Ready to launch your business in Dubai? You are in the right place! This guide will walk you through the key legal steps to set up your business in Dubai, United Arab Emirates (UAE).
Starting a business in Dubai is a great opportunity but understanding the legal framework is vital. That’s why we have made this guide simple and easy to follow by breaking it down into Q&A format to cover the most important issue before you start investing or hiring someone.
1. Can Expats Own 100% of a Business in Dubai?
Yes! The UAE government, including Dubai, allows 100% foreign ownership for expatriates. This means if you are a foreign national you can fully own your company without the need for local partners, with some exceptions for specific activities. Free zones are an easy and attractive way to set up your business with full ownership and no local involvement.
2. What’s the difference between Mainland and Free Zone?
The difference is mostly about where and how you can operate. In a free zone you are limited to operate within that designated area and you can’t open an office in the mainland. On the other hand, setting up in the mainland gives you the freedom to do business anywhere in Dubai and beyond. Cost wise free zones are more affordable but may not offer the same operational flexibilit
3. What to Consider when setting up a Company in Dubai?
One important step is to choose the right business activity for your company. It’s smart to choose a free zone that offers flexibility so you can combine different business activities. This way if you want to expand later you can easily add new services or products without facing additional legal hurdles or extra costs.
Transparency is also key. You must disclose all information during the Know Your Customer (KYC) and Anti-Money Laundering (AML) processes. The UAE has strict laws and failing to provide accurate information can lead to hefty fines or legal issues.
4. Can I move my existing business to Dubai?
Yes and it’s called “redomiciliation”. At DY Lawyers & Legal Consultants we make it easy to move your business to Dubai, help you operate smoothly, open business bank accounts and potentially save on taxes. This allows you to expand your business to Dubai’s growing market while keeping your global operations intact.
5. What is the legal liability for a business owner in Dubai?
If you set up a Limited Liability Company (LLC) your personal liability is limited to the shares you hold in the company. This means your personal assets and bank accounts are protected from any claims against your LLC. However, it’s always best to consult a business lawyer in Dubai, before setting up to ensure your company structure is sound and you have a solid legal risk management compliance.
6. Why do you need a business lawyer for company formation in Dubai?
Having a business lawyer by your side is crucial when setting up a business in Dubai. The UAE operates under a civil law system where written agreements are very important. A well drafted contract can protect your interests, minimize risks and ensure your business operates smoothly. With a good corporate lawyer, you are in a better position and being protected from common issues like commercial and labour disputes which can hit your business in general and land your reputation into problem.
7. Are free zone companies tax exempt?
Many companies promote that free zone businesses are tax exempt, but this is only true if your company is a “Qualified Free Zone Person”. If your business meets the criteria, you will enjoy 0% corporate tax. The key is it depends on your business activity and income not where you have set up your company. A business lawyer at DY Lawyers & Legal Consultants can help you determine and guide you in a proper manner since starting.
8. What legal compliance do business owners in Dubai need to know about?
Legal compliance varies depending on your business activity. For example, businesses in real estate, intellectual property, precious metals, accounting and legal services need to meet AML requirements. If you have a holding company or other Ministry of Finance defined entities, you will need to submit an annual Economic Substance Report. Data protection compliance may also apply depending on your operations. Compliance is key to avoid fi
9. Can I do family estate planning in Dubai?
Yes! At DY Lawyers & Legal Consultants we have extensive experience in setting up foundations, Special Purpose Vehicles (SPVs) and trusts in the UAE. Whether you want to protect your assets or manage your family’s wealth we can ensure your business and personal assets are secure in the UAE and your home country.
For more information on family estate planning, you may click to here. (Direct to home page)
At DY Lawyers & Legal Consultants we have years of experience and in-depth knowledge in corporate and business law. Whether you are setting up or growing your business in Dubai we are here to provide you with straightforward and transparent legal solutions that suits your needs.
Our objective
To protect your interests and make the process of setting up and operating your business in Dubai, UAE smooth and hassle free. Be our partner for success. Contact us today for company formation and corporate legal services in Dubai, UAE.
We’re your one-stop solution for all your business needs in Dubai.
