Guide in Choosing Your Business Entity


One of the most important aspects of setting up a company in Dubai is choosing your business entity. It does not only provide a business structure to your company, but it also directs how you will meet legal requirements.

To help you choose which business entity you should use, it is vital to understand available options. By doing so, you would be able to determine effectively which one you should choose.

business setup in DubaiSole Proprietorship

A sole proprietorship is a business entity that allows you to own 100% of your business. This also gives you full control over all its operations as well as its profits. If you own your business solely, this means that you would also be liable for any debt or financial duty that you may incur.

Limited Liability Company

A Limited Liability Company or LLC is among the most common business structures when it comes to setting up a company in Dubai. LLCs are used if you intend to make business within the UAE mainland. However, it should be noted that if you are a foreigner, you are not permitted to have a 100% ownership of your business. Instead, you can only hold a maximum of 49% of ownership and the rest should be owned by one or more UAE nationals.

Civil Company

Civil company is unique in such a way that it is basically a business partnership among professionals such as engineers, lawyers, accountants, and doctors. In this business structure, the civil company is owned by the professionals themselves.

Branch Office

Branch office or representative office operates under the name of its parent company. A branch office can only perform the same business activities to what its parent company is allowed to do. However, a branch office may not be permitted to import products from its parent company directly since this function is only done by local trade agents.

Offshore Company

If you are planning to use an offshore company model as the type of your business, you would need to choose from three offshore jurisdictions in the UAE. Each of these jurisdictions offers different ways to help you achieve your strategic goals.

Offshore companies allow you to establish a company in the UAE without establishing a physical office or presence in the UAE. UAE offshore companies enjoy zero corporate tax, absolute privacy, and 100% foreign ownership.

Free Zone Company

There are more than 35 free trade zones in the UAE. The majority of them is found in Dubai. The main strength of having a company in a free zone is the ability to own 100% of your business without the need to get a local partner. Not only that, but there are tax benefits for free zone companies.

Getting a place for your business

Once you have chosen your business entity, you need a place for your company. Austria Business Center offers world-class and state-of-the-art office space for small and big companies. Aside from their facilities, we also provide excellent administration, legal assistance, and business setup services Dubai to help you start your company quick and stress-free. Give us a call now!

Are you planning to set up a business in Dubai?

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