What are the various legal structures for business setup in the UAE?

What are the various legal structures for business setup in the UAE?

The United Arab Emirates offers great opportunities for business set up but understanding the legalities can be difficult. However, with high level multimillion-dollar capitals poured in the country business setup in the UAE

retains the confidence and reputation of top-notch business environment.

Understanding legal structures for business setup in the UAE:

The UAE commercial market has specific termed operational options defined as ‘Company Legal Structure’. These are nothing but peripherals of business formations divided in terms of location, strategic, activity, objectivity, etc. Every Legal Structure has their own set of laws and regularities determined by the Department of Economic Development (DED) and the judicial bodies involved in authorising the company setup.

An important aspect for business setup in UAE, is to make a choice of correct status of legal entity. From mainland choices to specialised dedicated Free Zones, the possibilities are multiple. Determining needs assessment of your company, the business agenda and the market you will cater to – that will further provide an additional insight on facilitating yourself from customs and tax exemptions and other such benefits by selecting the right legal structure.

Types of legal structure for business setup in the UAE:

The legal structure is incorporated according to zone of the business. Every legal structure has an entirely diverse regulatory system and is designed in a way to suit a particular business segment. The various legal structures are as follows –

Limited Liability Company LLC:

The LLC legal structure allows you to conduct business at the most proximate places, as well as permits to operate locally. Under an LLC business setup, you need to partner with a UAE local national, however if you do not wish to there are also other ways that could be recommended.

Free Trade Zone:

The major attraction towards this legal structure is that it allows you to be the 100% owner of the company with no obligations of partnership. A Free Trade Zone is subjected to conduct dealing only internationally and direct local business is not allowed.

General Partnership Company:

General partnership is a partnership based on mutual consent without a mandatory compulsion on partnership normally between two to three shareholders.


Only a UAE national can form a company under Partnership-in-commendam legal structure.

Joint Venture Company:

A joint venture is legal agreement made in a contractual format between the foreign party and the local party. It mainly involves the licensing of the desired business activity.

Public Shareholding Company:

The capital of the Public shareholding company is divided into equal shares thus has multiple shareholders. Even then a UAE national’s participation of 51 % holding is essential.

Private shareholding company:

Private shareholding company is where there are around three-shareholders that need to be UAE or GCC nationals. Professional activities are not allowed under this legal structure.

Get free consultation:

 legal structures for business setup in the UAEConsult to know which legal structure must you as an entrepreneur opt for to setup your business in the UAE. Consult DBS Business Setup to find out which particular type of legal structure matches best to your business activity and adheres to be optimal in terms of costs, taxes, customs fees and other expenditures for you company. Call us now!

 legal structures for business setup in the UAETo book your free consultation follow this link https://www.dubaibusinessservices.com/contact-us/ You may also call us on +97145667485 or WhatsApp +971551129344 to request a call back.

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