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Company formation services in Dubai — mainland, free zone, and offshore
Company Formation in Dubai

Company Formation in Dubai

Set up your company in Dubai with expert guidance from start to finish. Mainland LLC, free zone company, and offshore entity formation — we manage the entire process so you can focus on your business from day one.

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Company formation in Dubai is the process of legally incorporating a business entity in one of three main jurisdictions: mainland, free zone, or offshore. Each route has distinct implications for market access, ownership structure, licensing, taxation, and ongoing compliance. Choosing the wrong structure at the outset can create commercial limitations or compliance complications down the line — which is why the decision deserves proper analysis before any paperwork is filed. Dubai is consistently ranked among the world's most business-friendly cities, and its regulatory framework has evolved significantly in recent years. The 2021 amendments to the UAE Commercial Companies Law — Federal Law No. 32 of 2021 — opened 100% foreign ownership to a much wider range of activities in the mainland, removing one of the historic barriers to international entrepreneurs. Read our guide to foreign ownership rules in Dubai for the full picture. This landmark reform, combined with the UAE's D33 Economic Agenda which targets doubling the size of the economy by 2033, signals a long-term commitment to attracting and retaining international business and investment. Combined with the absence of personal income tax, access to a strategic geographic position connecting Europe, Africa, and Asia, world-class banking infrastructure, and a well-developed legal and regulatory environment, Dubai offers a genuinely compelling environment for company formation across a broad range of industries — from commodity trading and financial services to technology, healthcare, real estate, and creative industries. Our company formation service covers the entire process — from your initial structure decision and trade name reservation through to licence issuance, investor visa processing, and corporate bank account opening. For a breakdown of what to expect to pay, see our guide to company registration costs in Dubai. We handle all document preparation, government submissions, and authority communications on your behalf, giving you a clear timeline and transparent cost structure from the outset. Whether you are a solo entrepreneur incorporating your first company or a multinational establishing a regional subsidiary, we provide the same level of rigour and personal attention to every engagement.

Company Formation Options in Dubai: Mainland, Free Zone & Offshore

Mainland Company (LLC)

A mainland company registered with the Department of Economy and Tourism (DET) gives you unrestricted access to the entire UAE market, the ability to bid on government contracts, and the freedom to operate from any commercial location. Under updated regulations, 100% foreign ownership is available for most commercial and professional activities. Mainland companies require a physical office space (Ejari registered), which adds to the initial setup cost but provides the most commercial flexibility.

Free Zone Company (FZE / FZ-LLC)

Dubai's 40+ free zones each cater to specific industries — from finance and technology to media, commodities, and e-commerce. Free zone companies offer 100% foreign ownership, a simplified incorporation process, and qualifying entities may benefit from a 0% corporate tax rate. The main limitation is restricted direct access to the UAE mainland market, which may require a local distributor or a dual licence arrangement if you want to sell locally.

Offshore Company

An offshore entity (such as JAFZA Offshore or RAK ICC) is a corporate vehicle for international structuring, asset holding, and ownership purposes — not for operating locally within the UAE. Offshore companies can hold bank accounts, own shares in other companies, and in some cases own UAE real estate. They require minimal documentation and have no physical office requirement, making them efficient for holding structures and international businesses with no UAE operational footprint.

Legal Structures Available for Company Formation in Dubai

Limited Liability Company (LLC) — Mainland

The most widely used mainland structure, governed by Federal Law No. 32 of 2021 (UAE Commercial Companies Law). An LLC can accommodate two to fifty shareholders, with liability limited to each shareholder's capital contribution. Under current regulations, 100% foreign ownership is available for most commercial, professional, and service activities — making the LLC the go-to structure for international entrepreneurs wanting full UAE market access. Suitable for trading, services, construction, hospitality, retail, and the vast majority of commercial activities. A physical office with Ejari registration is required.

Free Zone LLC (FZ-LLC)

A multi-shareholder free zone entity structurally similar to a mainland LLC but registered within a specific free zone authority. The FZ-LLC allows two or more shareholders and is typically used when a business has multiple founders or investors who want free zone benefits including streamlined setup and potential qualifying free zone tax treatment. Each shareholder on the structure is eligible to apply for a UAE investor visa subject to the company's visa quota. Activity scope is determined by the free zone's permitted activity list rather than the DET's mainland activity codes.

Free Zone Establishment (FZE)

A single-shareholder free zone entity — the most common free zone structure for solo entrepreneurs, holding companies, and businesses with a single corporate parent. The FZE offers the same free zone benefits as an FZ-LLC but with simplified governance and a single ownership layer. Corporate shareholders (i.e., a parent company owning 100% of the FZE) are commonly used for group structuring purposes. The structure is well-recognised by UAE banks and international counterparties.

Branch Office

A branch of an existing foreign company operating under the parent company's name and conducting the same activities. The branch is not a separate legal entity — it is an extension of the foreign parent, which remains fully liable for the branch's obligations. Mainland branches require a UAE national service agent (with no ownership or management role), while free zone branches do not. Branches are commonly used by international companies wanting a UAE presence without creating a new legal entity, though the unlimited parental liability is an important consideration.

Representative Office

A limited-purpose structure that allows a foreign company to maintain a presence in the UAE for promotional and liaison activities — but cannot engage in direct commercial transactions, sign contracts on behalf of the parent, or generate revenue in the UAE. The representative office is suitable for market research, client relationship management, and pre-sales activities. It carries lower compliance obligations than a trading branch but comes with strict restrictions on revenue-generating activity that must be carefully observed.

Civil Company

A professional partnership structure specifically designed for licenced professions including doctors, lawyers, engineers, architects, auditors, and other regulated practitioners. All partners in a civil company must hold the relevant professional qualifications recognised by the relevant UAE regulatory body. Civil companies are often used by professional services firms that want to co-brand under a partnership structure. Unlike an LLC, personal professional liability may attach to individual partners for their own professional acts.

Step-by-Step Company Formation Process in Dubai

1

Initial Consultation & Structure Decision

We begin by understanding your business activities, target market, ownership structure, and budget. Based on this, we recommend the optimal jurisdiction (mainland, free zone, or offshore), legal form, and licence type. We also identify whether your activities require pre-approvals from sector regulators such as DHA, RERA, VARA, or SCA — which materially affects the timeline and cost. We provide a clear, itemised cost breakdown covering all components before you commit.

2

Trade Name Reservation

We check trade name availability against existing registrations, ensure the name complies with UAE naming rules (no violations of public morals, no government entity names, no identical or confusingly similar existing names), and reserve it with DET or your chosen free zone authority. For mainland companies, the name must also have an approved Arabic equivalent. Name reservations are typically valid for 30 days.

3

Initial Approval

For mainland formations, we obtain the initial approval from DET — a prerequisite for proceeding to MOA drafting and notarisation. This approval confirms that your proposed activities and ownership structure are acceptable for a mainland licence. For free zone formations, the equivalent internal review is typically handled within the application process itself.

4

Document Preparation & MOA Notarisation

We prepare the Memorandum of Association, shareholder agreements, and all licence application documents. For mainland LLCs, the MOA must be drafted to DED specifications and notarised at a registered Dubai notary — a mandatory step that adds one to two working days and AED 1,500–3,000 to the process. For regulated activities, we simultaneously manage pre-approval applications to the relevant sector authority.

5

Office Setup & Ejari Registration (Mainland)

Mainland companies must have a physical commercial premises registered via the Ejari tenancy registration system before a trade licence can be issued. We advise on suitable office options (serviced offices, commercial units, co-working spaces that accept Ejari registration) and ensure your lease is properly registered. Free zone companies select their workspace tier — flexi desk, co-working, or dedicated office — based on their activity and visa requirements.

6

Licence Application & Issuance

We submit your complete application package to DET or the free zone authority, manage all correspondence, and coordinate any follow-up queries. Your trade licence is issued once all approvals are in place, fees are paid, and documents are verified. Free zone licences can typically be issued within two to five working days; mainland licences generally take five to ten working days.

7

Investor Visa & Emirates ID

Following licence issuance, we process your entry permit (or status change if you are already in the UAE), medical fitness test, Emirates ID biometrics, health insurance arrangement, and final visa stamping. The Emirates ID is on the critical path — residence visa stamping is typically scheduled after the EID is issued. The full investor visa process takes approximately two to four weeks. Employee visas can be processed in parallel.

8

Corporate Bank Account Opening

We prepare your full bank application pack — including corporate documents, business plan, source of funds documentation, KYC materials, and a company profile — and submit to our banking contacts at suitable UAE institutions. We match your business profile to banks with the appropriate risk appetite for your sector and nationality, and actively manage follow-up to maximise approval chances. Allow two to six weeks for standard accounts. See our dedicated page on opening a corporate bank account in Dubai.

9

Post-Incorporation Compliance Setup

Once operational, we help you register for corporate tax with the Federal Tax Authority (mandatory for all UAE businesses), assess your VAT registration obligation (required if annual taxable turnover exceeds AED 375,000), and set up your accounting and bookkeeping processes. See our full post-incorporation checklist for all required steps.

Documents Required for Company Formation in Dubai

  • Valid passport copy for all shareholders and directors (minimum 6 months validity)
  • Recent passport-size photographs
  • Proof of residential address (utility bill or bank statement, generally within 3 months)
  • Description of proposed business activities
  • No Objection Certificate (NOC) if currently employed or resident in the UAE under another visa
  • For corporate shareholders: certificate of incorporation, memorandum and articles of association, and certificate of good standing — all certified and attested
  • Bank reference letter (required for offshore company formation and some banks)
  • Business plan or investor profile (required by certain banks and some free zones)

Indicative Costs

Costs are indicative and vary based on jurisdiction, activity, number of shareholders, visa requirements, and specific circumstances. Contact us for a tailored, itemised estimate.
Item Cost
Free zone trade licence — IFZA (entry-level, 1 activity) AED 11,000 – 14,000
Free zone trade licence — DMCC (entry-level package) AED 18,000 – 30,000
Free zone trade licence — Dubai South / Meydan AED 12,000 – 18,000
Free zone trade licence — DIFC (non-regulated entity) USD 5,000 – 12,000
Mainland DET trade licence (commercial or professional) AED 10,000 – 20,000
MOA notarisation (mainland LLC) AED 1,500 – 3,000
Trade name reservation AED 600 – 1,000
Initial approval fee (DET, mainland) AED 100 – 200
Establishment card (mainland) AED 1,200 – 2,000
Flexi desk workspace (free zone, annual) AED 5,000 – 15,000
Physical office lease (mainland, small unit, annual) AED 30,000 – 80,000+
Ejari tenancy registration (mainland) AED 200 – 400
Investor visa per shareholder (government fees) AED 4,000 – 7,000
Emirates ID biometrics and issuance AED 300 – 500
Medical fitness test (per person) AED 300 – 500
Corporate bank account support AED 3,000 – 5,000

Frequently asked questions

How long does company formation in Dubai take?
Free zone company formation can typically be completed in two to five working days once all documents are in order. Mainland LLC formation generally takes five to ten working days, including MOA notarisation and DET processing. Some free zones offer same-day or next-day licence issuance for straightforward applications. Bank account opening runs separately and generally takes two to six weeks. Activities requiring sector regulatory pre-approvals (healthcare, financial services, crypto) will extend the timeline.

What documents are needed for company formation in Dubai?
For individual shareholders, the core documents are a valid passport copy (minimum six months validity), proof of residential address (utility bill or bank statement within three months), and a description of proposed business activities. If any shareholder is a corporate entity, you will also need that company's constitutional documents (certificate of incorporation, memorandum of association, articles of association, and certificate of good standing) — all certified and apostilled or attested. See our complete documents required for company formation checklist for the full list.

Should I choose mainland, free zone or offshore for company formation?
Mainland is best if you need unrestricted UAE market access, want to bid on government contracts, or your business model requires a physical presence anywhere in the UAE. Free zone is better suited to international businesses, e-commerce, consulting, and tech companies that primarily serve clients outside the UAE — particularly where QFZP corporate tax treatment is a priority. Offshore is appropriate for holding structures, real estate ownership (JAFZA only), asset protection, and international trading vehicles with no physical UAE operational presence needed. Compare your options in our mainland vs free zone guide.

Can I form a company in Dubai without being physically present?
Yes, in many cases. Most free zones allow remote formation via power of attorney or digital document submission. Mainland formation may require your physical presence for notarisation or biometrics at certain stages, though POA arrangements can often manage these steps. Visa processing requires physical presence in the UAE for the medical fitness test and Emirates ID biometrics — but the company incorporation itself can be completed remotely in most cases. We advise on exactly what requires your presence for your specific structure.

What is the minimum share capital for a Dubai company?
For most mainland LLCs, there is no mandatory minimum paid-up share capital in practice, though some regulated activities specify capital requirements. Free zones have varying requirements — some require nominal capital (as low as AED 1,000), others have higher thresholds for specific licence types or regulated activities. DIFC entities typically require higher minimum capital for financial services licences. Offshore companies require minimal or symbolic capital. We confirm exact requirements for your specific structure and jurisdiction.

How much does company formation in Dubai cost?
The total first-year cost typically ranges from AED 25,000–45,000 for a straightforward free zone setup (licence, flexi desk, one investor visa, bank account support) to AED 55,000–120,000+ for a mainland LLC with physical office, multiple shareholders, and full visa processing. Costs depend on jurisdiction, licence type, number of shareholders, visa requirements, office setup, and any additional regulatory approvals. See our detailed guide to company registration costs in Dubai for a full breakdown, or contact us for a personalised estimate.

Can I have multiple business activities on one Dubai trade licence?
Yes. Most jurisdictions allow multiple related activities on a single trade licence. However, grouping activities from very different sectors (for example, medical services and general trading) may trigger additional approvals, raise bank compliance queries, or require separate licences. Some activities are bundled automatically under a licence category; others require individual line additions with associated fees. We advise on the optimal activity configuration for your business model.

Do I need a physical office for company formation in Dubai?
For mainland companies, a physical office with a registered Ejari lease agreement is required — virtual office addresses are generally not accepted by DET for new mainland licences. Free zones typically offer flexi desk, co-working, and dedicated office options — a basic flexi desk is sufficient for many entry-level free zone licences. Offshore companies have no office requirement whatsoever. The office requirement and its cost is one of the key differentiators between mainland and free zone setups.

What is the difference between Federal Law No. 32 of 2021 and the old Companies Law?
Federal Law No. 32 of 2021 replaced the previous UAE Commercial Companies Law and introduced several landmark changes including: 100% foreign ownership of mainland companies for most commercial and professional activities (removing the old 51% UAE national shareholder requirement); updated corporate governance requirements; revised rules on LLC formation and management; and enhanced shareholder protection provisions. This law is the primary legal framework governing mainland company formation in the UAE and is a key reason why foreign entrepreneurs can now establish fully owned mainland companies without a local sponsor or service agent for most activities.

Do free zone companies qualify for 0% corporate tax?
Free zone companies can benefit from a 0% corporate tax rate on qualifying income if they meet the conditions for Qualifying Free Zone Person (QFZP) status under the UAE Corporate Tax Law (Federal Decree-Law No. 47 of 2022). Key conditions include: maintaining adequate substance in the free zone (qualified employees, operating expenditure, management and control in the UAE); deriving income from qualifying activities as defined in the law; not maintaining a permanent establishment in the UAE mainland; and not exceeding the de minimis threshold for non-qualifying income (currently 5% of total revenue or AED 5 million, whichever is lower). Missing any condition results in taxation at 9%.

Can a holding company be formed in Dubai?
Yes. Holding companies are commonly formed in Dubai across all three jurisdictions. A free zone holding company — typically an FZE with a corporate shareholder — is the most popular structure for groups wanting UAE holding benefits with minimal operational overhead. DIFC is a preferred jurisdiction for regulated holding structures. A mainland holding LLC provides the broadest flexibility for UAE-based group ownership. Offshore companies (JAFZA, RAK ICC) are used for pure holding purposes where no UAE operational activity is intended. The optimal holding structure depends on the group's activity, tax position, and UAE banking requirements.

What is the UAE D33 Economic Agenda and how does it affect company formation?
The D33 Economic Agenda is Dubai's official economic roadmap targeting AED 32 trillion in GDP by 2033 — doubling the current economic size. Central to this agenda is positioning Dubai as one of the world's top three cities for business and investment. For company formation, D33 translates into continued regulatory reform, enhanced visa programmes for talent and investors (including the expanded Golden Visa), investment in free zone infrastructure, and a commitment to maintaining the tax and ownership frameworks that make Dubai globally competitive. Businesses forming companies in Dubai can expect this policy environment to continue supporting international investment for the foreseeable future.

What corporate tax and VAT registration do I need after company formation?
After company formation, all UAE businesses must register for corporate tax with the Federal Tax Authority (FTA), regardless of expected tax liability. Corporate tax at 9% applies to taxable income exceeding AED 375,000 per financial year; income below this threshold is taxed at 0%. VAT registration is mandatory when annual taxable supplies exceed AED 375,000 (voluntary registration available from AED 187,500). The standard VAT rate is 5%. Small Business Relief provides an optional exemption from corporate tax for businesses with annual revenue below AED 3 million until 31 December 2026. We advise on and manage all tax registrations as part of our post-formation compliance service.
The information on this website is for general guidance only and does not constitute professional advice. Regulations in the UAE may change. Please contact us or consult a licensed professional for specific advice tailored to your situation.