How to choose different types of company formation in Dubai, UAE?
Business setup consultants in Dubai | Centriz

If you take a list of the best locations to settle, work or invest in, UAE will be one of the tops. Why does every foreign investor choose UAE to establish a business? Reasons are simple and it includes enhanced FDI flows, well planned economic diversifications projects, the business-friendly company set up regulations and so on. UAE has been a business powerhouse all the time and the investment opportunities it gives attracts every entrepreneur to make their presence within its world-class amenities in different zones. It is a fact that not all types of companies can be put under a general category that follows common rules and regulations. Every type of business needs a different incorporation structure. To enable this, UAE has rolled out various legal forms to help organizations grow regardless of their size and type. Consult with us for Low cost business setup in Dubai.

Sole Ownership

As the name suggests, owning a company in the UAE is quite simple and welcoming. If you have a company with 100% ownership and profit-sharing rights, UAE provides you with certain laws to be followed under the sole proprietorship category. Likewise, any financial debts will be completely liable to the owner itself. Some of the rules to be followed for getting a sole ownership category type license are:

  • Sole ownership can be attained if you are a person of any nationality.
  • For non-UAE nationals to own a company in UAE, a Local Service Agent or LSA is appointed for initiating sole ownership.
  • 100% sole proprietorship can be owned only by GCC and UAE nationals.
  • All the matters related to government authorities to start the business and the license requirements are taken care of by the Local Service Agent.
  • In case of getting help from the LSA, the contract between the LSA and the owner of sole proprietorship must have a certification attested by a Notary Public in UAE.

LLC or Limited Liability Company

Limited Liability Company is one of the famous company registration formations in the UAE. In a Limited Liability Company, a minimum of 2 persons or a maximum of 50 individuals can invest in as shareholders. These shareholders will be liable and responsible according to their shares. In such a company, 51% of the company share must be by UAE nationals whereas the remaining 49% are reserved for investors coming from foreign countries. GCC nationals can have their ownership at 100% too.

Private Joint-stock company

A Private Joint-Stock Company, also known as a Private Joint-stock company can be formed when a minimum amount of AED 200000 is required from at least 3 investors. A public joint-stock company is one with a minimum of AED 10,000000. The shares are transferable with equal value to the shareholders.

Branch outlet ownership

Branch outlet ownership is the type of ownership that you get when there is a dedicated outlet of the organization. Even though the outlet is far away, it is not a separate legal organization. Branch outlets are taken into presence to expand the business growth over various countries. It also enhances sales and revenue in every aspect.

Let’s dig more into the details of types of branch office

  • Branch of a company at UAE

This is otherwise known as a foreign company branch with an office in the UAE. 100% ownership of the main branch is the same as in the company branch too. It works similar to the office in the headquarters area. But, if you want to import the goods, it can only be performed through a form that is operable locally in the UAE.

  • Free zone Company Branch

Free zone company branches are allowed to perform business activities in the mainland after obtaining a license from DED. However, this company must have an owner who is an Emirati. If your company doesn’t have an Emirati shareholder, it is possible to get license approval from the MoE with the help of an LSA(Local Services Agent).

  • Company branch at GCC

If your company is GCC based, then you are allowed to attend a license and can perform one or more legislated activities. With the main company license, your company with multiple branches can register for various business activities.

  • Free zone Company

A company in a free zone will have more shareholders that include 2-5 stakeholders. Companies in the free zone have many exclusive benefits, trading policies with specialised incentives and so on. Dubai free zones welcome every entrepreneur to Free Zone business setup in UAE as it is one of the best-ranked regions for a business setup.

How do Centriz solutions help our customers? 

Being one of the best Business setup consultants in Dubai, we have a successful record of setting up companies in the UAE. We offer complete and round the clock Company formation in UAE services regardless of the business structures, legal organizations and UAE company jurisdictions. The company formations through us have gained impeccable outcomes that always stay as golden feathers on our brand. Take a look at our website to know more about affordable business formation packages by us.


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