company in a free zone, a sponsor is not required, and you can register a company in Dubai without a sponsor and have 100% ownership of the company.

Types of Company Licenses in Dubai

Now that you are familiar with the different types of companies in Dubai, it’s best to know the types of company licenses in Dubai and choose one based on your goals.

  • Professional License:
    • Requires a university degree, specialized skills or knowledge in fields such as accounting, consulting, law, and legal advice.
    • Allows for the registration of a virtual company in Dubai.
    • Age requirement is 18-60 years, and the visa must be an investment visa.
    • Offers a 3-year renewable residence visa.
  • Commercial License:
    • Suitable for companies engaged in commercial activities such as sales.
    • Allows activities such as importing and exporting clothing, auto parts, chemicals, precious metals, etc.
    • Age requirement is 18-60 years, and the visa must be a partner visa.
    • Allows for the registration of a virtual company in Dubai.
    • Ownership is typically 51% for the sponsor and 49% for the applicant, but 100% ownership is possible without a sponsor.
  • Industrial License:
    • Available for companies engaged in manufacturing, processing, and packaging.
    • Age requirement is 18-60 years, and the visa must be a partner visa.
    • Ownership is typically 51% for the sponsor and 49% for the applicant.
    • Virtual company registration is not possible with this license.
  • Freelance Permit:
    • The most popular license in the UAE.
    • Used by professionals in the fields of art, entertainment, media, and technology in free zones.
    • Offers full-time or consultancy services.
  • Tourism License:
    • Required for those providing travel and tourism services.
    • Popular among businesses such as restaurants, guesthouses, travel agencies, hotels, and tourist camps.
  • Agricultural License:
    • Required for those involved in plant trade, agriculture, pest control, pesticides, and chemical fertilizers.
  • Craftsmanship License:
    • Required for those providing services that require physical strength, skill, and ability, such as plumbing, carpentry, electrical work, and blacksmithing. Issued by the Dubai Economic Development Department (DED).

Conditions for Company Registration in Dubai

Now that you are familiar with the different types of companies and licenses, it’s time to learn about the conditions for company registration in Dubai.

The conditions for company registration in this city have changed in recent years, and currently, for the registration of many companies, a UAE sponsor is not required, and you can be the sole owner of the company.

In general, the conditions for company registration in Dubai vary depending on the type of company and the field of activity. For example, renting a warehouse and production facility is one of the necessary conditions for registering a company with an industrial license in Dubai. Therefore, it is best to contact a reliable company in this field to learn about the specific conditions for registering a company in Dubai.

However, to register a company in this city of the UAE, in addition to the specific conditions, it is necessary to meet the general conditions, which are as follows:

  • Age requirement of 18 to 60 years
  • Financial solvency
  • Having a relevant educational background (depending on the field and license)

Steps for Company Registration in Dubai

To register a company in Dubai, you need to follow the steps outlined below:

  1. Choose a Business Activity: The first step is to choose a business activity. It is advisable to select a business activity that is profitable in the UAE.
  2. Choose a Company Type: In the second step, based on the type of activity and license, you should choose the most suitable company type from those mentioned in the previous section.
  3. Choose a Partner or Sponsor: Registering some companies requires a sponsor or partner. If you intend to register such companies, you must choose your sponsor at this stage.
  4. Complete Administrative Procedures: At this stage, you need to travel to Dubai in person to complete some administrative procedures and submit the necessary documents. You can obtain a Dubai tourist visa for travel and to complete administrative matters.
  5. Obtain Foreign Approvals and Initial Approval: At this stage, the submitted documents will be reviewed by the Department of Economic Development to obtain a license.
  6. Rent a Place for Company Establishment: To register a company and obtain a license, you must specify the location of the company.
  7. Pay Company Registration Fees: At this stage, you must pay the necessary fees for company registration. In the next section, we will discuss the detailed costs of company registration in Dubai.
  8. Obtain a Company License: At this stage, after registering the information with the Dubai Department of Economic Development, your company registration license will be issued.
  9. Open a Bank Account: Now you can proceed to open a corporate bank account by providing the necessary documents.

Cost of Company Registration in Dubai

How much does it cost to register a company in Dubai? This is a question that many people ask when registering a company in Dubai. In response to this question, it should be said that the cost of registering a company in this city depends on various factors. In this section, we will get acquainted with the most important costs that must be paid for company registration.

  • License Issuance Fee: The cost of obtaining a license varies depending on the type of business and the license you intend to obtain. Initial approval fees, company name approval fees, document registration fees, license fees, etc. are some of the costs that must be paid.
  • Document Translation Fees: The cost of translating documents is the lowest cost to be paid for registering a company in Dubai. Depending on the translation agency you choose, this cost may vary.
  • Travel Cost to Dubai: Traveling to Dubai is one of the important steps that must be taken to register a company. Of course, traveling to Dubai has costs that must be paid. The cost of purchasing a ticket and the cost of accommodation are the most important costs that must be paid for traveling to Dubai.
  • Office Rental Cost: If you intend to register a virtual company in Dubai, you do not need to pay rent for an office. But if you want to start a non-virtual company, you must pay rent for an office.
  • Cost of Obtaining a Residence Permit in Dubai: Another cost that must be paid to register a company in this city is the cost of obtaining a residence permit. This cost is calculated based on the number of people for whom you intend to obtain a UAE residence permit.
  • Cost of Opening a Bank Account in Dubai: As mentioned in the previous section, after registering a company, you can proceed to open an account. Of course, opening an account in Dubai has costs that we recommend you consider before starting the registration process.

Advantages of Registering a Company in Dubai

Registering a company in Dubai has many advantages due to the excellent infrastructure of this city. In the following, we will get acquainted with some of the most important ones:

  • Obtaining a UAE residence permit with unlimited renewal
  • Obtaining residence for family members
  • No need for a sponsor and having 100% ownership
  • Opening a bank account in the UAE
  • Trading in the GCC region
  • Trading in global markets
  • Purchasing real estate in the UAE
  • Participating in government tenders in the UAE
  • No need to hire a secretary, accountant, or Emirati manager
  • Registering a company virtually
  • No need to prove company profitability to renew residence
  • Benefit from the right to study and health insurance
  • No need for a language certificate

Disadvantages of Registering a Company in Dubai

However, despite the many advantages of registering a company in Dubai, there are also some disadvantages. Some of the most important problems of registering a company in this city are:

  • For manufacturing and service companies, you will need a partner or sponsor.
  • To maintain residency, you must travel to the UAE every six months.
  • To register a company with non-Arabic names, you must pay more.
  • You cannot obtain an Emirati passport by registering a company in the UAE.

Documents Required for Company Registration in Dubai

Registering a company in a city requires the submission of documents. In the following, we will get acquainted with these documents:

  • Copies of the identity documents of all individuals (CEO and related individuals)
  • Original ID card of the sponsor (if required)
  • Copy of Dubai tourist visa
  • Submitting a completed company registration form in Dubai
  • Submitting the articles of association of the company translated into Arabic
  • Submitting a photo with a white background
  • Submitting a business plan
  • Lease agreement (if registering a physical company)
  • Submitting a certificate of financial solvency (to provide capital)
  • Submitting a certificate of bank deposit of initial capital

Final Word

Registering a company in Dubai is one of the best and most reliable ways to obtain residency and invest in the UAE and has countless advantages. By registering a company in Dubai, you can easily carry out import and export procedures to Dubai and obtain companion visas for your spouse and children.

In this article, we have tried to provide useful information in this regard. If you have any questions in this regard or have any experience regarding the process and how to register a company in this country, we would be happy if you share your questions or experiences with us through the comments section.