21 10 2020

Legal forms available for companies in the UAE

Legal forms available for companies in the UAE

It is very easy to open a company in the United Arab Emirates. The government is constantly working to improve the business climate in the country, while simultaneously creating additional incentives for opening new companies. Therefore, almost everyone can start their own business in the UAE.

In this article we will tell you about the available legal form for starting a business in the United Arab Emirates. This is the most important and one of the primary steps in starting a business in the UAE. Of course, there are a lot of forms, and we decided to tell you about the most popular types of campaigns.

Individual entrepreneur ("Sole Proprietorship");

This type of company is fully owned by one individual. It is a person who controls the profit and all operations performed. Individuals of any citizenship can register this type of company, but if we are talking about an industrial or commercial company, then only citizens of the United Arab Emirates and the GCC countries can have such companies.

Civil Campaign ("Civil Company");

Companies that are called civilians can be registered by people who carry out professional activities, for example: a lawyer, a doctor, an accountant, etc. A citizen of the United Arab Emirates must own at least 51% of the company.

Limited Liability Company (“LLC”);

A distinctive feature of this type of company is the fact that the shareholder's liability, losses and profits are fully consistent with his share in the company. As in the civil campaign, the minimum share of a UAE citizen should be 51%. Instead of a citizen of the United Arab Emirates, a company that is 100% owned by local citizens can act. It is always possible to agree with a local partner so that he does not claim dividends and company management, in return for a fixed annual remuneration.

Such a company is registered when there is a need to open a business outside the free economic zones and have access to the local market of the United Arab Emirates.

The foreign owner and his employees and family members are eligible for a UAE resident visa.

Do you want to operate in the domestic market of the Arab Emirates? Please contact our specialist for detailed advice.

Branch of a company located abroad;

For foreign companies, the opportunity to open a branch in the United Arab Emirates is available. The parent company will be considered the full owner of the branch. It is worth noting that when conducting trading activities, the import of any commodity items must come from a local company.

A company in a free economic zone;

It should be noted right away that such companies can be 100% owned by a foreign investor.

There are many advantages of such companies, and they are very significant. It is also worth considering the limitations. Such companies do not have the right to operate in the domestic market of the United Arab Emirates. For a company in the FEZ, only activities in the zone in which it is registered are available, and the whole world outside the UAE is also open.

As with a local company, the owner, employees and family members of the investor can apply for resident visas.


The process of starting a business as a freelancer is simplified as much as possible. Most of the FEZs provide all the necessary tools for this.

Obtaining a UAE resident visa is also available for a freelancer.