Key facts:
Company Formation in Dubai
Company formation in Dubai
Dubai is part of the United Arab Emirates (UAE) and, along with the other six emirates, forms a federal system with its own constitution and shared government. Each emirate operates largely autonomously.
For foreign entrepreneurs, the tax aspect in Dubai is particularly relevant. Company formation in Dubai is especially popular among individuals and existing companies due to many advantages: high quality of life, very low crime rate, excellent infrastructure, a vibrant business network, and a business-friendly government that actively supports company formation.
Various official regulations and laws must be observed when founding a company. To avoid problems later, it is advisable to consult a qualified advisor locally to ensure legal compliance. Choosing an experienced partner is crucial for successful company setup due to the many potential pitfalls.
Setoop actively supports the selection of a suitable partner and a successful setup in Dubai.
The 3 main types of companies in Dubai
Each of these business categories has its own specific advantages and disadvantages and is suitable for different business goals.
Freezone Company
Over 40 freezones. Unrestricted international trade, local trade in Dubai also possible.
Mainland Company
More complex and costly than a Freezone setup, but offers maximum freedom of action in the UAE market.
Offshore Company
Suitable for international business and asset management outside the UAE.
Forming a Freezone Company
- Unrestricted international trade, local trade also possible
- Choose from over 40 freezones in Dubai, each with a specific focus (e.g. IT, finance)
- Each freezone has its own regulations, the business must be based in the freezone area
- Tax-free up to AED 375,000 annual profit (after that 9% corporate tax)
- 100% foreign ownership allowed
- Possible exemption from tax and customs
- No income tax if residing in the UAE
- Eligibility for bank account & visa
- Different prices depending on the freezone
- Sponsoring of employee visas
- Quick setup within a few days
Design District Freezone
Expo Freezone
Requirements for formation:
- Valid passport
- Business plan/concept
- Start-up capital (varies by freezone)
- Selection of an approved business activity
- Choice of company name
- Renting office space (physical or virtual)
- Compliance with specific freezone regulations
- Possibly required licenses and permits
The exact requirements and costs vary depending on the selected freezone and business activity.
Forming a Mainland Company
Mainland formation is more complex and costly than Freezone formation, but offers maximum freedom of action in the UAE market.
Key facts:
- Unrestricted trade throughout the UAE market
- Trade with local and international partners
- Unlimited number of employee visas possible
- Combine as many business activities as desired
- Greater acceptance with local business partners than a Freezone
- Direct business with government agencies possible
- Participation in public tenders
- Tax-free up to AED 375,000 annual profit (after that 9% corporate tax)
Requirements for formation:
- Valid passport
- Business plan/concept
- Physical office space
- Registration with the Chamber of Commerce
- Possibly industry-specific licenses
Dubai Mainland: Skyline
Forming an Offshore Company
Offshore formation is suitable for international business and asset management outside the UAE.
Key facts:
- 100% tax exemption
- Maximum anonymity & privacy
- No accounting obligations
- Exemption from tax and customs
- No visa options
- Only international business possible, no business relations with companies within the UAE
- Commonly used as: Holding company, asset management, asset protection, real estate company
Requirements for formation:
- Valid passport
- Proof of residence of the applicant
- At least one director/shareholder
- No physical presence required
Dubai Offshore
