Tobacco & Cigarette Trading Company Formation

Tobacco & Cigarette Trading Company Formation


  • Shareholding: In the free zones, foreign investors may set up a cigarette and tobacco trading company with 100% ownership. If the investor wishes to set up in the mainland (getting a DED license), it needs to find a local partner to hold at least 51% of company shares; a side agreement will be signed between the foreign investor and the local partner to ensure that the foreign investor will have full control of the company operation and enjoy the full benefits of the business, while the local partner will be entitled to a fixed annual fee for the sponsorship.

  • Shareholders: the number of shareholder for free zone companies can be one, and a mainland company requires at least 2 shareholders. The shareholder can be individuals or companies.

  • Legal form: a new company (including a subsidiary) or a branch in free zones, but branch is not allowed for mainland company.

  • Share capital: Depends on the place where the company is incorporated. Generally speaking, it is required to be at least 10,000 Dirhams, and if it is below a certain amount, no need to be paid up when the company is set up; but in some cases, the share capital needs to be paid up.

  • Office space: it is mandatory for the company to have a physical office space in Dubai, and Polaris will assist to provide suitable office space.

  • Others: Non-free zone companies are required to have a local sponsor (which can be arrange by Polaris as well) to hold at least 51% of the company shares. The foreign investor and local sponsor will sign the Articles of Association, which be notarized by the local authority.


  • Time: 7-30 days, depending on the place of incorporation

  • Procedure:
  • (1) Provide three names for the new company (and choose a local sponsor for a mainland company, when applicable); If it is for a branch, no need to provide new names, the branch will have the same name as the mother company.
  • (2) Submit the application, and reserve a company name.
  • (3)Initial approval;
  • (4) External approval (if required);
  • (5) Submit an office space lease
  • (6) Get the company license
  • (7) Register with Dubai Chamber or other authorities (as the case may be).


  • For individual shareholders: the original passport copy, the NOC from local sponsor and the applicant’s Emirates ID (if the applicant is a resident in UAE)
  • For corporate shareholders: the mother company’s license, certificate of incorporation, articles of association, incumbency certificate, the certificate of good standing, PoA, and Board resolution. All documents need to be notarized and attested.


 visa/work permit quota is closely related to the size of office space, and it is necessary to tell how many work permits are required for the new company.

Due to constant change of policy, please confirm with our team for accurate information.


Our standard service fee for company formation is 15,000 AED (excl. 5% VAT)

6. Payment Terms:

A formal contract will be signed to regulate the services we are providing.

80% of the service fee to be paid after the service agreement is signed. And the remaining 20% is payable after the license is issued. If the application is cancelled or cannot be completed for reasons attributable to the client, the paid service fee is not refundable.

All governmental charges will be evidenced by the receipts or other documents provided by authorities. Our client may choose to pay to different authorities by himself/herself, or to pay Polaris in advance and Polaris will settle with the client upon the completion of relevant services.