Dubai and UAE Mainland Company Formation

A Limited Liability Company (LLC) in Dubai or the rest of the UAE offers an alternative to the free zone model and is ideal for companies looking to serve a customer base inside the UAE or tender for government contracts. 

Emirati law requires a local partnership for all foreigners choosing to open in Dubai or the rest of the UAE. The legislation specifies that at least 51 per cent of an onshore entity's equity must be owned by a UAE national.

This rule applies to any entity choosing to operate onshore, whether it be an LLC or a joint-stock company in Dubai and the rest of the country. 

Some cases do allow for a few industries to operate with total foreign ownership and UAE. However, they need a UAE local service agent and be available to liaise with relevant local government authorities.

Another option is to operate through an industry-specific free zone that allows local trading within its regulatory framework. The Dubai Knowledge Village Free Zone allows Human Resources companies to work with clients outside their free zone jurisdiction while retaining full tax exemption benefits. 

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