Company Setup in Dubai

Three licensing routes in Dubai

Company setup in Dubai runs through one of three doors. The first is a mainland licence from the Department of Economy and Tourism (DET, formerly DED), the second a licence from one of the free zones, and the third a company in DIFC. Decree 13 of 2024 created the Invest in Dubai portal, so all three are applied for through one digital window. The routes still differ in who issues the licence and where you may trade. For the comparison with other routes, read company setup in the UAE.

Mainland licences from DET

The Government of Dubai lists five licence types: industrial, commercial, professional, e-trader and dual. Registration has three stages: initial approval, trade name reservation and collection of the licence. Initial approval is a no objection in principle and does not allow you to operate. The e-trader licence is a home-based sole-proprietorship licence for online sellers (dubai.ae, April 2026) and needs a permit from the Telecommunications and Digital Government Regulatory Authority (TDRA).

Executive Council Resolution 5 of 2024 lets Dubai issue the licence first and the permits later. The investor signs an undertaking to obtain every permit before starting, and selling before a health, food, education, real estate, financial or telecoms permit arrives breaches that undertaking. A licence in hand is not permission to trade.

The government fee depends on the activity and the premises, and DET sets it. The Invest in Dubai cost calculator, as Gulf News described it in September 2026, adds about 5% of annual rent to the licence fee for licences with premises. Ask DET for the fee sheet for your activity, and treat a quote with one total and no lines as incomplete.

Most mainland licences need a leased address registered in Ejari, Dubai's tenancy registration system. Registration costs AED 177.75 through the Dubai REST app or the Dubai Land Department website, or AED 220 through a trustee centre (Dubai Land Department, page updated 7 October 2026). The lease must be in the licensed company's name. Business centres that sublet desks need their own registered commercial tenancy of at least 5,000 sq ft for five years, so ask DET whether a flexi desk suits your activity before you pay.

The 21 free zones on the Government of Dubai list

The Government of Dubai's page on free zones, last modified on 3 April 2026, names 21:

• Dubai Studio City, Dubai Design District (d3), Dubai CommerCity and Dubai Healthcare City
• DMCC, DIFC, Meydan Free Zone and Dubai International Academic City
• Jebel Ali Free Zone (JAFZA), Dubai Media City, Dubai Silicon Oasis and Dubai Production City
• Expo City Dubai, Dubai Airport Free Zone (DAFZ), Dubai Outsource City and Dubai South
• Dubai Humanitarian, Dubai Science Park, Dubai World Trade Centre, Dubai Internet City and Dubai Knowledge Park

Marketing pages often count more than 21. IFZA is based in Dubai Silicon Oasis and is not on the list as a zone of its own. Its pages do not name the issuing authority, so ask for it in writing.

Each zone has its own law, authority and capital rule. DAFZ and Dubai Silicon Oasis set AED 1 for a free zone company (FZCO) under DIEZ regulations, and JAFZA prescribes no minimum. Fees differ in kind as well as size. JAFZA's licence fee table, on a page dated 26 April 2024, lists registration at AED 5,000 and licence fees from AED 5,000 to AED 30,000. Meydan Free Zone shows packages from AED 12,500. DAFZ quotes on request, and IFZA and Dubai South publish no price list.

DIFC and JAFZA offshore

DIFC has its own common-law courts, and the Dubai Financial Services Authority regulates financial services there. The DIFC Table of Fees (revision 16, 30 July 2026) lists USD 8,000 to register a private company, USD 12,000 for the commercial licence and USD 12,000 for each annual renewal. The Prescribed Company, DIFC's SPV, costs USD 100 to register and USD 1,000 a year, and it appoints a corporate service provider unless exempt. Foundations pay no registration fee and USD 350 a year. Private companies need issued capital above zero but no fixed minimum (DIFC handbook, September 2026).

JAFZA registers offshore companies for holding structures. Schedule 2 of its Offshore Companies Regulations 2023 sets the Registrar's incorporation fee at AED 10,000 and the renewal after 12 months at AED 2,500, with registered agent charges added, as of October 2026. Virtual asset firms in any Dubai zone except DIFC fall under the Virtual Assets Regulatory Authority (VARA).

Trading on the mainland from a Dubai free zone

Executive Council Resolution 11 of 2025, issued on 3 March 2025, names three routes for Dubai free zone companies. A mainland-premises branch pays under DET's general fee rules, because the Resolution sets no fee for it. The dual licence, formally a branch operating out of the free zone, costs AED 10,000 a year (Article 12). The temporary permit lasts up to 6 months and costs AED 5,000 to issue or renew. Amounts are as of October 2026.

All three need prior approval from the free zone authority, and the company keeps separate financial records for its work outside the zone. DIFC financial establishments are outside the Resolution.

The six-month route is issued as the Free Zone Mainland Operating Permit, launched on 8 October 2025 through Invest in Dubai at AED 5,000 per six months. It needs a Dubai Unified Licence, and the first phase covers non-regulated activities such as technology, consultancy, design, professional services and trading. Article 9 required DET to publish a list of eligible activities and the route each needs, so check Invest in Dubai for your activity code before you plan around a route. Companies already trading on the mainland had one year from the effective date to comply, extendable once, so ask DET where yours stands.

Two limits matter. A Dubai permit does not extend to Abu Dhabi, Sharjah or any other emirate (Article 3(c)). And the Dubai Media Office states that mainland-related revenue is subject to 9% Corporate Tax, which can also cost a Qualifying Free Zone Person its 0% status.

Bank file and permits before you pay

At its meeting of 25 December 2025, the Dubai Free Zones Council acknowledged challenges in opening bank accounts for free zone companies. The Central Bank guidance effective 7 November 2025 tells banks to decline when due diligence cannot be completed. Write the bank file before the licence is issued, and make the activity wording match your website, contracts and expected payments.

A consultant who works with your zone can map the permits to your activity code before you pay for the licence. Ask for the list in writing.

Company setup in other emirates

If Dubai's cost or rules do not fit, compare other emirates. Sharjah has five free zones and a separate mainland authority, covered in company setup in Sharjah. Ajman has two free zones under one authority, covered in company setup in Ajman. For ADGM, KEZAD and the ADDED dual licence, read company setup in Abu Dhabi.

Frequently asked questions

Can a Dubai free zone company trade on the mainland?

Yes, under Executive Council Resolution 11 of 2025, through a mainland branch, a dual licence at AED 10,000 a year or a permit at AED 5,000 for up to 6 months, as of October 2026. It needs the free zone's approval first and covers Dubai only.

How many free zones does Dubai have?

The Government of Dubai lists 21, on a page last modified on 3 April 2026. Figures above 21 usually count brands such as IFZA, legacy names or sub-areas, or zones in other emirates.

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