Company Setup

Best Business Structure in Dubai

Do you require assistance in choosing the best business structure for your business in UAE? Contact MTR Expert, the business setup consultants in Dubai.

Best Business Structure in Dubai, UAE

The United Arab Emirates is a business-friendly country that attracts business investors and entrepreneurs to start their dream businesses by offering 100% exemption from tax, strong capital flow, and liberal trade restrictions. Also. UAE follows a simple company formation process, which helps to establish your business seamlessly. So, you want to start a business in the UAE? Have you put all your effort and time into preparing your business summary? But how much time and preparation have you put into finalizing the shape and structure of your business? Choosing the proper business structure in Dubai will help you to maximize your profits. MTR Experts, the best business consultants in Dubai, UAE, provides the best services to structure your business legally in the UAE.

Business Structure Setup

Find out The Best Structure for your Business

Different Types of Business Structures Available in Dubai, UAE

The types of legal structures recognized by the Department of Economic Development (DED) for company formation in Dubai Mainland are as follows:

Sole Proprietorship

As you know, a single individual can be the company's owner under a sole proprietorship. And they will be responsible for the profits and losses of the company. Compared to other business structures, setting up a business in Dubai under a sole proprietorship involves easy procedures. However, as per the rule, only GCC nationals can claim 100% ownership in a sole proprietorship, and other nationalities must appoint a UAE local as a sponsor.

Features:

Any nationality can hold a sole proprietorship, but 100% ownership will be given only if the owner is a UAE National.
No minimum investment is required to set up a business under a sole proprietorship.
The company's name should be related to the service or product offered.

Limited Liability Company

As the name suggests, a Limited Liability Company in Dubai is owned by multiple shareholders. Any nationalities can form an LLC company in Dubai Mainland. The responsibilities of the shareholders towards the company are determined by the capital they have invested in the company's formation. In case of any legal issues, the lawsuit will be filed against the company and not against the shareholders.

Features:

LLC can perform any commercial or industrial activity
The LLC Company Formation in Dubai requires a local sponsor (UAE National)
Under LLC, 51% ownership must be held by a UAE national, and the remaining can be shared by the company owner.

Private Shareholding Company

This kind of structure is called a Private Joint-Stock Company. To be qualified for this, you must have a minimum investment of AED 5,000,000 from at least three investors. Only GCC & UAE Nationals are qualified to form this business structure in Dubai Mainland. To learn more about this legal business structure in Dubai, you can contact MTR Experts now!

Features:

Suited for business types that come under commercial and industrial activities
Required a minimum capital as stipulated by the norms
Eligible to have a subsidiary company
A GCC citizen can hold a 100% stake value.

Public Shareholding Company

This legal business structure requires a capital of a minimum of AED30,000,000 from every stakeholder. The business's name should be general, and it shouldn’t be related to any participating investor. Book a free consultation with our business consultants in Dubai to get more information on the public shareholding company.

Features:

Should hire at least 5 managers, as per the DED regulation
Should have 5 founders who are UAE nationals with a share capital between 30% and70%
Can perform any professional, commercial, and industrial activities under this structure

Civil Company

This structure can be owned by professionals such as engineers, accountants, doctors, and lawyers. The partners can be of any nationality. You must hire a local sponsor agent if the company doesn’t have any UAE or GCC nationals as partners. Discuss with our company formation and business setup consultants in Dubai to know the process of setting up a civil company in Dubai.

Features:

A local sponsor is required.
If the company is involved in engineering and construction activities, it must have a local UAE sponsor with at least 51% of the business.
Partnership companies from overseas should also be engaged in similar activities.

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Business Consultants in Dubai - What We Do?

The business setup process in Dubai is straightforward if the entrepreneurs meet the requirements of determining an appropriate business structure. Selecting the proper legal business structure in UAE is a crucial and confusing process. Once the company is incorporated, switching to a new structure is challenging. So, it’s advised to hire a business consultant in Dubai to determine the structure of your business.

MTR Experts - We're Here to Help You!

When setting up a business in Dubai Mainland, determining the legal business structure is important. There are 4 different types of structures available in the UAE. So, what will be the best for your business? The answer is – It Depends! Be cautious while choosing the business structure because the entity you choose can create a major difference in the paperwork required, the amount of taxes to be paid, and how you can safeguard your business in case of a lawsuit. So, do you want professional support or assistance in choosing the best legal structure in Dubai? You can contact MTR Experts, the business setup & company formation consultants in Dubai. We will help you choose the right entity for your business.

You can contact MTR Experts in Dubai to get proper advice in choosing a legal business structure. With a team of qualified business consultants and company formation specialists, we can help you navigate every step of the process and help you to make your dream of starting your business in UAE into reality. Feel free to contact us for professional support in setting up your business in Dubai without hassle.

Frequently Asked Questions

1. What are the 4 types of business structures?
The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation.
2. Does Dubai Have LLC?
The Limited Liability Company is the most common business structure on the UAE mainland (LLC). The DED is the government agency in charge of identifying and regulating the kinds of economic activity that may be engaged in. It is also authorized to grant all licenses for LLCs.
3. Is there no corporate tax in Dubai?
While there is no sales tax on the majority of goods and services and no income tax on income earned in Dubai, the city is not entirely tax-free.
4. Can LLC company own a commercial property in Dubai?
Property can be purchased in Dubai's Designated Areas by onshore corporations having non-UAE or non-GCC shareholders, such as limited liability companies and private joint stock companies. In Dubai, all free zone businesses are allowed to own real estate in the so-called Designated Areas.
5. What is a single owner LLC in UAE?
A business or sole proprietorship is a legal entity owned by a single person, with a trade license granted in that person's name. All of the entity's financial obligations, including all of its liabilities, are taken on by the owner.

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Company Setup

Best Business Structure in Dubai

Best Business Structure in Dubai, UAE

Business Structure Setup

Different Types of Business Structures Available in Dubai, UAE

Sole Proprietorship

Limited Liability Company

Private Shareholding Company

Public Shareholding Company

Civil Company

Business Consultants in Dubai - What We Do?

MTR Experts - We're Here to Help You!

Frequently Asked Questions

1. What are the 4 types of business structures?

2. Does Dubai Have LLC?

3. Is there no corporate tax in Dubai?

4. Can LLC company own a commercial property in Dubai?

5. What is a single owner LLC in UAE?

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