Setting up a company in Dubai involves choosing between three jurisdictions, obtaining a trade licence, and completing a series of company registration steps — the full process takes between 7 and 30 working days depending on your chosen setup.
This guide walks you through every step for both mainland and free zone companies, along with the documents you need, current 2026 costs, and how long each path takes. If you already know your jurisdiction, skip directly to the step-by-step section.
Choose Your Company Structure First
The structure you choose determines your ownership rights, tax treatment, office requirements, and ability to trade in the UAE market. There are three options. Use the table below to identify the right path before reading the steps.
| Feature | Mainland | Free Zone | Offshore |
|---|---|---|---|
| Foreign Ownership | 100% (most activities) | 100% | 100% |
| Trade in UAE Market | Yes — unrestricted | Needs local distributor | No — international only |
| Physical Office | Required — min 200 sq ft | Flexi-desk available | Not required |
| UAE Residence Visa | Yes | Yes — quota-based | No |
| Corporate Tax | 9% on profits above AED 375,000 | 0% if QFZP-qualified | 0% |
| Best For | UAE market access, government contracts | Foreign investors, tax efficiency | Holding, asset protection, international trade |
QFZP = Qualifying Free Zone Person status under UAE Corporate Tax Law. Free zone companies must meet specific conditions to retain the 0% rate. Consult a UAE tax advisor to confirm eligibility.
Important: Since the 2021 amendment to the UAE Commercial Companies Law, 100% foreign ownership is permitted for most mainland business activities. The old requirement for a 51% Emirati partner has been removed for the majority of sectors. Some regulated activities — such as certain legal, security, and defence-related services — still require an Emirati partner.
How to Set Up a Company in Dubai — Step by Step
Starting a business in Dubai is not a one-size-fits-all process. Your setup journey will vary depending on whether you choose a Mainland or Free Zone company, as each option comes with its own procedures, requirements, and governing authority.
Mainland Company Setup
1. Determine your business activity.
Your business activity defines your licence type and any additional government approvals required. Use the DET (Department of Economy and Tourism) business activity search tool on investindubai.gov.ae to find the correct activity code for your business.
2. Choose your legal structure
Most foreign investors form a Limited Liability Company (LLC). A Sole Establishment is available for single-owner professional service businesses where the owner is personally liable.
3. Reserve your trade name with DET
Submit three name options through the DET online portal. The fee is AED 620–720. Names cannot reference religion, political groups, or well-known brands without written authorisation. Abbreviations of personal names are not permitted.
4. Obtain initial approval from DET
Initial approval confirms the government has no objection to your proposed activity and structure. This approval is required before any subsequent steps can proceed.
5. Draft and notarise your Memorandum of Association (MOA)
The MOA defines ownership percentages, roles, capital contribution, and scope of business. It must be prepared by a licensed legal firm and notarised by a UAE notary. Avyanco’s legal team can draft this on your behalf.
6. Lease a physical office and register your Ejari.
A minimum of approximately 200 square feet of physical office space is mandatory for mainland companies. Virtual offices are not accepted. Your tenancy contract must be registered on the Ejari system before licence issuance.
7. Submit documents and receive your trade licence
Submit your complete document package to DET — including initial approval, MOA, and Ejari. Your trade licence is issued upon approval. The full process from initial application typically takes 2–4 weeks.
8. Open a corporate bank account.
Your trade licence, Ejari registration, MOA, and passport copies are required to open a business bank account. Banks typically take 2–6 weeks to complete due diligence and activate the account.
9. Apply for your investor residence visa.
Apply through the General Directorate of Residency and Foreigners Affairs (GDRFA). The process includes a medical fitness test and Emirates ID biometrics. Processing takes approximately 2–3 weeks.
10. Register for corporate tax and VAT
Corporate tax registration must be completed within three months of your company’s incorporation date. VAT registration is required if your annual taxable revenue exceeds AED 375,000. Both are registered through the UAE Federal Tax Authority (tax.gov.ae).
Free Zone Company Setup
1. Select your free zone
Dubai has over 30 free zones, each designed around specific industries. Match your business activity to the right zone — use the free zone selector table in the next section. The right zone affects your cost, visa quota, and bank account options.
2. Choose your legal structure
Free Zone Establishment (FZE) is for a single shareholder. Free Zone LLC (FZ-LLC) is for two or more shareholders. Both allow 100% foreign ownership with no local sponsor required.
3. Submit your application to the free zone authority
Submit passport copies, proposed trade name, and a business plan (required by some zones). Initial approval is typically granted within 1–3 working days.
4. Choose your office type
Options include a flexi-desk, shared office, or private office. Your office type determines your visa allocation. A flexi-desk typically allows 1–3 visas; a private office allows more.
5. Pay fees and receive your licence
Once your application is approved and fees paid, your free zone trade licence is issued. This typically takes 7–15 working days from the date of complete document submission.
6. Open a corporate bank account
Your free zone licence and lease agreement are the primary documents required. Some banks have stronger relationships with specific free zones — Avyanco advises on the best bank match for your zone.
7. Apply for your residence visa
Visa processing is handled through your free zone authority rather than GDRFA. Processing time is approximately 2–3 weeks and includes a medical test and Emirates ID registration.
Documents Required to Set Up a Company in Dubai
Prepare these documents before starting the process to avoid delays. Requirements can vary slightly by free zone authority and business activity.
Mainland Company
- Passport copies of all shareholders and the general manager
- Passport-sized photographs
- Initial approval certificate from DET
- Notarised Memorandum of Association (MOA)
- Office lease agreement with Ejari registration
- No Objection Certificate (NOC) — required if the applicant is a UAE resident on an existing visa
Free Zone Company
- Passport copies of all shareholders
- Passport-sized photographs
- Completed free zone application form
- Business plan (required by some zones, optional for others)
- Proof of residential address
At the start of every engagement, we provides a customised document checklist based on your selected jurisdiction and business activity. Consulting with an expert before preparing your paperwork helps ensure you collect only the required documents and avoid unnecessary delays or extra preparation.
Cost of Setting Up a Company in Dubai (2026)
Total setup costs depend on your jurisdiction, the number of visas required, your office type, and your business activity. The figures below are current estimates for 2026.
| Setup Type | Licence Cost (AED) | Approx. USD | Notes |
|---|---|---|---|
| Free Zone — no visa | From AED 14,900 | ~USD 4,060 | Entry level, flexi-desk, no visa quota |
| Free Zone — with 1 visa | From AED 23,000 | ~USD 6,260 | Most common choice for solo founders |
| Mainland LLC | AED 15,000–30,000+ | USD 4,080–8,170+ | Excludes office lease; varies by activity |
| Offshore | From AED 12,000 | ~USD 3,270 | No UAE operations; no visa; incorporation only |
| Annual Renewal | ~70–80% of Year 1 | — | Budget for this from the start |
These are indicative costs and an idea given to you for a overview of How much does it Cost to Start a Company in Dubai. The final figure depends on your free zone or jurisdiction, specific business activity, number of shareholders, and visa requirements. For a precise quote tailored to your business, contact Avyanco for a free cost assessment or use our business setup cost calculator.
How Long Does It Take to Set Up a Company in Dubai?
Setting up a company in Dubai takes between 7 and 30 working days, depending on your chosen jurisdiction and how quickly your documents are prepared.
| Jurisdiction | Licence Issued | Visa Processing | Total Estimate |
|---|---|---|---|
| Free Zone | 7–15 working days | 2–3 weeks | 3–5 weeks total |
| Mainland | 2–4 weeks | 2–3 weeks | 4–7 weeks total |
| Offshore | 3–5 working days | Not applicable | Under 1 week |
Timelines assume complete, error-free document submission. Missing documents, additional government approvals for regulated activities, or bank due diligence periods can extend these estimates.
Which Free Zone Is Right for Your Business?
Each of Dubai’s 30+ free zones is designed around specific industry sectors. Choosing the wrong free zone can affect your banking options, visa quota, and long-term costs. Use this table to match your business type to the right zone.
| Business Type | Recommended Free Zone |
|---|---|
| Technology / Software / AI | DIFC or Dubai Internet City (DIC) |
| Trading / Commodities / Crypto | DMCC (Dubai Multi Commodities Centre) |
| Media / Advertising / PR | Dubai Media City (DMC) |
| Logistics / Freight / Supply Chain | JAFZA (Jebel Ali Free Zone) |
| Finance / FinTech / Asset Management | DIFC (Dubai International Financial Centre) |
| Healthcare / Pharma / Medical | Dubai Healthcare City (DHCC) |
| E-commerce / Retail | DMCC or Dubai CommerCity |
| Startups / SMEs / Low Budget | IFZA, SHAMS, or Meydan Free Zone |
| Holding / Asset Protection / Offshore | JAFZA Offshore or RAK ICC (outside Dubai but widely used) |
This table covers the most common matches. Some free zones accept a wide range of activities. If your business straddles multiple categories, Avyanco will assess which zone gives you the best combination of cost, visa quota, and banking access.
Read Also – List of Free Zones in Dubai
Set Up a Company in Dubai FAQs
Yes. Since the 2021 amendment to the UAE Commercial Companies Law, 100% foreign ownership is permitted for most mainland business activities and all free zone companies. A UAE national partner is no longer required for the majority of sectors. A small number of regulated activities — including certain legal, media, and defence-related services — remain subject to Emirati ownership requirements.
Free zone company formation can largely be handled remotely — documents can be submitted digitally or by courier through a registered agent. However, mainland setup and visa processing require a physical visit to Dubai for biometric registration and the mandatory medical fitness test.
Most free zone and mainland companies have no mandatory minimum share capital. Capital requirements exist on paper in company documents but do not need to be deposited. Note that banks may require a minimum account balance of AED 10,000–50,000 depending on the institution when opening a corporate account.
Yes. You can incorporate a free zone or offshore company as a non-resident of the UAE. If you want to obtain a UAE residence visa linked to your company, you will need to complete visa processing in person in Dubai, which includes a medical test and Emirates ID biometrics.
Set Up Your Dubai Company with Avyanco
The right structure for your business depends on whether you need direct access to the UAE market, full tax efficiency, or a clean offshore holding vehicle. Once that decision is made, the steps are straightforward — and the timeline is shorter than most people expect.
Avyanco’s consultants handle the entire process — from jurisdiction selection and trade licence application to bank account opening and visa processing. Book a free 30-minute consultation and we will confirm the right structure for your business within 24 hours [link to contact/booking page].
For a broader overview of starting a business in Dubai, including market entry strategy and industry-specific considerations, read our complete guide: How to Start a Business in Dubai.
