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February 18, 2026
If you’re a qualified professional looking to bring your expertise to one of the world’s fastest-growing economies, a civil company in Dubai might be the most straightforward path available to you. Unlike commercial structures that come loaded with capital requirements and complex partnership dynamics, a civil company keeps things lean — designed specifically for people whose value lies in what they know rather than what they trade.
Whether you’re an architect, management consultant, IT specialist, or healthcare professional, this structure gives you direct access to the Dubai mainland market while retaining full ownership of your business.
Here’s how it all works.
A civil company — sometimes called a professional company — is a business entity formed by two or more partners who provide services rooted in intellectual expertise. Think of it as the UAE’s answer to professional partnerships found in Western markets, but adapted for Dubai’s regulatory framework.
Under UAE Commercial Companies Law, civil companies fall outside the scope of standard commercial entities. They don’t trade goods. They deliver professional services: legal advice, medical practice, engineering consultancy, accounting, architecture, and similar fields.
The defining characteristic? Partners earn through their professional skills and knowledge, not through speculation or trading in physical goods.
The Department of Economy and Tourism (DET) — formerly known as DED — oversees the registration and licensing of civil companies on the Dubai mainland. This gives civil companies full market access across the emirate, without the geographic restrictions that apply to free zone entities.
This structure suits professionals who hold recognized qualifications and want to offer service-based activities. Common professions that operate under a civil company license include:
If your profession requires a professional license rather than a commercial one, a civil company is likely your best structural fit on the Dubai mainland.
This is one of the most common questions entrepreneurs ask during company formation in Dubai. Both structures operate on the mainland, but they serve fundamentally different purposes.
| Feature | Civil Company | LLC |
|---|---|---|
| Ownership | 100% foreign ownership | 100% foreign ownership (post-2020 reforms) |
| Local requirement | Local Service Agent (no equity) | No local partner required for most activities |
| Liability | Unlimited — partners are jointly liable | Limited to capital contributions |
| Business activities | Professional services only | Commercial, industrial, and professional |
| Minimum partners | 2 | 1 (single shareholder LLC possible) |
| Maximum partners | 50 | 50 |
| Capital requirement | No minimum paid-up capital | Varies by activity |
| Visa allocation | Unlimited (based on office space) | Based on office space |
| Setup cost | Lower (from AED 25,000) | Higher (varies significantly) |
The key trade-off: civil companies offer lower costs and simpler setup, but partners carry unlimited personal liability. An LLC formation provides liability protection but comes with higher costs and is designed for commercial trading activities.
For a deeper look at all available structures, see our guide on types of companies in Dubai.
Before filing anything with DET, you’ll need to have these elements in place:
Partner qualifications: Every partner must hold professional qualifications relevant to the company’s activities. DET verifies credentials during the approval process.
Minimum two partners: A civil company requires at least two shareholders, up to a maximum of fifty. Partners can hold any nationality.
Local Service Agent (LSA): You must appoint an LSA — a UAE national or a company fully owned by UAE nationals. The LSA acts as your government liaison for licensing, visas, and regulatory matters. Critically, the LSA holds no equity or decision-making power in your business. They receive an annual fixed fee through a service contract.
Office space: DET requires a physical office address. This can be a virtual office, a flexi desk, or a full serviced office — each additional visa generally requires 100 sq. ft. of office space.
Partnership agreement: A formal agreement outlining profit-sharing ratios, roles, responsibilities, and dispute resolution mechanisms between all partners.
Trade name: Your chosen name must reflect the company’s professional activities and comply with DET naming guidelines.
Select the specific business activity from DET’s approved list. Your activity classification determines which license category applies and whether additional regulatory approvals are needed. Some sectors — construction, engineering, and healthcare — require approvals from bodies like Dubai Municipality or the Dubai Health Authority.
Submit a trade name reservation request through DET. The name must be unique, reflect your professional activities, and follow UAE naming conventions. Avoid names that reference religious terms, political entities, or established brands.
File your initial approval application with DET. This confirms your business activity, trade name, and partner details are acceptable before you invest in office space and documentation.
Engage an LSA through a notarized service contract. Your business setup consultant can connect you with vetted local service agents who understand the professional services landscape. Our local sponsorship services can facilitate this process efficiently.
Sign a tenancy contract for your office — or opt for a virtual office solution. Simultaneously, finalize your partnership agreement with all partners, ensuring it covers capital contributions, profit distribution, management structure, and exit provisions.
Compile and submit all required documents:
Once DET approves your application, pay the licensing fees to receive your professional trade license. The license is typically issued within 2–3 business days after complete documentation submission.
With your license in hand, approach UAE banks to open a business bank account. Most banks require your trade license, partnership agreement, partner identification, and proof of office address.
Process investor and employee visas for yourself, your partners, and staff. Civil companies have no cap on visa allocations — the number depends on your office space size.
Here’s a realistic breakdown of what to expect:
| Cost Component | Estimated Range (AED) |
|---|---|
| Professional license (government fee) | 7,000 – 10,000 |
| Trade name reservation | 620 – 1,000 |
| Initial approval | 1,000 – 2,000 |
| Local Service Agent fee (annual) | 3,000 – 8,000 |
| Office space (virtual office) | 5,000 – 15,000/year |
| Partnership agreement drafting | 2,000 – 5,000 |
| Visa processing (per visa) | 3,500 – 5,500 |
| Total estimated first-year cost | 25,000 – 45,000 |
These figures can vary based on your specific professional activity, number of partners, and office space choice. For an accurate cost estimate tailored to your situation, contact our business setup consultants for a free consultation.
Want to compare this against other business setup costs in Dubai? We’ve put together a comprehensive cost comparison across all structures.
Full ownership, zero equity dilution. Your Local Service Agent has no stake in your company. Every dirham of profit belongs to you and your partners.
Speed of setup. Once your documents are ready, the licensing process moves fast — often within a few business days. Compare that to the weeks some free zone company formations can take.
Lower entry cost. With no minimum capital requirement and government fees starting around AED 7,000, a civil company is one of the most affordable mainland company formations available.
Unlimited visa potential. Scale your team without artificial visa caps. As long as you have the office space, you can sponsor as many employees and dependents as your business needs.
Full mainland access. Unlike free zone companies that face restrictions when doing business within the UAE, your civil company can operate anywhere across Dubai and the wider Emirates — ideal for client-facing professional services.
Multi-national partnerships. Partners from different nationalities can join forces under one entity, making civil companies a natural choice for international professional teams setting up in Dubai.
A civil company is a professional partnership formed by two or more qualified individuals who provide intellectual or service-based activities. It operates under a professional license on the Dubai mainland and allows 100% foreign ownership with the appointment of a Local Service Agent.
Total first-year costs typically range from AED 25,000 to AED 45,000, depending on your office space choice, number of visas, and specific professional activity. Government licensing fees alone start at approximately AED 7,000.
The main differences are liability structure and business scope. Civil company partners carry unlimited personal liability but enjoy lower setup costs and professional service focus. LLC shareholders have limited liability but the structure suits commercial trading activities and comes with higher formation costs.
Yes. Foreign nationals can hold 100% ownership of a civil company. The required Local Service Agent acts purely as a government liaison and holds no equity stake or management authority in the business.
With all documents prepared and submitted, DET can issue your professional license within 2–3 business days. The overall process — including document preparation, office space arrangement, and LSA appointment — typically takes 1–2 weeks.
Professions that rely on intellectual expertise qualify — including law, medicine, engineering, architecture, accounting, management consulting, IT services, and education. DET maintains an approved list of over 2,000 professional activities.
Yes, DET requires a registered office address. However, you can start with a virtual office or flexi desk arrangement, which significantly reduces costs while meeting the regulatory requirement.
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