Company Registration Opportunities in Dubai in 2024

a person using a cell phone while sitting in front of a laptop

There has been a stable growth in the number of companies registered in the UAE and in Dubai in particular over the last few years. This isn’t surprising, actually, because the Emirates offer a great number of advantages. The UAE has the best-developed economy in the region and the country welcomes immigrants and foreign investors. In an attempt to attract more foreign capital, the authorities of the UAE have simplified the process of company registration. In particular, a foreign national now can be a full owner of a company registered in the mainland UAE (outside any of the Free Zones). Certain exceptions apply, however.

Dubai attracts foreign businesspeople because it has been demonstrating a stable economic growth for many years already. Besides, it is a low-tax jurisdiction with an advanced infrastructure and an electronic government. In addition, more than 30 Free Economic Zones are found in Dubai and each of them offers special conditions to a certain sphere of business. Below we discuss the process of opening a company in Dubai.

Registering a company in Dubai

Large and small investors both regional and international register companies in Dubai or relocate their existing companies there in search of a favorable business environment. Dubai offers a combination of innovations, qualified workforce, and reasonable costs of company maintenance. Modernization of the local visa program is one more advantage that Dubai boasts. In 2022, the Government of the UAE introduced some changes to the visa-related legislation. Today, a foreign national can obtain a long-term visa to the country. As a matter of fact, a 5-year or a 10-year visa to the UAE can be thought of as a legal residence permit.

In addition, various preferences are available to foreign investors registering companies in Dubai. The Emirate is among the world leaders when it comes to introducing modern technologies in all sorts of business and administrative processes. Digital technologies are actively adopted in Dubai. AI instruments, cloud technologies, Web3, and similar latest achievements allow stimulating such areas as tourism, security, international trade, and Fin-Tech startups. More than 2,000 international corporations have chosen Dubai as the center of their operations in the Arab world.

Some additional figures can also demonstrate the power of Dubai:

Dubai is the №1 re-export center in the Middle East.
International trade has been growing in the Emirate by 11% per year on average since 1988 and the growth continues at the same rate.
Dubai is a powerful logistic center offering access to 120 shipping lines and 85 airlines.
Dubai’s foreign trade network spreads over 179 countries.

The process of registering a company in Dubai

The process of registering a company in Dubai may take a few weeks. You have to seek legal assistance in the matter as an experienced lawyer can keep you from making crucial mistakes and suggest the best legal ways to set up a company in Dubai. The process involves several steps and you are going to need professional assistance at each step. All legal formalities have to be observed.

Registering a company in Dubai in 2024: types of corporate entities

You can register companies of different types in Dubai. First, you can set up a mainland company. With this type of company, no restrictions are applied to your economic activities: you can trade with other mainland companies in the Emirates, with Free-zone companies, and with foreign companies. The most popular subtype of a mainland company in Dubai is an LLC. In accordance with the local legislation, an LLC can have from 2 to 50 members. Every member’s liability is limited by his/ her contribution to the company capital.

The legislation regulating mainland company formation in Dubai was amended a couple of years ago. Previously, 51% of the company shares had to be owned by a local person/ corporate entity. Since 2020, however, foreign nationals can be 100% owners of mainland companies in Dubai. This opportunity is unavailable only in some strategic business areas.

Second, you can register a company in one of Dubai’s Free Economic Zones (FEZ). The company can be fully owned by a foreigner, make use of various tax exemptions and deductions, and freely repatriate its capital to any other jurisdiction. For instance, you can register a company in the DIFC Free Zone thus putting it in a strategic business hub.

At the same time, free-zone companies cannot directly trade with mainland companies in the UAE even though they are free to trade with foreign companies and those stationed in other Free Zones in the UAE. Probably one of the main advantages that a free-zone company offers is a low cost of its maintenance. Many foreign business owners register subsidiary companies in the UAE FEZs.

Each Zone issues business licenses to companies working in a limited number of business areas. Many FEZs issue trade and manufacture licenses though.

Third, you can register an offshore company in Dubai. If you do so, you will be able to do business with foreign partners only. On the other hand, your offshore company is going to be tax-exempt in Dubai. Please note that since mid-2023, all companies have to register with the local tax agency even though most offshore companies will remain tax-exempt.

Corporate income tax rate in Dubai

Since June 1, 2023, the UAE has been charging a corporate income tax while it did not do so before. The tax rate is 9% and it applies to companies whose income exceeds 375,000 dirhams per year. If it does not, the tax rate is still 0%.

Business opportunities in Dubai

We would like to emphasize the opportunities in the FEZ that we have mentioned above: Dubai International Financial Center (DIFC). Dubai is the place for those foreign entrepreneurs who would like to invest in the MEASA region (Middle East, Africa, and South Asia). DIFC is MEASA’s financial center. There you will find 17 of the 20 largest banks in the world, 7 leading law firms, and 13 leading capital and asset management companies. DIFC is a preferred regional center for such giant banking conglomerates as Barclays, HSBC, Citibank, and Standard Chartered.

Start a Fin-Tech project in Dubai

Modern technologies are changing the methods of money transactions and Dubai is one of the leaders in the Fin-Tech sector in the region. It attracts investments in technologies including robotics and AI. Dubai is ideally positioned in the region to lead the revolution in the sphere of financial and blockchain technologies.

DIFC is at the forefront of the innovative activities in Dubai. In 2022, investments in Fin-Tech and innovative projects in DIFC exceeded 615 million US dollars (no data for 2023 is available so far). Thanks to its ‘2030 Strategy’, DIFC seeks to manage the future of finance and turn into a global center for Fin-Tech and innovative companies. This allows DIFC to make a significant contribution to the overall budget of Dubai. One of the opportunities that the Center offers is an inexpensive Fin-Tech license that Fin-Tech, Reg-Tech, Insure-Tech, and other similar companies can make full use of if they want to develop and test new, original, or innovative products.

Start a crypto company in Dubai

The interest in cryptocurrencies has been steadily growing over recent years. According to unofficial data, there are over 400 crypto companies currently registered in the UAE. The Emirates appreciate the prospects that the industry has and the local authorities have drawn up a regulatory framework capable of attracting talents and companies to the crypto and blockchain world. A new law has been passed that regulates virtual assets in Dubai and VARA is a special commission that monitors the suppliers of virtual assets and related services.

The legal work is not over yet but soon VARA will determine exactly how cryptocurrencies are going to be regulated in the UAE and how the virtual assets are going to be classified. The new law is designed to serve as a regulatory framework for companies working with cryptocurrencies in different formats.