Steps for Registering a Company in Dubai in 2025
Dubai is one of the most alluring locations for business establishments for investors from all over the world. Dubai offers a variety of business prospects to entrepreneurs looking to launch various types of firms. This city has expanded its opportunities in order to guarantee that business and commerce in the area continue to thrive.
In this article, we will explain about the steps for registering a company in Dubai and also about the advantages associated with opening a company in Dubai, UAE in 2024.
How to Register a Company in Dubai in 10 Easy Steps?
Step 1: Determine Your Business Activity
The first and most important phase is identifying your company’s activity. Dubai’s Department of Economy and Tourism (DET) has a comprehensive list of over 2,000 activities, categorized under industrial, commercial, professional, and tourism sectors.
You can choose an activity that aligns with market demand in Dubai. For instance, real estate, fintech, information technology business and e-commerce are booming industries in the region.
Step 2: Select the Right Jurisdiction
Three main jurisdictions are available for company formation in Dubai:
- Mainland: Perfect for companies who wish to freely operate in the local UAE market.
- Free Zone: Perfect for those looking for 100% ownership, tax exemptions, and streamlined trade operations.
- Offshore: Suitable for international operations, offering confidentiality and minimal regulatory requirements.
OnDemand International’s professionals can help you with this stage.
Step 3: Choose a Legal Structure
Choosing the relevant business form depends on your company’s activity and ownership preferences.
Common structures include:
- Sole Proprietorship: For single-owner businesses.
- Limited Liability Company (LLC): An LLC in UAE is the most well-known structure for local businesses.
- Branch Office: For foreign companies looking to establish a presence in Dubai.
- Free Zone Establishment (FZE): For businesses operating exclusively in a free zone.
Speak with our business experts, and we’ll help you choose the structure that best suits your business objectives.
Step 4: Reserve Your Trade Name
Your trade name represents your brand identity. Select a name that is appropriate for your company values while adhering to Dubai’s naming conventions.
Step 5: Obtain Initial Approvals
Obtaining initial approvals from the appropriate authorities is necessary. This process confirms that your business activity and trade name comply with Dubai’s regulations.
Documents Needed:
- Passport copies of shareholders.
- Proof of proposed business activity.
- Trade name reservation certificate.
Step 6: Create a Memorandum of Association (MOA)
For businesses like LLCs, drafting an MOA is mandatory. This document outlines the company’s operational guidelines, ownership details, and profit-sharing ratios.
If registering in a free zone, the free zone authority may provide a standard template for your business.
Step 7: Lease an Office Space
Every company operating in Dubai must have a physical address. You can either rent an office space or opt for a flexi-desk solution in a free zone. The office space must comply with your business activity. Free zones in the UAE often offer cost-effective packages with office facilities included.
Step 8: Submit Required Documents and Pay Fees
Send your documents to the appropriate authorities for evaluation as soon as they are prepared. The fees vary depending on the business type, jurisdiction, and activity.
Checklist:
- Trade name reservation.
- Initial approval certificate.
- MOA and tenancy contract.
- Passport and visa copies of shareholders and managers.
Step 9: Apply for a Business License
Your business license is your official authorization to operate in Dubai.
Depending on your activity, you will need one of the following licenses:
- Commercial License: For trading activities.
- Professional License: For service-based businesses.
- Industrial License: For manufacturing businesses.
Step 10: Open a Corporate Bank Account
In order to conduct business, a corporate bank account in Dubai is necessary. Choose a bank with a strong local presence and services that are customized to meet your needs.
Documents Required:
- Business license.
- MOA.
- Passport copies of shareholders and signatories.
- Company profile and business plan (if applicable).
Registering a company in Dubai involves multiple steps that require precision and expertise. At OnDemand International, we simplify the process with end-to-end support, from documentation to licensing. Our team of professionals guarantees a smooth business establishment process, saving you time and effort. Speak with our business formation experts today.
Benefits of establishing a company in Dubai
The benefits of establishing a company in Dubai are:
1. Tax advantages
The absence of tax obligations for the business is one of the main advantages of company formation in Dubai. Due to Dubai’s tax legislation, businesses are completely excluded from business and professional taxes, as well as double taxation, customs fees, etc.
There are no extra fees, and the legal process is open and transparent. However, a small number of businesses must pay GCC VAT at a rate of just 5% on specific commercial operations.
2. 100% ownership
International investors are now permitted to have 100% ownership of their businesses located in the UAE, according to changes made to the Business Companies Act in 2021.
This has made company incorporation in Dubai more accommodating to foreigners, giving them trouble-free accessibility to all free trade zones.
3. Free trade zones
Entrepreneurs can establish their businesses in the Mainland and Free Zones. Investors can establish their businesses in specialized free trade zones that have independent authority and are created for particular types of commercial activity.
There are more than 30 free zones in Dubai. Setting up an enterprise in the free zone gives the investor full ownership of the enterprise.
4. Advanced infrastructure
Dubai is one of the most technologically advanced cities in the world, boasting some of the best infrastructures.
Its continually changing infrastructure offers excellent ports, communication, and public transportation.
Conclusion
Dubai, the most developed and multicultural metropolis in the Middle East, offers a wide range of economic prospects to let international investors establish various types of firms. Dubai’s tax advantages are one of the factors that draw enterprises from all over the world. A Dubai corporation pays no payroll taxes, withholding taxes, personal income taxes, or business taxes. Dubai additionally permits foreign investors to possess a 100% stake in their companies. This is what makes Dubai a desirable site for business establishments. However, you must be aware of the procedures in order to start a business in Dubai.
This article has quickly covered the necessary steps for registering a company in Dubai and has also covered the benefits of doing so. If you have any questions about how to register a company in Dubai or if you want to start a business there, you can speak with our specialists at OnDemand International. Our professionals have years of experience and have helped many clients set up their businesses in Dubai.
FAQ’s
For business owners wishing to start up, Dubai offers a wide range of opportunities. It provides different perks such as geographical advantage, tax breaks, free trade zones, complete ownership, etc.
The procedures that must be followed to register a business in Dubai include:
- Deciding the business structure
- Registering the trademark
- Choosing a business location
- Engage with LSA
- Draft a Memorandum of Association(MOA)
- Obtain business licenses
- Creating a bank account
Yes, a foreign national can launch a business in Dubai, Dubai also permits foreign investors to possess 100% ownership of their companies.
Foreign investors are granted full control of particular firms by the UAE government. This indicates that the percentage of shares held by overseas investors may be up to 100%.
Several business kinds, including limited liability companies, joint stock companies, free zone businesses, branch offices, etc. are allowed in Dubai.
