Company Formation in Dubai
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Company formation in Dubai is the process of registering a licensed company — on the Dubai mainland through the Department of Economy and Tourism (DET, formerly DED), in one of 20+ free zones, or offshore — to trade, hold assets or invoice clients from the UAE. Most activities allow 100% foreign ownership without a local partner, and free-zone companies may benefit from 0% corporate tax on qualifying income, subject to applicable conditions; individuals pay no personal income tax. A mainland licence allows direct operation in the UAE market and government tenders, while a free-zone licence can suit international and holding businesses — some of which may also reach the mainland through a DET dual licence. Legarithm handles the full setup: jurisdiction selection, UAE company formation, trade licensing, office and bank-account support, plus corporate tax, accounting and UAE residence visas. Comparing jurisdictions? Explore IFZA business setup or our Business Services in Dubai hub.
Why Legarithm for your company formation in Dubai
The key decision is mainland versus free zone. Choosing the wrong jurisdiction can add unnecessary costs, delays or extra steps. The 2025 dual-licence reform offers another option for eligible activities, so mapping your business to the right jurisdiction from the start helps keep the budget and timeline under control.
We are a licensed corporate-services provider regulated by the Dubai Integrated Economic Zones Authority, with practical experience across DET mainland, IFZA, DMCC, Meydan and DWTC. We handle company registration, licensing, office and Ejari, establishment cards, visas, tax and VAT and bank onboarding through one accountable team, with a clear scope from the first call to your active licence.
Company formation in Dubai: key benefits
These are the key benefits of setting up a company in Dubai.
Company formation in Dubai: who it suits
Your business activity, target market and operating model help determine the most suitable jurisdiction.
Traders & retailers serving the UAE
Businesses selling to local customers, opening outlets or bidding for government contracts may consider a mainland company licensed by DET.
International & holding companies
Businesses invoicing international clients, holding assets or IP, or structuring a group may consider a free-zone company, depending on their activities and tax requirements.
Consultants & professionals
Consulting, IT, marketing and design businesses can choose between mainland and free-zone licensing, depending on their activities and client base.
E-commerce & tech startups
Online businesses and technology companies may consider free zones such as IFZA, Meydan or DMCC, with office and visa options depending on the licence package.
Founders seeking UAE residency
Entrepreneurs relocating to the UAE may obtain residence visas through their company, subject to the relevant jurisdiction and visa requirements. Other residence options may also be available.
Free-zone firms expanding onshore
Eligible free-zone companies looking to serve mainland customers may be able to use a DET dual licence or permit, subject to the applicable rules and activity requirements.
Company formation in Dubai: what’s included
Legarithm handles company formation in Dubai from choosing the right structure to licensing, registration and compliance.
Jurisdiction & structure mapping
We assess your activity, target market and operating model to identify suitable mainland, free-zone or other structures.
Trade name & activity codes
Trade name reservation and selection of the appropriate business activities with DET or the relevant free-zone authority.
Documentation & MOA
Preparation and filing of the required incorporation documents, including the Memorandum of Association and shareholder resolutions.
Trade licence application
Preparation and submission of the licence application, including communication with the relevant authority and support through the approval process.
Office & Ejari
Support with selecting a compliant office solution and registering the tenancy through Ejari where required.
Establishment card & visas
Support with the establishment card and residence visa applications for eligible owners and employees, including the required medical examination and Emirates ID process.
Corporate bank account
Support with preparing a bank application and introducing the company to suitable UAE banking options, subject to each bank’s compliance requirements.
Tax, VAT & compliance
Support with corporate tax registration, VAT registration where applicable, UBO requirements and other relevant compliance obligations.
Not sure which setup fits?
A free consultation can help you choose the right option.
Mainland vs free zone vs offshore in Dubai
The right setup depends on your business activity, target market and operating needs — not just the licence cost.
| Parameter | Mainland (DET) | Free zone | Offshore |
|---|---|---|---|
| Best for | UAE-market sales, retail, government contracts | International trade, services, holding, startups | Holding and asset ownership |
| UAE-market access | Direct, subject to applicable activity requirements | May require a dual licence or permit | Not intended for operating in the UAE market |
| Foreign ownership | 100% for most activities | 100% | 100% |
| Corporate tax | Standard UAE corporate tax rules apply | 0% may apply to qualifying income; 9% may apply otherwise | Depends on the company’s activities, income and UAE tax status |
| Setup time | Depends on activity and approvals | Depends on the free zone and licence | Depends on the jurisdiction and documents |
| Physical office | Requirements depend on the activity | Flexi-desk or office options may be available | Usually not required |
| Residence visas | Available subject to licence and office requirements | Available subject to the package and requirements | Not available through the offshore company |
| Indicative cost | Depends on activity, office and licence | Depends on the free zone and package | Depends on the jurisdiction and structure |
Selling to UAE customers? Consider a mainland company. Trading internationally or holding assets? A free-zone setup may suit your model. Need mainland access? Ask about available licensing options.
Ready to start company formation in Dubai?
Tell us what your business does and we’ll map your company formation in Dubai — the right jurisdiction, licence type, office and cost — usually within one working day.
Eligibility Criteria & Documents
Company formation in Dubai is available to foreign investors, with requirements depending on the ownership structure, jurisdiction and business activity.
- Valid passport copy (all shareholders and directors)
- Recent passport-size photograph (white background)
- Proof of residential address (utility bill or bank statement, usually not older than 3 months)
- UAE entry stamp or visa page, where already in the country
- Brief CV or business profile for regulated or professional activities
How company formation in Dubai works
Company formation in Dubai follows a five‑step process. The timeline depends mainly on the jurisdiction, activity, document readiness and bank due diligence.
Company formation in Dubai: cost
Company formation in Dubai varies in cost depending on the jurisdiction, activity, office requirements and number of visas. The indicative 2026 ranges below cover the main setup costs.
| Item | Indicative 2026 cost |
|---|---|
| Free-zone licence (package) | ~AED 12,500–20,000/yr |
| Mainland trade licence (DET) | ~AED 15,000–30,000/yr |
| Flexi-desk / office (annual) | ~AED 12,000–50,000+ |
| Establishment card | ~AED 2,000 |
| Residence visa (per person) | ~AED 4,000–7,500 |
| Free zone → mainland licensing | Depends on the applicable licence or permit |
| Corporate tax & VAT registration | Depends on the company’s tax position |
| Company formation support | Individual · after a free consultation |
Ranges are indicative for 2026 and may vary by jurisdiction, activity, office and visa requirements. The final cost, including professional support, is confirmed after assessing your business structure and requirements. VAT and corporate tax registration apply where the relevant UAE requirements are met. Bookkeeping can be handled through our UAE accounting services.
Company formation in Dubai: FAQ
Still have questions?
How much does company formation in Dubai cost?
It depends on the jurisdiction. A free-zone package typically starts from ~AED 12,500/yr and a mainland DET licence from ~AED 15,000/yr, before office and visas; a first-year all-in with a flexi-desk and one visa often runs ~AED 25,000–50,000. The exact figure is confirmed after a free call, and bookkeeping runs through our UAE accounting services.
Mainland or free zone — which is better for a company in Dubai?
Choose a mainland company (DET) if you sell inside the UAE or bid for government work; choose a free zone if you trade internationally or hold assets, for lower cost and 0% on qualifying income. Since Executive Council Resolution No. 11 of 2025, a free-zone company can also reach the mainland through a dual licence, so the two are no longer mutually exclusive.
Can a foreigner own 100% of a company in Dubai?
Yes — 100% foreign ownership applies in every free zone and to most mainland activities, with no local sponsor. A few strategic sectors (such as certain banking, insurance and defence activities) may still carry separate ownership rules or approvals.
How long does it take to register a company in Dubai?
A trade licence is typically issued in 3 to 10 working days once documents and fees clear. A full setup with office, visas and a corporate bank account usually takes about 4 to 8 weeks, depending mainly on bank due diligence.
Can I register a Dubai company remotely?<
Yes — non-residents can usually incorporate remotely, especially in free zones and offshore, where most steps happen online. A short visit may be needed for biometrics or bank onboarding.
What tax will my Dubai company pay?
0% corporate tax on qualifying free-zone income and 9% above AED 375,000; VAT is 5% on domestic supplies, with no personal income tax. Registration with the Federal Tax Authority is required even at 0% — handled by our UAE tax services.
Can a free-zone company sell in mainland Dubai?
Yes. Under Dubai Executive Council Resolution No. 11 of 2025 (effective 3 March 2025), most free-zone companies can operate in mainland Dubai through a DET branch, a dual licence or a temporary permit, subject to a No-Objection Certificate from the free-zone authority. DIFC-licensed financial firms are excluded, and the mainland activity is taxed at 9%.
Do I need a physical office to form a Dubai company?
Mainland companies need a physical office with an Ejari-registered tenancy; free zones accept a flexi-desk, which also sets your visa quota; offshore companies need no UAE office. We arrange the right option for your licence.
Can my Dubai company sponsor residence visas?
Yes — investor, employee and family visas, with the number set by your office size (mainland) or package (free zone). Larger, higher-capital setups may qualify for the UAE Golden Visa.
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Our team ensures your business setup is smooth, efficient, and compliant with local laws. Contact us today to discuss your project.
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