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Civil Company 

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Foreign entrepreneurs considering establishing a business in the UAE have a number of options. Civil Company provides the best of both worlds: full ownership and access to mainland commercial prospects. Dhanguard as business advisors, can help you establish a professional company or any other form of business in Dubai, UAE.

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Civil Company Formation in Dubai, UAE


Foreign entrepreneurs considering establishing a business in the UAE have a number of options. Set up shop in one of the country's many free zones to take advantage of zero corporate and personal tax rates, 100% profit repatriation, and 100% foreign ownership. Alternatively, you can form a limited liability company (LLC) on the UAE mainland. While the latter option does entail giving up a 51 percent interest in your company to a local sponsor, it also grants you complete access to the UAE market, something free zone enterprises do not have.

For international entrepreneurs, there is also the option of forming a civil corporation. It comes with 100% ownership and access to the local market, but it also comes with infinite liability. Qualified professionals in specialized fields, such as doctors, accountants, lawyers, consultants, and engineers, can start a civil corporation in the UAE. Civil businesses must be formed as partnerships with business owners who have professional qualifications in their industry.

While civil businesses allow for 100 percent foreign ownership, in order to trade from the mainland, you must operate via a Local Service Agent (LSA) in the UAE. LSAs, unlike local sponsors, have no financial interest in your company. The LSA's job is to simply communicate with government authorities on your behalf, assisting with licence approvals, work permit and visa applications, and other such matters, for which they are paid either a set fee or a % of company revenues.


Benefits of setting up a Civil Company in UAE

So, if you're a qualified expert trying to build a name for yourself in the local market, you should consider whether forming a civil corporation in the UAE is the best option for you. Here's all you need to know to make that decision.

100% liability vs. LLC

Civil corporations have 100% liability, so it's crucial to know what that entails before making a decision. You are not personally accountable for the company's debts if you form a limited liability company (LLC). As a result, there is a significant layer of protection. A civil business has 100 percent responsibility (or ‘unlimited liability,' as the case may be), which means creditors may be able to seize your assets and property if the worst happens. While the two types of businesses may have certain structural similarities, the differences become apparent in the case of a liquidation.

Quick and Easy Set up

The good news for individuals who are ready to take the plunge is that forming a civil corporation in the UAE is both quick and simple. It is merely a matter of submitting an application to the Department of Economic Development (DED) for your licence. New initiatives have simplified the process to the point where, if you match the eligibility requirements, you might be registered with the Department of Economic Development in as little as 90 minutes.

Setup is Inexpensive

The projected costs of conducting business in this region of the world sometimes deter entrepreneurs new to the UAE. In actuality, however, starting a business in the United Arab Emirates may be done at a very low cost. It costs roughly AED 17,000 to apply for a professional licence to start a civil corporation. Furthermore, because no paid upfront share capital is required when forming a new civil corporation, total beginning costs are unusually low.

Working with a Local Service Agent (LSA)

As I previously stated, civil firms are not obligated to engage with a local or corporate sponsor. You will, however, need to hire an LSA to communicate with government departments on your behalf. The LSA has no control in your business decisions and has no financial interest in your firm. A company formation specialist can assist you in locating a reliable LSA to ensure that the entire procedure goes smoothly.

Apply for Numerous Visas

Civil company registration in the UAE is particularly popular with larger firms since it permits owners to apply for several visas — in fact, mainland businesses have no upper limit. There is a price, though: the more visas you apply for, the more office space you'll require. The typical guideline is that each visa requires 100 square feet of office space. This may, however, be negotiable with the DED. If you have a large remote workforce of 500 or more employees, you are unlikely to need 50,000 square feet of office space.

It’s Easy to Sponsor Dependants

As a stakeholder in a civil firm, you can sponsor dependants for residence permits in addition to your employees. You can sponsor visa applications for employees such as drivers or your spouse and other dependents if you match the application standards. Entry permit, status adjustment, medical fitness test, Emirates ID registration, and visa stamping are all pretty simple procedures. When completing this process, it's a good idea to seek help from an expert in setting up UAE free zone firms, as they can ensure that you (and those you're seeking to sponsor) meet the entry requirements before you begin.

Set up with Multiple Shareholders

Civil corporations also allow entrepreneurs to set up a business with several shareholders, which is another reason they are a popular choice for large professional organisations. In order to start a civil corporation in the UAE, you must have at least two shareholders, with a maximum of 50. These shareholders can be individuals or corporate entities, and there is no formal upper limit.

Easy to arrange your Corporate Bank Account

It's simple to set up your business bank account once you've obtained your professional licence and formed your civil company. If you choose, a business formation expert can recommend the appropriate bank for your needs and even set up meetings in-branch for you. You are welcome to approach any local or foreign bank on your own as well.

Team up with Dhanguard for your Civil Company Formation in UAE

Civil company registration in the UAE is the only option for professionals looking to start a business. The mere fact that you operate a civil firm in the UAE signals to the market that you are highly skilled and qualified in your chosen profession. And that's before you include in the countless other advantages, such as 100% foreign ownership and complete access to the local market.

However, it is a method fraught with danger. On the one hand, having unlimited liability may lead to more business accountability. However, it is not something that should be taken lightly. You, as the civil business's owner, could lose a lot more than the company itself if the civil company is liquidated. This is a significant matter that requires due attention, which is why talking with a business formation expert is essential.

If you meet the criteria - a certified professional in a recognised industry such as healthcare or engineering with the drive to succeed in this competitive part of the world – this is a path worth considering, but as previously stated, it's one worth treading cautiously and obtaining expert guidance on.

Dhanguard is committed to assisting clients in forming a company in the UAE, offering guidance and assistance in all aspects of Company formation.


Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides the company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free offshore company formation services and company formation services in Mainland and Freezone in UAE.

Civil Company Related FAQ

Frequently Asked Questions

  • In the United Arab Emirates, what is a civil company?

    A civil corporation is a professional partnership made up of doctors, attorneys, engineers, and accountants. A civil firm (with the exception of engineering civil companies) is held entirely by the professional partners; nevertheless, a UAE National Local Service Agent is usually necessary.

  • Who is eligible to form a civil company in Dubai?

    You can file for civil business creation if you are a competent and licensed professional in a variety of fields, including law, accounting, medical, engineering, and more. It gives for 100% ownership and access to the local market, but it also comes with infinite responsibility. A civil corporation must also be established as a partner of the business owners who have professional certifications in their fields of expertise.

  • What is a Local Service Agent's Role in Dubai?

    Even though 100% foreign ownership is permitted, operating with a Local Service Agent in the country is still required in order to lawfully trade from the mainland. Keep in mind that, unlike local sponsors, an agent will not be permitted to own a portion of your company. His job includes coordinating with government authorities and assisting with work permits, visa applications, and licence approvals, among other things. They are compensated in one of two ways: a percentage of your company's profits or a set fee.

  • What Does "100% Liability" Really Mean?

    Keep in mind that a Limited Liability Company (LLC) is not responsible for any debts incurred by the company, whereas a civil company is. In the worst-case situation, creditors could likely go after your property or assets if you had unlimited liability.

  • What is the difference between a civil company and a limited liability company (LLC)?

    Keep in mind that a Limited Liability Company (LLC) is not responsible for any debts incurred by the company, whereas a civil company is. In the worst-case situation, creditors could likely go after your property or assets if you had unlimited liability.

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