set up a company in Dubai, UAE

The major benefits of setting up a company include:

• 100% foreign ownership of your company
• 0% on personal income tax and corporate tax for annual revenue below AED375000.
• Remote business setup procedure
• Seamless company formation
• No restriction on foreign exchange

There are four main types of business licenses in Dubai. Each type is designed for specific business activities. Here is an overview of the main types of business licenses in Dubai;

1. Commercial License: For business activities such as the buying and selling of goods and commodities, import and export, and general trading activities.
2. Professional License: For service-related activities like consultancy, art and craft, IT, and technical services.
3. Industrial License: For services related to manufacturing, production and processing of raw materials to finished products.
4. Tourism License: For activities such as inbound and outbound tour-related services.

The cost of starting a business in Dubai varies based on factors like license type, location, and company size. Initial expenses typically include license fees, office rent, and visa costs. Free zones often offer package deals, while mainland setups may have additional requirements.

Sole proprietorship is a single-owner structure with full liability, while an LLC (Limited Liability Company) can have multiple shareholders and offers personal asset protection. LLCs are more complex but provide greater flexibility and credibility. Your choice depends on business goals and risk tolerance.

As of 2023, the UAE introduced a 9% federal corporate tax rate for businesses with taxable income exceeding AED 375,000. Companies in free zones may qualify for 0% tax rates under certain conditions. Small businesses and startups below the threshold are exempt.

Want to understand how this affects your business? Read more.

An Establishment Card is a mandatory document for businesses operating in Dubai. It serves as proof of your company’s legal status and is required for various transactions, including visa applications and government services. The card is issued by the Department of Economic Development.

Dubai offers various legal structures, including Limited Liability Company (LLC), Free Zone Company (FZC), Branch Office, and Representative Office. Each structure has unique features, ownership rules, and operational scopes. Your choice impacts taxation, liability, and business activities.