Once you’ve decided to open a UAE business, you need to choose a place . It is worth noting that each of the seven emirates has their own registration regulations and terms. In addition, there are free zones with their own rules.

A local company is registered in the mainland territory of the country in order to operate within the emirates. According to the national legislation, such a company can be registered only if one of the partners is a UAE citizen, who owns 51% of shares.

If you want to open a Dubai business with a foreign share of 100 percent, you should select one of the free financial areas. And yet, if you want to open a local UAE company, you should learn about its features:

  • a foreign citizen can own only 49% of the company’s shares, while 51% shall be owned by a local sponsor.
  • sponsor will be receiving an annual reward and he will not take part in the company’s operations.
  • a company can engage in any kind of activities within the territory of the UAE and abroad.
  • a company provide a residence visa and a tax certificate.
  • main office location depends on the emirate of registration.
  • no audit requirements.
  • no restriction on minimal authorized capital (1 AED is enough)
  • possibility to open an account in any UAE bank.
  • Experience has proven that registration of a local company in the UAE is required only in rare cases. Most activities can be carried out through a company registered in a free zone.