In Dubai, Sole Establishments must be owned by a single individual, irrespective of nationality, allowing foreign nationals to fully own their establishments. These entities are limited to obtaining Services licenses, such as Information Technology services or Management Consulting, but cannot engage in Commercial activities like Equipment Trading. A UAE national is required to be registered as the establishment’s agent. Sole Establishments do not have a Memorandum of association or shares, and the owner has unlimited liability. Additionally, the establishment must appoint at least one manager, who can also be the owner.

LLCs in Dubai follow a similar structure to those in other countries, with the possibility of having up to 50 shareholders, which can be individuals or entities. For most licensed activities, especially commercial ones, a UAE national must hold at least 51% of the shares, though exceptions exist for certain professions like law offices or audit firms. To establish the company, a Memorandum and Articles of Association are prepared, notarized by Dubai Courts, and submitted to the DED for approval. After incorporation, the company appoints at least one manager, with the option to appoint up to 11 managers, all of whom are listed under the company’s license.

A civil company in Dubai is a business partnership that allows two or more partners to establish a practice, such as a consulting firm or a beauty salon. Even foreign nationals can form a partnership, but a UAE national must be appointed as the company’s agent. The company is governed by a memorandum, and instead of issuing shares, ownership percentages are allocated among the partners.

• This setup is a popular choice for both existing corporations from other jurisdictions and new companies and individuals entering the UAE market. It allows for 100% ownership, with the requirement of a UAE national acting as the company’s agent. The branch operates as part of the mother company’s activities and is not a separate entity. If the branch surpasses the VAT threshold of 350,000AED per year, it must be VAT registered. Setting up a foreign company’s branch incurs an additional cost of approximately 3,000 USD, covering the legalization of documents in the mother company’s country of origin and the UAE Embassy or the nearest available UAE embassy.

• Freezone Company Branch or Branches of Companies based in other Emirates: This option allows Freezone companies to conduct business freely on the mainland while retaining full foreign ownership rights.
  
  
• DED Trader: An initiative designed to license traders operating on social networking platforms like Instagram and Facebook, providing them with an official status for their online businesses.
  
  
• Representative Office: Ideal for foreign companies seeking to promote their products in Dubai, this type of company can engage in marketing and promotional activities, but all transactions are conducted directly with the foreign parent company.
  
  
• Limited Partnership: A company where one or more partners may have individual or joint liability for the company’s debts and obligations.
  
  
• Private Joint Stock Company: For more information about this company type, please feel free to contact us via email.