Form the Company and Other Legal Procedures
June 17, 2021

Setting up an International Business Company or any other business entity requires adequate preparations and investments. For this reason, many business entrepreneurs in Dubai are looking for cheap Companies in Dubai that can help them establish their businesses without too much of expenditure. But it’s not always easy to locate these Companies. This article will explain about the different types of Companies and the factors affecting the cost of setting up a Company in Dubai. The aim is to help you get a clear idea of the various factors affecting the cost of establishing a Company in Dubai.

Companies in Dubai come into two categories Private Companies and Public Companies. Private Companies are those which are owned by individuals (owners) and incorporate in Dubai. On the other hand, Public Companies is registered with Dubai National Business Development Agency (NBDA) and have to undergo several ownership and registration processes in order to become active participants in the economic development market of the country. The company’s setup in Dubai that are owned by foreigners are normally termed as Foreign Private Companies (FPOCs).

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Two important factors affect the overall cost of Company setup in Dubai. One of them is the ownership type. Ownership can be either foreign ownership or UAE nationality. If the Company is destined for private use, ownership might not be a problem. But if the Company is destined for public use, the Company formation process and legal formalities need to be carefully considered by the entrepreneur or his legal advisors.

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Ownership of a Company in Dubai:

Ownership of a Company in Dubai depends on two different types of entities. They are: limited liability company (LLC license) and limited partnership. A typical Limited Liability Company in Dubai has two different types of ownership: direct and indirect. A typical LLC in Dubai has one share owning the company. The other owners are the employees of the Company. An indirect LLC is basically the same as a Corporation except that it does not need to register in Dubai.

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Start a business in Dubai:

Before you can start a business in Dubai, you will have to get a Company formation in Dubai. You can select from the Companies that are available in the market. Companies formation in Dubai involves the submission of the necessary documents to the Dubai Authority of Company Administration (DA). The company’s administration in Dubai also has its own set of rules and regulations that you will have to comply with.

Company formation:

Once your Company formation in Dubai is successful, you will be required to obtain the Dubai Private Company (DPC) that you will be operating in the Company formation process. The company’s administration will provide all the necessary documentation and information about the Company and its shareholders. This will help you start your business in Dubai. Your company formation in Dubai will be approved only after the submission of the essential documents and information.

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company formation

After your Company setup in Dubai, the next step is to get the approval for the visa that you will require for your business activities in Dubai. The procedure of visa processing differs from country to country, so you have to check the details with the appropriate authorities in Dubai. The Dubai permits for the visa processing is different from the visa processing done in other countries. The visa applications should be submitted to the nearest embassy of the concerned country for processing.

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Company Setup in Dubai – Setting Up a New Business

Company setup cost in the free zone varies according to the services availed (land, office, warehouse, virtual office etc), Visa quota, the location of Freezone and so on. The overall cost of offshore Company set up in UAE varies solely on the jurisdiction chosen. Most of the company’s setup in UAE prefer to have their own branch head office in UAE. A few Companies however prefer to outsource their company operations to a Company Head Office located in UAE. It is important to note that you need a license to open a Company in UAE. You can get this all over the internet, or by approaching the nearest Ministry of Foreign Affairs.

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Company setup is considered a vital step for promoting foreign ownership in the country. Several reasons are cited for this, the most prominent one being the poor economic status of the country. Another reason is that, the company’s setup in UAE are heavily regulated by the Dubai authorities, to protect the interests of the investors. If the Company is not following the regulations, it could be severely punished.

The laws on Company setup in Dubai are strictly followed. Companies have to follow the rules, regulation number 11 of the penal Code of the Dubai Presidency, including all the rules regarding corporate taxes, and the Companies’ Affairs Office. Companies have to pay the appropriate amount of corporate taxes as set by the government. They also have to submit annual reports to the Office, which states the company’s financial position and performance. On the other hand, Companies have to pay the corresponding annual insurance premiums as decided by the Government of the emirate.


The requirements of Company setup in Dubai strictly include the submission of the necessary documents, registration with the Dubai canteen office, the payment of the franchise fee, and the issue of the Company seals. However, there are many more formalities, which have to be fulfilled by the Company. For instance, the Companies’ Affairs Office has to issue the permit for the operation of the foreign-owned business. The Company administration department has to ensure that all the legal requirements are fulfilled by the foreign company. Companies have to register their name with the Dubai commercial property Registry. Foreign ownership of commercial properties in Dubai is allowed through the Private Commercial Investment Companies (PCIC).

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Business Setup in Dubai

The commercial license can only be obtained from the Dubai Commercial Investment Company (DCIC). Only registered and certified companies can have a commercial license. For instance, if you have a planned retail outlet in Dubai, you will not be able to operate it if you do not have a commercial license. If your aim is to set up a food court in Dubai, you will not be able to set it up without a commercial license. In addition, if you plan to set up a hotel, you will require a hotel license.

For entrepreneurs in Dubai, this does not mean that they need to shell out a huge amount of money just so that they can start their own Company. Dubai laws are very simple and easy to implement. For instance, if you plan to set up a hotel or a food court, all you have to do is apply for a commercial license and you can just go on with your business activities. There are a lot of real estate agencies that are willing to help the new entrepreneurs with their business activities. Just contact a Dubai based real estate agency that can help you locate suitable commercial property for sale in Dubai.


The last and most important thing to do is to get the license for working or operation from the Dubai Company Interior Ministry. The license can be obtained from the Companies’ Administration in Dubai. All these legal procedures for establishing a Company in Dubai are quite lengthy but if you have a complete in-depth knowledge about them, you can save a lot of time.

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