Step-by-step guide to company formation in Dubai and the UAE

Forming a company in Dubai and the UAE offers up to 100% foreign ownership for most activities, and potential corporate tax benefits in certain free zones, and streamlined digital processes via portals like the DED or free zone apps. This guide covers mainland, free zone, and offshore setups, which may be completed within varying timelines depending on the structure and regulatory approvals. 

Choose your business structure

Select based on your goals:

• Mainland LLC: Full UAE market access, employee visas, and physical office required; ideal for trading or services. 
• Free Zone Company: 100% ownership, potential tax incentives, quick setup (often remote), but limited direct mainland trading without a distributor. 
• Offshore or Branch: For holding companies or international operations; minimal local presence needed. 

Most activities now permit up to full foreign ownership following the 2021 reforms, subject to activity-specific conditions as notified by the Department of Economy and Tourism (DED). 

Step 1: Define activity and trade name

Identify your primary business activity to determine license type (commercial, professional, industrial). Propose 3 unique names reflecting the activity, avoiding religious/political terms or existing brands; register in English and Arabic. 

Submit via DED portal or free zone site for initial approval, subject to review timelines prescribed by the relevant authority. 

Step 2: Secure approvals and documents

Prepare passport copies, proof of address, business plan, and MOA (Memorandum of Association) outlining shareholders and operations; notarisation may be required in certain cases. Obtain initial approval from DED (mainland) or free zone authority, plus any sector-specific nods (e.g., health ministry). 

Lease office space where required for the licensed activity or use free zone flexi-desks where permitted. 

Step 3: Register and license

File full application online: pay the applicable fees, get trade license, registration certificate, and establishment card. Join Chamber of Commerce if trading/contracting, where applicable. 

Registration timelines vary depending on documentation completeness, regulatory approvals, and the relevant authority. 

Step 4: Bank account, visas, and compliance

Open corporate bank account with license and docs subject to bank onboarding and compliance requirements. Apply for investor/employee visas via GDRFA: medical test, Emirates ID subject to prevailing immigration rules. Register for VAT if turnover exceeds AED 375,000; comply with applicable ongoing regulatory requirements. 

Costs and tips 

Total setup costs vary depending on the chosen jurisdiction, activity, visa requirements, and office setup, lower in free zones like DMCC or IFZA. Professional service providers may be engaged where appropriate; remote setup may be possible for non-residents. Post-setup, maintain renewals and compliance for seamless operations. This content is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice.