How Long Does It Take For Company Formation in Dubai?

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Start a Company in Dubai
Company Setup in Dubai

Dubai is among the top economies that offer an attractive work environment. This is why investors around the world are interested in setting up a company in Dubai. With the rapid growth in the economy, more and more businesspersons show interest in company formation in Dubai. Although, none of the investors can ignore the question that how long does it take for setting up a company in Dubai? 

For company formation in Dubai, you need to fulfill certain requirements, complete the application and registration procedures. Due to the varying company structure and its specific requirements, an exact time cannot be given. However, generally, it takes up to 1 week to set up a company in Dubai. 

The United Arab Emirates (UAE) is an alliance that was framed in December 1971 between Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Umm al-Quwain, and Ras al Khaimah. Dubai is perhaps the biggest city in the Middle East having a huge number of freedoms to permit foreign investors to set up various types of organizations. This city has extended its chances to guarantee that there is a consistent turn of events. Aside from this, the Middle East is one of the biggest oil exporters on the planet. There is no measure of assessment collected either straightforwardly or by implication on residents and people living in Dubai. Thus this load of chances draws in more people to go for the cycle of organization enlistment in Dubai.

What is the Process of Company Formation in Dubai? 

Setting Up a Company in Dubai

In Dubai, there is an assigned region to complete diverse types of enlistment exercises identified with consistency. This region is known as the Dubai International Financial Center (DIFC). In Dubai, yet all over the Middle East, there are various types of monetary focuses that permit simplicity of completing various exercises in Dubai. The following procedure should be followed to register a company in Dubai: 

  1. Choose the right business category for your company in accordance with your needs and requirements. Legal advisors at Shuraa Business Setup can help you with the same. 
  1. Select a trade name for the company. It is the first requirement before starting the registration procedure for company setup in Dubai. 
  1. Draft a Memorandum of Association. Also, make sure it signed by all the business partners. Also, keep the Article of Association at hand. 
  1. Submit all the required documents to the Dubai Department of Economic Development for approval. 
  1. Register your company for employment purposes.  
  1. Obtain a VAT number, according to the latest changes in the legislation. 
  1. The last step to be completed is to apply for your business license. Applying and acquiring a trade license for your business can be tricky. To learn more about how to get your business license in Dubai, read here. 

In the DIFC there is no type of limitation with regards to unfamiliar possession in the organization. Consequently, the chiefs and investors of an organization enrolled in Dubai can have 100% responsibility for the organization. The Federal Commercial Companies Law No. 2 of 2015 (Companies Law) expresses that organization that is outside the locale of the DIFC needs to conform to the necessities of unfamiliar speculation. This implies 51% of proprietorship must be under an occupant person of UAE.

What Are The Various Factors that Influence the Time Required ForCompany Formation in Dubai


The possession angle regarding the organization would be classified depending on the citizenship. 51% must be constrained by the UAE public. This would likewise incorporate any type of substance which are constrained by the UAE public. These unfamiliar speculation limitations have been taken out from different areas in 2018. Various significant factors affect the time required for a business to set off. A few of them are listed below: 

Business Activities 

For setting up a company in Dubai, you must be clear about the nature of your business. That will help you decide the type of business activities you want to undertake. This is one of the most important and prime steps for company formation in Dubai. This step highly influences the time required to start operating your business. However, every business activity has a setup procedure, specific requirements. The time required to fulfill the setup procedure is different for every business activity.   

Operational Jurisdiction 

It is important to strategically decide a location for your business to carry out its operations. Dubai offers various jurisdiction categories, namely the mainland, free zones, and offshore. Each of these has its benefits and operational requirements. Also, note that the registration process for mainland business setup is different from offshore business setup. 

An offshore company formation in Dubai generally requires only 3 days. Whereas for mainland company formation it may take more than a week. So, the location of your business is another important factor that affects the time required for setting up a company in Dubai. 

Business Entity 

Before starting a business in Dubai, you must select an appropriate type of business entity. In Dubai, there are four main types of business entities. Every business category has its subdivisions. It is a must for every type of company to fulfill certain requirements that affect how long it will take to start the business.  

The four main types of entities that operate in Dubai are: 

  1. Companies 

The subcategories of this entity are as follows:  

Limited Liability Company  

A Limited Liability Company (LLC) is the most common type of business entity in the UAE. You can open a limited liability company if you want to do sales in the region. However, you cannot get 100% foreign ownership. Foreign investors can only hold up to 49% equity ownership. However, the rest 51% must held by a UAE national. 

Civil Company  

A civil company is a business partnership for people in professional fields. It is 100% owned by professional partners. However, you need to partner with a Local Service Agent.  

Joint Venture Company  

A Joint Venture Company allows foreign entrepreneurs or companies to collaborate with a local company in the country under a contractual agreement. Joint ventures offer foreign companies the same advantages as LLCs in Dubai. 

Public Shareholding Company  

In a Public Shareholding Company, the capital is divided into equal shares. And, therefore, the shareholders’ liability is limited to the number of shares in the company. 

Private Shareholding Company   

you cannot invite the public to subscribe to the shares of a Private Shareholding Company. Only a minimum of 3 people can incorporate it. The minimum capital required for a private shareholding company in Dubai is AED 2 million. 

  1. Partnerships 

Simple Limited Partnership  

A Simple Limited Partnership should formed between at least two partners. One has to be a general partner and one a limited partner. 

Partnership-En-Commandite  

A partnership-en-commandite also called a limited partnership. And, it operates under a partnership name. It has obligations guaranteed by the several unlimited and joint liabilities of one or more partners. 

  1. Branch Office 

Branches of Foreign Companies  

Branch of Foreign Companies allowed entering into contracts. Also, they can conduct permitted activities of parent companies in the UAE. 

GCC companies  

GCC is set up to undertake construction activities for industrial projects in the oil & gas, petroleum, chemicals and related infrastructure fields, including power & water. 

  1. Free-Zone Companies  

Establishing a Free-Zone company in the UAE can be an attractive option for foreign investors. The main attraction for setting up a company in a free zone is that you don’t require a UAE national local sponsor.  

Type of Trade License 

Every company must obtain a trade license to operate in Dubai. The DED (Department of Economic Development) offers 4 main types of business licenses in Dubai: 

  1. Commercial 

A commercial license is required for those who want to trade different types of goods or commodities. 

  1. Industrial 

An industrial license is suitable for those who want to set up a manufacturing or industrial business in Dubai. 

  1. Professional 

Professionals like service providers, artisans, freelancers, craftsmen have to obtain a professional license to sell their services in Dubai. 

  1. Tourism 

Having such sparkling and high-class tourism, Dubai offers a separate license for those who want to start a travel and tourism business in Dubai.  

The tyye of business license you need to acquire also affects the time required for setting up a company in Dubai

Connect With Shuraa 

It doesn’t take too long to set up your own company in Dubai. With regards to the tax collection angle, then, at that point roundabout duties, for example, VAT present in Dubai. This can be considered as a worth-added charge which is charged at the pace of 5% on the measure of labor and products which are given in Dubai. There is no type of individual personal assessment which is charged on representatives working in Dubai. However, the process to start one can be overwhelming. You can connect with expert business consultants at Shuraa Business Setup. We will lend you a helping hand to complete your company registration process without any hassle. We will also help you acquire your business license at a low cost. All you need to do is, reach out to us.  

Connect with Shuraa today by calling us on +971 44081900. For chat assistance, send a WhatsApp message on +971 50 777 5554. You can also write to us at [email protected] 

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