Company setup in Dubai: the complete guide
How to choose a structure, what the process involves, what it costs and what comes after the licence. Written for founders and investors setting up from abroad.
Why Dubai
Dubai combines full foreign ownership, a 9% federal corporate tax with generous reliefs, no personal income tax, and residence visas linked to company ownership. It sits within an eight-hour flight of most of the world's population and has one of the deepest pools of international banking, legal and advisory talent in the region.
For international clients the practical advantages are often more important than the tax rate: a stable currency pegged to the US dollar, English as the working language of business, straightforward residency for owners and their families, and a legal system that includes common-law courts in DIFC and ADGM.
The three main structures
| Structure | Licensed by | Can trade in the UAE market | Residence visas | Typical use |
|---|---|---|---|---|
| Mainland company | Department of Economy and Tourism (DET) | Yes, anywhere in the UAE | Yes, quota linked to office size | Businesses serving UAE customers, government contracts, retail |
| Free zone company | The free zone authority | Within the zone and internationally; mainland trade through distributors or specific permits | Yes, quota set by package | International trading, consulting, holding, tech, e-commerce |
| Offshore company | An offshore registry such as RAK ICC | No | No | Holding assets, shares or property; not for trading |
A foreign company can also open a branch or a representative office rather than forming a new entity. For a detailed comparison see Mainland vs free zone vs offshore.
How to choose
Five questions settle most decisions:
- Where are your customers? If you will invoice UAE businesses or consumers directly, a mainland licence avoids restrictions. If customers are abroad, a free zone is usually simpler.
- Do you need visas? Offshore companies cannot sponsor visas. Free zone packages have fixed quotas; mainland quotas depend on office space.
- Do you need a physical office? Mainland companies need a registered lease. Many free zones accept a flexi-desk.
- Is the activity regulated? Financial services, healthcare, education, virtual assets and some others need approvals from sector regulators, which narrows the choice of jurisdiction.
- What will your bank and home tax authority expect? Real substance in the UAE, meaning an office, staff or a resident director, strengthens both the bank application and your tax position at home.
The setup process step by step
- Choose the jurisdiction and activity. The activity on your licence defines what the company may do, so choose it carefully. See Multiple activities.
- Reserve a trade name. Names must follow the authority's rules, for example no religious terms, no abbreviations without the full name, and no names of other companies. See Trade name rules.
- Obtain initial approval. The authority confirms it has no objection to the company being formed.
- Prepare the legal documents. The memorandum of association (MOA) or articles, shareholder resolutions and, for corporate shareholders, attested company documents.
- Secure an address. An office lease with Ejari for mainland, or a free zone flexi-desk or office.
- Pay fees and receive the licence. The trade licence and certificate of incorporation are issued.
- Register with immigration and labour. The establishment card and, for mainland companies, MOHRE registration allow the company to sponsor visas.
- Apply for residence visas. Entry permit, change of status, medical test, biometrics and Emirates ID.
- Open a bank account. Banks review the licence, ownership, business plan and source of funds. See Corporate bank account.
- Register for tax. Every UAE company must register for corporate tax; VAT registration depends on turnover. See Corporate tax registration.
Documents you will need
For individual shareholders: passport copy, a recent photograph, proof of residential address, and a UAE visa or entry stamp if you have one. For corporate shareholders: certificate of incorporation, memorandum and articles, a board resolution approving the UAE company and a register of directors and shareholders, all legalised and attested. Full list: Documents required.
How long it takes
A free zone licence can be issued within three to ten working days of complete documents. Mainland companies usually take one to three weeks. Residence visas take a further one to three weeks, and bank accounts two to six weeks. See Setup timeline.
What it costs
Costs have four parts: licence and registration fees, office or flexi-desk, visa costs per person, and professional fees. Free zone packages are the lowest entry point; mainland costs vary with the office lease. See Company setup cost.
After the licence
- Annual licence renewal and lease renewal
- Corporate tax return within nine months of each financial year end
- VAT returns if registered
- Accounting records kept for at least seven years
- UBO register kept current
- Visa renewals and labour compliance for staff
We handle all of these under an annual retainer; see Corporate services.
Common questions
Is Dubai company setup expensive?
Entry-level free zone setups are comparable to incorporating in many European countries, and annual running costs are predictable. The largest variable is office space.
Can I change from free zone to mainland later?
Yes. You can relocate a company or open a mainland branch of your free zone company. See Company relocation.
What is the minimum share capital?
Most activities have no fixed statutory minimum; free zones set their own nominal amounts, usually without a requirement to deposit them. Regulated activities can require paid-up capital. See Minimum share capital.
Can a non-resident be the manager of a UAE company?
Yes. A manager or director does not need to be UAE resident, although a resident manager helps with banking and substance.
Official sources
We check our guidance against these official sources. Always confirm current fees and rules before acting.