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Business Formation Service

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Company Formation Services

Dubai is one of the world´s biggest and best corporate hubs, with a government that is very keen on the development of fast-paced corporate structures in the UAE. In other words, thanks to government management, Dubai provides favorable business formation services in UAE for several business structures in a number of fields. Simply put, setting up a company in Dubai is profitable for most entrepreneurs since the government warmly welcomes them.

Nevertheless, before seeking company formation services in Dubai, you need a clear understanding of when choosing a good business structure for your company. Furthermore, you need to know what license to use, what business structure or legal entity to use, etc.
If you are looking for company formation services in Dubai, Connect Business Center ensures that your company formation goes smoothly and quickly. With over 10 years of experience in this market, Connect Business Centers is aware of all rules, regulations, and procedures for setting up a business.

Types of company formation

1.1 Mainland Company

Also known as an onshore company, a Dubai Mainland Company is a company licensed by the DED (Department of Economic Development). These types of companies are allowed to conduct business in the local market as well as outside of the United Arab Emirates without any kind of restriction.

1.2 Freezone Company

On the other hand, there are Freezone companies. These types of companies are located in Freezones in the United Arab Emirates, designed to conduct international business or a business between 2 Freezones. Furthermore, several benefits might encourage entrepreneurs to choose business formation services in a Freezone. These advantages or incentives are:

  • It provides custom privileges.
  • They allow 100% foreign ownership of the business.
  • There are no personal or financial taxes except VAT. Simply put, business owners are exempt from taxes.
  • This type of company formation has an affordable cost for high-quality labor.
  • Company formation is cost-effective and affordable
  • Free zones already have a well-established transport network and road connectivity

1.3 Offshore company

Faithful to its name, an offshore company is a non-resident company. Unlike the Mainland (which is known as an on-shore company), off-shore companies are not allowed to conduct business in the United Arab Emirates. However, offshore companies are allowed to conduct business internationally. Other benefits provided by offshore companies are as follows:

  • Having the shares of other companies in other jurisdictions as holding companies. 
  • Licensing of franchises of companies
  • Having intellectual property rights. These include patents, trademarks, copyrights, etc.

Types of entities for company formation in Dubai

Limited Liability Company (LLC)

Free Zone Company

Off-shore Company

Mainland Company

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What are the types of business licenses available in Dubai?

Once a company type and legal entity have been chosen, entrepreneurs need to obtain a business license. The DED (Department of Economic Development) is the one that issues these licenses. As mentioned before, obtaining a business license is a major prerequisite for setting up a company. Furthermore, the licenses must be from a suitable category for the business activities. The types of licenses are as follows:

  • Commercial license: This type of license is granted to companies that are involved in any kind of commercial trade activities. These can be related to goods, commodities, and services.
  • Industrial license: This type of license is required to establish an industrial or manufacturing activity in the United Arab Emirates. With this license, businesses can assemble and process goods using raw materials (either local or imported). 
  • Professional license: This license permits an individual or a company to be able to engage in a profession they are talented. For example, some of the activities that come under this license are artisanship, carpentry, consultancy services, printing and publishing, medical services, etc. The license owners can have 100% business ownership.
  • Tourism license: As implied by its name, this license is required for businesses that provide tourism activities. Some of the activities that come under this license are hotel renting, tourist camps, cruise boat rental, restaurants, etc.

E-commerce license: An E-commerce license allows businesses to conduct their activities online as well as set up an online business in the UAE’s mainland. Unlike other licenses, every E-trader license requires the approval of the Telecommunications and Digital Government Regulatory Authority

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Benefits of company formation

There are several benefits that our company formation services provide to aspiring entrepreneurs. These are as follows: 

  • They allow the complete repatriation of profits and capital for every type of company. 
  • Business owners can get 100% foreign ownership for Freezone, Offshore, and professional license holder Mainland companies. 
  • 3-year visas for investors, family members, and staff.
  • In Free Zone and professional license holder Mainland companies, there is no need for a local sponsor.
  • Most Free Zones and Offshore companies are almost completely tax-free. Furthermore, in other jurisdictions, there is a very small tax.
  • The UAE offers flexible bank account opening and maintenance. Moreover, it also has the availability of multi-currency bank accounts.
  • World-class infrastructures such as offices, warehouses, roads, etc., as well as proximity to airports and seaports.
  • The company registration process is quick, effective, and simple thanks to modern technology.
  • The UAE has the best residential and commercial structures with state-of-the-art telecommunication and a reliable utility system.
  • In conclusion, company formation services are cost-effective with relatively cheaper and easily available competent labor staff.

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You can contact us on [email protected] or call us on +971 43316688
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Benefits of the Industrial License in Dubai

The UAE Government has established several investor-friendly policies that are an excellent incentive for business owners looking to establish their operations in the country. Thus, with the industrial license in Dubai, you can get many benefits while you run a successful business and increase your revenue.

Here at Connect Business Centers, we want to help you obtain the most out of your industrial license in Dubai. For this reason, we want to highlight the outstanding advantages having this document gives to your company. Keep in mind that it is mandatory to follow the rules and with a valid license you have nothing to worry about.

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How to get an Industrial license in Dubai?

The application process for the industrial license in Dubai is simple and quick. So, you can start your new business in no time. In less than 4 weeks you can obtain your industrial license in Dubai so you can start working. Keep in mind that you cannot start your operations if you do not have a valid license.

Although the process may be straightforward, it is always useful to have a partner assisting you. If you want to have an error-free application, you need to consult experts. Our team of specialists can help you complete your application and submit everything you need to ensure you start your industrial operations without any delays.

Business Structures

Explore our Frequently Asked Questions (FAQ) for instant answers to common queries. We’ve compiled a comprehensive
list of the most commonly asked questions to make your experience with us smoother.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.
A Sole Proprietorship is a business owned by one person, which can carry out commercial, professional, and industrial activities.

Sole Proprietorships Business Types

A professional business sole proprietorship covers a range of professions from owning a seafood restaurant to a bespoke tailoring service. In those cases, the owner does not have to be an expert in that particular business field, but as the sole owner of a consultancy, for example legal counsel, building contracting or home tutoring, the sole proprietor must specialise in that business. Most professional-type sole proprietorships providing personally offered services or the services of a recognised profession such as medicine or engineering require a Local Service Agent (LSA) if they are owned by a National of a country other than the UAE or GCC countries. The local service agent is a UAE National who manages licensing requirements and other government-related matters for your business, in exchange for an annual fee. The LSA has no responsibility for your business and no financial commitment to the business or its activities in Dubai or elsewhere. A sample Local Service Agent Agreement is available, explaining the relationship and the obligations of the owner and the LSA. This agreement must be authenticated by a Notary Public/Court within the UAE.

Ownership

  • A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of the business, control all of its operations and keep 100% of any profits. He or she will also be 100% responsible for business debts and any other financial obligations.
  • A professional-type sole proprietorship can be owned by an individual of any nationality.
  • A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC Nationals.
  • A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE National. The UAE National owner and any other party can later work to decide on how profits might be shared and how day-to-day business decisions will be made. A sole proprietorship that offers legal services—known as a legal consultancy—does not require a local service agent.

Get in Touch

Contact us now and let’s embark on a journey towards maximizing your business potential together.

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    Connect is the leading Business Center in Dubai that offers an ideal choice for fledging companies to easily establish with instant, flexible and ready to use professional office spaces and wide range of services to set up quickly.

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