Guide to Company Formation in Dubai, UAE

Guide to Company Formation in Dubai, UAE

Introduction to our Dubai Company Formation Guide

Dubai, a vibrant city in the UAE, offers diverse opportunities for business setup, attracting entrepreneurs globally. Its strategic location, robust economy, and business-friendly environment make it a sought-after destination for company formation. We aim to bring to you in our Dubai Company Formation Guide all informations you need to be understand the frame of this jurisdiction.

Step 1: Choose the Right Jurisdiction

• Mainland: Best for businesses targeting the local UAE market, allowing direct trade within the region.

• Free Zone: Ideal for businesses focusing on international markets, offering benefits like 100% foreign ownership and tax exemptions.

• Offshore: Suitable for businesses needing a legal entity without a physical presence in the UAE.

Step 2: Prepare Necessary Documentation

Commonly required documents across all jurisdictions include:

• Memorandum of Association (MoA)

• Articles of Association

• Power of Attorney (if applicable)

Visa Sponsorship Documents (for employees)

• Additional documents may include passport copies of shareholders and directors, proof of initial business activity, and a No Objection Certificate (NOC) if you're already a UAE resident.

Step 3: Choose a Business License

Depending on your business activity, select from various licenses:

• Commercial License for trading activities.

• Professional License for services, artisans, and craftsmen.

• Industrial License for manufacturing or industrial activities.

Step 4: Visa Processing

• For non-UAE nationals: Obtain an investor or employment visa, involving medical testing and Emirates ID issuance.

• Dependent Visas: Process visas for family members, if needed.

Step 5: Open a Bank Account

Choose from numerous local and international banks in the UAE. Requirements generally include company incorporation documents, passport copies, and a business plan.

Additional Steps and Considerations

• Business Plan: Crucial for free zone and offshore setups.

• Physical Office Space: Required in mainland and most free zones.

• Local Sponsor/Agent: As of June 2021, the UAE allows 100% foreign ownership for mainland companies in most sectors under the amended Commercial Companies Law. A local sponsor is no longer required for the majority of commercial activities.

• Regulatory Approvals: Certain activities may need extra government department approvals.

• Post-Setup Compliance: Be aware of ongoing legal and financial obligations, including license and visa renewals.

Choosing Your Free Zone

• Dubai offers over 20 free zones, each catering to specific industries.

• Popular free zones include Jebel Ali Free Zone (JAFZA), Dubai International Financial Centre (DIFC), Dubai Internet City, and DMCC.

• Consider your business goals and practical needs when choosing a free zone.

Free Zone Company Structures

Options include:

• Free Zone Establishment (FZE): Single shareholder entity.

• Free Zone Company (FZCO): Requires at least two shareholders.

• Public/Private Limited Liability Companies (PJSC/LLC): Multiple shareholders, with different rules on public trading of shares.

• Branch of a Local or International Company: Operates as an extension of an existing company.

Understanding Setup Costs

• Costs vary based on requirements like office space and visa numbers.

• Typical costs range from US$1,360 for freelancers to around US$17,000 for companies requiring office space.

• Visa quotas often link to rented space size.

Free Zone Company Set-Up Process

• Mostly online, streamlined for efficiency.

• Register the company, lease business premises, obtain a business license (3-5 working days), and set up additional services like bank accounts and employee visas.

Advantages of Setting Up in Dubai

• Access to a vast international market.

• Tax benefits and 100% foreign ownership in free zones.

• State-of-the-art infrastructure and strong support for businesses.

Taxation and Corporate tax in UAE

In June 2023, the UAE implemented a corporate tax rate of 9% on the profits of all businesses generating over 375,000 AED (approximately USD $100,000). Businesses earning less than this threshold are exempt from corporate taxes, maintaining a 0% tax rate.

According to the Ministry of Finance, the corporate tax rates for 2023 are as follows:

• 0% for taxable income up to AED 375,000.

• 9% for taxable income above AED 375,000.

For large multinationals meeting the criteria of Pillar Two of the OECD/G20 BEPS project, the UAE introduced a Domestic Minimum Top-up Tax (DMTT) at a minimum effective rate of 15%, applicable to MNE groups with global revenues of at least €750 million. The DMTT is effective for financial years starting on or after 1 January 2025 (Cabinet Decision No. 142 of 2024).

Corporate tax (CT) will apply to:

The corporate tax in the UAE applies to:

• All businesses and individuals with commercial licenses operating in the UAE.

• Free zone businesses, as long as they comply with regulatory requirements and do not conduct business operations in the mainland.

• Foreign entities and individuals conducting ongoing or regular trade or business activities in the UAE.

• Banking operations.

• Businesses involved in real estate management, construction, development, agency, and brokerage activities.

⚡ Mise à jour mai 2026 : cet article a été mis à jour pour refléter (1) la réforme de juin 2021 autorisant la propriété étrangère à 100% sur le continent dans la plupart des secteurs, (2) la mise en œuvre effective de la taxe sur les sociétés à 9% depuis juin 2023, et (3) l'introduction du Domestic Minimum Top-up Tax (DMTT) à 15% pour les grands groupes multinationaux (revenus ≥ €750M), applicable depuis le 1er janvier 2025.

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