{"id":6425,"date":"2018-01-20T18:30:27","date_gmt":"2018-01-20T13:00:27","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=6425"},"modified":"2025-06-24T18:38:56","modified_gmt":"2025-06-24T13:08:56","slug":"procedure-company-formation-dubai","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/procedure-company-formation-dubai\/","title":{"rendered":"Procedure for Company Formation in Dubai"},"content":{"rendered":"<p>Dubai is an important business center that has become an attractive hub for overseas investors.&nbsp;<strong>Dubai&rsquo;s Companies Act<\/strong>&nbsp;was first enabled in 1984 and ever since it has gone through several amendments in order to provide local and <a href=\"https:\/\/enterslice.com\/learning\/types-foreign-investment-india\/\">foreign investors<\/a> with a suitable business environment.&nbsp;<strong>Federal Law No.2 of 2015 on Commercial Companies<\/strong>&nbsp;establishes new regulations for those setting up&nbsp;companies in Dubai&nbsp;and the other regions of United Arab Emirates. Dubai Commercial Code regulates the existing business activities of Dubai. Lets know about the procedure for company formation in Dubai.<\/p>\n\n\n\n<p>According to the&nbsp;<strong>Companies Act 2015<\/strong>, any&nbsp;company registered in Dubai must have one or more UAE citizens as partners who will own at least 51% of the share capital in the company. All companies must have a Memorandum of Association which will be drafted in Arabic and vetted by a public notary.&nbsp;Foreign investors opening companies in Dubai&nbsp;may draft the Memorandum in their native language provided that they also submit its version in Arabic when supplying the documents with the Trade Register.<\/p>\n\n\n\n<ul>\n<li>Foreign Investors will now be allowed to register limited liability companies &amp; joint stock companies as holding companies in Dubai.<\/li>\n\n\n\n<li>The only places foreign investors may fully hold a <strong><a href=\"https:\/\/enterslice.com\/ae\/company-formation-in-dubai\">Company Registration in Dubai<\/a><\/strong> is Dubai Free Zones.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Share Capital Requirement for Company Formation in Dubai:<\/h2>\n\n\n\n<p>In order to register a Public Joint Stock Company the Minimum Share Capital of 30 million AED will be required &amp; for a Private Joint Stock Company, the requirement is 5 million AED.<\/p>\n\n\n\n<p>Appointment of Independent Auditors is a must for setting up of Joint Stock Companies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Types of Entities for Company Formation in Dubai:<\/h2>\n\n\n\n<ul>\n<li>Private Joint Stock Company<\/li>\n\n\n\n<li>Public Joint Stock Company<\/li>\n\n\n\n<li>Limited Liability Company i.e. Min 2 to 50 Shareholders<\/li>\n\n\n\n<li><a href=\"https:\/\/enterslice.com\/ae\/free-zone-company-registration-dubai\">Free Zone Company<\/a> i.e. allows 100% overseas ownership<\/li>\n\n\n\n<li>Offshore Company i.e. No Corporate Tax<\/li>\n\n\n\n<li>Onshore Company<\/li>\n\n\n\n<li>Partnership<\/li>\n\n\n\n<li>Branch Office<\/li>\n\n\n\n<li>Subsidiaries<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">The Incentive for Setting up Business in Dubai:<\/h2>\n\n\n\n<ul>\n<li>Tax-Free Haven<\/li>\n\n\n\n<li>Strong Gov. Policies<\/li>\n\n\n\n<li>Business-friendly environment<\/li>\n\n\n\n<li>Tax-free Salaries<\/li>\n\n\n\n<li>Cheap Human Resource<\/li>\n<\/ul>\n\n\n\n<p>Limited Liability Companies are the most popular types of business entity in Dubai. The minimum share capital is 3 Lakhs AED. However, it cannot perform activities in insurance, banking or investment sector.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Steps in Incorporation:<\/h2>\n\n\n\n<ol>\n<li>Search for a local sponsor or partner to own 51% of ownership.<\/li>\n\n\n\n<li>Reservation of name of Company by applying to the Department of Economic Development.<\/li>\n\n\n\n<li>Drafting &amp; Notarization of Companies Articles &amp; Memorandum of Association.<\/li>\n\n\n\n<li>Submission of Documents &amp; Business license application form to the Department of Economic Development.<\/li>\n\n\n\n<li>Thereafter registration with Dubai Commercial Register under Dubai Companies Act.<\/li>\n\n\n\n<li>Application of Business License from the Dubai Chamber of Commerce. (Commercial\/Trade, Industrial or Professional License<strong>).<\/strong><\/li>\n\n\n\n<li>Appointment of 1-5 Managers as per the Companies Act<strong>. <\/strong><\/li>\n\n\n\n<li>The opening of the Corporate Bank Account.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Taxes in Dubai:<\/h2>\n\n\n\n<p>United Arab Emirates Government does not impose an <a href=\"https:\/\/government.ae\/en\/information-and-services\/finance-and-investment\/taxation\">income tax<\/a> on companies &amp; individuals living in the country. How so ever foreign citizens registered in their native countries &amp; making profits in Dubai, have to pay some taxes.<\/p>\n\n\n\n<p>Dubai has also signed certain Double Tax avoidance agreements &amp; taxation treaties with other countries enabling it to become even more interesting for foreign investors.<\/p>\n\n\n\n<p><strong><em>There is no VAT in Dubai.<\/em><\/strong><\/p>\n\n\n\n<p>Currently, the UAE doesn&rsquo;t have a Federal <a href=\"https:\/\/en.wikipedia.org\/wiki\/Corporate_tax\">Corporate Tax<\/a> Regime. Taxation is determined on Emirate to emirate <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a>. However, in reality, CIT is only imposed in respect of entities engaged in Oil &amp; Gas Exploration at the rate of 55%.<\/p>\n\n\n\n<p>Also imposition of 20% tax rate on taxable income of branches of the foreign bank. There are no withholding taxes for remitting dividends, royalties &amp; interest abroad.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dubai is an important business center that has become an attractive hub for overseas investors.&nbsp;Dubai&rsquo;s Companies Act&nbsp;was first enabled in 1984 and ever since it has gone through several amendments in order to provide local and foreign investors with a suitable business environment.&nbsp;Federal Law No.2 of 2015 on Commercial Companies&nbsp;establishes new regulations for those setting [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":89156,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1322,2433],"tags":[808,1506,1505],"acf":{"service_id":"63"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Procedure for Company Formation in Dubai through Enterslice<\/title>\n<meta name=\"description\" content=\"Dubai Commercial Code regulates the existing business activities of Dubai. Lets know about the procedure for company formation in Dubai.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/procedure-company-formation-dubai\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Procedure for Company Formation in Dubai through Enterslice\" \/>\n<meta property=\"og:description\" content=\"Dubai Commercial Code regulates the existing business activities of Dubai. Lets know about the procedure for company formation in Dubai.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/procedure-company-formation-dubai\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2018-01-20T13:00:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-24T13:08:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/01\/Procedure-for-Company-Formation-in-Dubai.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1218\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":751,"readingTime":2,"nextPost":{"id":6454,"slug":"procedure-company-incorporation-china"},"prevPost":{"id":6419,"slug":"anti-profiteering-rules-specified-gst"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2018\/01\/Procedure-for-Company-Formation-in-Dubai.jpg","postTerms":"Company Registration","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/6425"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=6425"}],"version-history":[{"count":4,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/6425\/revisions"}],"predecessor-version":[{"id":88557,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/6425\/revisions\/88557"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/89156"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=6425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=6425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=6425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}