Learn about the types of companies in Dubai because Dubai is one of the most prominent global commercial centers, as it provides an attractive environment for investment and business thanks to its advanced infrastructure and business-encouraging laws. Establishing a company in Dubai requires a careful understanding of the options available in terms of company types, as legal structures vary depending on the type of business and the needs of investors. Dubai offers a variety of legal types of companies, from limited liability companies (LLC) to free zone companies and joint stock companies. This diversity allows great flexibility for investors, whether they are seeking to start a small project or establish branches of large international companies. In this article, we will review the types of companies in Dubai , focusing on the benefits and obligations associated with each type, to help investors choose the most appropriate structure for their business.

Economy in Dubai

Dubai’s economy was anciently based on the trading, buying and selling of marine products. Then, after the discovery of oil, it became completely dependent on oil and trade. The discovery of oil led to a huge boom in Dubai’s economy, and the rise in Dubai’s economy was one of the most important factors in the investment boom. Many investors come to Dubai to invest money in it and many business projects. Our company helps you plan your project and start forming and equipping companies and making them suitable for your project.

Types of companies in Dubai

In Dubai, there are several types of companies that can be established, and each type has its own advantages and requirements. Here are the most prominent types of companies in Dubai:

1. Limited Liability Company (LLC) : It is one of the most common types of companies in Dubai. It is established with the participation of two or more individuals or legal entities. The financial responsibility of shareholders is limited to the amount of their capital contribution. There must be a local partner (UAE national) who owns 51% of the shares, while foreigners can own 49% of the shares.
2. Public Joint Stock Company (PJSC) : It consists of a group of individuals or entities, and the capital is divided into shares that can be traded on the stock exchange. Shareholders in these companies have limited liability.
3. Private Joint Stock Company : Similar to a public joint stock company, but its shares are not traded on the stock exchange. Ownership of shares can be limited to a specific group of individuals or companies.
4. Sole Proprietorship : Only one person can establish this company, and its owner is fully responsible for all obligations and debts. It is considered the most suitable option for small projects or individual professions.
5. LLC by Companies : These companies can be established by legal entities rather than individuals. Requires a local partner such as a limited liability company.
6. Local branch of a foreign company : Foreign companies can open branches in Dubai to conduct business, while maintaining the registration of the parent company in their country of origin.
7. Free Zone Company : It can be established in one of the free zones in Dubai, where foreign ownership is complete without the need for a local partner. Free zones provide a distinctive business environment and tax and customs advantages.
8. Public joint stock company in free zones : Companies can be public joint stock but within a free zone, with special incentive benefits.

Each type of company has its own advantages and requirements, and investors should choose the type that best suits their business goals and circumstances.

Types of commercial licenses in Dubai 

To start an activity in Dubai and own any activity, you must complete all business licensing procedures, as you cannot start your activity before obtaining the license. Before selecting the type of business, you must select the type of license. There are 3 types of licenses available, including:

Establishing a company in Dubai with the help of Itqan Company

Establishing a company in Dubai requires careful steps and legal details that must be handled with caution. “Itqan” company is an ideal partner in this field, as it provides integrated services to investors and entrepreneurs wishing to establish their companies in Dubai. Thanks to its extensive experience and deep knowledge of local laws and procedures, “Itqan” helps its clients choose the appropriate legal structure, handle all necessary documents, and obtain the required licenses quickly and effectively. In addition, “Itqan” provides specialized consultations that help guide investors towards the best options available to them, whether they are seeking to establish companies in free zones or in local markets. With Itqan, entrepreneurs can focus on developing their business while the company handles all administrative and legal details, making the establishment process smooth and free of complications.

Steps to establish companies in Dubai

Establishing a company in Dubai requires following several legal and administrative steps to ensure compliance with local regulations. Below are the steps for establishing companies in Dubai:

1. Determine the commercial activity : The first step is to determine the commercial activity you want to practice, as this activity determines the type of commercial license you need. The activity can be commercial, industrial or service.
2. Choosing the type of company : Choosing the type of legal structure of the company, such as a limited liability company (LLC), a free zone company, a joint liability company, or a branch of a foreign company. The type of legal structure varies based on business requirements and location.
3. Choosing a trade name : Choosing a suitable name for the company that complies with local regulations and ensuring that the name is not similar to the names of other existing companies. The trade name must be reserved with the Department of Economic Development.
4. Submit an application to obtain a commercial license : Submit an application to the Department of Economic Development (DED) or the competent authority in the free zone to obtain the appropriate commercial license. The application includes details about the business activity and company structure.
5. Preparing the articles of incorporation and the partners’ agreement : Preparing the articles of association and the partners’ agreement if there are partners. These documents must be authenticated by the competent authorities. The contract includes details about the rights and duties of the partners and the percentage of ownership.
6. Determine the location of the company : Renting an office or headquarters for the company that suits the requirements of the business activity. The site must be approved and registered with the local authorities.
7. Obtaining additional approvals : Some commercial activities may require additional approvals from relevant government agencies, such as health authorities, municipalities, or industrial bodies.
8. Submitting the required documents : Submitting the required documents, such as copies of passports, rental contracts, and additional approvals, if any.
9. Pay the required fees : Pay the fees associated with registering and obtaining a commercial license. Fees vary based on the type of activity and the type of company.
10. Receiving the commercial license : After completing all the previous steps and submitting all the required documents, the commercial license is issued to the company, allowing it to begin commercial operations.
11. Opening a bank account : Opening a bank account for the company in one of the approved banks in Dubai.
12. Obtaining residence permits and visas : If needed, owners and employees can obtain residence permits and work visas.

Itqan Company can provide assistance and guidance in each of these steps to ensure that the establishment of the company is smooth and compatible with local laws.

Itqan Company services in establishing companies and investment in Dubai

Frequently asked questions about types of companies in Dubai