How to Set Up a Company in Dubai: Step by Step (2026 Guide)

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Setting up a company in Dubai is a structured, largely digital process that any entrepreneur — resident or non-resident — can complete in as few as 5 to 15 working days. The key is to follow the right sequence: choose your jurisdiction, reserve a trade name, get initial approval, secure an office address, sign your legal documents, pay fees, and collect your licence.

Why Dubai? A Quick Reality Check

In H1 2025 alone, over 35,000 new companies were launched in the UAE, reinforcing Dubai’s position as a global business hub. The appeal is clear: one of Dubai’s greatest attractions is its tax regime — there is no personal income tax (0%), and corporate income tax is levied at a maximum rate of 9%. With 100% foreign ownership options, a competitive tax framework, and global connectivity, Dubai continues to attract ambitious founders from around the world.

Step 1: Choose Your Business Activity

It is important to identify the business activity you want to conduct, as it is the basis for selecting the legal form and type of licence, whether commercial, industrial or professional. An investment can have more than one business activity. There are more than 2,000 business activities to choose from in the UAE.

Use the official Bashr portal (bashr.ae) to search all available activities before committing. You can use the Business Activity Search tool on Bashr to browse the various business activities suitable for your business licence.

Step 2: Pick Your Jurisdiction — Mainland or Free Zone?

This is the most strategic decision you’ll make. The choice between mainland and free zone determines ownership, market access, visa allocation, and commercial leasing requirements.

Mainland (DET — Department of Economy and Tourism)

  • Mainland companies allow investors full access to the UAE market, enable direct trade with government bodies, and may require a local service agent for certain regulated activities.
  • Dubai Government allows 100% foreign ownership for more than 1,000 commercial and industrial activities, excluding economic activities with a strategic impact.

Free Zone

  • Free zone companies offer 100% foreign ownership, sector-specific ecosystems, and flexible setup models.
  • While free zone companies can trade freely within the free zone and internationally, access to the UAE mainland market is regulated. To sell goods or services locally, a free zone company must either work through a licensed mainland distributor or establish a mainland branch.
  • There are more than 40 free zones in the UAE. To set up a new company, you can choose one that matches the nature of your business activity.

Step 3: Choose Your Legal Form

The legal form depends mainly on the business requirements. Moreover, the legal form is the basis for identifying applicable laws and regulations. Common legal forms include:

  • LLC (Limited Liability Company) — the most popular for mainland
  • Sole Establishment — for individual traders or professionals
  • Free Zone Company (FZE/FZCO) — for free zone setups
  • Branch of a Foreign Company
  • Private Joint Stock Company (PrJSC)

Note: the legal form of the business must match the business activity.

Step 4: Reserve a Trade Name

The trade name is the name of the company, which must be unique and not be similar to the name of any other registered company. You can apply for a trade name through the chosen emirate’s Department of Economic Development either on its website or smart application, or in person.

Rules to follow:

  • The trade name must have an abbreviation of the legal structure of the company as its suffix (e.g. LLC, PJSC). It must not contain inappropriate words and should not be offensive to the general public. It must not contain the names of rulers, government agencies, or the names and logos of government bodies.
  • Typical cost: AED 620 to AED 1,000 (varies by authority), as of mid-2026.

Step 5: Obtain Initial Approval

An initial approval is the UAE Government’s ‘no objection’ towards a particular business being established in the country. This approval also allows the investor to proceed with the next steps and for the authorities to issue the licence. It does not, however, grant the investor permission to run the business or practise the business activity.

In 2026, this step is largely digital and can often be completed in one day through official portals, allowing you to proceed with office leasing and document signing.

Tip: For some regulated activities (healthcare, finance, education, food), additional approvals from government entities may be required — for example, the Central Bank of UAE for financial institutions, or the Ministry of Climate Change and Environment for agriculture and veterinary activities.

Step 6: Secure Your Office Address

All businesses in the UAE must have a physical address to operate. The business premises and location must comply with the requirements defined by the respective emirate’s Department of Economic Development, as well as the land planning regulations of the local municipalities.

  • In Dubai, the rental agreement must be registered with Ejari.
  • Mainland companies need a registered tenancy contract known as Ejari, while Free Zones may offer flexi-desks or virtual offices.
  • Virtual office or flexi-desk arrangements start from approximately AED 5,000 to AED 10,000 per year. Dedicated office spaces in business districts range from AED 15,000 to AED 60,000 or more per year, as of mid-2026.

Step 7: Draft and Attest the Memorandum of Association (MOA)

The Memorandum of Association (MOA) is an essential document detailing your business activities, capital structure, shareholder roles, and corporate governance. UAE-based law firms, courts and notary public prepare and attest MOAs and agreements.

Required documents at this stage typically include:

  • Passport copies of all shareholders and the appointed manager
  • Copy of the lease contract duly attested by the Real Estate Regulatory Agency (RERA) in Dubai, duly attested Memorandum of Association, approvals from other government entities concerned as may be required, and duly attested service agent contract for companies 100% owned by non-GCC nationals.

Step 8: Pay Fees and Collect Your Trade Licence

You have to pay for your trade licence within 30 days of receiving the payment voucher.

Cost ranges to budget for (as of mid-2026):

Setup Type Indicative Cost Range
Free Zone (lean setup, e.g. IFZA) From ~AED 12,000–25,000
Mainland professional licence From ~AED 12,500
Mainland commercial/general trading AED 29,000–50,000+
Investor visa (per person) ~AED 6,500

The Dubai mainland licence cost in 2026 starts at AED 12,500 for a single-activity professional licence and reaches AED 38,000+ for a multi-activity commercial licence with visa quotas. Free zones vary widely: IFZA starts around AED 12,000, while DIFC costs AED 50,000+, as of mid-2026.

The UAE Government introduced the Bashr service to start a business — an integrated eService which enables investors to establish their businesses in the UAE within 15 minutes through a unified online platform.

Step 9: Apply for Investor and Employee Visas

The last stage includes obtaining investor and employee visas, opening a corporate bank account, and post-setup compliance, such as VAT registration, where applicable.

Once incorporation is completed, the next step involves the partners visiting Dubai to obtain their Emirates residency visa. This visa will be essential to open the company’s bank accounts.

For hiring staff, employers can onboard new employees and access a wide range of services — including issuance, renewal, and cancellation of work permits and residency visas, as well as medical examination and fingerprinting services for Emirates ID — all through the Work Bundle integrated platform.

Step 10: Open a Corporate Bank Account & Register for Tax

Corporate Bank Account: You can open company bank accounts in any local or foreign bank operating in the UAE. Use of International Bank Account Number (IBAN) is mandatory for all transactions and wire transfers from and to the UAE. Banks in 2026 apply strict compliance checks, so prepare thorough documentation.

VAT Registration: VAT registration is mandatory for UAE-resident businesses if the total value of taxable supplies and imports exceeds AED 375,000 over the past 12 months, or is expected to exceed that threshold within the next 30 days (as of mid-2026). The voluntary registration threshold is AED 187,500.

Corporate Tax Registration: All taxable persons must register and obtain a Corporate Tax Registration Number in the UAE. A natural person is required to register if total revenue from conducting business exceeds AED 1 million within a calendar year (as of mid-2026). Qualifying Free Zone Persons receive a 0% rate on qualifying income, provided substance requirements are met. Non-qualifying income is taxed at 9%.

How Long Does It Take?

The business registration process in the UAE usually takes between 5 and 15 working days, depending on approvals and documentation. More specifically: Free Zone licences can be issued within 24–48 hours. Mainland business setup in Dubai usually takes 7–10 working days due to additional approvals.

FAQ

Can a foreigner own 100% of a Dubai company?

Yes. The UAE Government amended the Commercial Companies Law, granting foreign investors full ownership of specific businesses. This means that foreign investors’ share will not be limited to 49% as before; instead, it can be as much as 100%. This applies to both mainland (for most activities) and all free zones.

What is the minimum cost to set up a company in Dubai in 2026?

The cost of a trade licence in Dubai can range widely — from as little as AED 5,500 in certain Free Zones to AED 50,000+ for mainland setups involving larger activities (as of mid-2026). Always budget for visa fees, office rent, and Ejari on top of the licence fee itself.

Do I need a physical office to set up in Dubai?

A physical address is still required for most businesses. Mainland companies need a registered tenancy contract known as Ejari, while Free Zones may offer flexi-desks or virtual offices. Some free zones allow fully virtual setups at lower cost.

Do I need to register for VAT and Corporate Tax?

VAT registration is mandatory once your taxable turnover exceeds AED 375,000 per year. Mainland companies are subject to UAE corporate tax at 9% if annual profit exceeds AED 375,000. Corporate tax registration is mandatory even if profit is zero (as of mid-2026). Register through the FTA’s EmaraTax platform at eservices.tax.gov.ae.

Can I set up a company in Dubai without visiting the UAE?

The Department of Economy and Tourism, along with other Dubai government entities, launched the Dubai Virtual Commercial City programme (VCC), which enables entrepreneurs and freelancers across the world to start a virtual company in the UAE, even if they do not live in the UAE. However, a physical visit is typically required to complete residency visa procedures and open a bank account.

What are the main licence types in Dubai?

There are six types of licences as per the Ministry of Economy: industrial, commercial, professional, tourism, agricultural and crafts. The most common for new businesses are commercial (trading), professional (services/consulting), and industrial (manufacturing).

This is general information, not professional advice — always verify with official sources.

Sources:

UAE Golden Visa Requirements in 2026: The Complete Guide
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UAE Remote Work Visa Requirements: The Complete Step-by-Step Guide (2026)
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