Business - Setting up

The primary federal legislative framework controlling commercial activities in the UAE are the Commercial Companies Law and the Trade Agencies Law. Apart from that, there are slight variations in requirements by individual Emirates.

The Commercial Companies Law recognizes the following forms of companies in the UAE:

  • Public Joint Stock Companies
  • Private Joint Stock Companies
  • Limited Liabilities Companies
  • Limited Liability Partnerships
  • Branch Offices
  • Representative Offices
  • Professional Firms
  • Free Zone Companies and Free Zone Enterprises/Establishments

Companies set up outside of free trade zones and other designated areas must be owned at least 51% by a local UAE national and in most cases the main company representative (the chairman, the general partner, etc) must be a UAE national.

Our partner Links Group can facilitate  business set up with a local UAE sponsor.

Free Zones

Free zones are interesting for new businesses and entrepreneurs,as investing in a free zone will allow 100% ownership, 100% repatriation of capital and profits, no minimum capital investment, no corporate or personal tax and no need for a local partner.

Jebel Ali Free Zone, one of the first free zones in Dubai, is very successful and will expand further with the opening of the new World Central - Maktoum International Airport.

The financial free zones include Dubai International Financial Centre (DIFC) & Dubai Multi Commodity Center.

Other Dubai based free zones include Knowledge Village, Academic City, Dubai Media City, Dubai Healthcare City, Dubai Outsource Zone and Dubai Airport Free Zone.

Free zones are also operating within other Emirates in the UAE such as Ras al Khaimah and Ajman.

Companies located in free trade zones are not allowed to trade with the local UAE market directly, however – they must use authorized local agents and the import customs duty (usually 5%) has to be paid when goods are released onto the local UAE market.

Legal

There is a clear legal framework with details relating to all business activities in Dubai.

The Dubai courts has a comprehensive website that lists all the federal and local laws and company lawyers are advised to obtain  a subscription to the e-services of the Dubai Court. www.dubai.ae

Some free zones have been granted authority to legislate on specific areas to include DIFC and Dubai Media & Internet City. 

Legal partners in Dubai will give updated advice to support your business formation.

In order to set up a company in the UAE, all businesses (of all types) must be licensed to operate in the UAE. Licensing procedures are regulated by both the federal government licensed to operate in the UAE and individual emirates.

Depending on the type of company, the new companies are registered with ministries of economy / economic departments, local chambers of commerce or free trade zones. Requirements and regulations vary from Emirate to Emirate.

Free Trade Zone

The procedures for establishing a business in a Free Trade Zone are simpler and can be completed in a much shorter space of time. Applicants must first fill out a questionnaire from the relevant Free Zone Authority. Having submitted the questionnaire, the company is given a UAE license application, planning documents, and a consumer request for electricity and other such services. Provisional approval is given along with a specimen lease agreement. After the company representative and the authority have met and finalized details of the project, the actual documents, which will include company or personal details, are processed. Once a legal presence has been established in the Free Zone, the business will need to lease premises or land and acquire an UAE operating license from the FZA. (Free Zone Authority).

Different types of licenses apply in the different types of free zones, however, in general companies with trade and industrial licenses can only conduct business within the Free Zone or abroad. To sell their products in the UAE, a UAE official agent is required. Other types of UAE licenses available are service licenses (e.g. banking, insurance, air shipment etc) and national industrial licenses. For the former the services offered must be the same as those stipulated in the parent company’s license in the UAE or abroad. The share capital of a company applying for a national industrial license must be at least 51 per cent GCC and 40 per cent of the sale value of the product must be value-added. Licenses are renewable each year.

Business Directories & Groups

Business directories and groups are an excellent tool to find resources and the right contact to assist with your business.  The British Business Group (BBG), Australia Business Group (ABC) and American Business Council (ABC) can all assist.

Often embassies and consulates have a trade / business chamber that can provide good information.

Listings of Dubai Free Zones

Jebel Ali Free Zone Authority
P.O.Box: 17000 Dubai, UAE
Tel: +9714 -8812222
Fax: +9714 -8815001
Email: mktg@jafza.ae
Website: www.jafza.ae		 Dubai Media City
P.O.Box: 53777 Dubai, UAE
Tel: +9714 -3914555
Fax: +9714 -3914616
Email: info@dubaimediacity.com
Website: www.dubaimediacity.com
Dubai International Airport Free Zone Authority
P.O.Box: 491 Dubai, UAE
Tel: +9714 -2995555
Fax: +9714 -2995500
Email: invest@dafza.gov.ae
Website: www.dafza.gov.ae		 Dubai Textile City
Tel: +9714 -3531551
Website: www.texmas.com
Dubai Customs Automobile Zone
P.O.Box: 63 Dubai, UAE
Tel: +9714 -3337789
Fax: +9714 -3338128
Website: www.dxbcustoms.gov.ae		 Dubai Metal & Commodity Centre
P.O.Box: 48800 Dubai, UAE
Tel: +9714 -3903899
Fax: +9714 -3903897
Email: office@dmcc.ae
Website: www.dmcc.ae
Dubai Flower Center
P.O.Box: 54486 Dubai, UAE
Tel: +9714 -2997701
Fax: +9714 -2997702
Email: info@dubaiflowercentre.com
Website: www.dubaiflowercentre.com		 Dubai Palm Island Development
P.O.Box: 17777 Dubai, UAE
Tel: +9714 -3991400
Fax: +9714 -3998484
Website: www.palmisland.co.ae 
Dubai Gold and Diamond Park
P.O.Box: 37370 Dubai, UAE
Tel: +9714 -3477788
Fax: +9714 -3473206 		Customs & Free Zone Corp
P.O.Box: 17000 Dubai, UAE
Tel: +9714 -8815000
Fax: +9714 -8816093
Email: customerservice@dpa.ae
Website: www.dpa.co.ae
Dubai Healthcare City
P.O.Box: 66566 Dubai, UAE
Tel: +9714 -3245555
Fax: +9714 -3249000
Website: www.dhcc.ae		 Dubai Silicon Oasis
P.O.Box: 491 Dubai, UAE
Tel: +9714 -2027741
Fax: +9714 -2997525
Email: info@dso.ae
Website: www.dso.ae
Dubai International Financial Center
P.O.Box: 74777 Dubai, UAE
Tel: +9714 -3300100
Fax: +9714 -3300311
Email: info@difc.ae
Website: www.dubaiifc.com		 Dubai Sports City
Website: www.dubaisportscity.com
Dubai Internet City
P.O.Box: 73000 Dubai, UAE
Tel: +9714 -3911111
Fax: +9714 -3919000
Email: customercare@dubaiinternetcity.com
Website: www.dubainternetcity.com		 Knowledge Village
P.O.Box: 73000 Dubai, UAE
Tel: +9714 -3901111
Fax: +9714 -3901110
Email: info@kv.ae
Website: www.kv.ae
Dubai Logistics City
P.O.Box: 74241 Dubai, UAE
Tel: +9714 -3214040
Fax: +9714 -3435505
Email: mmagendans@dubailogisticscity.com
Website: www.dubailogisticscity.com		 Dubai Aid City
P.O.Box: 17000 Dubai, UAE
Tel: +9714 -3903800
Fax: +9714 -3903810
Website: www.dubaiaidcity.ae