Starting a business in Dubai has never been more straightforward, but knowing where to begin can feel overwhelming. The UAE was just named the best country for entrepreneurs for the fourth consecutive year in the  2024/25 Global Entrepreneurship Monitor report.

This recognition highlights what many business owners already know: Dubai offers world-leading support for startups and SMEs. With its prime location connecting major markets, business-friendly policies, and top-tier infrastructure, the city has something for every type of venture.

Business-Setup-in-Dubai

Whether you’re a solo entrepreneur with a fresh idea or representing an established company looking to expand, understanding the company formation process.

Types of Company Formation in the UAE

There are three options available for company formation in the UAE, each with its own set of rules and benefits tailored to different business needs:
Mainland Company

Mainland Company Formation in Dubai

A mainland company is licensed by DED and allows unrestricted business operations throughout the UAE and internationally.

  • Market Access: Trade freely in UAE.
  • Visa Flexibility: Unlimited visas per office.
  • Office Choice: Anywhere in Dubai.
  • Ownership: 100% foreign (some exceptions).

Free Zone Company

Free Zone Company Formation in Dubai

Free zone companies offer 100% foreign ownership with tax exemptions and simplified setup within designated zones.

  • Ownership: 100% foreign, no local partner.
  • Tax Benefits: No corporate tax, VAT, or duties.
  • Easy Setup: Fast, remote registration.
  • Industry Support: Specialized facilities.
Offshore Company

Offshore Company Formation in Dubai

Offshore companies are designed for international business with tax advantages while being restricted from UAE mainland operations.

  • Ownership: 100% foreign with full control.
  • Tax Savings: No corporate tax or VAT.
  • Privacy: High confidentiality.
  • Low Cost: No office, minimal expenses.

Choose the Right Package for Your Company Formation

UAE Freezone

(ZERO VISA)

AED5,750*
Get Offer Now

Best for E-commerce

  • All Basic Features*
  • 100% Foreign Ownership
  • Up to 5 Business Activities
  • Up to 5 Shareholders
  • Business License
  • Lease Agreement

DUBAI Freezone

(ZERO VISA)

AED12,900*
Get Offer Now

Best for Entrepreneurs

  • All Basic Features*
  • 100% Foreign Ownership
  • Up to 3 Business Activities
  • Business License
  • 100% Profit Repatriation
  • Lease Agreement

Dubai Mainland

(ONE VISA)

AED18,500*
Get Offer Now

Best for SME

  • All Basic Features*
  • 100% Foreign Ownership
  • 1 Investor Visa
  • Commercial/ Service License
  • Up to 3 Employee Visa Quota
  • Virtual Office (Ejari)

Dubai Freezone

(ONE VISA For Life)

AED16900*
Get Offer Now

Best Overall

  • All Basic Features*
  • 1 Lifetime Visa Included
  • 100% Foreign Ownership
  • Selective Business Activity
  • Free Bank Account Consultation
  • Business License

Free Business & Bank Account Consultation, Free Tax & VAT Consultation, MoA and a Dedicated Account Manager is Included!

Step-by-Step Company Formation Process

The exact steps to start your company depend on which type you choose. Here’s what to expect for each option:
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Select Business Activity & Jurisdiction

Identify your business activity and decide whether to set up in Mainland, Free Zone, or Offshore. This influences your licensing requirements and operational scope.

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Reserve Trade Name & Obtain Initial Approval

Choose a compliant, unique company name and secure initial approval from the relevant authority (DED or free zone authority).

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Submit Application & Business Plan

Prepare and submit the required documents along with a business plan detailing your activities and ownership.

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Provide Legal Documents

Submit shareholder passports, proof of address, MOA (for mainland), and any other regulatory paperwork as requested.

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Select Office & Sign Lease

Choose the office space required by your jurisdiction—flexi-desk, private office, or warehouse—and complete the lease agreement.

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Make Initial Payments

Pay licensing, registration, and sponsor fees to start your application processing.

7

Complete Final Agreements

Finalize shareholder agreements, LLC contracts, or any additional zone authority paperwork.

8

Receive Trade License

Upon approval and payment, the trade license is issued—your business is now legally registered and ready to operate.

9

Open Corporate Bank Account

Use your company documents and trade license to open a business bank account with your chosen UAE bank.

10

Settle Remaining Payments

Pay fees for visas, establishment card, and any chamber memberships needed.

11

Apply for Visas & Establishment Card

Apply for owner and employee visas and secure your company’s establishment card.

Want to Start a Company in Dubai?  We are here to help!

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Benefits of Setting Up a Business in the UAE

Strategic Location`

Tax Advantages

World-Class Infrastructure

Full Ownership

Access to Skilled Workforce

Fast Setup

Low Costs

Global Connectivity

Stable Environment

Quick Comparison: Which Option Fits Your Business?

Choosing the right structure to conduct business in Dubai depends on your specific needs, budget, and long-term goals.

Feature Mainland Free Zone Offshore
Market Access Full UAE mainland & international Mainland via permits; export/import International only
Ownership Up to 100% foreign 100% foreign 100% foreign
Setup Cost AED 25,000 – 50,000 AED 13,000 – 50,000 AED 11,500 – 19,000
Office Requirement Physical office required Flexi-desk or office No office required
Tax Benefits Standard corporate tax & VAT 15–50 yrs tax exemption; VAT applies Tax & VAT exempt
Business Activities Trading, services, contracting Zone-specific (trading, services, etc.) Holding, asset/IP management
Setup Time 1–3 weeks 3–7 days 3–7 days

Required Documents for Company Formation in Dubai, UAE

Document Type Individual Shareholder Corporate / Foreign Branch
Passport copy ✓ (Shareholder) ✓ (Authorized Rep / Branch Manager)
UAE visa copy / latest entry stamp ✓ (if applicable) ✗
Emirates ID copy (for UAE residents) ✓ ✗
Passport-size photographs ✓ ✗
Proof of residential address ✓ (Utility bill / Tenancy) ✗
Proposed trade name & activity description ✓ ✓
No Objection Certificate (NOC) ✓ (if on employment visa) ✗
Certificate of Incorporation ✗ ✓
MOA & AOA ✗ ✓
Board Resolution ✗ ✓
Passport copies of authorized rep ✗ ✓ (Representative / Branch Manager)
Power of Attorney (POA) ✗ ✓ (Representative)
Trade License copy of parent company ✗ ✓ (if applicable)
Certificate of Good Standing ✗ ✓
Financial statements of parent company ✗ ✓ (sometimes required)

Types of Companies Available in Dubai

LLC Company Formation

The most popular business structure, allowing up to 100% foreign ownership in some sectors with limited liability protection.
Read More

Sole Establishment

A business owned by one person with complete control but unlimited liability, making them fully responsible for all debts.
Read More

Free Zone Company (FZC)

A company setup allowing 100% foreign ownership within UAE free zones, offering flexible office options and tax advantages.
Read More

Representative Office

A foreign company’s entity used only for marketing and promotion in the UAE, without engaging in commercial activities.
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Foreign Branch

An extension of a foreign company in Dubai that requires a local service agent and is permitted to conduct business.
Read More

Offshore Company

Registered in jurisdictions like JAFZA or RAK ICC, suitable for asset holding, property ownership, and international trade activities.
Read More

Civil Company Dubai

A professional structure for doctors, lawyers, and consultants, allowing multiple partners to collaborate and share liability.
Read More

Types of Licenses for Company Formation in Dubai, UAE

  • Commercial License

    Required for trading, import/export, and retail activities. Ideal for goods distribution in Dubai and beyond. Setup cost: AED 12,000–30,000.

  • Professional License

    For service-based businesses such as consultancy, healthcare, IT, and education. Allows 100% foreign ownership. Setup cost: AED 10,000–25,000.

  • Industrial License

    For manufacturing, processing, or large-scale production. Enables factory operations. Setup cost: AED 25,000–40,000; large operations often declare AED 250,000+ capital.

  • Tourism License

    Essential for travel agencies, tour operators, and hospitality providers. Includes DTA approvals and bank guarantees. Setup cost: AED 15,000–35,000.

  • Freelance Permit

    For independent professionals in media, design, technology, and consultancy under Dubai Free Zones. Setup cost: AED 7,500–15,000.

  • E-commerce License

    For online stores and digital trading. E-Trader variant available for residents. Setup cost: AED 5,750–20,000 (from AED 1,070 for E-Trader).

  • Branch Office License

    Enables foreign parent companies to operate in Dubai with full ownership. Setup cost: AED 10,000–50,000 per year; requires local service agent.

  • Representative Office License

    Allows foreign companies to market and promote in Dubai without commercial sales. Setup cost: AED 15,000–25,000; includes AED 50,000 refundable bank guarantee.

Quick License Selection Guide

What does your company setup actually do?

  • Sell products or goods → Commercial License
  • Provide professional services → Professional License
  • Make or manufacture products → Industrial License
  • Travel and tourism services → Tourism License
  • Farming or agriculture → Agricultural License
  • Skilled trades and crafts → Crafts License

Are you a foreign company?

  • Want to do full business in UAE → Branch Office License
  • Just want UAE presence for now → Representative Office License
Rizmona Consultancy 15 Years Experience

Company Formation Consultants in Dubai

How Riz & Mona Consultancy Can Help?

Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.

We are here to provide comprehensive support for your Company Formation, from preparing your documents to completing the process. Connect us now to begin your journey with a FREE consultation!

10000 Happy Clients Rizmona

FAQs (Frequently Asked Questions)

How can I determine the best location for my business in Dubai?

Consider the nature of your business, target market, cost implications, and benefits specific to Free Zones, Mainland, or Offshore jurisdictions.
Yes, 100% foreign ownership is allowed for most activities when you set up a business in Dubai and the UAE, including mainland, free zones, and offshore companies. Some strategic sectors may still require local participation.
No, UAE residency is not required initially for company incorporation. You can obtain residency through an investor visa after your company in the UAE is established.
Yes, you can begin the process of business setup in Dubai remotely, especially for free zones and offshore. However, opening a corporate bank account usually requires an in-person visit.
Mainland/Free zone: 7-14 working days Offshore: 2-7 business days Regulated sectors may take longer
Mainland: Anywhere in UAE and internationally Free zone: Within their zone and overseas; need distributor for UAE mainland sales Offshore: International only, cannot do business in UAE
A mandatory card required for sponsoring UAE visas for partners, investors, and employees in your company in the UAE.
Based on office size and activity. Mainland typically allows 1 visa per 8-10 sqm of office space. Free zone packages usually include at least one visa.
All companies must renew licenses annually, pay renewal fees, maintain office contracts, and file required reports. Costs typically match initial license fees.
VAT: Required if annual turnover exceeds AED 375,000 (5% rate) Corporate tax: 9% on taxable profits above AED 375,000 (as of 2025) Offshore: Generally exempt but may have reporting requirements
Choosing wrong jurisdiction for your company formation in the UAE goals Incomplete or improperly prepared documents for company incorporation Underestimating total costs when you set up a business in the UAE Misunderstanding trading restrictions between free zones and mainland Not planning for visa quotas and sponsorship needs