Company Formation in Dubai

Company Formation in Dubai

Table of Contents

Tax savings, good governance, superior infrastructure, a luxurious lifestyle, and constantly expanding opportunities are just a few of the significant advantages of Company Formation in Dubai. Access to more than 2 billion consumers in several markets, all of which are within a 4-hour flight, is another special offering. A global and extremely multicultural workforce is another benefit of Dubai’s desirable location. 

Dubai is the ideal location for you if you’re looking for a truly vibrant business hub to launch your new business for many reasons. 

Dubai offers the same levels of comfort, effectiveness, speed, and service to entrepreneurs, start-ups, small businesses, and massive multinational corporations. Additionally, there are options for every aspect of business setup in Dubai, including budget, license, location, and premises. 

Company formation process in Dubai

You must take action and make sure that the business complies with all applicable laws and regulations in order to establish an LLC in Dubai. The following are the steps for establishing an LLC in Dubai, United Arab Emirates: 

1. Identify the Nature of  Your Business Activity

Choose the right activity in order to register a company in Dubai. Furthermore, you can get assistance from Shuraa Business Setup in choosing the best commercial venture for your intended business. 

2. Register the Trade Name

You must decide on the company’s name and the activities that it will engage in. 

3. Choose Your Business Location

To get the most out of your office, choose a location that is accessible to your market, appropriate for the nature of your business, and close to public transportation. 

4. Send the DED all your documents

Once you’ve chosen a name, an activity, and a location, submit all the necessary paperwork to DED for approval. 

5. Apply for Initial Approval

You need to obtain permission from the other relevant authorities before enagaging in the business activities. 

6. Obtain Licenses  

You can also obtain a Memorandum of Association, Certificate of Incorporation, Trade license, share certificates, Visas, Tenancy agreement, Labor cards, and other legal documents once the required authorities have approved the company activity. 

Types of Company Formation

1. General Partnership 

Only citizens of the UAE may incorporate this type of business in Dubai. It is founded by two or more partners who bear joint and several liability for the company’s debts. They are accountable for the “profit-and-loss” performance of the business. 

The only names that may appear in the company name are those of the actual partners. 

There are two ways to express a partner’s interest: 

  1. The consent of all partners, including the other partner. 
  2. Clearly stated in the partnership contract. 

The management must be made up entirely of UAE citizens. Said Managers may or may not be partners. 

The dissolution of a partnership occurs in the happening of the following four events: 

  1. Partner withdrawal. 
  2. Partner’s bankruptcy. 
  3. Partner’s insanity. 
  4. Partner’s death. 

However, if all of the other partners agree to continue the partnership, it may do so. In this instance, such a choice needs to be properly recorded in the commercial register. 

2. Public Shareholding Company 

Most participants or shareholders are under this type of shareholding. 

In fact, a public shareholding company is required to have at least 10 founders. The only exception to this rule is when a UAE government organization is involved, in which case the necessary number of founders may be less than 10. 

A public shareholding company’s board of directors must have a minimum of three and a maximum of twelve directors. Therefore, UAE citizens must make up the majority of the directors as well as the chairman. 

The minimum amount of capital required is AED 10 million ($275,000), with 25% due at subscription. However, the public must have access to 55% of the shares. 

A shareholder’s liability is only up to the amount of his capital contribution; all shares, which are registered in a share registry and have equal rights. Whereas the nominal value serves as the benchmark for share issuance, serving as the minimum price. 

The board of directors is required to call a general meeting of shareholders whenever there is a significant financial loss, or when the company loses 50% or more of its capital. 

You also need to decide the above issue in this general meeting. For instance, deciding whether to dissolve the company or keep it going. If the board of directors fails to conduct the meeting, partners are free to petition the court to dissolve the company. 

3. Private Shareholding Company 

A private shareholding company must have at least 3 shareholders, just like a public shareholding company. Its required minimum capital is 2 million AED. 

In this arrangement, shares are not made available to the general public. This is the rationale behind the requirement that any public offering of shares be expressly excluded in advance by a private shareholding company’s incorporation paper. 

4. Limited Liability Company 

In the UAE, this kind of company incorporation in Dubai is very popular. It can be set up by a minimum of two people and a maximum of fifty. The value of a shareholder’s shares serves as insurance against his liability. 

The minimum capital needed for this setup in Dubai is AED 300,000. This number varies depending on the activity and the jurisdiction. 

According to a new company law that went into effect on June 1, 2021, investors can now own 100% of a mainland trading company without a UAE national being required to hold 51% of the LLC Company. 

A Dubai LLC company formation is also permitted to engage in any legal activity, with the exception of those involving money investment on behalf of third parties or entities, such as banking and insurance. 

How much does it cost to set up a company in Dubai?

The size, type, and location of the company are just a few of the variables that affect how much it costs to register a business in Dubai. The anticipated costs are significantly influenced by the necessary legal license. 

 The most affordable options for your company’s business setup are provided by Shuraa business advisors. Company Formation in Dubai Cost starts from AED 18,500 to AED 30,000. To get your exact quote, connect with our experts. 


For more than a decade, we have been assisting UK businessmen in realising their desire to form a company in Dubai. One of the biggest restrictions that a businessman faces is financial and tax-related. 

Dubai is a tax haven for businesses, so starting a business there means you won’t have to worry about paying taxes. The Dubai government has implemented several initiatives over the past few years that make Dubai the ideal location for any company to launch operations.  

Working in Dubai gives you access to a top pool of opportunities that you might not find anywhere else in the world. Shuraa Business Setup has been assisting international business owners in launching new ventures. What are you waiting for? Call us right away. 

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