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Setting up a company in Dubai

The fastest way to set up a company in Dubai is a free zone licence. A licence without visas starts at roughly AED 6,000–15,000; with one residence visa, the first-year budget usually lands between AED 15,000 and 25,000.

Foreign ownership
100% in free zones and most mainland activities
Licence, no visa
≈ AED 6,000 – 15,000
First year, 1 visa
≈ AED 15,000 – 25,000
Corporate tax
9% on profit above AED 375,000

Free zone or mainland?

There are two main company types in Dubai. Free zone companies are registered in a special economic zone; they are quick and inexpensive, with 100% foreign ownership. It's the usual choice for consulting, software, e-commerce and international trade.

Mainland companies are licensed by Dubai's Department of Economy and Tourism (DET). You need one to sell directly to customers inside the UAE, open a shop or bid for government contracts. Since 2021 most activities no longer require a local partner, but costs and office requirements are usually higher.

Free zoneMainland
Setup timeA few days – 2 weeks1–4 weeks
OfficeVirtual office or flexi desk is often enoughUsually a leased office (Ejari)
Selling inside the UAERestrictedUnrestricted
CostLowMedium – high
Related calculator Company setup cost calculator Calculate

Step by step

  1. Choose your activity. Your licence defines what you're allowed to do. Consulting, trading and e-commerce activities are available in most free zones.
  2. Choose the zone and package. Decide early how many visas you'll need; the visa quota depends on the package.
  3. Pick a company name and prepare documents. Usually a passport copy and photo, sometimes an entry stamp or current visa.
  4. Get the licence. In free zones this often takes a few working days.
  5. Establishment card and visas. Each visa needs a medical test and Emirates ID biometrics.
  6. Open a bank account. Usually the slowest step: it can take several weeks and many banks ask for a minimum balance.

Hidden costs

  • Establishment card: ≈ AED 1,500 – 2,500 (needed if you'll sponsor visas)
  • Per visa: ≈ AED 3,500 – 5,000 (including medical test and Emirates ID)
  • Health insurance: ≈ AED 2,000 – 4,000 per visa holder per year
  • Change of status: ≈ AED 1,000 – 2,000 if you apply from inside the UAE
  • Bank minimum balance: ≈ AED 5,000 – 15,000 at most banks (money kept in the account, not a fee)

Licences renew every year. Renewal costs less than the first year, but budget for it.

Tax: corporate tax and VAT

The UAE has applied corporate tax since June 2023: 0% on taxable profit up to AED 375,000 and 9% above. Free zone companies that meet certain conditions can apply 0% to their "qualifying income". Every company must register for tax.

VAT is 5%; registration is mandatory once annual turnover exceeds AED 375,000. See the Federal Tax Authority for details.

Frequently asked questions

What is the cheapest way to set up a company in Dubai?

A free zone licence without visas. In Sharjah zones such as SPC and Shams, government fees start at about AED 6,900. Adding a residence visa roughly doubles the total.

Do I need to live in Dubai to set up a company?

No. Most free zones allow remote setup. To get a visa you must be in the UAE for the medical test and biometrics, and opening a bank account usually requires a visit.

Does owning a company give me residency?

Yes. As a shareholder you can get an investor/partner visa through your own company. It's usually valid for 2 years and renewable.

Can a free zone company sell to customers in Dubai?

To a limited extent. Exporting services and selling internationally is fine; selling goods directly to customers inside the UAE usually needs a mainland licence or a distributor. Rules differ by zone.

Official sources