What are the different legal structures available for business setup in Dubai?

In Dubai, there are several legal structures available for business setup. Here are the main options:

Sole Proprietorship: This structure allows an individual to own and operate a business on their own. The individual assumes full liability for the company's obligations.

Limited Liability Company (LLC): An LLC is a popular choice for many businesses in Dubai. It requires a minimum of two shareholders and allows the distribution of profits and liabilities among the shareholders according to their ownership percentages.

Free Zone Company: Dubai has numerous free zones, each designed to cater to specific industries. Free zone companies offer various benefits such as 100% foreign ownership, tax exemptions, and simplified setup procedures.

Branch of a Foreign Company: Companies registered outside of Dubai can establish a branch office in Dubai. The branch operates under the parent company's name and is subject to certain legal requirements.

Representative Office: A representative office is a non-trading entity that serves as a liaison office for a foreign company. It allows companies to promote their products or services, conduct market research, and establish business contacts in Dubai.

Professional Service License: This structure is suitable for individuals or companies providing professional services such as legal, consulting, or accounting services. It requires specific qualifications and approvals from relevant regulatory bodies.

When choosing a legal structure, it's important to consider factors such as ownership restrictions, liability, capital requirements, licensing procedures, and the nature of your business activities. Consulting with a business setup consultant or PRO services provider can help you determine the most suitable legal structure for your specific business needs.