Frequently Asked Legal Questions UAE | Sulliman Legal Consultants

Question 1

What are the steps to set up a company in Dubai?

Accepted Answer

Setting up a company in Dubai involves choosing between a mainland, free zone, or offshore structure. Mainland companies require a local service agent or UAE national partner for certain activities and are licensed by the Department of Economic Development (DED). Free zone companies offer 100% foreign ownership and are ideal for businesses operating internationally. Offshore structures (such as JAFZA or RAK ICC) suit holding and asset-protection purposes. The process typically involves selecting a trade name, obtaining initial approval, drafting a Memorandum of Association, and securing a trade licence. Sulliman Legal Consultants guides clients through every step, including regulatory approvals and post-incorporation compliance.

Question 2

What is the difference between a mainland and free zone company in the UAE?

Accepted Answer

A mainland company is licensed by the relevant emirate authority (e.g. DED in Dubai) and can trade freely across the UAE and internationally. A free zone company is licensed within a designated free zone and benefits from 100% foreign ownership, zero corporate tax on qualifying income, and simplified setup — but is generally restricted from trading directly with the UAE mainland without a local distributor. The right choice depends on your target market, business activity, and ownership preferences. We advise clients on the optimal structure for their specific commercial objectives.

Question 3

Do I need a local sponsor or UAE national partner to start a business in Dubai?

Accepted Answer

Since the UAE amended its Commercial Companies Law in 2021, most mainland business activities no longer require a UAE national partner — 100% foreign ownership is now permitted for the majority of commercial and professional activities. However, certain strategic sectors (such as oil and gas, defence, and some utilities) still require UAE national participation. Free zone companies have always permitted 100% foreign ownership. We review your specific activity and advise on the most appropriate and cost-effective structure.

Question 4

What should a commercial contract in the UAE include?

Accepted Answer

A well-drafted UAE commercial contract should clearly define the parties, scope of services or goods, payment terms, delivery obligations, warranties, liability caps, dispute resolution mechanism (litigation or arbitration), governing law, and termination provisions. UAE law (Federal Law No. 5 of 1985, the Civil Transactions Law) governs most commercial contracts unless the parties agree otherwise. Contracts for DIFC entities may be governed by DIFC law. We draft and review commercial contracts to ensure they are enforceable and protect your interests under UAE law.

Question 5

Can foreigners buy property in Dubai?

Accepted Answer

Yes. Foreign nationals can purchase freehold property in designated freehold areas of Dubai, which include popular locations such as Downtown Dubai, Dubai Marina, Palm Jumeirah, Jumeirah Village Circle, and Business Bay. In non-freehold areas, foreigners may acquire leasehold interests for up to 99 years. All property transactions must be registered with the Dubai Land Department (DLD). We advise on due diligence, contract review, DLD registration, and any mortgage or financing arrangements.

Question 6

What is the process for buying property in Dubai?

Accepted Answer

The typical process involves agreeing on price and terms, signing a Memorandum of Understanding (MOU or Form F), paying a deposit (usually 10%), conducting due diligence on title and any encumbrances, obtaining a No Objection Certificate (NOC) from the developer, and completing the transfer at the Dubai Land Department. For off-plan purchases, the process involves a Sales and Purchase Agreement with the developer and registration with the Real Estate Regulatory Agency (RERA). We review all documentation and represent clients at every stage to ensure a secure transaction.

Question 7

What is RERA and how does it affect property transactions in Dubai?

Accepted Answer

RERA (Real Estate Regulatory Agency) is the regulatory arm of the Dubai Land Department responsible for licensing real estate brokers, regulating off-plan sales, overseeing owners associations, and setting rental increase guidelines. RERA registration is mandatory for off-plan projects, and developers must hold buyer payments in escrow accounts. For tenants and landlords, RERA's Rental Increase Calculator determines permissible rent increases. We advise on RERA compliance for developers, investors, landlords, and tenants.

Question 8

How does divorce work for expatriates in the UAE?

Accepted Answer

Expatriates in the UAE can apply to have their home country's law govern their divorce, or they may proceed under UAE Personal Status Law. Since 2023, the UAE has introduced significant reforms allowing non-Muslim expatriates to apply civil law principles to divorce, custody, and asset division — without reference to religious law. Divorce proceedings are filed at the Personal Status Court. We advise expatriate clients on which legal framework best protects their interests and guide them through the full process, including asset division and custody arrangements.

Question 9

How is child custody determined in the UAE?

Accepted Answer

Under UAE Personal Status Law, custody (physical care) of young children is typically awarded to the mother, while guardianship (legal decision-making) rests with the father. However, for non-Muslim expatriates, the 2023 reforms allow courts to apply the law of the child's nationality or civil principles focused on the child's best interests. Courts consider the child's welfare, stability, and the capacity of each parent. We represent parents in custody proceedings and advise on international custody matters where children may be taken abroad.

Question 10

Can I make a will in the UAE as a non-Muslim expatriate?

Accepted Answer

Yes. Non-Muslim expatriates can register wills in the UAE through the DIFC Wills Service Centre or the Abu Dhabi Judicial Department. A DIFC Will covers assets in Dubai and Ras Al Khaimah and allows you to distribute your UAE estate according to your wishes rather than Sharia inheritance rules. Without a registered will, UAE Sharia law applies to the distribution of your UAE assets regardless of your nationality. We draft and register wills for expatriate clients to ensure their estate is protected and distributed as intended.

Question 11

What happens to my UAE assets if I die without a will?

Accepted Answer

If a non-Muslim expatriate dies without a registered will in the UAE, their UAE-based assets (bank accounts, property, business interests) are distributed according to UAE Sharia inheritance law, regardless of what their home country will may say. This can result in outcomes that differ significantly from the deceased's intentions — for example, a surviving spouse may not automatically inherit the entire estate. Bank accounts may also be frozen pending court orders. Registering a DIFC Will or an Abu Dhabi will prevents this and ensures your UAE assets pass to your chosen beneficiaries.

Question 12

What is wealth structuring and why is it important for UAE residents?

Accepted Answer

Wealth structuring involves organising your assets — property, business interests, investments, and liquid wealth — through legal vehicles such as offshore holding companies, trusts, or foundations to achieve asset protection, tax efficiency, succession planning, and confidentiality. For UAE residents, particularly high-net-worth individuals and international investors, structuring is important because the UAE has no income tax but assets may be subject to tax in other jurisdictions. We advise on UAE-compliant structures that protect wealth across generations and jurisdictions.

Question 13

How can international investors protect their UAE investments legally?

Accepted Answer

International investors can protect their UAE investments through a combination of appropriate corporate structures (free zone or offshore holding companies), well-drafted shareholder and investment agreements, registered wills or succession plans for UAE assets, and dispute resolution clauses specifying DIFC Courts or international arbitration (DIAC or ICC). We advise international investors on structuring their UAE presence to minimise risk, ensure enforceability of agreements, and provide a clear exit or succession path.

Frequently Asked Questions

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