Dubai desk · Company Formation
The first decision is the vehicle. Mainland, free zone, branch, and offshore each change licensing, visa quota, office need, banking, and how corporate tax may apply. PJRJ maps that before papers are filed.
Vehicles we form
Mainland LLC
Useful when you need to trade across the UAE, bid locally, or employ onshore. Typically a trade licence, memorandum, and immigration file through the emirate department.
Free-zone company
Common for holding, trading, and professional services. Licence activity, visa quota, and office package depend on the zone. Qualifying Free Zone Person rules can affect the corporate-tax rate on qualifying income.
Branch or representative office
May suit an Indian parent that wants a UAE presence without a new subsidiary. Banking, VAT, and corporate tax still need a separate review.
Offshore company
A holding or international vehicle — generally not for onshore UAE trading, visa quota, or a shopfront. Used for shares, IP, or contracts outside the UAE.
What the formation pack usually includes
- Activity selection and mainland versus free-zone versus offshore note
- Trade licence or offshore certificate, MOA/AOA, and shareholder KYC
- Visa quota planning where the vehicle can sponsor residence
- Bank-account readiness — UBO trail and India source of funds
- ESR and UBO register where the activity requires them
- Handover into VAT, corporate tax, and monthly books
How company formation runs
- 1Scope owners, customers, visas, and substance.
- 2Recommend mainland, free zone, branch, or offshore.
- 3File the licence or offshore certificate with the UAE partner.
- 4Open banking KYC and FTA tax registrations where they apply.
- 5Hand over a compliance calendar for year one.
An offshore company is part of the same formation decision — not a separate product. Common UAE registers include JAFZA Offshore and Ras Al Khaimah International Corporate Centre (RAK ICC). Each has its own constitution, registered-agent, and filing rules. Brochure claims of “no tax” and “complete secrecy” are outdated: UAE corporate tax, UBO registers, and bank KYC apply on the facts.
When offshore fits — and when it does not
Holding and investment
A clean vehicle to hold shares or a regional joint-venture interest when you do not need UAE visas or onshore invoices.
International contracting
Some groups invoice non-UAE customers from an offshore company. Banks will still ask for substance, contracts, and a UBO trail.
Not for onshore trading
Selling in Dubai mainland, employing staff on UAE visas, or leasing a shop needs a mainland or free-zone operating licence.
Not a tax holiday
A UAE-incorporated offshore company can still be a UAE juridical person for corporate tax. Indian residents remain taxable in India unless a specific exemption applies.
Offshore formation — documents we typically assemble
- Passport copies and proof of residential address for each shareholder and director
- Bank reference letter or recent bank statements where the register or bank asks
- A short activity description — what the company will actually do
- Two or three name options that meet the register’s naming rules
- India FEMA / source-of-funds note when Indian residents subscribe to capital
Offshore limits to plan for
- Generally cannot lease mainland retail or office space as an operating business
- Visa quota is typically not the reason to choose offshore — operating companies sponsor staff
- Banks apply enhanced KYC; a certificate alone does not open an account
- UBO and register filings are not optional privacy screens
- India Form 15CA/CB, TP, and FEMA ODI still apply when money or ownership crosses the border
Licence type is chosen with the vehicle
Commercial
Trading, import and export, and distribution. See the licences page for activity lists, documents, and renewal.
Professional
Consultancy, design, healthcare, and other specialised services — often with a qualifications or sector approval.
Industrial
Manufacturing, processing, assembly, and packing. Needs plant, warehouse, and extra municipal or ministry clearances.
Tourism and trade
Travel, tours, and hospitality sit under a tourism licence. A trade licence is the legal permission to operate, classified by activity.
Dubai Company Formation FAQs
Yes, subject to the licence, free-zone rules, and bank KYC. FEMA outbound investment reporting may still apply in India when residents subscribe to share capital.
We recommend a zone after mapping activity, visa quota, office cost, and tax treatment. The UAE partner then files with that authority.
No. The company is the legal entity. The licence is the permission to carry listed activities. Mainland licences come from Dubai Economy and Tourism; each free zone issues its own. Activity, office, and extra approvals still have to match.
Generally no. Offshore companies are not a substitute for a mainland or free-zone trade licence. If you need to invoice UAE customers, rent onshore premises, or sponsor employees, we recommend an operating company instead.
UAE corporate tax is fact-specific. Incorporation in an “offshore” register does not automatically exempt the company. We review residence, activity, and any free-zone or holding reliefs with the UAE tax partner before you take a position.
Indian residents subscribing to overseas share capital typically fall under FEMA outbound investment rules. We coordinate the structure note with the India tax and FEMA papers — the same facts the UAE agent and the bank will see.
Discuss your Company Formation requirements
Speak with a PJRJ Dubai desk partner — we respond within one business day.