Starting a business in the United Arab Emirates

Legal Forms of Companies

Please note that on November 23^rd, 2020 a presidential decree was passed which abolish the requirement for a local company to be owned 51% by UAE nationals. However, competent authorities in the respective Emirates can specify local ownership and board participation requirements for companies, so it may take longer before the decree actually comes into force.

Sole Proprietorship

Number of partners: One person. Can be 100% owned by non-residents.
Capital (max/min): No minimum capital.
Shareholders and liability: The individual entrepreneur is responsible for assets of the company over his personal goods.

Public Joint-Stock Company

Number of partners: Minimum ten members. Shares freely transferable, but 51% must be held by UAE nationals.
Capital (max/min): Minimum AED 10 million.
Shareholders and liability: The responsibility is limited to the contributed amount.

Private Joint-stock Company

Number of partners: Minimum three shareholders. Shares freely transferable, but 51% must be held by UAE nationals.
Capital (max/min): Minimum AED 2 million.
Shareholders and liability: The responsibility is limited to the contributed amount.

Limited Liability Company

Number of partners: Minimum 2 partners. Maximum 50 partners.
Capital (max/min): No minimum required.
Shareholders and liability: The responsibility is limited to the shares in the capital of the company.

General Partnership

Number of partners: Minimum two partners. All the partners have to be UAE nationals.
Capital (max/min): No minimum required.
Shareholders and liability: Unlimited joint liability.

Limited Partnership

Number of partners: At least, one general partner (only UAE nationals) and one limited partner.
Capital (max/min): AED 500,000.
Shareholders and liability: At least one partner must have unlimited liability. Responsibility of other partners is limited to the amount contributed.

Business Setup Procedures

Source: Doing Business - Latest available data.