How Company Formation Works in Dubai, Step by Step

Forming a company in Dubai follows a fixed order. You can't open a bank account before you have a licence, or sponsor a visa before the company has an immigration file. Once you know the order, the process is much easier to plan.

The steps are broadly the same for mainland and free zone companies. What changes is the authority and some of the paperwork. This guide explains each step and where files usually get stuck.

If you are still choosing between mainland, free zone and offshore, or comparing costs, start with our guide to business setup in Dubai. This article covers the process only.

The Process at a Glance

1. Choose your business activity and licensing authority
2. Reserve a trade name
3. Get initial approval
4. Prepare and sign the company documents
5. Arrange an office or flexi-desk
6. Pay the fees and receive the trade licence
7. Open the immigration file and apply for visas
8. Register for tax and open a bank account

Step 1: Choose Your Activity and Licensing Authority

Every licence lists the activities your company may carry out, so this decision shapes everything else. Mainland companies are licensed by the Department of Economy and Tourism (DET). Free zone companies are licensed by the authority of the free zone they join, and each zone has its own list of permitted activities.

Some activities need an extra approval from a sector regulator, for example in healthcare, education, food or financial services. Check this first, because outside approvals are the most common reason a timeline stretches.

Step 2: Reserve a Trade Name

Your trade name must be unique and must follow the authority's naming rules. Names cannot include offensive words, references to religion or the names of government bodies. They must also end with the correct legal form, such as LLC, FZ-LLC or FZE.

A person's name can usually be used only if that person is a shareholder. Keep two or three options ready in case your first choice is taken.

Step 3: Get Initial Approval

Initial approval means the authority has no objection to your company, its activity and its shareholders. It does not allow you to trade yet. You submit passport copies for every shareholder and manager, and some authorities run background checks first.

Step 4: Prepare and Sign the Company Documents

The Memorandum of Association (MOA) sets out who owns the company, how it is managed and how profits are shared. For a mainland LLC, the MOA is prepared in Arabic, or in Arabic and English, and must be notarised. Free zones usually provide a standard template that you sign through their portal or in front of their officials.

If one of your shareholders is a company rather than a person, expect extra documents: a board resolution, the certificate of incorporation and a good standing certificate. These usually need to be attested in the home country and then in the UAE. This attestation step causes more delays than any other part of the process.

Step 5: Arrange an Office or Flexi-Desk

A mainland company generally needs a physical office with a lease registered on Ejari. Some licence types, such as DET's instant licence, allow a virtual address for the first year only. Free zones offer flexi-desks, shared offices and private offices. The type of space you choose often decides how many visas your company can sponsor.

Step 6: Pay the Fees and Receive the Trade Licence

Once your documents and lease are accepted, you pay the fees and the licence is issued. The company legally exists from this date, and tax deadlines count from it.

Step 7: Open the Immigration File and Apply for Visas

Before the company can sponsor anyone, it needs an establishment card, which registers it with the immigration authorities. After that, each visa follows the same path: an entry permit, a medical test, Emirates ID biometrics and then the residence visa. Shareholders usually apply for an investor visa, and employees for an employment visa.

Step 8: Register for Tax and Open a Bank Account

Under Federal Tax Authority Decision No. 3 of 2024, a company incorporated on or after 1 March 2024 must apply for Corporate Tax registration within three months of its incorporation date. This applies even if the company has not earned anything yet. VAT registration becomes mandatory once taxable supplies pass AED 375,000 in a 12-month period, and voluntary registration is possible from AED 187,500.

The company must also keep a record of its ultimate beneficial owners and file it with the registrar.

For the bank account, banks typically ask for the licence, MOA, lease, shareholder passports and visas, a short business plan and proof of the source of funds. This is often the slowest part of the journey, so a complete, consistent file matters.

How Long Does Company Formation Take?

The timeline depends more on your documents than on the authority. A simple free zone company with ready paperwork can have its licence within days. A mainland company that needs a sector approval, or has a corporate shareholder, can take several weeks. Visas and the bank account add time on top, so plan your launch around the bank account, not the licence.

How The Steps Differ: Mainland vs Free Zone

Can You Form a Company Without Being in Dubai?

Most early steps can be done remotely, online or through a power of attorney, and many free zones run the whole licensing process online.

You will usually need to be in the UAE for the visa medical test and Emirates ID biometrics. Banks also often ask to meet the signatories in person.

Common Delays And How to Avoid Them

• Activity mismatch: an activity that doesn't match what you plan to do leads to amendments later. Describe your business clearly at the start.
• Unattested documents: start attesting corporate shareholder documents early, because this can take weeks.
• Wrong office type: check that your office or lease supports the number of visas you need.
• Bank questions: keep your business plan, client contracts and source of funds ready before you apply.

How Avyanco Handles a Formation File

Avyanco is a corporate service provider licensed by Dubai's Department of Economy and Tourism (licence no. 909402), with its office on Sheikh Zayed Road. Our team works through the same eight steps described above for each company we form.

In practice, most of our time goes into the parts that cause delays. We check the activity wording against the authority's list before the name is reserved. We review shareholder documents early, so attestation starts before it can hold up the MOA. We also prepare the bank file alongside the licence rather than after it. Once the licence is issued, we track the Corporate Tax registration deadline from the incorporation date.

If you have a question about a step in this guide, our advisors can walk you through how it applies to your case.