How to form a Civil Company in Dubai

Eligibility and Requirements to Form a Dubai Civil Company

Civil companies require partners who hold valid professional licenses from UAE regulatory authorities to practice their specific professions.

Professional licensing is mandatory before civil company formation. General business consultancy without specific professional credentials does not qualify for civil company structure.

The Dubai Department of Economy and Tourism works with professional licensing authorities to verify credentials during the registration process.

Professional License Requirements:

• Valid professional license from relevant UAE authorities
• Recognized degree certificates with UAE attestation
• Professional experience documentation
• Good standing certificates from professional bodies
• Medical fitness certificates for UAE residence

Regulated Professions Include:

• Legal practice (licensed by UAE courts and legal authorities)
• Medical practice (licensed by health authorities like DHA)
• Engineering services (licensed by municipality authorities)
• Accounting and auditing (licensed by relevant professional bodies)
• Architectural services (licensed by professional authorities)

Examples:

• A UK-qualified lawyer must obtain UAE legal practice authorization before establishing a civil company law firm
• Medical doctors need Dubai Health Authority licensing before forming a civil company healthcare practice

How to Set Up a Civil Company in Dubai ?

Step 1 – Obtain Professional Licensing
Before registering a civil company, professionals must secure practice licenses from relevant UAE authorities.

• Lawyers → Dubai Legal Affairs Department (bar registration and court admission)
• Engineers → Dubai Municipality (engineering consultancy licenses)
• Doctors and medical professionals → Dubai Health Authority or MOHAP (facility approvals + practice license)

Processing time: 4–8 weeks depending on field and document preparation. All foreign qualifications require UAE attestation.

Step 2 – Choose a Business Name and Activity
Trade names must clearly reflect the licensed professional service (e.g., “Legal Consultancy” or “Medical Advisory Services”). Generic names are not permitted. Activity classification must exactly match the professional license.

Step 3 – Obtain Initial Approval from DED
Submit the application to DED with copies of professional licenses, partner qualifications, and proposed activities. Processing typically takes 3–7 working days. Once approved, you may proceed with securing office space and preparing legal documentation.

Step 4 – Select a Business Location
Civil companies must have physical premises with an Ejari-registered tenancy contract. Office location must align with regulatory requirements:

• Medical practices → healthcare-approved clinics or facilities
• Legal consultancies → office spaces that meet bar association or court standards

Step 5 – Prepare Legal Documents
Foundational documents must comply with UAE commercial law and be notarized in Dubai Courts.

Required legal documents:

• Partnership agreement (Arabic or certified translation)
• Memorandum of Association
• Partner passports and photographs
• Professional license certificates
• Degree certificates with UAE attestation
• Medical fitness certificates

Step 6 – Submit Application and Documents
File the complete package with Dubai DED. Applications are cross-verified with the relevant professional licensing authority. Processing typically takes 5–10 working days. Some regulated professions may require additional external approvals.

Step 7 – Pay Fees and Obtain License
Civil company setup costs are lower than other structures since no Local Service Agent (LSA) is required.

Total: AED 8,000–15,000. License validity is one year, with mandatory annual renewal.

Difference Between a Civil Company and an LLC

Civil companies serve professional services while LLCs accommodate broader commercial operations. The structures differ significantly in liability, activities, and regulatory requirements.

LLC Company Formation in Dubai

LLCs provide limited liability protection with broader commercial activity scope including trading, manufacturing, and general business services.

LLC shareholders face liability limited to their capital contributions. Personal assets remain protected from business obligations. This structure suits businesses with significant commercial exposure or trading activities.

LLCs require minimum capital contributions and can engage in diverse commercial activities including import/export, retail, and manufacturing operations.

Read more about : setting up an LLC in Dubai

Establishment of Civil Companies

Civil companies focus exclusively on regulated professional services with partners bearing unlimited liability for business obligations.

Partners remain personally responsible for all civil company debts and obligations. This unlimited liability exposure makes civil companies suitable for low-risk professional service operations.

Activity scope is strictly limited to licensed professional services. Trading, manufacturing, or general commercial operations are prohibited.

Key Differences:

Liability Structure:

• LLC: Limited to capital contribution amount
• Civil Company: Unlimited personal liability for partners

Permitted Activities:

• LLC: Commercial trading, manufacturing, general services
• Civil Company: Licensed professional services only

Local Requirements:

• LLC: May require local partners depending on activity
• Civil Company: No Local Service Agent requirement

Capital Requirements:

• LLC: Minimum capital contribution mandated
• Civil Company: No minimum capital requirements

Benefits of Forming a Civil Company in Dubai

Civil companies maintain operational control and profit repatriation, allowing professional service providers to enter the Dubai market with full ownership and without the costs of local sponsorship.

Dubai’s strategic location provides access to regional professional service markets across the Middle East and North Africa.

Key Benefits:

• No Local Service Agent required – Complete foreign ownership without local sponsors
• Lower operational costs – No ongoing LSA fees or arrangements
• Direct professional practice – No intermediary service agreements
• Complete profit repatriation – Transfer all profits without restrictions
• Professional credibility – Official DED license recognition
• Regulatory clarity – Clear professional service focus

Market Opportunities:

• Government entities requiring specialized professional services
• International businesses needing regulated professional support
• Free zone companies requiring mainland professional services
• Regional expansion opportunities for established professional practices

Cost of Civil Company License in Dubai

A civil company license in Dubai typically costs between AED 8,000 and AED 15,000 in 2025, with no Local Service Agent fees required.

Cost variations depend on professional licensing requirements, office location, and specific regulatory approvals needed. Medical and legal professional licenses typically involve higher regulatory fees.

Annual renewal costs range from AED 4,000 to AED 8,000, depending on professional license renewals and business activity scope.

Cost Comparison: Civil companies save AED 3,000 to AED 8,000 annually compared to business structures requiring Local Service Agents, making them highly cost-effective for qualified professionals.

How a Civil Company is Taxed in Dubai

Civil companies in Dubai mainland are taxed as juridical persons under the UAE Corporate Tax regime effective June 1, 2023. They are subject to 0% corporate tax on income up to AED 375,000 and 9% on income above that, with taxation applying at the company level rather than through individual partners. Registration with the Federal Tax Authority (FTA) is mandatory for all civil companies, regardless of income.

Also read about all types of business structures in UAE

Frequently Asked Questions (FAQs)

What is a civil company in Dubai? A civil company is a professional partnership structure for consultancy and advisory services. Partners share unlimited liability but retain full ownership without local partner equity requirements.

What documents are required to start a civil establishment? Required documents include partnership agreement, partner passports, degree certificates with attestation, medical fitness certificates, LSA appointment contract, and Ejari tenancy agreement.

Can foreigners own a civil company in Dubai? Yes, foreigners can own 100% of civil company partnerships. Foreign partners need Local Service Agent appointment but retain full ownership of their partnership shares.

What is the difference between a civil company and an LLC? Civil companies have unlimited liability and professional activities only. LLCs provide limited liability with broader commercial activity scope including trading and manufacturing.

What is the cost of a civil license in Dubai? Civil company licenses cost between AED 10,000 and AED 20,000 including all setup fees. Annual renewal costs range from AED 5,000 to AED 10,000.