How to Set Up a Company in Dubai?

How to Set Up a Company in Dubai? The Honest Version

If you're working out how to set up a company in Dubai, the first call isn't your trade name or your logo. It's jurisdiction. Mainland, free zone, or offshore — pick wrong and you'll spend the next year unwinding it.

Quick answer

Company formation in Dubai UAE takes 2 to 6 weeks and costs roughly AED 15,000 to AED 50,000 in year-one government fees, depending on jurisdiction and activity. You'll choose between mainland (licensed by the Dubai Department of Economy and Tourism, or DET), a free zone like DMCC or IFZA, or DIFC for regulated financial activity. Mainland gives you the full UAE market and government contracts. Free zones give you 100% foreign ownership with simpler setup but trading restrictions onshore. DIFC operates under its own common-law system.

Mainland vs free zone — the choice that actually matters

Most clients shop on price. Don't.

Mainland (DET) lets you contract with anyone in the UAE, bid on government tenders, and open a shop on Sheikh Zayed Road. Since Federal Decree-Law No. 32 of 2021 on Commercial Companies, you can own 100% of most mainland LLCs without a local partner — the old 51/49 rule is gone for the activities listed in Cabinet Resolution No. 55 of 2021. A handful of "strategic impact" activities still need Emirati ownership. Check the list before you assume.

Free zones — DMCC in JLT, IFZA in Dubai Silicon Oasis, Meydan, DAFZA near the airport — give you 100% ownership, a faster license, and a flat-fee package. The catch: you can't sell directly to the UAE mainland market without a distributor or a dual license. If your customers are abroad or B2B inside the free zone, fine. If you're opening a café in Jumeirah, it isn't.

DIFC and ADGM are different animals. They're financial free zones with English common law, their own courts, and regulators (DFSA in DIFC — the Dubai Financial Services Authority). You go there if you're doing asset management, fintech, or running a holding structure that needs common-law contracts. Setup runs USD 8,000 to USD 25,000 plus annual fees, and the Companies Law there is DIFC Law No. 5 of 2018.

Pick the jurisdiction that matches where your money actually comes from.

How to start a company in Dubai: the actual steps and timeline

Company formation in Dubai UAE follows roughly the same sequence everywhere, but the form numbers and portals differ.

1. Activity selection. DET publishes around 2,000 licensed activities. Free zones have their own lists. Pick codes that match what you'll really do — listing extras "just in case" inflates your license fee and can trigger external approvals you don't need.

1. Trade name reservation. AED 620 to AED 1,000 at DET. Avoid religious references, ruler names, and abbreviations.

1. Initial approval. Usually 2 to 5 working days.

1. MOA and lease. Mainland LLCs need a notarised Memorandum of Association and an Ejari-registered tenancy contract (Ejari is the Dubai rental registration system run by RERA, the Real Estate Regulatory Agency). Free zones use a standard MOA template and provide a flexi-desk that satisfies the address requirement.

1. License issuance. Once fees are paid, the license is issued. Mainland: 1 to 2 weeks total in a clean file. Free zones: 3 to 10 working days.

1. Establishment card and visas. You then open a file with the GDRFA (General Directorate of Residency and Foreigners Affairs) for immigration and with MOHRE (the Ministry of Human Resources and Emiratisation) for mainland labour files. Free zones handle immigration through their own one-stop shops.

1. Corporate bank account. Honestly, this is where timelines die. Banks now run heavy compliance on UBOs (ultimate beneficial owners), source of funds, and business substance. Budget 4 to 8 weeks. Have a clean business plan, supplier and customer invoices, and a UAE residence visa ready.

Costs to expect (2024): Mainland LLC year-one: AED 15,000–30,000 license + AED 12,000–25,000 office rent + AED 3,000–6,000 per visa. Free zone packages: AED 12,500–35,000 all-in for 1-3 visas. DIFC: from USD 8,000 license + USD 12,000+ office.

How do I register a company in Dubai as a foreigner?

Short version: the same way a resident does, with one extra moving part — your visa.

You don't need to be in the UAE to start company formation in Dubai UAE. You can sign incorporation documents at a UAE embassy or via Power of Attorney legalised in your home country (apostille plus MOFAIC attestation if your country is on the Apostille Convention; full consular legalisation if not). For a free zone, most portals accept e-signatures and a notarised passport copy.

Once the license is issued, you apply for an establishment card, then a 2-year investor or partner visa, then Emirates ID and medical. That sequence — license → establishment card → entry permit → status change → medical → Emirates ID → residence stamp — usually runs 3 to 6 weeks if you're already in Dubai on a visit visa. Add 2 weeks if you're applying from abroad.

The bank account almost always wants the Emirates ID in hand. Plan accordingly.

Should you use business set up companies in Dubai?

There's a whole industry of company formation companies in Dubai — corporate service providers, free zone resellers, "PRO" agents. Some are excellent. Many are commission-driven salespeople pointing you at whichever free zone pays them the highest kickback that month.

What they're good at: filling forms, queuing at counters, bundling visa medicals, getting you a flexi-desk by Thursday.

What they're not: lawyers. They don't draft shareholders' agreements. They don't advise on whether your "qualifying income" survives the free zone 0% test. They don't tell you that your proposed activity needs DHA, KHDA, or Central Bank approval before DET will touch the file.

Use a corporate service provider for execution. Use a lawyer for structure. If someone tells you they do both for AED 5,000, ask which one they're cutting corners on.

The compliance layer most founders ignore

Getting the license is the front end. The ongoing obligations are where people get stung.

Corporate tax. Federal Decree-Law No. 47 of 2022 brought UAE corporate tax in at 9% on profits above AED 375,000, effective for financial years starting on or after 1 June 2023. Free zone companies can still qualify for a 0% rate on "qualifying income" if they meet the substance and qualifying-activity tests in Cabinet Decision No. 100 of 2023. You must register with the Federal Tax Authority regardless — even at 0%.

VAT. Mandatory registration once taxable supplies cross AED 375,000 in 12 months. Voluntary from AED 187,500.

UBO and ESR. You must file ultimate beneficial owner data and, if your activity is in scope, an Economic Substance Report. Penalties for missing these start at AED 50,000.

WPS. If you hire staff on a