How to Set Up a Company in Dubai: A 2024 Practical Guide

If you're planning to set up a company in Dubai this year, you've probably already drowned in conflicting advice from free-zone sales reps, YouTubers, and that one friend who "knows a guy." Let me cut through it. Dubai has roughly 30 licensing authorities, three legal jurisdictions (mainland, free zone, offshore), and pricing that swings from AED 5,750 to AED 50,000+ depending on what you actually need.

Quick answer

To set up a company in Dubai, pick your jurisdiction first (mainland under the Department of Economy and Tourism, a free zone like IFZA or DMCC, or offshore through JAFZA), then reserve a trade name, get initial approval, sign the Memorandum of Association, secure a lease or flexi-desk, and pay for the license. Mainland LLCs allow 100% foreign ownership for most activities since Federal Decree-Law No. 26 of 2020. Realistic timeline: 5 to 15 working days. Realistic total cost: AED 12,000–35,000 for year one, depending on visa needs.

Pick your jurisdiction — this decides everything else

The single most expensive mistake I see clients make is choosing a jurisdiction because someone sold them a "cheap package." The license fee is rarely the real cost. The real cost is whether your structure actually fits what you want to do.

Mainland (DET license). This is what you want if you'll trade with the local UAE market, sign government contracts, or open multiple branches across the Emirates. Since Cabinet Decision No. 16 of 2020 amended the Commercial Companies Law, 100% foreign ownership is available for over 1,000 commercial and industrial activities. Professional licenses (consultancy, legal services, certain medical) still need a Local Service Agent in some cases — that's a paid nominee, not a shareholder.

Free zone. Roughly 45 of them. Each has its own register and its own quirks. DMCC is strong for commodities and crypto. DIFC and ADGM are common-law financial centres with their own courts and the DIFC Companies Law (DIFC Law No. 5 of 2018) — totally separate from mainland UAE corporate law. IFZA, Meydan, and SHAMS sit at the cheaper end. The trade-off: free-zone companies can't directly invoice mainland UAE customers without a distributor or branch, with limited exceptions.

Offshore (JAFZA, RAK ICC). No physical presence in the UAE, no residence visas, used mainly for holding structures and asset protection. Honestly, most operating businesses don't need this.

If you're unsure, default to mainland unless you have a specific reason not to. Free zones are sold hard because the agents earn commission. That's not legal advice — that's just what the math looks like.

What you actually need to register

Once you've picked jurisdiction, the document list is fairly standardized:

• Passport copies of all shareholders and managers
• Emirates ID (if you're already resident) or entry stamp
• Proposed trade name (three options — names with "Dubai," "Emirates," or "International" cost extra)
• Business activity selection from the official activity list
• Memorandum of Association (notarized for mainland LLCs at Dubai Courts or a private notary)
• No Objection Certificate from current UAE sponsor if you're on an employment visa
• Office lease registered with Ejari (mainland), or free-zone flexi-desk agreement

The trade name reservation costs around AED 620 at DET and lasts six months. The initial approval certificate is another AED 235. These are nominal — the big numbers come later.

One thing most clients get wrong: your business activities on the license aren't decorative. You can only do what's listed. Add "management consultancy" if you might pivot to consulting later — adding activities post-incorporation costs more than including them upfront.

Watch out: Some "general trading" licenses sound broad but exclude regulated activities — financial services, healthcare, education, food, anything touching gold or crypto. Those need separate approvals from the Central Bank, DHA, KHDA, Dubai Municipality, or VARA. Adding the wrong activity and discovering later you need a regulator sign-off costs months.

Costs, in real numbers (2024)

Here's what year one actually looks like. I'm giving ranges because every authority publishes its own fees and they shift annually.

Mainland LLC (DET):

• License fee: AED 12,000–15,000
• Trade name + initial approval: ~AED 855
• MoA notarization: AED 1,500–3,000 depending on capital
• Ejari office registration: AED 220 + your actual rent
• Chamber of Commerce: AED 1,200
• Establishment card (immigration): AED 2,000
• Total realistic year-one: AED 18,000–25,000 plus rent

Free zone (e.g., IFZA, Meydan, SHAMS):

• Package licenses: AED 12,500–22,000 with flexi-desk
• DMCC, DIFC, ADGM: AED 25,000–60,000+
• Visa quota costs extra per visa (AED 3,500–6,500 per residence visa)

DIFC or ADGM specifically. These run on US dollar pricing. A Non-Financial Private Company in DIFC currently costs USD 100 for incorporation plus USD 12,000 commercial license, and ADGM's SPV regime starts around USD 1,350 — both jurisdictions are governed by their own common-law frameworks and supervised by the DFSA (DIFC Financial Services Authority) or FSRA in ADGM respectively, where the activity is financial.

You'll also need corporate bank approval — and that's where timelines bleed. UAE banks have tightened compliance considerably. Expect 4–8 weeks for an account, sometimes longer if shareholders aren't UAE-resident. Some clients open with Wio or Mashreq NeoBiz for quicker initial accounts, then layer in tier-1 banks later.

Visas, tax, and the bits no one mentions in the sales call

A trade license alone is not a residence visa. Once your license is issued, you apply separately for an establishment card, then investor or partner visas (around AED 6,000–7,500 all-in per person, including medical and Emirates ID).

Corporate tax. Since 1 June 2023, the UAE has a 9% corporate tax on profits above AED 375,000, under Federal Decree-Law No. 47 of 2022. Yes, that includes most free zones — the "Qualifying Free Zone Person" 0% rate has narrow conditions, and most service businesses won't qualify. Don't let an agent tell you free zones are tax-free in 2024. They're not, generally speaking.

VAT. 5% if your taxable supplies exceed AED 375,000 annually (mandatory) or AED 187,500 (voluntary). Federal Tax Authority registration is online and free.

Economic Substance, UBO, AML. Every company files annual Ultimate Beneficial Owner declarations. Certain activities (holding, IP, finance) trigger Economic Substance reporting. Skipping these triggers fines from AED 50,000.

Key dates after incorporation:
- UBO filing: within 60 days of any change
- Corporate tax registration: within set windows by license-issue month (FTA has published a schedule — late registration is now AED 10,000)
- VAT registration: within 30 days of crossing the threshold
- License renewal: annually, on the anniversary

How long it actually takes

If your documents are clean and you're not in a regulated activity: 5–10 working days for a free-zone license, 7–15 for mainland. Add 2–4 weeks for visas and 4–8 weeks for the bank account. So from "I want to start" to "I can invoice and get paid in AED": six to ten weeks is realistic. Anyone promising 48 hours is selling you a license, not a functioning business.

Regulated activities take longer. Financial services in DIFC or ADGM can run 6–12 months for full authorization. Healthcare, education, legal — all separate regulator timelines on top of the license.

Common mistakes I'd rather you avoid

• Picking the cheapest free zone, then needing a mainland branch six months later (you'll pay twice).
• Listing one shareholder when you mean to bring in a partner later — restructuring shareholders post-incorporation in mainland LLCs requires re-notarizing the MoA and can trigger fees of AED 5,000+.
• Using a "virtual office" address that doesn't satisfy Ejari requirements for mainland — the license won't issue.
• Forgetting that signing a personal guarantee on the office lease makes you personally liable even though the company is limited.
• Assuming the free-zone agent's "all-inclusive" price includes visas. It rarely does past one.

For more on related corporate matters, see our civil law guides.

When to use a lawyer versus a setup agent

Setup agents are fine for vanilla single-shareholder free-zone licenses. For anything involving multiple shareholders, foreign parent companies, IP transfers, regulated activities, or a future investment round — get a lawyer to draft the MoA and shareholders' agreement. The standard template MoA most agents use has no drag-along, tag-along, deadlock, or vesting provisions. That's fine until two co-founders disagree, and then it's not fine at all.

A proper shareholders' agreement costs AED 8,000–20,000. A founder dispute without one costs whatever the other side feels like demanding.

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Sources

[1] Federal Decree-Law No. 26 of 2020 amending the Commercial Companies Law — UAE Ministry of Economy

[2] Cabinet Decision No. 16 of 2020 on the Determination of the Positive List of Economic Activities

[3] Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses

[4] DIFC Companies Law, DIFC Law No. 5 of 2018

[5] Dubai Department of Economy and Tourism — License fee schedule (det.gov.ae)

[6] Federal Tax Authority — Corporate Tax registration timelines (tax.gov.ae)

[7] DMCC, IFZA, Meydan Free Zone — published 2024 license packages

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