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Types of Companies Israelis Can Open in the UAE

Michael Decker
Michael Decker

This article will address the types of companies Israelis can open in the UAE. Due to recent normalization agreements between Israel and the UAE, and the great enthusiasm for the process, everything is moving quickly, which has been noted by both local and international media outlets. 

Types of Companies Israelis Can Open in the UAE

Types of Companies Israelis Can Open in the UAE

There are a few types of companies Israelis can open in the UAE. Below we discuss the different company types, also indicating what options are and are not available to Israelis. 

  1. Sole proprietorship: The enterprise entirely owned by an individual and is not a company. It is important to note that sole proprietorships of an industrial or commercial nature may only be owned by a UAE or GCC national. It is possible to have a sole proprietorship owned by an Israeli so long as the endeavor is professional, meaning it provides services. (For more on professional versus commercial or industrial licensing options, see our article Israelis UAE License.) If Israelis seek to utilize this option, they must still have a local service agent. In order to engage in this venture, no business capital is required. The trade name of the proprietorship must be related to the commercial activity of the firm. It is also permissible to have multiple branches engaging in one or all activities outlined by the proprietorship. 
  2. Limited liability company: Limited liability companies can have between two and fifty shareholders who are liable for their share in the capital of the company. This company can practice any of the four types of activities according to the license options we discuss in the Israelis UAE License article, namely, professional, commercial, industrial, or tourism. It is important to note that 51% of this type of company must be owned by locals, and up to 49% can be owned by foreign partners.
  3. Civil company: Civil companies are business partnerships for professionals, for example, doctors, lawyers, engineers, accountants, etc. UAE law allows for partners of any nationality to engage in professional activities according to DED business regulations. 
  4. Branch of a foreign company: Branches of foreign companies can engage in professional activities in the UAE, namely providing services. It is also possible to engage in some commercial and industrial endeavors, although this is subject to the UAE Ministry of Economy approval. In order for a branch of an Israeli company to operate in the UAE, it must use the same name and conduct the same business in order to operate in Dubai. This option requires that a local service agent be used, and this agent must be a UAE national. 

More Articles of Interest

We provide many articles that may be of interest on our website. We provide articles in both Hebrew and English on a variety of topics including establishing Israeli startups in Dubai (Hebrew), obtaining an energy license (Hebrew), setting up a tourism/leisure company in the UAE, and more. We also provide many articles discussing what you need to know about free zones, investor visas, business visas, and more. 

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If you want to know more about the types of companies Israelis can open in the UAE or seek legal assistance with your business endeavors, please contact us. Advocate Irena Rosenberg is working with many individual and corporate clients to help with all their visa and company needs.

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