Types of company formation in Dubai

The types of companies that can be established in Dubai are divided into three categories as follows;

1. Off-shore companies:

Such business setup in Dubai are typically created in the country but are primarily run outside the nation. The majority of businesses around the globe favor this form of company structure. The fact that these companies do not have to submit corporate income taxes or license fees is the basis for the popularization of this type of company.

2. On-shore companies:

Such business setup in Dubai are based within the country and conduct business there. The fundamental need for starting such a firm is obtaining a license from the government. They have to establish a corporate headquarters in Dubai and submit corporation tax to the state, which results in significant startup costs.

3. Free-zone companies:

Free zones, also known as free trade zones, are effectively commercial areas in Dubai where businesses that operate there are excluded from all kinds of taxes, including Value Added Tax (VAT), Customs, Income Tax, and Corporate Tax. All companies in Dubai’s free zones are run by their owners. Such a business setup in Dubai can run both within and outside of the country.


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