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Types of Company

You can choose to form a company in either a free zone or on the mainland or, you can set up an offshore company in the UAE.

The Companies Law applies to all companies, branch offices, and representative offices of foreign entities established and operating in mainland Dubai (i.e. outside the free zones).

The five forms of companies permitted by the Companies Law are:

  1. Limited liability company
  2. Public joint-stock company
  3. Private joint-stock company
  4. Partnership company (general partnership)
  5. Limited partnership company (simple liability partnership)

Limited liability companies, public joint-stock companies and private joint-stock companies are the most commonly established types of legal entities in the UAE and are also the most commonly used or invested in by foreign investors.

An overview of these three forms is provided below. Partnership (general and simple liability) companies are not commonly used in the UAE for several reasons, including the restrictions on foreign ownership and foreign management.

Alternatively, instead of establishing a local legal entity, a foreign business can carry out certain activities in Dubai through a representative office or a branch of a foreign company as will be further explained in this guide.

Non-commercial activities (including professional services) may be carried out through a civil company or a sole proprietorship, which both have unlimited liability.