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What are the legal structures available for business setup in Dubai, like LLC, joint stock company, etc.?

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Answered on October 24,2023

In Dubai, there are several legal business structures you can choose from: 

  1. Limited Liability Company (LLC): This is a popular choice for many small businesses and entrepreneurs. It offers operational flexibility and allows trading across the UAE and the GCC. Members of an LLC enjoy limited liability. 

  2. Sole Proprietorships: This is a business owned and operated by a single individual. It’s simple and has less administrative tasks, but the owner has unlimited liability. 

  3. Civil Companies: These are professional companies usually established by lawyers, accountants, and other professionals, where 100% foreign ownership is allowed. 

  4. Private Shareholder Companies: These are companies with limited liability, meaning the liability of shareholders is limited to their shares in the capital. 

  5. Public Shareholding Companies: This is a company whose capital is divided into transferable shares of equal value and a partner therein shall be liable only to the extent of his share in the capital.

  6. Branch & Representative Offices: Foreign companies are allowed to establish a branch or representative office in Dubai. 

  7. Free Zone Companies: These are companies set up in one of Dubai’s free zones, like DWTC, JAFZA, DUQE, RAKEZ, and Creative City. These companies enjoy benefits such as 100% foreign ownership, tax exemptions, and fewer restrictions. 

  8. Offshore Companies: These are incorporated in the UAE but operate outside the UAE. They are used for a variety of purposes including tax planning and asset protection.

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