Type of Companies in Dubai
The government of Dubai is very much active when it comes to business set up in Dubai. It encourages foreign investors and constantly and embraces pro-business policies in the country.
Dubai is a growing and a diverse economy with sheer excellence in its infrastructure, great access to manpower, and with a very attractive global talent. With so many highlights to embrace, the country remains open to entrepreneurship.
Starting a business in Dubai requires a full understanding of the difference between offshore, mainland, and free zone company formation. Along with all such information, you also need to opt for a license for your activities and services that you wish to provide. In the end, you are required to open a corporate bank account, prepare all legal documents and finally, get started with the visa process.
There are two important types of business that entrepreneurs and foreign investors can set up in Dubai.
- LLC: LLC is also termed as a mainland company. It is the easiest and very common choice for investors. Choosing an LLC allows you to own 49% of the business shares. However, the remaining 51% is owned by an Emirati national or a company that is completely owned by an Emirati national. Additionally, Emirati partners must show their family book as proof of their heritage in the UAE.
With an LLC, foreign investors can avail the opportunity to acquire UAE residence visa for them, their family and a certain number of employees.
You will find various setup consultancies within the country that will guide and help you with all the paperwork and logistics involved in the process of setting up a business in Dubai. Moreover, these consultancies are best to get in contact with an Emirati sponsor. All you will be required to do is to pay an annual fee in return for the sponsoring Emirati partner. The fee involved varies as per the sponsor; therefore, consider looking and asking around to find the best suitable for you. Generally, these types of partners do not ask for the profits of your company, nor he is interested to get involved in the business decision. Therefore, in return for paying him an annual fee, you get 100% profits or shares of the company with a silent Emirati partner.
- Free Zone: foreign investors and entrepreneurs also have the option to set up their business in Dubai in any of the designated Free Zones of the UAE. It is one the most attractive option for foreign investors. This is so because this type of business does not require any Emirati sponsor as a partner. Hence, you are free to own 100% of your business profits. However, similar to an LLC company, you also get to avail residence visa for yourself, your family and a certain number of employees.
These types of business possess special imports, tax and customs system that is governed by their own framework and regulations. It is the best option for the business involved in the activities of export and import of goods in the UAE as free Zone receives 100% tax on these exemptions. You can choose from the 7 different Free Zones in Dubai (under construction included). Every Free Zone is involved in one or more business industries; therefore, you must choose it as per your business activity and match the industry of that of the Free Zone.