Company Formation in Dubai

Steps You Need to Know for a New Company Formation in Dubai

Company Formation in Dubai - Dubai is one of the world’s best corporate business hubs, so it’s no wonder new entrepreneurs are looking for ways to form a company there. There are so many advantages of forming a company in Dubai, like a great infrastructure, a strategic location, tax benefits, and a competitive environment. The government welcomes entrepreneurs from all over the world, making the set up an easy one. The legal processes are fast-tracked, there is minimal paperwork, and the registration is simple.

Are you planning to start your business in Dubai? You can connect with our experts and get solutions to all your concerns about starting your company in Dubai. Our company formation specialists will explain all the information you need to plan your business in Dubai.

At MSZ Consultancy, our dedicated team of consultants are standing by with all the information you need for a smooth and speedy company formation in Dubai.

6 Easy Steps for Company Formation in Dubai


Choose the name of the company

The company’s name must be unique and follow the rules and regulations of the Department of Economic Development.  The DED will give the final approval on the name you choose.


Choose the business activity

You will need to decide on what type of business activities you will perform, so you will know what type of business license to apply for.


Hire a local sponsor

A local sponsor is a local Emirati who will help with any legal issues that come up.  A local sponsor is required for company formation on the Mainland. They will also hold 51% of shares in the company.


Select the office location

Finding an office space is necessary for company registration in Dubai. You may also choose a virtual office depending on the business activity you will be doing.


Prepare an MOA

A Memorandum of Association (MOA) is a document that outlines the company’s external activities. It must be prepared before making the final submission for the business.


Finalizing the company formation

You will have to submit the required documents to the jurisdiction you selected for your company formation. These documents include your license application, the MOA, the tenancy contract, and any other documents needed.

Documents Required for Company Formation in Dubai

A copy of your passport and the passports of the shareholders and managers.
Copy of the residence visa
No Objection Certificate (NOC)
Proofs of address for shareholders
Government forms

Finding a Location for Your Company Formation in Dubai

Dubai Mainland Company Formation

Dubai Mainland Company Formation

A Mainland Company is often called an onshore company. This is the most popular type of company formation across the UAE and in Dubai. This type of company is allowed to conduct business in the local market as well as outside of the UAE without restrictions. You will need a local sponsor who will own 51% of the company. You will also need a physical office to do business on the Mainland.

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Dubai Offshore Company Formation

Dubai Offshore Company Formation

An Offshore business, also known as a non-resident company, is the best option if you want to do international business. One of the main reasons for Offshore company formation is that it has complete confidentiality over financial matters. The formation of an Offshore company in Dubai is a quick and simple setup when compared to the other types of business options.

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Dubai Free Zone Company Formation

Dubai Free Zone Company Formation

With a Free Zone company, you can conduct business internationally or between Free Zones.  A Free Zone company allows the business owner to have 100% foreign ownership, customs privileges, and exemption from taxes. These zones can be all foreign-owned and don’t require a 51% local partner ownership. Forming a company in a Dubai Free Zone brings a sea of opportunities for networking, collaborating, and extensive growth in the business. Most Dubai Free Zones even allow for multiple businesses under one license.

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Making Your Company Official in Dubai

No matter what type of company you want to form in Dubai, the first thing you are required to have is a license. A license validates your company as a legal entity and defines you and your business enterprise. It’s illegal to have a company without a license, so you will want to make sure you follow all the rules and regulations to have the correct business license. There are four different types of licenses you can apply for in Dubai.

Commercial License

You will need this license if you plan on doing any trading.  Construction companies, retail companies, real estate businesses, and other general trading will have to apply for this license. There are several benefits to a commercial license like – local and international trade, tax free benefits, being able to trade a large number of products, the process is simple, and it’s easy for investors to get visas for their employees and their dependents.

Industrial License

If you plan on forming a company involved in industrial activities, then you’ll need to apply for this license. Aerospace, maritime industry, aluminum and fabricated metals, pharmaceuticals, food and beverages, and machinery and equipment are all big companies that need an industrial license. You’ll have to have a warehouse within the country to get an industrial license.

Professional License

This license is for service-based industries like carpenters, medical professionals, beauty salons, accountants, lawyers, and many more.  With a professional license, you have 100% foreign ownership, you get to engage with a wide range of clients and markets, and you can renew the license at an affordable cost.

Tourism License

Dubai is known for its booming tourism industry, and the government wants to make sure tourism stays on top.  There are three types of business licenses for tourism that you can apply for – an outbound tour operator, an inbound tour operator, or a travel agent.  Dubai’s central location, access to the city by air and by sea, the great infrastructure, and the no taxation policy are just many of the big advantages that bring both businessmen and tourists to the city.

Tourism License

Big Benefits of Doing Business in Dubai

  • Fastest-growing economy
  • Low Dubai company formation cost
  • Taxation benefits
  • No minimum capital requirement
  • No restrictions on trading locations
  • Free Zone benefits with 100% foreign ownership
  • First-class infrastructure close to airports and seaports
  • There is no restriction in currency limitation
  • Low import duty
  • More options for business activities
  • There are no limitations to the number of visas for a business on the Mainland
  • Relatively cheap and easily available workforce

Sole Proprietorship

This type of company in Dubai is operated by one individual. A sole proprietor has complete control of the company’s organizations, including the company’s profits and losses. With this type of company, there are no restrictions on the location where a company can buy or rent space, and they can legally practice professional services anywhere in the UAE.

General Partnership Company

This type of business is owned by two or more partners and can only be opened by UAE nationals. All partners share equal rights to participate in the management and control of the company. There can be more than one branch of this company, with each branch carrying out one or all the business activities that are agreed to in the business license.


In Dubai, this business consists of one or more general partners who bear unlimited liability, so they are responsible for the company’s profits, losses, debts, and obligations.  All joint partners in this business are required to be nationals of the UAE due to the financial commitments.

Limited Liability Company

This is the most popular type of company organization. With a Limited Liability Company (LLC), the number of shareholders can range from 2 to 50, with the liability of a shareholder limited to one’s share in the capital. An LLC is exempt from paying the standard 5% customs duty on imported goods.  They can also trade anywhere in the UAE.

Joint Venture Company

This is a contractual agreement between an international party and a regional party.  The total equity participation in the joint venture must be at least 51%. With this company type, profit and loss distribution can be mutually agreed on.

Public Shareholding Company

With a Public Shareholding Company or Public Joint Stock Company, the business capital is split into equal shares, with each shareholder’s liability limited to the number of shares in the company. A minimum of 10 company shareholders is required for incorporation, and there must be a management board with 3 to 15 directors.

Private Shareholding Company

This is also called a Private Joint Stock Company. This type of business is owned by a non-governmental organization. A minimum of three people can incorporate the business.  There are a fewer number of people that hold stock in the company and they are not allowed to trade publicly.

Professional Company

You must have a professional license to start a Professional Company. The company operates as per the intellectual efforts of its partners, like a law firm or IT consultancy.  This type of company is monitored by the government to make sure they stay in compliance with professional etiquette.

MSZ Consultancy – Experts in Dubai Company Formation

Are you ready to form a new company in Dubai?  Then we are ready to help you get started!  Our knowledgeable team at MSZ Consultancy has the complete solutions for company formation in Dubai. We are here to help with everything you need, from trade licenses, company registrations, government approvals, and PRO services. We will customize the service based on your needs and provide you with everything you need for a successful company formation in Dubai.


We are your one-stop for everything you need for forming a company in Dubai. We have been facilitating international business and corporate solutions to help passionate entrepreneurs across the globe for over 15-years.  We provide company incorporation and business setup services in Dubai.  Our team of experts has in-depth knowledge in the field of consultancy and will guide you through the best options suited for your company.


At MSZ Consultancy, we do all of the hard work for you. We will guide you through the administrative, financial, and legal processes that you will need to start a company in Dubai. We help with everything you need from company formation, securing a space and a sponsor, answering any financial questions you have, and making sure you have all the legal paperwork you need for your company formation in Dubai.


We provide customizable services for you and your company to ensure that you get everything you need at an affordable price. We won’t just be around for your company to get started, but we will stick by your side for your corporate needs down the road, like PRO services, product registration, company liquidation, and more. We are more than just a service provider; we want you to consider us a long-term partner.

Our Success Stories

Learn How Companies Have Used the Experts at MSZ Consultancy to Build a Business in Abu Dhabi

Mr. Mujeeb has been very helpful since the beginning. He was not only focused on the procurement process of the license alone. He took his time to explain to me what are my best options for various activities. He took time to listen and understand his client’s needs. The entire process was a breeze! Thank you, Mr. Mujeeb and to MSZ!

Liz Cardona

I dealt with Mujeeb, who was very prompt at responding to my initial enquiry.

He listened to what I wanted, he did not presume anything or try to sell me something I didn't require or would not fit my purposes and always responded to my emails swiftly.

I am extremely satisfied with the service received from MSZ Consultancy and would definitely recommend them.

Charl Breytenbach

As MSZ consultancy has guided me to get my business license last month, I found it to have both a professional and friendly environment simultaneously, I recommend to everyone who is looking for business setup consultants in Dubai. Mr. Zubair was really understanding, cooperative and helpful throughout the process.

Nasreen Gulam

As easy as it could be, MSZ helped me setup my business and everything has just been uphill from there. The staff and the Employees were all so easy to talk to and friendly, 100% would recommend MSZ to everyone looking to setup their business.

Mariam George

Frequently Asked Questions

How can I register my online business in the UAE?

First, you’ll have to decide on a legal structure for your company, then select a place and the name. Then you will have to request a business license, apply for an approval certificate, draft an MOA, confirm the location of the office, then sign the legal paperwork in person.

Is a local sponsor mandatory for company formation in Mainland Dubai?

A local sponsor is mandatory on the Mainland to help with government paperwork

How many business activities can be performed under one license in Dubai?

In Dubai’s Mainland, you can have two activities. You are allowed to have two activities under one license in the Free Zones.

What is the cost of forming a company in Dubai?

Dubai company formation cost will depend on the type of business you decide to have and where you want the company to be located.

How can I get a trade license in Dubai?

Decide on the name and type of business you want, then submit all the required paperwork.

What is an LLC company in UAE?

LLC stands for Limited Liability Company.  This type of company is the most common form of business in the UAE.  It can be created by two shareholders and have a max of 50 shareholders.

How can I get residency in Dubai?

You can get citizenship in Dubai if an employer provides sponsorship. Another way to get citizenship is to buy a property.

Which business is best in Dubai?

Real estate, financial services, retail, tourism, and healthcare are a few of the businesses that have success in Dubai.

What is the difference between Mainland, Free Zone, and Offshore companies in Dubai?

The big differences in these areas are ownership. In the Mainland, you can only own 49% of your business while a sponsor owns the majority of shares. In a Free Zone, a foreigner can have complete ownership of their business, and an Offshore business can also have full ownership if the business is outside of the UAE.

How can I form a new company in Dubai?

First, you’ll need to choose a name for your company and determine what type of business you will be doing and the location you want for your company. Then you’ll have to draft a Memorandum of Association and submit the required documents.

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