How do I set up a company in the UAE?

## How Do I Set Up a Company in the UAE?

The UAE is consistently ranked among the easiest places in the world to start a business, with simple processes, no income tax, and a highly connected business environment. Here is the step-by-step process for 2026.

## Step 1: Choose Your Structure

Decide between:

Mainland (DED): - Licensed by the Department of Economic Development of the relevant emirate - Can trade anywhere in the UAE - 100% foreign ownership available for most activities (since 2021 reforms) - Direct access to UAE government contracts

Free Zone: - Licensed by a free zone authority (DMCC, JAFZA, DIFC, ADGM, etc.) - Primarily for international trade and within-free-zone operations - 100% foreign ownership (always permitted in free zones) - 0% corporate tax on qualifying income

Offshore (RAK ICC, JAFZA Offshore): - Cannot conduct business within the UAE - Used for international holding structures and asset protection - Cheapest to set up but most limited in use

## Step 2: Choose Your Business Activity

UAE trade licences are issued for specific activities. You must list all activities your business will undertake. Activities are categorised as:

Some activities require additional approvals from sector regulators (e.g. healthcare from the Ministry of Health, financial services from the DFSA or SCA).

## Step 3: Choose a Company Name

UAE company names must: - Be unique and not identical or similar to existing registered names - Not contain offensive, religious, or political references - For LLCs, typically include "LLC" or "L.L.C." in the name - For sole establishments, include the owner's full name

Name availability can be checked online through the DED or free zone portal.

## Step 4: Obtain Initial Approvals

For mainland companies, initial approval from the DED confirms that your proposed activity and name are acceptable before you proceed with full documentation.

For free zone companies, submit the online application through the free zone's portal.

## Step 5: Register the Company and Obtain the Trade Licence

For mainland: 1. Submit Memorandum of Association and relevant shareholder documents to the DED 2. Pay the DED licence fee 3. Obtain the trade licence (typically takes 5-10 working days)

For free zone: 1. Complete the online application with shareholder details, activity, and company name 2. Pay the free zone registration and licence fee 3. Receive the trade licence (1-4 weeks depending on the free zone)

## Step 6: Open a Corporate Bank Account

A corporate bank account is required to operate. UAE banks have become more rigorous in KYC (Know Your Customer) requirements. Expect to provide:

• Trade licence
• Certificate of incorporation
• Memorandum/Articles of Association
• Passport copies of shareholders and signatories
• Proof of business activity (client letters, contracts, website)
• Source of funds declaration

Smaller banks (e.g. RAK Bank, Mashreq) can sometimes open accounts faster than the larger banks. Some free zones have banking partnerships that facilitate faster opening.

Timeline: Account opening can take 2-6 weeks depending on the bank and the complexity of the business.

## Step 7: Apply for Visas

The trade licence entitles you to sponsor a certain number of employee visas based on the office space you have registered. Minimum requirements vary by emirate and free zone.

Investor visa: The company can sponsor the owner's/director's UAE residency visa. Cost is approximately AED 3,000-5,000 plus medical and Emirates ID fees.

Employee visas: Each visa requires a work permit, entry permit, medical examination, and Emirates ID. Cost is approximately AED 5,000-8,000 per employee.

## Approximate Total Setup Costs

| Component | Approximate Cost | |-----------|------------------| | Mainland DED licence (Dubai) | AED 10,000 to AED 50,000 | | DMCC free zone licence | AED 20,000 to AED 30,000 | | Investor visa | AED 3,000 to AED 5,000 | | Medical and Emirates ID | AED 1,500 to AED 2,500 | | Corporate bank account | Typically free to open | | Registered address (virtual) | AED 5,000 to AED 15,000/year |

## Timeline

• **Free zone (simple activity):** 1-2 weeks
• **Mainland DED licence:** 1-3 weeks
• **Regulated activities (financial services, healthcare):** 4-12 weeks for sector approvals