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Dubai stands out as the most dynamic trade and investment hub in the United Arab Emirates (UAE), attracting entrepreneurs from around the world. Thanks to its tax advantages, strategic location and robust financial infrastructure, companies here can change hands quickly and update their ownership structures with ease. In this guide we cover the company share transfer process in Dubai, the required documents, current costs and tax obligations step by step, from an SEO and company-formation expert's perspective.
Table of Contents
When the ownership structure of a company needs to change, the primary method is a company share transfer. A share transfer is the process by which an existing shareholder transfers all or part of their shares to another individual or legal entity. In Dubai this is not limited to a private agreement between the parties; it must be officially recorded in the company's trade licence and Memorandum of Association (MOA), approved by the relevant authority and notarised.
There are many reasons why a share transfer becomes necessary in Dubai. New investors joining as the company grows, an existing partner selling their shares and exiting, mergers and acquisitions (M&A), or transfers between family members as part of succession planning are among the most common. Managing the process correctly protects the company's legal standing and prevents future disputes.
The main situations that call for a share transfer include:
You can also review the general framework of company formation and ownership in the UAE in our company formation in Dubai guide.
A company share transfer in Dubai is an official process completed in a specific sequence. Managing the stages correctly provides a significant advantage in both time and cost. Below we summarise the process in five key steps.
Before starting, the parties prepare a Share Transfer Agreement they mutually agree on. At this stage, an independent valuation of the transferred shares is recommended to determine their fair market value. A proper valuation protects the seller's rights and ensures the buyer pays a reasonable price. Commercial terms such as payment conditions, transfer date and warranty clauses are also clarified here. Obtaining legal and financial advice is critical to ensure the agreement complies with UAE legislation.
For mainland companies the process is subject to approval by the Dubai Department of Economy and Tourism (DED / DET). For companies operating in a free zone, approval is obtained from the relevant free zone authority (e.g. JAFZA, DMCC, Meydan, IFZA). An initial application is filed at this stage and the initial approval process begins. The authority may request additional documents depending on the company's activity and ownership structure.
The share transfer agreement and the amended memorandum of association are signed and attested before an authorised notary in Dubai. Where foreign partners cannot attend in person, representation via a notarised Power of Attorney (POA) is possible. If documents are in a foreign language, sworn translation and, where required, apostille/legalisation are also completed at this stage.
Once documents are complete, an official application is submitted to the relevant authority and the transfer fees are paid. The authority reviews the application and, if there are no deficiencies, grants approval. For mainland DED applications, processing typically takes between 5 and 15 business days. In free zone companies this period can be shorter thanks to digital portals.
After approval, the trade licence and company registry records are updated to reflect the new ownership structure. The new memorandum of association becomes official. Finally, banks and other official bodies are notified and, where necessary, bank signatory rights and signature circulars are renewed. Once this step is complete, the share transfer becomes legally valid.
To keep the process moving without delay, documents must be prepared completely and kept up to date. The commonly requested documents are:
The cost of a share transfer varies according to the company type (mainland or free zone), the size of the share capital, the scope of advisory services and the complexity of the transfer. Including advisory, legal services and official authority fees, the total package cost is generally in the range of AED 20,000 to AED 50,000. However, the official authority fees alone, excluding the advisory component, are much lower. The table below summarises current official authority fees.
| Authority / Item | Approximate Fee | Notes |
|---|---|---|
| DDA (Dubai Development Authority) | AED 3,000 / transaction | +AED 500 AoA amendment; +AED 10 Knowledge, +AED 10 Innovation Dirham |
| JAFZA (Offshore, non-individual) | AED 200 / transaction | +AED 500 MOA amendment; +AED 50 specimen signature attestation |
| DLD (property-holding companies) | 4% registration fee | May be split between buyer and seller |
| Notary & attestation | Variable | Depending on transaction value and number of documents |
| Legal & advisory | Variable | Package pricing based on scope |
As shown, official authority fees make up only part of the total cost of the transaction. The larger portion of the budget consists of professional advisory, legal services and valuation.
Currency Notice: All fee, rate and cost figures in the tables above were compiled for July 2026 and are subject to change over time. For binding and the most up-to-date amounts and rates, please check the official websites of the relevant institutions (DED/DET, DDA, JAFZA, DMCC, DLD, Federal Tax Authority).
In the UAE there is generally no separate capital gains tax on share transfers for individual investors. However, after the transfer, the company's activities are assessed under corporate tax and VAT. According to Federal Tax Authority regulations, the current rates are as follows. Before the transfer, the company's tax registration, accrued liabilities and compliance status should be carefully reviewed.
| Tax Type | Rate | Threshold / Note |
|---|---|---|
| Corporate Tax | 0% / 9% | 0% up to AED 375,000; 9% above (Federal Decree-Law No. 47/2022) |
| VAT | 5% | Mandatory registration threshold AED 375,000 |
| Personal Income Tax | 0% | There is no personal income tax |
The share transfer process differs depending on where the company is established. For mainland companies the approving authority is the DED/DET, while for free zone companies it is the relevant free zone authority. Mainland transactions may involve more extensive notary and authority steps, whereas in free zones the process usually proceeds faster through digital portals and 100% foreign ownership is preserved. In addition, share transfer fees in some free zone companies are more fixed and predictable than on the mainland. Choosing the right structure directly affects both the transfer process and subsequent operating costs. For detailed information on free zone options, see our Dubai free zone company formation page.
The duration of a share transfer depends on the company type, whether documents are ready and the authority's workload. In general, the preparation and valuation stage takes a few days, while authority approval and notary procedures can take 5 to 15 business days for mainland companies. Preparing documents completely and working with an experienced advisor significantly shortens the process. Missing documents or an incorrect application are the most common causes of delay.
A share transfer in Dubai is not merely an ownership change; it is also a strategic opportunity for investors. The emirate stands out with 100% foreign ownership, free transfer of profit and capital, and strong banking infrastructure. Acquiring the shares of a company provides fast access to an existing trade licence, bank account and customer relationships compared with setting up a company from scratch. This is a significant advantage, especially for investors seeking rapid entry into the Gulf market.
Moreover, Dubai's zero personal income tax structure, competitive corporate tax threshold and double-taxation treaties support post-transfer profitability. A well-planned share transfer delivers long-term gains in terms of both tax and operational efficiency.
Conducting comprehensive due diligence before acquiring a company's shares prevents hidden risks that may arise. This review assesses the company's financial statements, tax compliance, existing contracts, employee obligations and any potential litigation. Thorough due diligence enables the buyer to make an accurate valuation and avoid surprises after the transfer. For this reason, obtaining professional financial and legal support at this stage is extremely important.
World Company Setup provides end-to-end professional advisory for company share transfer processes in Dubai. From document preparation to authority approvals, from notary procedures to licence updates, it manages every step on your behalf and ensures the transaction is completed quickly and smoothly while optimising costs. Our expert team develops solutions compliant with current legislation for both mainland and free zone companies and stands by you at every stage of the process.
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A share transfer in Dubai is completed by preparing the transfer agreement, obtaining initial approval from the relevant authority (DED/DET for mainland, the zone authority for free zones), notarisation, filing the official application with fee payment, and updating the licence.
If documents are complete, authority approval and notary procedures for mainland companies usually take 5 to 15 business days. In free zone companies this period can be shorter thanks to digital portals.
Including advisory, legal services and official fees, the total package cost is generally between AED 20,000 and AED 50,000. The official authority fees alone (for example AED 3,000 per transaction for the DDA) are far below this amount.
The core documents are the share transfer agreement, copies of the parties passports and Emirates ID, a valid trade licence and MOA, a shareholders resolution, and initial approval from the relevant authority.
In the UAE there is generally no separate capital gains tax for individual investors. After the transfer, company activities are assessed under 9% corporate tax on income above AED 375,000 and 5% VAT.
For mainland companies the approving authority is the DED/DET, while for free zone companies it is the relevant zone authority. In free zones the process is usually faster and digital, and 100% foreign ownership is preserved.
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