When it comes to setting up a business in Dubai, foreign investors have a variety of options. The most popular type of company is the Limited Liability Company (LLC), which allows for 100% ownership and offers tax exemptions and import duty benefits. Sole proprietorships are also an option, but they require a residence permit for foreign citizens. Representative offices are also available, but they are limited in their activities, as they can only promote the parent company's activities.
The creation of various types of companies in Dubai is regulated by the Companies Act, which covers a wide range of commercial forms. Industrial licenses are required for companies that engage in manufacturing, processing and packaging activities. However, these types of companies don't offer full protection to owners, so they are rarely used. Foreign investors can set up various types of companies in Dubai depending on their business objectives. Another form of business that allows foreign companies to explore the Dubai market is the liaison office.
Eleven different types of companies can be established, but according to the United Arab Emirates business consultancy, PKF, the government does not encourage the formation of companies limited by shares or command associations. Foreign companies interested in establishing a presence in Dubai can choose between the branch and the subsidiary. Foreign companies that are established in the country tend to prefer the structure of limited liability companies (LLC), although many companies choose to operate as branches of foreign entities. Another popular form of business structure among international companies is the overseas branch agreement. When it comes to setting up a business in Dubai, it is important to understand all the different types of companies available and their respective advantages and disadvantages. LLCs offer full ownership and tax exemptions, while sole proprietorships require a residence permit for foreign citizens.
Representative offices are limited in their activities and industrial licenses are required for certain types of businesses. Liaison offices allow foreign companies to explore the Dubai market, while branches and subsidiaries provide more control over operations. Finally, overseas branch agreements provide an alternative way for international companies to establish a presence in Dubai. No matter what type of company you decide to form in Dubai, it is important to understand all the legal requirements and regulations that apply. Working with an experienced business consultant can help you navigate the process and ensure that your company is set up correctly.