Registering a company in the Emirates attracts businessmen from different countries, as even after the introduction of corporate income tax in June 2023, the tax system in this jurisdiction remains one of the most favorable in the world. Opening a new company, purchasing an existing one, or relocating a business to this country allows for tax optimization and numerous other advantages. Based on our own experience — we have been providing consulting services for opening businesses in the Emirates since 2015 — we have developed and implemented our procedures for registration processes and offer assistance and support to anyone interested in company registration in the UAE.
Advantages and Benefits of Registering a Company in the UAE
The economy of the UAE is currently one of the most dynamically developing in the Middle East. With the government’s commitment to diversification, industries unrelated to oil and gas extraction are flourishing. The attractiveness of opening a company in Dubai or another emirate of the country (there are a total of 7) is ensured by the following:
- Low corporate income tax rates and VAT, with the absence of most taxes ordinary in other countries.
- The ability to avoid taxes in the home jurisdiction — the UAE has agreements to prevent double taxation with 138 countries.
- Approximately 45 free zones.
- The possibility of opening a company in the UAE with 100% foreign ownership.
- Favorable geographical location and developed infrastructure.
- A modern and reliable banking system.
- No government control over currency transactions.
- Free repatriation of profits and capital.
- High levels of confidentiality regarding beneficiary data and business operations.
Main Requirements for Opening a Company in the UAE
To register a company in the UAE, foreign investors must adhere to the following requirements:
- Obtain permission to open the company from the General Directorate of Foreigners and Residents. Some types of activities may require additional approvals from relevant ministries.
- Have constitutional documents, which must specify the number of shareholders (ranging from 1 to 50) and at least one director (residency requirements for top management are absent).
- Enter into a contract with a local registration agent to represent the company’s interests with government authorities.
- Have a registered address within the country’s territory (buy or lease an office, office space, or a virtual office for an offshore company).
- Declare the authorized capital — its amount depends on the type of company and the free zone, with the requirement for its payment existing only in specific free zones.
Additionally, each company must annually submit financial statements and hold shareholder meetings (even if conducted remotely).
Requirements may vary in emirates and free zones, and details can be clarified with the experts at Dynasty Business Adviser! We will help you choose the right location for incorporating your business.
Who Is Suitable for Company Registration in the UAE?
Opening a company in Dubai or any other emirate of the country is suitable for non-resident individuals, foreign companies, international holdings, or trust funds. This decision is ideal for businessmen and company owners who want to:
- Reduce business expenses for tax payments.
- Enter the prospective markets of the Persian Gulf, South Asia, and Africa.
- Engage in international trade without paying duties.
- Protect capital in a reliable banking system.
- Develop business in favorable conditions with maximum government support.
- Obtain a residency visa, providing the right to live in the country — equivalent to a permanent residence permit.
Types of Companies You Can Open in the UAE
In the United Arab Emirates, foreign investors can register the following:
on the mainland outside the Free Zones in the form of an LLC, with no less than 2 shareholders, or as a Sole Establishment (with one founder). Such a company can conduct business throughout the country, but opening it requires a nominal local partner — a UAE citizen holding 51% of the shares for certain activities
More— this type of company can be registered in one Free Zone. These companies are 100% owned by foreign investors but can only operate within their respective Free Zones and engage in international business. They need a local distributor to trade on the rest of the country’s territory
More— opening such a company in the UAE is possible only in specific Free Zones and only for conducting business outside the country. The owner is a 100% foreign investor, but they cannot obtain a UAE resident visa
MoreDynasty Business Adviser is a licensed registrar of onshore and offshore companies in the UAE and will help you open a company of any type in this country within an optimal timeframe.
Ready Business in the UAE: Is it Worth Buying?
One of the ways to quickly enter the Emirates market is to purchase a ready-made business. This option has its pros and cons.
The significant advantage is that you start generating profits immediately after the purchase, benefiting from an established customer and partner base, without spending time on hiring employees and promoting products.
However, a thorough audit of the purchased firm is required to avoid acquiring a company on the brink of collapse or burdened with debts and problems from previous owners. This will take time and money to pay for the services of specialists.
The decision of whether to choose to buy or register a company in Dubai or another emirate is up to you. Whether you opt for a purchase or registration, Dynasty Business Adviser specialists will help you implement your decision.
What Taxes Must Companies Pay in the UAE?
Companies registered in the Emirates must pay:
- Tax on profit at a rate of 0 for taxable income not exceeding the threshold of 375,000 dirhams (AED) inclusive, and 9% on taxable income exceeding this amount. Companies may be exempt from paying this tax if they engage in qualified activities under certain conditions and at the discretion of the Federal Tax Authority.
- VAT at a rate of 5% — most goods and services are subject to this tax, and local companies pay it if the turnover of these goods exceeds 375,000 AED.
- Excise tax on goods harmful to health — 50% on products and beverages with sweeteners and sugar, and 100% on tobacco products and vaping products. Excise tax is paid by companies that manufacture, import, and/or store these goods.
The Cost of Opening a Company in the UAE
|
TYPE OF ACTIVITY |
VISA |
PRICE |
|---|---|---|
|
Package with Trading License |
1 visa |
AED 16 900 $4,630 |
|
Package with Service License |
1 visa |
AED 16 900 $4,630 |
|
Service license + Flexi desk |
no visa |
AED 12,900 $3,540 |
|
Service license + Flexi desk |
1 visa |
AED 16,900 $4,630 |
|
Service license + Flexi desk |
2 visas |
AED 18,900 $5,180 |
|
Trading license + Flexi Desk |
no visa |
AED 12,900 $3,540 |
|
Trading license + Flexi Desk |
1 visa |
AED 16,900 $4,630 |
|
Trading license + Flexi Desk |
2 visas |
AED 18,900 $5,180 |
|
Partner or investor visa – 2 years |
– |
AED 4750 $1,300 |
|
Resident visa – 2 years |
– |
AED 3750 $1,030 |
|
PRICE |
||
|---|---|---|
|
Company name reservation and license registration |
AED 14,800 $4,050 |
|
|
Notary fees and memorandum of the company |
AED 3,100 $850 |
|
|
Establishment card and E-signature card |
AED 2,520 $690 |
|
|
Partner or investor visa |
AED 5,110 $1,400 |
|
|
Total |
from AED 25,530 from $6 990 |
|
TYPE OF ACTIVITY |
VISA |
PRICE |
|---|---|---|
|
Trading / Service / E-commerce license + Flexi Desk |
no visa |
AED 19,800 $5,400 |
|
Trading / Service / E-commerce license + Flexi Desk |
1 visa |
AED 26,800 $7,330 |
|
Trading / Service / E-commerce license + Flexi Desk |
2 visas |
AED 38,400 $10,500 |
|
General trading + Flexi Desk |
no visa |
AED 33,800 $9,250 |
|
General trading + Flexi Desk |
1 visa |
AED 40,800 $11,150 |
|
General trading + Flexi Desk |
2 visas |
AED 45,400 $12,410 |
|
General trading + Flexi Desk |
3 visas |
AED 50,000 $13,670 |
|
Premium license + Flexi Desk |
no visa |
AED 38,800 $10,600 |
|
Premium license + Flexi Desk |
1 visa |
AED 45,800 $12,520 |
|
Premium license + Flexi Desk |
2 visas |
AED 50,420 $13,770 |
|
Premium license + Flexi Desk |
3 visas |
AED 55,035 $15,050 |
|
Freelance license |
no visa |
AED 20,700 $5,652 |
|
Freelance license |
1 visa |
AED 25,000 $6,833 |
The cost of opening a legal entity in the United Arab Emirates depends on various factors:
- Incorporation location — the emirate and free zone.
- Type of company.
- Types of activities and the number of licenses.
- Office size.
- The number of required residency visas.
If you are interested in registering a company in the UAE, the exact cost can be determined only after consulting with a specialist from Dynasty Business Adviser.
Employee Expenses
If you have decided to open a company in Dubai or another emirate in the UAE when calculating future expenses, it is essential to consider the costs related to employees:
- Salary — for laborers, it reaches up to $1200, and for a software engineer, it starts from $4000;
- Medical insurance;
- Residence visa for expatriates;
- Compensation for housing expenses;
- Coverage of transportation expenses;
- Subsidies for the education of expatriate executives’ children.
Stages of Opening a Company in the Emirates
The process of establishing a company in the UAE includes the following steps:
- Drafting a business plan.
- Choosing a unique name, type of company, legal form, and emirate.
- Collect and legalize the necessary documents.
- Reserve the name of the new company.
- Obtaining regulator approval for company formation in the UAE.
- Preparing constitutional documents (Articles of Association and Memorandum).
- Pre-approval and approval of corporate documents.
- Forming the share capital.
- Renting office space.
- Payment of registration fees.
- Completing the registration procedure and obtaining the certificate of incorporation.
- Licensing.
- Obtaining a Company Establishment Card.
- Opening a bank account.
Procedure and Timeline for Opening a Company in Dubai and the UAE with the Support of Dynasty Business Adviser
Our developed procedure for opening a company in the United Arab Emirates involves minimal client involvement. Our company’s specialists handle all the administrative work:
- You contact us remotely and provide all the details and preferences.
- We assess the business and agree on the company name, type, structure, and place of incorporation. We create a roadmap and estimate the budget.
- You provide scanned copies of documents if your last visit to the UAE was within the last 5 years.
- We handle the legalization of documents and register the company.
The document preparation will take 1-2 working days, the registration procedure will take 3-7 days, and opening a bank account will require around 7 working days.
With the support of Dynasty Business Adviser, your presence in the Emirates will only be required when obtaining a residency visa in the UAE and submitting documents to open a bank account.
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Consultant
Lawyer
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Manager (PRO)
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Documents Required for Company Registration in the UAE
The list of documents needed for company registration in the Emirates depends on various factors:
- Legal status of the founder (shareholder) — whether they are a legal entity or an individual.
- Place of registration — each emirate and free zone has requirements for the documents submitted for registration.
- Type of company — a new company, a subsidiary, or a branch.
You can consult with our company’s managers during the initial consultation to determine the specific documents needed in your case.
How to Legalize Corporate Documents
The UAE has not signed the Hague Convention on Apostille, so documents issued in another jurisdiction require consular legalization. They must be translated into Arabic and authenticated by
- Notary in the issuing country.
- Ministry of Foreign Affairs of your country.
- UAE Embassy in your country of permanent residence.
- Ministry of Foreign Affairs of the United Arab Emirates.
Key Investment Sectors in the UAE
If you have decided to open a company in Dubai or other emirates, it is advisable to choose the most profitable business sector. Good prospects in the UAE include investments in information technology, real estate, manufacturing, healthcare, services, trade, and logistics.
The UAE government is committed to diversifying the economy and developing high-tech businesses, ensuring comprehensive support to foreign investors who invest in such sectors.
For detailed consultation on company registration in the UAE, you can contact the experts at Dynasty Business Adviser using any of the contact methods listed. We will help you open a company in the United Arab Emirates quickly, without delays and problems!
