1. Company Type
Type of companies in the UAE, including Dubai, are determined by federal law and the laws of each emirate. The most suitable company types for foreign investors under the Commercial Company Law of 1984 and the Civil Company Law of 1985 are as follows.
- LLC (Limited Liability Company)
- Branch Office
- Establishments or Professional Company
2. LLC (Limited Liability Company)
This company form is most suitable for foreign investors and is the most common company form in the UAE. In order to sell products and conduct any business in the UAE, this type of company establishment is required. The minimum capital is Dh100,000 in the case of Dubai, which is specified only in the Articles of Incorporation without the need to prove capital.
A law requiring UAE national investors to own 51% of the shares was repealed in 2021, except for some activities.
Thus, the need for sponsors from the UAE, who own 51% of the shares, is eliminated.
3. Branch Office
It is legally treated as the same corporation as the parent company and is 100% owned by the parent company.
Business activities are limited to the same industry as the parent company, and all business activities are held by the parent company.
No capital is required but, National Service Agent of UAE nationality is required.
However, as the establishment of an LLC no longer requires a sponsor, the significance of establishing a branch has disappeared.
4. Free Zone Company
Approximately 36 free zones in the UAE / 23 free zones in Dubai are not subject to UAE corporate law and are applied according to the regulations of each free zone management authority.
There are specialized free zones such as IT, media, medical, broadcast production, trade, and design, so you can do business using these advantages.
The advantages of free zones are that foreign investors can own 100% of the shares, exemption from import duties (raw materials / intermediate goods imported or re-exported outside the UAE), and exemption from employment obligations for UAE nationals.
However, it is necessary to review in advance, such as the 5% VAT applied to the free zone and the need for a sales agent to sell products in the UAE.
Popular free zones are as follows
- Jebel Ali Free Zone (Dubai / Trade)
- Dubai Airport Free Zone (Dubai / Trade)
- Dubai Multi Commodities Centre (Dubai / Multiful Activities )
- Dubai Internet City (Dubai / IT)
- KIZAD (Abu Dhabi / Industrial Park, Trade)
- DGM (Abu Dhabi / Finance)
- Sharjah International Airport Free Zone (Sharjah / Trade)
- Fujairah Free Zone (Fujairah)
- Ras Al Khaimah Free Zone (Ras Al Khaimah)