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Home » Company Formation In Dubai: Your Go-To Guide

Company Formation In Dubai: Your Go-To Guide

A number of attractive features make Dubai one of the most sought after trading, investment and business cities in the world.

The city has quickly risen to become one of the foremost cosmopolitan cities in the world, thanks to high purchasing power, the demand for luxury and high-end products, and a stable social and political scenario, which acts as a major assurance for international entities looking to set up shop here.


While aspects such as impressive tax breaks and the ability to retain full ownership in some cases is extremely popular, some obstacles may manifest along the way, one of which is the fact that government offices and organizations use Arabic as the language of regular business.

Beyond this, an understanding of the many licensing requirements, eligibility standards, legal peculiarities, and other such processing areas is crucial if delays and fines are to be avoided.

Roadblocks For Smaller Entities

While it can be assumed that the government has an interest in welcoming the establishment of the top food, clothing, and manufacturing chains in the region to project a dominant image, the process is bound to be harder for small and medium sized businesses, or foreign individuals without any Arabic background.

This is where having consultants that assist in the process of company formation in Dubai comes in handy. These are entities that understand the bureaucratic system, the language itself, and which aspects to focus on keeping in mind the nature and needs of the business to be set up.

Steps In The Registration Process

The law will need foreigners to have local partners or sponsors, who will hold the majority interest in the company. The only places this requirement does not apply are the free zones.

The free zones usually witness the formation of limited liability companies, while stock companies, partnerships, branches, and subsidiaries are usually set up in the main limits of the city, owing to the needs of the business.

Share Capital

Before your company is set up, you will need to comply with the capital levels required, show a shareholding composition, and secure the necessary licenses.

If, for whatever reason, you prefer an alternative, which does not involve displaying minimum capital levels, the best choice is to opt for forming a limited liability company.

For all other entities, including public companies, investment entities, and financial organizations, capital requirements will apply, and range from 10 million to 40 million dirhams.

This amount plays the role of a form of assurance, and need only be shown in the company’s bank account. Following the registration process itself and when the set up is finished, it can be withdrawn and transferred.