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Setting up a civil company in Dubai allows qualified professionals to partner and offer specialized services like consulting, medical, legal, or engineering services. Civil companies are ideal for those with expertise looking to work together in their fields.

What is a Civil Company in Dubai?

A civil company, or civil partnership, is formed by two or more qualified professionals offering specialized services. Foreign nationals can own 100% of a civil company but need a Local Service Agent (LSA) for mainland operations.

The LSA handles interactions with authorities but has no financial stake. Some fields, like architectural engineering, require at least 51% UAE national ownership for specific activities.

What Makes Civil Company Different from Others?

Multiple Visas

Civil companies can apply for multiple visas, with a typical office space requirement of 100 square feet per visa.

Professional License

Civil companies operate in professional fields like medicine, law, and engineering, requiring skilled and qualified partners.

Ownership and Control

Allows 100% foreign ownership, but a Local Service Agent (LSA) is needed for government approvals.

Liability

Owners have full liability for the company’s debts, unlike in an LLC.

Multiple Shareholders

A civil company can have 2 to 50 shareholders.

Trading Activities

Professional licenses for civil companies do not allow trading activities.

How to Setup a Civil Company in UAE?

Follow these steps to start your civil company in Dubai, UAE:
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Choose a Name for Your Company

Choose a trade name that complies with UAE government rules and regulations. Companies must have unique names that comply with the rules and regulations of the Department of Economic Development. 

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Choose a Business Activity

In order to determine what type of business license to apply for, you must decide what kind of operations you plan to perform. Based on the location, select your business activity from the permitted list.

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Hire a Local Sponsor

Local Emiratis are local sponsors who can assist you in any legal matter. Hire them to stay on the safe side and ensure everything goes smoothly. 

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Receive Initial Approval

Initial approval must be obtained from Dubai’s Department of Economic Development (DED).

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Pick a Location for Your Office

Picking an office space is essential for business registration in UAE. It is even possible to work from a virtual office depending on your business activities.

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Make a Partnership Agreement

An agreement between foreign partners of a business is called a partnership agreement. It should be drafted and implemented by the honorable court.

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Make a Local Sponsor Agreement

An agreement between the local sponsor in the UAE and the overseas business partners that outlines how the company operates outside of the country is known as a local service agent agreement. Prepare and execute the final application for the company from either the DED or court and then submit it.

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Finalize the Company’s Formation

You would have to submit the proper documents to the jurisdiction you chose for establishing your company in Dubai.

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Benefits of Establishing a Civil Company in Dubai, UAE

Affordable

Sponsoring Dependents is Simple

No Limit on Visas

No Corporate Tax

Instant Company Setup

100% Ownership:

Conditions to Setup a Civil Company in UAE

  • Any party or company can sell or change the legal form of a civil company or branch in Dubai.
  • DED allows partners of any nationality to perform professional activities.
  • A detailed Civil Agreement is required between expat partners of the civil company.
  • A Service Agent Agreement is necessary to appoint a Local Service Agent.
  • Civil companies in Dubai can have only a limited number of managers.
  • The trade name should reflect the company’s activities.
  • Multiple branches are allowed, each carrying out activities under the primary trade license.
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Civil Company Setup Consultants in Dubai

How Riz & Mona Consultancy Can Help?

Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support in setting up a Civil Company in Dubai, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

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FAQS (Frequently Asked Questions)

How can I start a civil company in Dubai?

Follow the given steps to start your civil company in Dubai:

Step 1. Choose a trade name

Step 2. Choose a business activity

Step 3. Hire a local sponsor

Step 4. Get the initial approval

Step 5. Choose a location for the business

Step 6. Make a partnership agreement

Step 7. Make a local sponsor agreement

Step 8. Finalize the company’s formation

What is the difference between an LLC and a Civil company?

LLC company has different benefits. Whereas a civil company has its own benefits. You can choose a company structure that suits your business the most. The major difference between a civil company and LLC is a Local Service Agent.

How much does a company license cost in Dubai?

A company license cost in Dubai varies from case to case. You can get in touch with any company formation experts in Dubai such as Riz and Mona for more information on the fees of a license.

Are civil partnerships Recognised in UAE?

Since they are not marriages, civil partnerships are not recognized in the UAE. However, civil marriages between non-Muslims that take place abroad are recognized as long as the marriage license has received official government authentication.

What is an example of a civil company?

An example of a civil company is a professional services firm, such as a law firm or an engineering consultancy, where the business is based on the professional qualifications of the partners.

What is a civil company legal type?

A civil company is a legal entity designed for professionals to offer specialized services, where partners have unlimited liability for the business’s obligations​.

Does a civil company function with multiple shareholders?

Yes, a civil company can have multiple shareholders, typically professionals who jointly manage the business, with a limit of up to 50 shareholders​.

Who is qualified to form a civil company in Dubai?

Professionals with qualifications in fields like law, engineering, medicine, or consulting are qualified to form a civil company in Dubai​.