Table of Contents
1. Introduction
2. Main types of companies in Dubai
3. Limited Liability Company (LLC)
4. Free Zone Company (FZC)
5. Branch of Foreign Company
6. Sole Establishment
7. Professional Service License (PSL)
8. Offshore Company
9. Conclusion
Introduction:
Dubai is a hub for business and trade in the Middle East. It attracts business people from all over the world, who are keen to take advantage of Dubai’s strategic location, business-friendly environment, and tax-free benefits. However, before setting up a company in Dubai, it is important to know the various types of companies that are available to choose from. This blog post will provide an overview of the various company types to set up in Dubai.
Main types of companies in Dubai:
Dubai offers several types of companies to choose from, based on the nature and scope of your business. Some of the main types are:
Limited Liability Company (LLC):
An LLC is a popular option for investors, as it offers a low minimum capital requirement and allows the company to engage in any type of business activity. In an LLC, the liability of the shareholders is limited to their share capital.
Free Zone Company (FZC):
A free zone company is set up in one of the many free zones in Dubai, which offer attractive benefits such as 100% foreign ownership, no taxes, and easy company set-up procedures. The business activity is limited to the zone in which it is established.
Branch of Foreign Company:
A branch of a foreign company can be set up in Dubai, which allows the company to conduct business in Dubai while retaining its identity and ownership structure. However, the branch is required to have a local sponsor or agent.
Sole Establishment:
A sole establishment is a business owned by a single individual, who is solely responsible for all the debts and obligations of the business. It is a simple and straightforward option for small businesses.
Professional Service License (PSL):
The PSL is a type of license for individuals who provide professional services, such as doctors, engineers, and consultants. It allows the individual to operate as a sole proprietorship.
Offshore Company:
An offshore company is set up in a tax haven jurisdiction, which offers a range of benefits such as low taxes, strict confidentiality, and limited reporting requirements. However, the company cannot conduct any business in Dubai.
Conclusion:
Dubai provides a conducive environment for entrepreneurs and investors to set up businesses. Before deciding on the type of company to set up, it is important to do thorough research and consult with experts to understand the legal and regulatory requirements. By choosing the appropriate company type, you can ensure that your business operates smoothly and efficiently, while taking advantage of the many benefits offered by Dubai.