TME Legal
Company Formation in Dubai
Company Formation in Dubai: Legal Advice, Visas, Licensing & Professional Guidance for All Steps.
Home / Practice Areas /
Establishing a company in Dubai offers investors, entrepreneurs, and international corporations a wide range of opportunities: from tapping into new markets and optimizing tax structures to building global corporate networks.
At the same time, the formation process is legally complex. Varying regulations at federal and emirate levels, the choice of the appropriate legal form, and the decision between a Freezone or Mainland structure have a direct impact on long-term business success. Even seemingly minor details, such as the precise definition of business activities, can be crucial for bank account openings, licensing, or visa procedures.
As an internationally active law firm based in Dubai, we provide comprehensive support for the legally sound establishment of your company. We assist you from selecting the appropriate structure and submitting all applications to full registration with the competent authorities – always with the goal of making your market entry efficient, transparent, and legally compliant.
Legal Advice for Company Formation in Dubai
We offer tailored legal advice and practical support for entrepreneurs, investors, and corporations. Our range of services includes:
- Strategic advice on choosing the appropriate legal entity (Freezone, Mainland, Offshore)
- Structuring and legal formation of the company
- Assistance with applying for business licenses and visas
- Support with opening bank accounts
- Handling all administrative procedures
- Submission and review of necessary documents
- Consulting on office and real estate solutions
- Ensuring compliance with all legal requirements
Legal and Tax Consultants
Our Expert Team
Clear answers
Frequently Asked Questions about
Company Formation in Dubai
What company structures are available in Dubai?
Those looking to establish a company in Dubai face a choice between three main company structures: the Freezone company, the Mainland company, and the Offshore company. Each of these structures offers specific entrepreneurial opportunities and is subject to different legal and economic frameworks that are crucial for the planning and implementation of your business project.
-
Freezone Company
A Freezone company allows 100% foreign ownership, offers tax advantages, and is characterized by a fast incorporation process. It is particularly suitable for companies with internationally oriented business models. However, there is a restriction: generally, no direct business activity in the local UAE market is permitted.
-
Mainland Company
The Mainland company is registered with the Department of Economic Development (DED) and permits unrestricted business activity in all Emirates and Free Zones of the UAE. Since the 2021 reform, it is also possible in many sectors with 100% foreign shareholding. This company structure offers maximum flexibility for operational activities in the domestic market.
-
Offshore Company
The Offshore company is primarily suitable as a holding or asset management company. It does not require a physical presence in the UAE and is not intended for operational business activities within the country. Offshore structures are mainly used for international participations, asset management, or IP protection.
Can German nationals establish a company in Dubai?
Yes, German citizens are generally entitled to establish a company in Dubai, regardless of whether a Mainland, Freezone, or Offshore company is desired. The selection of the appropriate company structure depends on individual goals, business purposes, and long-term strategic plans.
What is the process for company formation in Dubai?
- Definition of business activity and company structure
- Preparation and submission of documents
- Application for business license
- Establishment Card & Visa Process
- Issuance of E-Visas and entry formalities
- Application for Residence Visa & Emirates ID
- Bank account opening and application for further visas
How much does it cost to establish a company in Dubai?
The costs for establishing a company in Dubai vary depending on the company structure, license type, and location. Indicative values are:
- Freezone Company: from approx. €3,500 – €5,000 and more (depending on individual structure)
- Mainland Company: from approx. €5,000 – €6,000 and more (depending on individual structure)
- Offshore Company: from approx. €4,000 – €7,000
Additional costs may arise for legal and tax advice, notarizations, attestations, translations, or ongoing administration.
How long does company formation take in Dubai?
The duration of company formation in Dubai primarily depends on the chosen company structure and the completeness of the documents to be submitted. Freezone or Offshore companies can usually be established within approximately 5 working days if prepared correctly.
The formation of a Mainland company generally takes approximately 5 working days. If additional approvals need to be obtained or visas applied for, the formation process may be extended accordingly.
How much tax does a company pay in Dubai?
In Dubai, tax burdens are comparatively low. Resident companies are subject to a corporate tax of 9%, while a Value Added Tax (VAT) of 5% is levied on almost all goods and services. Personal income tax is generally not levied. Furthermore, there is no taxation on gifts or inheritances in the UAE.
How much start-up capital is required for relocation to Dubai?
For emigration to Dubai, depending on lifestyle and purpose of stay, a starting capital of at least €25,000 – €35,000 should be planned, plus costs for health insurance, visas, company formation, office rental, etc.
CONTACT WITH EXPERTISE