UAE company setup
How to register a company in the UAE
Set up your UAE company on the structure that fits your business. Mainland or free zone, 100% foreign ownership either way, and a clear tax position from day one. We handle the license, the bank account, the visas, and ongoing compliance.
Companies we've helped set up in the UAE
Before you start
What to decide before anything is filed
UAE setups don't fail on paperwork. The licenses are fast. They succeed or struggle on one structural decision and the two that follow from it.
Decision 01
Mainland or free zone
This is the first decision, and everything else follows from it. A mainland company can sell anywhere in the UAE, including to government. Since 2021 it can be fully foreign-owned in most activities. A free zone company is quicker to set up and can qualify for the 0% corporate tax rate. Under Dubai's 2025 rules it can now reach mainland customers through permits. The right answer depends on where your customers are.
How the fork gets decided →Decision 02
Which free zone, if free zone
The UAE has more than forty free zones, and they differ in ways that matter. Which activities they license, what the packages cost, how many visas each package allows, whether you need a physical office, and how easily their companies open bank accounts. A zone that looks cheap at licensing often becomes expensive later, usually at the bank, or when you need one more visa than your package allows. Compare zones on how well they fit your business, with the license price as one factor among several.
How the zone gets chosen →Decision 03
The tax position you're building
Since 2023 the UAE taxes corporate profits, and your structure determines how. A mainland company pays 9% on profits above AED 375,000. Smaller companies can elect relief while revenue stays under AED 3 million, though that option ends after 2026. A free zone company can pay 0% if it meets the five conditions of a Qualifying Free Zone Person. A breach costs that status for five years. Decide which position you are building before the license is issued. Changing course afterwards is expensive.
How the position gets designed →Or skip the homework. A thirty-minute call with our team settles each of these for your case.
Schedule a callThe checklist
Key requirements when setting up a company in the UAE
What a UAE company requires, mainland or free zone. If you can tick these six, you can incorporate.
- One or more shareholders. Individuals or corporates, any nationality, with 100% foreign ownership available on the mainland for most activities and in every free zone.
- A manager or director. Named on the license, any nationality. Banks and authorities check the general manager's authority, so define its scope deliberately.
- A licensed activity from the official lists. Every emirate and zone licenses against its own activity catalog, and the license only covers what's on it.
- Premises matching the jurisdiction. A registered lease for mainland licenses, or a flexi-desk or office package in the zones. The premises set how many visas the company can sponsor.
- Capital per the jurisdiction. There is no general minimum. Mainland LLCs declare an amount adequate for the activity, and zone requirements range from none to modest fixed amounts.
- Corporate tax registration within three months. Every company registers with the Federal Tax Authority after incorporation, including free zone companies targeting the 0% rate; the late penalty is AED 10,000.
The process
Steps to set up a company in the UAE
Seven steps to set up a company in the UAE as a foreign investor, in the order they happen. For each one you get what to prepare, what it costs, and how long it takes. Plan the whole project before you start it.
1
Choose mainland or free zone
Start with one question: where will your revenue come from? Everything else about the setup follows from the answer.
If you will sell to customers inside the UAE (consumers, local companies, government) you need a mainland license. It is issued by the economic department of the emirate where you set up. In Dubai that is the Department of Economy and Tourism. A mainland company can trade anywhere in the country without restriction. Since 2021 it can also be fully foreign-owned in most activities, so the old local-sponsor arrangement is gone for nearly everyone. A 51% Emirati partner is still required only in a short list of strategic sectors, such as defense and security.
If your customers are mainly abroad, a free zone usually serves you better. Each zone licenses its own companies, setup takes days rather than weeks, an office can be as small as a shared desk, and a company that meets the qualifying conditions pays 0% corporate tax on its qualifying income instead of 9%. The historical drawback was market access: a free zone company could not trade directly with the mainland.
In Dubai that drawback has narrowed. Since March 2025, a free zone company can serve mainland customers through a dual license, a branch, or a temporary permit from the DET, provided it keeps separate accounts for that side of the business. The choice still matters. The rule of thumb is simple. If most of your revenue will come from inside the UAE, start on the mainland. If most of it will come from abroad, start in a zone. Offshore companies also exist, but only as holding vehicles. They cannot trade.
2
Pick the jurisdiction, activity, and license type
If you chose the mainland, the next question is which emirate, since each has its own economic department. Most foreign investors set up in Dubai or Abu Dhabi. If you chose a free zone, the next question is which of the forty-plus zones. Compare them on five points. Whether your activity is on the zone's license list, what the package costs, how many visas it includes, whether a physical office is required, and how banks view companies from that zone. The last point is the one founders overlook, and it decides how smoothly the account opening goes later.
Choose the licensed activity with the same care wherever you register. A UAE license covers exactly the activities written on it. Some activities need approval from an external regulator before the license can be issued. For free zone companies the activity also determines whether income counts as qualifying for the 0% rate. We start from what your business will really do, find it on the official activity lists, and only then choose the jurisdiction.
3
Get the approvals and issue the license
This part is administrative, and in the UAE it moves quickly. First the trade name is reserved and checked against the naming rules. Initial approval then confirms the activity and the shareholders. The incorporation documents follow: a memorandum of association for mainland LLCs, notarized digitally, or the zone's standard forms. Once you have premises, a registered lease on the mainland or an office package in a zone, the authority issues the license. Many zones finish the whole sequence in five to ten working days; mainland licenses usually take one to two weeks.
Two things are fixed at this point that founders often notice only later. The size of your premises or package sets how many visas the company can sponsor. And the license must be renewed every year at similar fees, counting from the issue date.
Common pitfallTreating "license issued" as "company operational." The license comes quickly, but the bank account, tax registrations, and visas take several more weeks. If you promise clients or sign leases based on the license date alone, you will usually be three to four weeks early.
4
Register for corporate tax and VAT
Corporate tax registration is mandatory for every UAE company. You register with the Federal Tax Authority through the EmaraTax portal within three months of incorporation, and this includes free zone companies targeting the 0% rate, companies planning to use small business relief, and dormant entities. The penalty for missing the window is AED 10,000, and the FTA enforces it.
This is also where your tax position takes effect. The standard rate is 9% on taxable income above AED 375,000. A company with revenue of AED 3 million or less can elect small business relief, which treats its taxable income as zero, but only for tax periods ending by 31 December 2026. A free zone company pays 0% on qualifying income if it holds Qualifying Free Zone Person status. That status requires real substance in the zone, income within the qualifying categories, non-qualifying revenue below the de minimis line (the lower of 5% of revenue or AED 5 million), audited financial statements, and arm's length pricing with related parties. A company that breaches these conditions loses the status for the current year and the four that follow. VAT runs separately. Registration becomes mandatory at AED 375,000 of taxable supplies, and is voluntary from half that.
5
Open the bank account
Plan the most patience here, because the bank account is the slowest step in a UAE setup. UAE banks review new foreign-owned companies in depth: who the shareholders are and where their funds come from, whether the planned activity matches the license, how the bank views the jurisdiction, and what flows to expect. The same company can wait six weeks at one bank and clear in days at another. Digital providers now open accounts quickly for straightforward profiles, while the traditional banks remain the choice for relationship banking.
What the bank asks for
- Trade license, incorporation documents, and the establishment card
- Passports, Emirates IDs where issued, and proof of address for shareholders and signatories
- Source of funds and the ownership chain to the individuals
- Business plan or activity description with expected flows and counterparties
- Office evidence; substance questions are standard for new structures
6
Set up visas and the employer layer
The establishment card opens the company's immigration file. Residence visas are then issued against the quota your premises allow: usually the founder's investor or partner visa first, then employees, each one passing through entry permit, medical, Emirates ID, and stamping. Golden Visas offer long-term residence at defined investment levels. The right plan depends on who is relocating and who will only visit.
Hiring brings its own registrations: the labor authorities, employment contracts in the prescribed forms, and payroll through the Wage Protection System, which requires salaries to be paid through registered channels on schedule. Lapses bring fines and freezes on new work permits. Mainland companies with fifty or more employees must also meet Emiratisation targets, checked twice a year with substantial penalties per unfilled position, so factor them in if you plan a large onshore team.
Common pitfallDiscovering at the fourth hire that the visa quota is full. The quota was set by the office package you chose in step three. Upgrading premises mid-year to free up more visas costs more than sizing the package to your hiring plan at the start.
7
Activate the company's compliance
The UAE's reputation for light administration is a decade out of date, and a company here now runs a real compliance calendar. The corporate tax return is due within nine months of year end, built on IFRS financial statements and audited where the rules require it; a QFZP is audited regardless of size. VAT returns run on their own cycle where registered. UBO records must stay current, and the license and lease renew every year. Two changes make 2026 the year to take this seriously: a rewritten penalty framework took effect in April, and e-invoicing begins with a pilot in July, with mandates phasing in from 2027 by revenue band. New companies should set up structured invoicing from day one rather than convert later.
What needs to be set up
- The corporate tax cycle: IFRS books from day one, the return within nine months of year end, and the QFZP documentation where the 0% rate is claimed
- Audited financial statements where required: every QFZP, larger companies, and most zones for license renewal
- VAT compliance where registered, on its own filing rhythm
- The annual renewal stack: license, establishment card, lease, and insurance, every year
- UBO and AML records kept current as ownership changes
- E-invoicing readiness: structured invoicing set up now, rather than retrofitted when the mandate arrives
Our UAE accounting service then runs the recurring cycle: bookkeeping under IFRS, the tax filings, audit coordination, and the renewals, handled by the same team that set the company up.
Common pitfallRunning the first year on the old assumption that the UAE doesn't do tax compliance. The first corporate tax filings have come due, the FTA enforces registration and filing penalties, and the free zone 0% is lost precisely by the companies that didn't document it. Set the calendar up in month one, as you would in any other tax jurisdiction.
Map your UAE setup in one call
A free, no-obligation consultation with our Dubai team. You'll come away knowing whether mainland or free zone fits your business, the tax position your structure creates, and a realistic timeline that includes the bank account.
Required documents
Documents required to set up a company in the UAE
Everything the setup needs, split into what you gather and what gets prepared and filed for you. Run through it before kickoff.
Documents you provide
- Passport copiesFor each shareholder, the manager, and visa applicants; UAE entry stamps or visas where already present
- Passport photosRecent, white-background, for the license and visa files
- Proposed trade namesChecked against the naming rules before reservation
- Description of activitiesMapped onto the official activity lists, since the license covers exactly what's listed
- Corporate shareholder documentsCertificate of incorporation, board resolution, and the ownership chain, attested for UAE use
- Proof of address and source of fundsFor the bank's compliance review, prepared once and used everywhere
- The hiring and premises planBecause the office package sets the visa quota
Prepared and filed for you
- Trade name reservation and initial approvalWith the chosen authority, DET or the zone
- Memorandum of associationOr the zone's incorporation forms, drafted and digitally notarized where required
- The license applicationWith external regulator approvals where the activity needs them
- Office arrangementsThe registered lease or zone package, matched to the visa plan
- Establishment card and immigration fileOpening the visa channel
- Corporate tax registrationWith the FTA inside the three-month window
- VAT registrationAt or ahead of the threshold, where it applies
- Bank application packStructured for the right bank the first time
The timeline
UAE company setup timeline
The license is the fast part: days in many zones, one to two weeks on the mainland. The bank account sets the real pace. Plan four to six weeks from kickoff to a fully operational company.
License (DET or free zone authority)
Banking (the bottleneck)
Tax + visas (parallel work)
Common questions
UAE company setup FAQs
Specific questions about setting up a UAE company as a foreign investor.
How long does it actually take to set up a company in the UAE?
The license is fast: many free zones issue in five to ten working days, mainland licenses in one to two weeks. The realistic end-to-end answer is four to six weeks, because the bank account runs two to six weeks depending on the profile and the bank, and the visa cycle takes two to four weeks alongside it. Setups go fastest when the structure and the bank match are decided properly in week one.
How much does it cost?
Zone packages start around AED 6,000 and a typical license layer runs AED 12,000–25,000 once the office package and immigration cards are counted, with mainland costs driven by the lease. Add visa costs per person and the bank's minimum-balance expectations. The license renews annually at comparable fees, so choose the jurisdiction for long-term fit rather than the first-year price. Schedule a call and we'll quote your exact case.
Mainland or free zone: how do I actually decide?
Follow your customers. If you will sell to UAE consumers, businesses, or government, choose a mainland license and its unrestricted market access. If you will run international business from the UAE, choose a free zone, where a qualifying company pays 0% corporate tax. Mixed cases now have middle paths in Dubai through the 2025 permit routes. Either way, start from an honest picture of where your revenue will come from, and let the structure follow it.
Can a free zone company sell into the mainland now?
In Dubai, yes, lawfully and explicitly since Executive Council Resolution No. 11 of 2025: through a DET dual license, a mainland branch, or a temporary activity permit, with separate books kept for the mainland operations. Elsewhere, and for companies without the permits, the traditional answers still apply: a distributor or a mainland entity. The gray zone has ended: companies operating informally on the mainland had until March 2026 to regularize.
Is 100% foreign ownership on the mainland real?
Since the 2021 reform it is. Most commercial and industrial activities allow full foreign ownership of mainland companies, with no local sponsor. The old 51/49 requirement survives only on a strategic-impact list (defense, certain security and resource activities) and in some regulated professions. The free zones never required local ownership at all.
What's the minimum capital?
For most setups, nothing meaningful. Mainland LLCs declare adequate capital without a fixed statutory minimum, and zone requirements range from none to modest fixed amounts, with regulated activities (financial services in DIFC or ADGM, for example) carrying real regulatory capital. What matters more in practice is the substance the bank wants to see behind the declared figure.
Who pays UAE corporate tax, and how much?
Every UAE company is in the system now. The rate is 9% on taxable income above AED 375,000, 0% below it, with registration mandatory for all within three months of incorporation (the late penalty is AED 10,000, actively enforced). Small business relief can zero the position while revenue stays at or under AED 3 million, but only for tax periods ending by 31 December 2026. Large multinational groups additionally face the 15% global minimum top-up. The useful work is designing your position well at setup.
How does the free zone 0% rate actually work?
Through Qualifying Free Zone Person status, which is earned, not granted: adequate substance in the zone, income within the qualifying categories, non-qualifying revenue under the de minimis line (the lower of 5% of revenue or AED 5 million), audited financial statements regardless of size, no election into the mainland regime, and arm's length related-party pricing. Breach the conditions and the status is lost for the current year and the four after it, with income taxed at 9%. QFZP status is a compliance position that has to be designed and documented; it is never automatic.
Why is the bank account the hard part?
Because UAE banks carry heavy AML obligations and review new foreign-owned companies deeply: shareholders and source of funds, the activity's coherence with the license, the jurisdiction's reputation, expected flows and counterparties. The same profile can clear in days at the right bank and stall for six weeks at the wrong one. Matching the company to the bank before applying, and preparing the file the way that bank reads it, is most of the answer.
How do visas work for founders and staff?
The company's establishment card opens the immigration file, and visas are issued against the quota set by your premises: the founder's investor or partner visa typically first, then employees, each through entry permit, medical, Emirates ID, and stamping, in two to four weeks. Long-term Golden Visas exist at defined investment levels. The quota ceiling is set by the office package chosen at licensing, so bring your hiring plan into the setup conversation from the start.
Does my company need an audit?
Increasingly, yes. Every Qualifying Free Zone Person is audited regardless of size, since audited financials are a condition of the 0% rate. Most free zones require audited statements for license renewal, larger companies are audited under the general rules, and the corporate tax return is built on IFRS financial statements either way. Budget for the audit from year one rather than discovering it at renewal.
What changed recently that older guides get wrong?
Three things. Corporate tax is fully real now: registration mandatory for everyone, first filing cycles complete, and a rewritten penalty framework in force from April 2026. Free zone companies can lawfully reach mainland Dubai through the 2025 permit routes, replacing the old hard wall. And e-invoicing has a date: a pilot from July 2026 with mandates phasing from 2027, so new companies should set up structured invoicing from day one. Be careful with older guides that describe a paperwork-free, zero-tax UAE; that description is out of date.
Setting up in the UAE?
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A free, no-obligation consultation. Thirty minutes with our Dubai team to confirm the mainland or free zone answer for your case, the right jurisdiction, and a realistic timeline.