What You Need to Know About Business Setup and Company Registration in Dubai?

What You Need to Know About Business Setup and Company Registration in Dubai?

Company Registration in Dubai has to be in conformance with the FDI Laws. However, the procedure of forming a corporation in Dubai is reasonably simpl

Company Registration in Dubai has to be in conformance with the FDI Laws. However, the procedure of forming a corporation in Dubai is reasonably simple and quick, with substantial incentives. There are various types of businesses you can start in the UAE, both onshore and offshore. While free zones are popular among international entrepreneurs for a good reason, many opt to register their company in Dubai mainland, which allows them to exercise business activities freely in terms of geography and various other benefits.

Setting up a business in Dubai is a pretty smooth process; the laws and the process differs depending on where you wish to set up your company. Business setup in free zones allows you to have 100 percent ownership, whereas Dubai mainland requires partnering with a Local agent or Local sponsor, a UAE national to proceed.

Breakdown of Company Registration Process in Dubai

Let’s take a look at how to Register a Company in Dubai with international directors.

  1. First and foremost, you have to decide on the legal structure of your company, i.e., whether it will be a sole proprietorship or a limited liability company (LLC)
  2. Sole entrepreneurship legal form provides you complete control over your business’s operations and profits. You can have 100 percent ownership if you register in the free zone as per the recent laws.
  3. The latter is a limited liability company (LLC) that requires the inclusion of shareholders. The laws state that any foreign investor who wishes to set up a business in Dubai mainland needs a Local individual partner or a corporate partner who will be owning 51 percent shares of their business.
  4. You must choose a suitable location and a name for your business setup in Dubai. After that, you’ll need to get a business license. Once the name is decided, it is checked by the government officials in the free zone or the Economic Department to see if it is appropriate.
  5. You must apply for a trade license to start your business operations smoothly in the UAE. The type of business activities you choose translates the type of business license you will need. If you are not sure about the technicalities of the process, you can seek assistance from local consultancy services to ease the process for you.
  6. You must present the following documents to obtain all legal procedures:
  • The application for a company license
  • The letter stating your objective
  • All shareholder documents and signatures
  • Other shareholder documents

Steps to Register a Company in Dubai

Follow these steps to form a private limited company (LLC) in Dubai under the Foreign Direct Investment (FDI) Law. These tasks should be simple to do with the help of a Service Agent or a trustworthy business setup service provider like the Corporate Business Services (CBS).

  1. The first step is to apply for a business license with the Ministry of Economy and Commerce. You must also submit a Service Agent Agreement with this application. This agreement should state that the agent is either a UAE national or a corporation that is 100 percent owned by UAE citizens.
  2. For the next step, the MEC department will transmit the application to the Economic Department. It begins to function after an agreement between the local agent and the business license authority has been reached.
  3. After that, the application will be sent to the FFC Committee once again. The nature of the business is confirmed throughout this stage of processing after a thorough justification. For effective operations, MEC must approve your business activity.
  4. Foreign entities, after receiving approvals from the Federal Foreign Companies Committee, now require a Ministerial license. Following a thorough verification, the Ministry of Economy and Commerce issues such a license. The license will include specific information about all the legal actions. In a nutshell, it will specify what business activities are allowed and what shall be avoided in Dubai.
  5. The Dubai Chamber of Commerce and Industry concludes the final step of company registration in Dubai registering a company in Dubai. The government will provide a Certificate of Registration to the foreign entity. This serves as evidence that the foreign corporation has been formed and that now you can start your operations in the UAE.


Dubai boasts a thriving economy that is ideal for establishing new business enterprises. It is critical to understand the business dynamics and legal laws when initiating your business setup in Dubai. Thus, you must carefully follow all the steps above when forming a new business setup. It is more efficient when you choose the proper service providers or legal consultancy services and makes the process of Company Registration procedure in Dubai a lot easier.