Company Setup in the UAE

The three routes: mainland, free zone and offshore

Company setup in the UAE starts with one decision: which authority licenses the company. That decision sets where you may trade, how many visas you can sponsor and what a bank sees when you apply. There are three routes, and they are not interchangeable.

A mainland company is licensed by the economic department of an emirate. In Dubai that is the Department of Economy and Tourism (DET, formerly DED), and in Abu Dhabi it is the Department of Economic Development (ADDED). A mainland company may trade anywhere in the UAE. Foreign owners have been able to hold 100% of most mainland activities since 1 June 2021, and the Commercial Companies Law, Federal Decree-Law 32 of 2021, carries that rule forward. The exceptions are activities with strategic impact under Cabinet Resolution 55 of 2021, commercial agencies and anything a sector regulator restricts. The law sets no statutory minimum capital for an LLC, but Article 76 requires capital that is sufficient and paid in at incorporation. Abu Dhabi also offers a Virtual Licence, launched by ADDED on 21 October 2021 for non-resident foreign investors, whose current terms are set on TAMM.

A free zone company is licensed by the zone authority instead. It can also be 100% foreign owned, and each zone sets its own rules on capital, premises and visa quota. Selling to mainland customers from a free zone needs an extra step. In Dubai, Executive Council Resolution 11 of 2025 sets two fees. A branch operating out of the free zone costs AED 10,000 a year, and a permit of up to 6 months costs AED 5,000. The Resolution sets no fee for a branch with mainland premises. The six-month permit is issued as the Free Zone Mainland Operating Permit, which needs a Dubai Unified Licence. All amounts are as of October 2026. A Dubai permit does not extend to any other emirate, and the other emirates run their own arrangements or ask for a local agent or distributor.

Free zone does not mean tax free. The 0% Corporate Tax rate applies only to a Qualifying Free Zone Person (QFZP, a free zone company that meets the conditions of Ministerial Decision 229 of 2025) and only on qualifying income. Other income is taxed at 9%.

An offshore company, also called an international business company, is registered by JAFZA in Dubai or by RAK ICC in Ras Al Khaimah. It has no UAE trade licence, so it holds assets, shares and investments rather than trading in the UAE market. JAFZA's Offshore Companies Regulations 2023 allow a UAE bank account, property in designated freehold areas and shares in UAE companies. They still require the proper licence for business activity, and Schedule 3 sets a fine of AED 50,000 for doing business outside Regulation 14. RAK ICC's regulations bar financial services by way of business and bar activity elsewhere in the UAE without the appropriate licences. According to law-firm commentary on Federal Decree-Law 47 of 2022, offshore companies are UAE taxable persons that must register for Corporate Tax even when no tax is due.

Which route fits which business

Start with who pays you. If most of your customers are UAE businesses or government buyers, or if people walk into your premises, a mainland licence is the usual fit. If your customers are abroad and you have one owner, a standard activity and up to two visas, a free zone with a published package and an online portal is the usual choice.

Regulated activities follow the regulator. Financial services normally sit in DIFC in Dubai or ADGM in Abu Dhabi, which are free zones with their own common-law rules. Holding companies, SPVs and foundations usually point to DIFC, ADGM or an offshore company.

Doing it yourself is fair when five points hold. You have one natural-person shareholder and a standard non-regulated activity. The free zone publishes its package and runs an online portal. You do not trade on the mainland and need no more than two visas. Even then three points go wrong most often: the bank file, Corporate Tax registration and the wording of the activity.

Professional help is materially safer with corporate or foreign shareholders, a regulated activity or a mix of mainland and free zone licences. The same goes for trading in goods, more than three visas, a DIFC or ADGM structure and a foundation or SPV.

What a company setup consultant does and does not do

A company setup consultant prepares and files, and the authority issues the licence. A consultant can map your activity to the licence and permits before you pay and compare jurisdictions with your ownership, tax and bank in view. The consultant also prepares the documents, such as attested foreign papers and the memorandum of association. A PRO (the person who handles government paperwork) then runs the filings, the visa, the medical test and the Emirates ID.

The limits matter as much. No consultant decides the bank. The Central Bank guidance on customer due diligence, effective 7 November 2025, tells banks to decline when due diligence cannot be completed, so nobody can promise an account. Visa decisions belong to the immigration authority. Representing you before the Federal Tax Authority (FTA) is the work of a registered tax agent, and a holding structure normally involves a lawyer.

How to choose a consultant and read a quote

Whether you use a consultant from the directory or find one elsewhere, run the same checks. Ask for the licence number and the issuing authority, then look the firm up in the public register. In Dubai, the Dubai Unified Licence carries a QR code for checking its status (Dubai Media Office, 11 December 2023). JAFZA and RAK ICC publish lists of registered agents. DIFC and ADGM keep public registers, and VARA keeps one for virtual asset firms. Ask which zones the firm works with, and ask the zone to confirm any approved partner status the firm claims.

A usable quote separates government fees from service fees, names the authority behind each government line and states the licence period. It also lists what sits outside the price:

• the renewal fee in year two
• the establishment card, and the entry permit, medical test and Emirates ID for each visa
• premises, or the flexi desk, and any tenancy registration
• bank account support
• Corporate Tax and VAT registration, accounting and audit
• cancellation and exit

Some patterns call for a pause. One is a single unitemised sum. Another is a promise of a bank account or visa. Others are a request to pay a personal account or an entity not on the contract, and a firm that keeps your portal logins or original documents. A licence in 24 hours with no permit plan is another, because Executive Council Resolution 5 of 2024 puts Dubai permits after the licence. Get the scope of work and the refund terms in writing.

What the cost depends on

No authority publishes one price for a UAE company. The cost depends on the activity, the jurisdiction, the number of visas, the premises and the date. Three kinds of price get mixed up: a fee schedule is an official tariff, a package is a zone's marketing offer, and a consultant quote is a fee set by the firm.

Fee schedules show how wide the range is, all as of October 2026. JAFZA's Offshore Companies Regulations 2023 set the Registrar's incorporation fee at AED 10,000 and the renewal after 12 months at AED 2,500, with agent charges added. RAK ICC's fee schedule effective 1 January 2026 lists AED 3,250 for first-year incorporation and AED 3,950 for a one-year renewal, again before agent charges. DIFC and ADGM quote their fees in USD, and the Dubai and Abu Dhabi pages give the figures.

Packages move with the visa count. Ajman Media City's packages run from AED 4,999 with no visa to AED 22,999 with three visas. RAKEZ advertises a Biz Starter package at AED 6,000 without a visa, and the UAQ Free Trade Zone advertises its START package at AED 12,500 with one investor visa. Several zones, including IFZA and Dubai South, publish no tariff, so ask for a written quotation.

Then come the lines that packages leave out. The establishment card carries federal fees set by the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP). They are AED 100 for the application, AED 100 a year, AED 100 for smart services and an AED 2,000 subscription to its electronic system, as of October 2026. No authority publishes consultant fees, so compare itemised quotes.

The checklist after incorporation

A licence is the start of the work. These five items follow, roughly in this order.

Bank account

Prepare the bank file before the licence arrives. The Central Bank guidance of 7 November 2025 lists nominee shareholders, opaque ownership, unclear source of funds and a newly formed company funded with a large sum as red flags. Advisers commonly report that a bank file written after the licence is the main cause of a declined account.

Corporate Tax registration

A company incorporated on or after 1 March 2024 must register within 3 months of incorporation (FTA Decision 3 of 2024). Free zone companies must register too. Late registration carries an AED 10,000 penalty (Cabinet Decision 75 of 2023 as amended by Cabinet Decision 10 of 2024), as of October 2026.

Taxable income up to AED 375,000 is taxed at 0% and the portion above it at 9% (Cabinet Decision 116 of 2022), as of October 2026. Return and payment are due within 9 months of the end of the tax period. The English texts on tax.gov.ae and mof.gov.ae are not official translations.

VAT registration

Registration is mandatory when taxable supplies and imports pass AED 375,000 in the past 12 months or are expected to in the next 30 days. It is voluntary from AED 187,500 (VAT Executive Regulation, Articles 7 and 8 as amended by Cabinet Decision 100 of 2024, as of October 2026). The application is due within 30 days of becoming liable. If you are late, the FTA registers you from the date liability began, and you owe VAT on every taxable supply since.

Visas and staff

Residence needs an establishment card first. Free zone companies apply through the zone authority and mainland companies through the Ministry of Human Resources and Emiratisation (MOHRE). On the mainland, MOHRE sets the work-permit quota after a Ta'qeem assessment of the establishment, so ask your PRO for the number before you sign a lease. An entry visa is valid for 60 days, and residence must be completed within 60 days of entry. Overstay costs AED 50 a day (ICP, as of October 2026). Zones tie the visa quota to the package or the leased area, so a package that names five visas can still give you fewer.

Beneficial owner register

Licensed companies, including those in commercial free zones, keep a register of beneficial owners and shareholders (Cabinet Decision 109 of 2023). A beneficial owner is a natural person holding 25% or more of the capital or votes. The registers go to the registrar within 60 days of licensing, and changes are reported within 15 days. Financial free zones are exempt.

Company setup by emirate

Each emirate has its own mainland authority and its own zones. The pages below cover what is specific to each.

• DET mainland licences, the 21 free zones on the Government of Dubai list, DIFC and the dual licence regime are covered in company setup in Dubai.
• Company setup in Abu Dhabi covers ADDED, ADGM, KEZAD and the other Abu Dhabi zones.
• The Sharjah Economic Development Department and five free zones are covered in company setup in Sharjah.
• Ajman Free Zone and Ajman Media City are covered in company setup in Ajman.
• Company setup in Ras Al Khaimah explains the difference between RAKEZ and RAK ICC.

Umm Al Quwain has one main free zone, the UAQ Free Trade Zone. Fujairah has Fujairah Creative City and the Fujairah Freezone Authority. Ask each zone for its own fee sheet before you compare them.

Tax, accounting, audit and legal help

A corporate tax consultant from the directory can confirm the QFZP test before you file; start at corporate tax consultants in the UAE. Accountants keep the books behind your returns, and accounting firms in the UAE lists them. QFZP status requires audited financial statements under Ministerial Decision 229 of 2025. JAFZA's offshore regulations require audited accounts within 6 months of period end. Audit firms in the UAE is the page for that. For shareholder agreements, structures and contracts, a lawyer is the right professional, and lawyers in the UAE lists them.

How AdvisoryHub works

AdvisoryHub is an independent directory of business advisors in the UAE. It is not a consultancy, it does not set up companies, and it gives no legal or tax advice. It does not rank or endorse any firm. Listings show the information a firm supplies, so check the licence number against the issuing authority's register before you sign.

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