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Business Types

Basic business types are common globally, but there might be slight differences in some countries depending upon the legal policies, cultural differences and economic conditions. Based on these factors, business types in Dubai mainland are explained in detail. At Smart Business Solutions, we assist in choosing the right company type based on your business objectives.

Guide you in opting and setting up the right business structure.

At Smart Business Solutions, we guide you in opting and setting up the right business structure, ensuring compliance with UAE regulations.

Sole Proprietorship

In this business type, the business will be owned and operated by a single person. Here, the legal obligations of the business are to be borne by the single owner. The owner is entitled to all profits and losses. A local sponsor (UAE national) is required to run this business. A sole proprietorship business is ideal for consultants, freelancers and service providers.

General Partnership

In this business type, the business is owned and managed jointly by two or more individuals. These partners are entitled to share their profits and losses based on the sharing ratio they have decided. These partners are personally liable for business debts. Here, a local UAE sponsor is required to run the business. This business type is further classified as a Limited Liability Partnership and Civil Partnership.

Limited Liability Company (LLC)

Most of the companies in Dubai mainland are registered under this business type. It is a separate legal entity, and the shareholders (owners) are not affected by the company’s debts or losses. Earlier, the majority ownership (51%) of the company needed to be owned by UAE nationals, but after the amendment of the law, 100% ownership is permitted for foreigners. This ensures limited liability to owners and can operate across UAE and outside the country.

Civil Company

This business type is designed for individuals who are professionals in a particular stream. This includes Lawyers, Doctors, Engineers, Accountants, Architects, etc, who are engaged in delivering professional services. A civil company can be owned by two or more individuals from the same stream, and the liability is not limited to the partners who will be liable for the company’s debts. A local service agent is required to set up a civil company.

Branch of a Foreign Company

A foreign company can establish a branch in Dubai to conduct business activities. The branch is an extension of the parent company and is subject to its regulations. A local service agent is required to start this business.

Representative Office

Similar to a branch, a representative office is basically for promoting the foreign company's products or services, not directly into sale operations. It acts as a liaison office. This business type is also operated with the support of a UAE local agent.

Public & Private Joint Stock Companies (PJSC & PrJSC)

A company whose shares are offered to the public through the stock exchange. This is a more complex structure generally used by larger businesses with major capital investment. Like PJSC, a private joint-stock company doesn't offer shares to the general public and is held privately. Public Joint stock companies require a minimum of 10 shareholders, whereas Private joint stock companies can have between 2-200 shareholders.

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