Company Formation Requirements for Foreign Investors

Company Formation Requirements for Foreign Investors

Company formation in Dubai is the easiest way to get started in this part of the world. Dubai is a thriving emirate and city in the United Arab Emirates renowned not only for its glamorous architecture, ultramodern shopping, and dynamic nightlife scene. Burj-Al-Arab, the highest tower, dominates the skyline. At its foot sits Dubai Fountain, with lights and jets choreographed to pop music.

At its center is the Dubai Gold Market, a centerpiece to the city’s business district. Burj-Al-Arab is home to a number of tower-top shops selling jewelers, diamonds, sapphire engagement rings, and the world’s most expensive fountain. In addition, Burj-Al-Arab has an international airport with direct flights from most cities around the world. There are also local flights from most major regional destinations, including Bangkok, Kuala Lumpur, Singapore, Beijing, and Hong Kong.

On paper, you should be able to open a company registered in Dubai using minimal funds and no foreign investors. However, despite the lack of ownership shares and the need for UAE citizenship, things aren’t as simple as that. The registration procedures for company formation in Dubai are complex and time-consuming, and companies are normally required to have at least one representative (the company secretary) on the Board of Directors. Furthermore, a UAE national cannot be a company director or shareholder.

Company formation in Dubai

Company formation in Dubai is subject to several requirements. The company must be duly registered with the Dubai Department of Economic Affairs (DEOA). Businesses must also submit financial documents such as their annual income statements and balance sheets and confirm that they are not insolvent. In Dubai, you may need to form a limited liability company or a company with a share capital. It’s usually the same as the requirements for UAE residents, except that there are fewer capital requirements.

Company Formation in Dubai: A Step by Step Complete Guide

For a company to be established on the basis of share capital, Dubai requires that both partners own shares in the issuing company. A Limited Liability Company (LLC) in Dubai is taxed as a business entity. A minimum of two LLC members must own equity in the company. Unlike in other countries, joint-stock registration provides limited liability for foreign investors. Foreign businessmen can appoint one representative to the Board of Directors and can control the company through majority votes.

Limited liability company formation is another alternative to share registration in Dubai, but not currently available there. As with the above case, shareholders have their own names and have the same nationality when trading as individuals. This alternative has different forms for different types of entities. When foreigners seek company registration in Dubai, they must complete a form for each type of entity to ensure that all the requisite information is provided.


Registration through a company incorporation agent in Dubai does not require any legal fees. Companies must pay the agent for their services in order to register and this may include service charges, registration expenses, and an administrative fee for processing the document. Companies can complete the registration process in Dubai by paying the corresponding administrative fee and paying the registration fee together. However, in some cases, the Company Registration Office may charge a flat rate fee, regardless of the number of entities you have registered with them. Companies must ensure that the Dubai Ministry of Economic Affairs registers their company incorporation agent.

Many companies incorporate through an agent in Dubai due to its convenient services and low cost of formation. Offshore companies can register businesses directly, but entrepreneurs also have other options. Establishing an offshore corporation will allow entrepreneurs to avoid excessive taxes on their assets. The company registration office in Dubai sends the necessary documents to the designated offshore company name registrar, which will prevent legal disputes in the future.

Company Formation in Dubai – Offshore Registration Process

Company formation in Dubai is an easy step-by-step procedure and doesn’t require constant visits to an attorney at each juncture of the business formation process. A simple legal process makes the UAE one of the best countries for forming a company. This includes registering a company name, incorporating the company, and licensing the company to conduct commercial activities. By designating an individual or by appointing directors, a corporation is formed. A nominee is also a business secretary and bookkeeper of the company, who reports directly to him or her, and ensures all the company’s paperwork is prepared correctly. Company formation requires less documentation than normal and thus saves time.

Business Setup in Dubai | Company Formation in Dubai

Dubai requires obtaining a license or administrative authorization, completing an application, outlining the properties the company will own, and signing an attorney’s contract. Upon receiving these documents, the Ministry of Economic and Business Affairs (MOBI) in Dubai approves the registration. The Companies Act provides the full details regarding a company, such as its office address, what it does, its registered agent, and its capital. One also receives a certificate of Registration of Company. Company formation requires the payment of the registration fee by the shareholders meeting the requirements of the Companies Act.


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