Opening a company in Dubai has become one of the most strategic business decisions for entrepreneurs, investors, corporations and startups from around the world. Dubai offers strong global connectivity, tax advantages, investor-friendly policies, modern infrastructure and access to markets across the Middle East, Asia, Europe and Africa. Whether someone wants to form a business in Dubai, Abu Dhabi, Sharjah or any other UAE jurisdiction, the process becomes far smoother with the right legal guidance.
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As an international law firm providing legal solutions in Dubai, the United Kingdom, Singapore, and Bangladesh, Dewey & LeBoeuf LLP helps clients to open a company in Dubai confidently and compliantly. Our firm combines precision, cross-border experience, and deep regional understanding to ensure businesses are structured correctly from day one. With Dubai’s continuously evolving regulations, professional legal support is essential to avoid delays, penalties, or costly restructuring later.
This detailed guide explains how to open a company in Dubai in a clear and user-friendly way. It covers company structure options, licensing, documentation, ownership rules, corporate banking, visa requirements and legal compliance. Throughout the process, our goal is to help business owners understand every step while giving them the confidence that Dewey & LeBoeuf can handle the complexities smoothly on their behalf.
Why Dubai is One of the Best Places to Open a Company
Dubai continues to attract international business owners for many reasons including:
• zero personal income tax
• simplified company formation policies
• access to regional and global markets
• world class logistics and technology infrastructure
• stable political and economic environment
• strong investor protection laws
• multicultural workforce
• business opportunities across real estate, technology, trade, finance, tourism, manufacturing, e commerce, consulting and more
Entrepreneurs can also explore business setup options in Abu Dhabi, Sharjah, Ajman and other UAE emirates, each offering unique advantages. With offices and legal capabilities connected across regions, Dewey & LeBoeuf ensures clients choose the jurisdiction that best aligns with their business goals.
Choosing the Right Business Structure in Dubai
Selecting the ideal company structure is the first and most critical step. The main options available in Dubai include:
Mainland Company
A mainland company allows operation anywhere within the UAE, including direct trade within Dubai and across other emirates. It is suitable for retail, commercial activities, professional services, contracting and large scale operations. With updated rules, foreign investors can now own 100 percent in many business categories. However, regulatory oversight and compliance requirements are more detailed, which is why legal support is highly valuable.
Free Zone Company
Dubai and the UAE offer more than 40 free zones, including Dubai Internet City, Jebel Ali Free Zone, Dubai Multi Commodities Centre, Abu Dhabi Global Market, and Sharjah Airport Free Zone. Benefits include full foreign ownership, customs exemptions, simplified setup and business-friendly licensing. However, free zone companies are restricted from trading directly in the mainland without a distributor or branch approval. Dewey & LeBoeuf helps clients evaluate whether free zone or mainland formation aligns better with their commercial strategy.
Offshore Company
An offshore entity is typically used for asset holding, international trade, tax planning, intellectual property ownership and corporate structuring. These companies cannot conduct business within the UAE and require careful legal planning to ensure compliance. As an international law firm, we help clients structure offshore companies that integrate with global business objectives.
Choosing the wrong structure can affect taxation, banking approval, licensing and operational freedom. This is why many business owners prefer to consult Dewey & LeBoeuf before registering their company, ensuring the foundation of the business is strategically and legally sound.
Steps to Open a Company in Dubai
Although procedures may vary slightly depending on activity and jurisdiction, the general process includes:
Step 1: Select the Business Activity
Different UAE authorities regulate different business categories. Activities such as technology services, consulting, trading, manufacturing, construction, import export, hospitality and real estate require specific classification. Choosing incorrectly can cause approval delays. Our legal team verifies the correct activity list before submission.
Step 2: Choose the Company Name
Dubai has naming rules that restrict religious references, political phrases and offensive wording, and require clear representation of business nature. Dewey & LeBoeuf assists in name reservation submissions to ensure quick approval.
Step 3: Determine Ownership and Share Structure
While many categories now allow full foreign ownership, some regulated sectors may require a local partner or service agent. We review ownership rules to protect client rights, intellectual property and profit distribution.
Step 4: Obtain Initial Approval
Authorities must confirm that the business is acceptable to operate within Dubai. We handle pre-approval submissions to avoid rejection and administrative complications.
Step 5: Prepare Legal Documents and Draft Agreements
This includes:
• Memorandum of Association
• Articles of Association
• shareholder resolutions
• office lease contracts
• compliance declarations
Legal accuracy during this stage is essential, and our firm ensures all documentation meets UAE standards.
Step 6: Secure Office Space or Flexi Desk
Mainland companies require a physical office, while free zones may allow shared spaces. We guide clients on compliant choices based on licensing type.
Step 7: License Issuance
Once documents and approvals are completed, the business license is issued and the company becomes legally operational.
Step 8: Open a Corporate Bank Account
Banking in Dubai requires strict compliance with due diligence, proof of business activity and verification of shareholder identity. Many clients face challenges at this stage without professional support. Dewey & LeBoeuf works with leading banks to streamline approval.
Step 9: Apply for Visas and Employee Sponsorship
Investors, partners, employees and dependents may receive UAE residency visas. We handle immigration documentation and compliance to simplify the process.
Understanding the Licensing Categories in Dubai and the UAE
Choosing the correct license category is one of the most important parts of opening a company in Dubai. The UAE issues different types of business licenses based on the nature of activity, and selecting the wrong one can lead to legal issues, fines or operational restrictions. The main types include commercial licenses for trading and import export activities, professional licenses for consulting and service based businesses, industrial licenses for manufacturing and production, and sector specific approvals for fields like healthcare, education, financial services, engineering and real estate.
Whether forming a business in Dubai, Abu Dhabi or Sharjah, licensing regulations vary by jurisdiction and authority. Dewey & LeBoeuf reviews each business model, confirms regulatory fit and handles licensing applications to ensure clients operate legally and confidently from day one.
Understanding Taxation, VAT Rules, and Financial Compliance in Dubai
While Dubai is known for tax advantages and zero personal income tax, businesses must still comply with corporate tax requirements, VAT rules, accounting standards and reporting obligations. Companies operating in the UAE may be subject to the new corporate tax framework depending on revenue and business structure, and mainland companies must register for VAT once they meet the threshold criteria. Free zone entities receive different tax treatments based on location, activity and business model. Financial compliance is essential for maintaining corporate banking relationships and avoiding penalties.
Dewey & LeBoeuf provides complete legal guidance on tax implications, VAT registration, exemptions, financial structuring and cross-border compliance for foreign investors opening a company in Dubai or expanding into Abu Dhabi, Sharjah and the wider UAE market.
Residency Visas, Investor Visas, and Employment Rules for New Companies in Dubai
Company formation in Dubai also opens eligibility for UAE residency visas, investor visas, partner visas, employment permits and dependent sponsorship. The number of visas allocated to a company depends on license type, office space and business activity. Dubai and Abu Dhabi also offer long-term residency pathways including Golden Visas for qualifying investors and business owners. Employment regulations govern labor contracts, staff onboarding, compliance standards, insurance and workplace requirements. Many new companies find visa processing challenging due to strict documentation checks. Dewey & LeBoeuf handles visa applications, labor approvals, employment structuring and regulatory compliance, making the process smooth for entrepreneurs relocating to Dubai, Sharjah and other UAE emirates.
Legal Compliance and Ongoing Obligations
After the company setup is complete, businesses must follow ongoing requirements including:
- Accounting and bookkeeping
- VAT registration if applicable
- License renewal
- Regulatory reporting
- Office lease renewal
- Employment law compliance
- Sector specific regulations
Ignoring these can lead to fines or suspension. Our firm provides continuous legal support so clients operate confidently without risk.
Why Work with Dewey & LeBoeuf LLP for Company Formation in Dubai
Many businesses struggle with setup when attempting the process alone. Common issues include:
- Rejected applications
- Unnecessary costs
- Incorrect license type
- Delays in banking
- Misunderstanding ownership laws
- Compliance violations
Dewey & LeBoeuf stands apart because:
- We are an international law firm with presence in Dubai, the UK, Singapore and Bangladesh
- We combine global expertise with regional legal insight
- We handle complex cross-border structures
- We protect client assets and ownership interests
- We ensure full legal compliance
- We streamline and accelerate approvals
- We provide personalized guidance, not generic templates
Clients choose us not only to open a company, but to build a legally secure and future ready foundation for growth in Dubai and across the UAE.
Frequently Asked Questions About Opening a Company in Dubai
How long does it take to open a company in Dubai?
Timelines vary depending on business activity and structure. Many free zone setups take one to two weeks, while mainland setups may take longer due to additional documentation. With legal support, the process becomes faster and more predictable.
Can foreigners own 100 percent of a company in Dubai?
Yes, many business activities now allow full foreign ownership, especially in free zones. Some regulated sectors still require local participation. Dewey & LeBoeuf reviews ownership rules to protect investors.
Do I need to be physically present in Dubai to set up a company?
In many cases, formation can be completed remotely. However, bank account opening and visa processing may require presence. We guide clients on requirements based on their specific case.
Which is better, a mainland company or a free zone company?
It depends on intended business operation. Mainland allows full UAE market access, while free zones offer ownership benefits and simplified setup. Our firm advises based on commercial goals.
What is the cost to open a company in Dubai?
Costs depend on license type, office space, business activity and jurisdiction. We provide clear estimates after understanding the business model to open a company in Dubai.
Converting Interest Into Action
Anyone planning to open a business in Dubai, Abu Dhabi, Sharjah or any UAE jurisdiction will benefit from professional legal support. Instead of navigating regulations alone, our team at Dewey & LeBoeuf will plan, structure and execute the entire formation process from start to finish. This ensures faster setup, stronger compliance and safer long term business positioning.
If you want to open a company in Dubai with confidence, reach out to Dewey & LeBoeuf and let our experts handle the legal steps while you focus on your business vision.
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: 26B Street, Mirdif, Dubai, UAE