Dubai offers a diverse range of business structures for entrepreneurs, each designed to meet different operational needs, ownership preferences, and industry requirements. Whether you choose to set up in Mainland Dubai or a Free Zone, it’s important to understand the legal forms, licensing types, and regulatory obligations attached to each model. The FAQs below simplify these concepts so readers can quickly understand their options before deciding how to structure their company in the UAE.
Dubai offers two primary business jurisdictions: Mainland and Free Zone. Each offers different ownership rules, operational flexibility, licensing types, and regulatory requirements.
A Mainland company is an onshore entity licensed by the Department of Economic Development (DED). It can freely operate within the UAE local market and internationally without restrictions.
Mainland businesses can obtain several types of licenses including:
Professional
Commercial
Industrial
Tourism
Occupational
Agricultural
Mainland business forms include sole establishments, various types of partnerships, limited liability companies (LLCs), private joint stock companies, public joint stock companies, and branch/representative offices of foreign companies.
UAE nationals, GCC nationals, and foreign nationals can establish a Sole Establishment. Foreign nationals must have a UAE residence permit to register one
A general partnership must consist of two or more UAE nationals, and all partners are jointly liable for the company’s obligations to the full extent of their personal assets
It includes both general partners (UAE nationals) with unlimited liability and limited partners whose liability is restricted to their capital contribution. Limited partners cannot engage in management.
This structure includes general partners with unlimited liability and participating partners whose liability is limited to the value of their shares. Minimum capital is AED 500,000 with shares of equal value.
A PJSC requires at least three shareholders and AED 2 million capital. Shares cannot be offered to the public, and UAE nationals must hold at least 51% of ownership.
An LLC can have 2 to 50 shareholders, with liability limited to their shares. Minimum capital is AED 300,000. LLCs cannot engage in banking, insurance, or investment activities.
A PJSC must have minimum capital of AED 10 million, and at least 55% of shares must be offered to the public. The board must have 3–12 directors, with the majority being UAE nationals
Yes. A branch may conduct the same activities as its parent company, while a representative office can only promote and market the parent’s services. Both require a UAE national service agent.
Free Zones offer:
100% foreign ownership
Zero corporate (on qualified activities) and income taxes
Full profit repatriation
No import/export duties
Simplified customs processes
However, Free Zone companies cannot trade directly in the UAE local market without a distributor or Mainland presence.
Free Zones allow two main legal entities:
Free Zone Company (FZC/FZ-LLC) – two or more shareholders
Free Zone Establishment (FZE) – single shareholder
Both operate under the Free Zone Authority and must submit annual audited financials.
BCL Globiz assists with business structuring, licensing, incorporation, banking, visas, and office space. Their team of CAs, CPA’s, and professionals ensures compliance, proper documentation, and a smooth setup process tailored to your business goals.
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