Dubai is a global business hub and one of the seven emirates of the United Arab Emirates (UAE). As the Middle East’s leading commercial centre, Dubai offers a strategic location connecting Europe, Asia, and Africa. The emirate has a highly developed infrastructure, world-class logistics, and a business-friendly environment, Key growth sectors include financial services, technology, trade and logistics, tourism, real estate, and renewable energy. Dubai’s economy is highly diversified and continues to attract international businesses seeking expansion into the Middle East and beyond.
Unlock growth opportunities in Dubai with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Dubai’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in Dubai, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with Dubai’s employment and tax laws, helping you scale confidently and compliantly.
The most popular business structure for foreign investors in Dubai mainland. An LLC allows foreign ownership up to 100% (changed in 2021), provides limited liability protection, and offers operational flexibility. It is suitable for small to large businesses across various sectors.
As of March 2025, Dubai Executive Council Resolution No. 11/2025 permits free-zone companies to operate in the mainland via special licensing arrangements. Options include opening a mainland branch, hybrid branch, or obtaining a six-month temporary permit. These paths require DET approval and clear financial separation. As such, the earlier necessity of a local distributor for free-zone companies is no longer universally required.
A single-shareholder company established in any of Dubai’s free zones. FZEs offer 100% foreign ownership, tax benefits, and simplified setup procedures. They are ideal for businesses focused on international trade, import/export, or specific sector activities within the free zone.
A multi-shareholder company (2-50 shareholders) established in Dubai’s free zones. Similar to FZE but allows multiple investors. FZCs benefit from 100% foreign ownership, repatriation of profits, and exemption from corporate tax (subject to conditions).
A dependent entity of a foreign company that allows the parent company to conduct business in Dubai. The parent company bears full liability for the branch’s activities. Suitable for established international companies looking for direct market presence.
Mainland or free-zone branches are not considered separate legal persons. They function under the identity and legal obligations of the parent company.
At least one manager is required, who can be a UAE national or foreign resident. The manager must have a valid UAE residence visa and Emirates ID.
A sole manager is required. The manager can be the sole shareholder or an appointed individual with valid UAE residence documentation.
A board of managers or a single manager is required. At least one manager must be a UAE resident with valid residence documentation.
A resident manager must be appointed who holds a valid UAE residence visa and is authorized to represent the foreign parent company.
Most business activities in the UAE no longer require a local sponsor due to the 2020 commercial law reforms. However, certain strategic sectors may still impose this requirement. The prior requirement of a UAE national sponsor for branch setups is no longer broadly applicable.
In Dubai, corporate bank accounts can typically be opened during or shortly after company incorporation. Most major banks require the company to have a valid trade license, office lease agreement, and initial approval certificates.
Bank Account Setup in Dubai: What’s Possible and When
Before Incorporation:
After Incorporation:
Note:
Dubai banks follow strict KYC/AML regulations. Enhanced due diligence may apply to certain nationalities or business activities. Processing timelines can vary based on the bank’s internal compliance procedures and the complexity of the business structure.
Required documents typically include the trade license, memorandum of association, emirates ID of signatory, passport copies, business plan, salary certificates, and office lease agreement.
Physical Office Requirements
For hybrid operations under the new resolution, companies may operate in the mainland for up to one year without a physical office, reducing initial setup costs and entry barriers.
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. The process typically takes a few days to a week, depending on the bank.
Employment in Dubai is primarily governed by the UAE Federal Decree Law No. 33 of 2021 (UAE Labor Law) and its amendments, which apply to all private sector employees in the UAE.
Some of the standard details mentioned in the written contract include:
The different types of employment relationships are:
Indefinite-Term Employment
Also known as permanent employment, it is the most common type of employment and does not have a specified end date. These contracts provide job security and are suitable for permanent positions across all sectors.
Fixed-Term Employment
These contracts are mostly used for specific projects and have a set end date permissible under certain conditions. The maximum duration is typically 2 years, renewable by mutual agreement.
In Dubai, a probationary period typically ranges from:
The regular working hours in Dubai are typically:
Overtime
Overtime of 2 hours per day is legally allowed.
Wage Protection System (WPS) Applicability WPS compliance is mandatory for all mainland companies and some free zones such as DMCC and JAFZA. Other free zones may remain exempt as of 2025, so requirements must be confirmed zone-by-zone.
The notice period in Dubai is typically 30 to 90 days.
Employees are entitled to a severance pay of:
Foreign nationals can live and work in Dubai by securing an employment visa and residence permit through employer sponsorship. The UAE offers various visa categories depending on the individual’s qualifications and job role, and investment level.
Work Visa & Permit Options in Dubai
1. Employment Visa with Residence Permit
The standard work authorization for foreign employees in Dubai.
Most commonly used for skilled professionals, managers, and technical specialists.
2. Golden Visa
Long-term residence visa for investors, entrepreneurs, and skilled professionals.
3. Freelancer Permit
Allows individuals to work as independent contractors in specific free zones.
4. Investor Visa
For individuals making significant business investments in Dubai.
Key Notes:
Employees are entitled to 30 days of paid vacation annually after one year of service.
Female employees receive 60 calendar days of maternity leave at:
Additional unpaid leave may be available by mutual agreement.
Male employees receive 5 days of paid paternity leave.
Employees in Dubai receive:
The following statutory national holidays are observed in Dubai:
Islamic holidays are according to moon sighting. (Dates are confirmed by UAE authorities only a few days in advance.)
The payroll frequency is usually monthly. Employees are paid on the 10th of the following month.
While not legally mandated like in some countries, many companies in Dubai provide annual bonuses, often tied to performance, company profits, or religious occasions. The 13th-month salary is common practice but not legally required.
While the UAE does not have a comprehensive social security system, employees receive various benefits. Only UAE nationals contribute to the pension scheme and expatriates are not subject to social security but receive EOSG instead.
The mandatory and statutory benefits in Dubai are:
Accounting standards must adhere to:
Companies in Dubai must maintain proper accounting records and may be required to file financial statements depending on their legal form and size.
Statutory audit requirements vary by:
Audits must be performed by certified public accountants licensed in the UAE and submitted to relevant authorities as required.
The standard corporate tax rate is:
Income derived from mainland operations is considered non-qualifying and is subject to 9% UAE corporate tax. Free-zone entities must maintain separate accounting records for free-zone and mainland income.
The VAT rate in the UAE is 5%, which applies to most goods and services.
The filing deadline is typically the following:
In the case of a late filing, the penalty ranges for:
The UAE follows the OECD Transfer Pricing Guidelines. The Arm’s Length Principle, set forth in Article 34 of the UAE Corporate Tax Law, requires transactions and agreements involving Related Parties or Connected Persons to be priced as if they were conducted between independent parties under similar conditions.
Key transfer pricing requirements include:
The UAE has implemented CbC reporting aligned with OECD BEPS standards.
Transfer pricing documentation is mandatory for entities operating in Dubai that exceed certain thresholds, in accordance with the UAE Corporate Tax Law and OEC BEPS Action 13.
Master File
Local File
Deadline: Documentation must be prepared contemporaneously and provided upon request.
Dubai’s data privacy regulations are governed by the Federal Personal Data Protection Law, ratified as Federal Decree Law No. 45 of 2021. It establishes a framework for protecting personal data and privacy of individuals.
Dubai’s AML framework is governed by UAE Federal Decree Law No. 20 of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations, along with various regulatory guidance from supervisory authorities.
Obligated entities: Banks, xchange houses, insurance companies, real estate, precious metals, legal professionals, trust and company service providers, and designated non-financial businesses and professions.
Key requirements:
Penalties: Fines, business restrictions, and criminal prosecution for serious violations.
Reasons you should setup legal entity in Dubai:
Cerity Global ensures your business expansion in Dubai is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your Dubai business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Dubai.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
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