The UAE has emerged as an economic hotspot and an investor magnet. The strategic location, investor-friendly policies, and world-class infrastructure have transformed the country into one of the most attractive entrepreneurial destinations for people across the world. But what kinds of companies can a foreigner open in the UAE? Let’s break this all down for you.

Types of Companies Foreigners Can Open in the UAE

The UAE offers numerous business structures for foreign investors, each one meeting specified needs. Here are the main options available:

    1. Sole Proprietorship

 A sole proprietorship is a business owned and operated by one person. Foreigners can fully own a sole proprietorship in professional service sectors such as consultancy or training. However, this kind of business does not provide liability protection, meaning the owner is liable for the company’s debts.

2. Partnership Company

A partnership company enables two or more people to share ownership and liability. While it’s an option available for UAE nationals, foreign ownership is usually restricted, and it is less commonly preferred by expatriates.

3. LLC in Dubai

An LLC is the most preferred type of company in the UAE. Recent reforms have seen foreign investors allowed to own 100% of the shares in an LLC. This structure is flexible and suits most business activities. For an LLC, at least two shareholders and a local service agent must be involved; however, the agent does not hold equity.

4. Private Shareholding Company

This type of company is suitable for larger ventures, especially those that plan to raise capital from private investors. At least two shareholders are required and enjoy the protection of limited liability.

5. Public Shareholding Company

Known also as a joint-stock company, it is a structure suited for those who wish to list on the stock exchange. It is a form that requires a minimum capital amount and at least ten founders. Public shareholding companies have strict laws in place regarding investors.

6. Civil Company

A civil company is very good for professions like doctors, lawyers, or engineers. It allows 100% foreign ownership but normally requires to have a UAE national as a service agent.

7. Branch of a Foreign Company

A branch allows an established foreign company to expand to the UAE. The branch would be able to conduct activities similar to or identical to those of its parent company. A branch does not have to have a UAE local partner; however, a local service agent is required for administrative functions.

Steps to Open These Types of Companies in the UAE

Setting up a company in UAE as a foreigner also involves several steps, depending upon the type of business you choose. It is a general guide.

• Choose Between the Free Zone and the Mainland

1. Foreign investors may set up their businesses either in the free zone or on the mainland.
2. Free Zone: 100% foreign ownership, tax exemptions, and simplified procedures.
   
   Also, Read UAE Free Zone Unveils Startup Packages with Lifetime Visa Perks.

Mainland: Companies can operate anywhere in the UAE, but some activities might need a local sponsor.

• Determine the Business Activity

Identify the main and secondary activities of your company. This type of business activity determines which type of license and regulatory compliance would be needed.

• Select a Business Structure

Select the appropriate company type for your business goals and nature of operations.

• Reserve a Trade Name

Register a unique trade name for your company with the Department of Economic Development (DED).

• Obtain Initial Approvals

Obtain necessary approvals from relevant authorities according to your business activity.

• Documentation

Gather all the necessary documents such as copies of the passport, business plans, and even lease agreements for office space.

• Get a Business License

Distribute the trade license application to the authority which either is the DED or even in a free zone.

• Open a Corporate Bank Account

Once your business is licensed, open a corporate bank account to handle all business transactions. The bank you choose must align with your business needs and offer easy international transactions.

Benefits of Opening a Company in Dubai

• The UAE offers a host of benefits to foreign investors, making it one of the favorite destinations for entrepreneurs:
• 100% Foreign Ownership: Recent reforms allow complete ownership of businesses in many sectors.
• Tax Incentive: UAE does not take personal income tax and corporate income tax at low rates.
• State-of-Art Infrastructure: Availability of world-class facilities and robust logistics networks.
• Strategic Location: Becoming the gateway to Middle Eastern and Asian, European markets.
• Positive Policies: Business-friendly regulations and ease of doing business.
• Talent from a Diversified Pool of Professionals worldwide.

Investor Visa Options: Long-term visas, such as the Golden Visa, are offered for entrepreneurs to make it easy to live in the UAE.

Setting up a Business in Dubai through WeDubai

If the setup procedure seems too complicated, let WeDubai help. From legal formalities to documentation, experts at WeDubai make the whole process easy and ensure your business is up and running in no time.

With years of experience, we will guide you through choosing the right company type, location, and licensing requirements. Let us make your entrepreneurial dreams in Dubai a reality.

Author Bio:

John Doe is a business consultant with over 10 years of experience in UAE business setup and corporate structuring, helping entrepreneurs achieve their goals seamlessly.