Company formation in Dubai is an aspiration for all businessmen around the world as Dubai is the arguably the best city in the world to start your business today. There are many advantages of company formation in Dubai. Company formation in Dubai can also be extended to Sharjah, RAS AL Khaimah, Ajman, you can get a cheaper license from one of these places and operate all over UAE with out any problem.
We can suggest company formation in Dubai starting from AED 1500 to AED 45000 for license alone.
Our TEAM can help you with Company Formation in Dubai – Contact our team by clicking here Contact us for Company formation in Dubai Assistance
There are many recommendations for Company formation in Dubai, for services we recommend to go for a Free Zone Company which takes 2 days to make and can get bank account in 1 day depending on the nationality of the owners.
- Zero Wealth Tax
- Zero Income Tax
- Multi currency company accounts
- Easy to transfer money to any country in the world
- Geographical Advantage
- 100 plus nationalities communities
📍 Types of Company formation in Dubai
Company formation in Dubai has two main jurisdictions for setting up a business:
1. Mainland (Onshore) Company formation in Dubai
-
Regulated by Dubai Department of Economy and Tourism (DET).
-
Allows business directly with the UAE market and government contracts.
-
Requires office space and compliance with local regulations.
2. Free Zones Company formation in Dubai
-
Over 30+ Free Zones (e.g., DMCC, Dubai Airport Free Zone, Meydan Free Zone).
-
Offer 100% foreign ownership, tax advantages, and simplified compliance.
-
Free zone companies can now open a branch on the mainland in many cases due to recent regulatory changes.
🧾 Types of Company formation in Dubai
Licenses You May Need
The type of license depends on your business activity:
-
Commercial License – For trading activities.
-
Professional/Service License – For consultancies, services, freelancers.
-
Industrial License – For manufacturing/production.
-
Offshore License – For businesses operating outside the UAE.
🛠️ Basic Steps for Company formation in Dubai
1. Choose Your Business Activity & Legal Structure
Decide what your company will do (services, trading, industrial, etc.), then choose a legal form such as:
-
Limited Liability Company (LLC),
-
Sole Establishment,
-
Branch of a foreign company,
-
Free zone company, etc.
2. Reserve Trade Name
Submit your preferred business name for approval with DET or the Free Zone authority.
3. Initial Approval / License Application
Submit your application with required documents (passport copy, business activities, shareholders info, etc.).
4. Office Space and Tenancy Agreement
Mainland companies must rent an office and register the lease (EJARI). Free zones may allow flexi-desk/virtual offices.
5. Memorandum & Company Documents
Prepare and notarise documents such as the Memorandum of Association (MOA).
6. Trade License Issuance
Once approved and fees are paid, you receive your trade license — your official business permit.
7. Bank Account Opening
Companies must open a business bank account. Dubai has streamlined bank account opening significantly.
💼 Costs and Timeline
-
Costs: Vary based on location (mainland vs. free zone), license type, number of visas, and office requirements. Typical setup costs can range roughly from ~AED 12,000 to 40,000+.
-
Processing Time:
-
Free Zone: often 2–5 business days for standard setups.
-
Mainland: 1–3 days for initial approval, full setup might take longer.
-
📊 Other Key Considerations for Company formation in Dubai
🧑💼 Residency & Visas
-
Company owners/employees can apply for UAE residence visas through the company setup. Visa allocation depends on your office size and company type.
📊 Corporate & Tax Compliance
-
A 9% corporate tax applies on profits above AED 375,000 (some Free Zone companies may qualify for 0% under conditions). VAT is 5% once turnover thresholds are met.
📑 Ongoing Regulatory Requirements
-
Maintain accurate accounting, UBO (Ultimate Beneficial Owner) records, and file required reports to authorities.
🌍 Corporate Status Update (2026)
-
New UAE corporate reforms now grant formal “corporate citizenship” status to companies, strengthening their legal identity (not personal citizenship for owners).
🧠 Tips Before You Start
✅ Decide early whether you want mainland access or free zone benefits.
✅ Consult with a business setup specialist or legal advisor — rules can differ by industry and jurisdiction.
✅ Make sure to have valid business plans and partnership/ownership structures clear before application.
Some links for Company formation in Dubai
Dubai Department of Economy – https://www.dubaidet.gov.ae/en/
Dubai Multi Commodities Center – https://dmcc.ae/
IFZA – https://ifza.com/en/
Dubai South – https://www.dubaisouth.ae/
JAFZA Jabel Ali Free Zone – https://www.jafza.ae/
Company formation in Dubai surrounding areas
SHAMS Sharjah – https://www.shams.ae/
RAKEZ RAS AL KHAIMA – https://rakez.com/en/
OUR EXPERT TEAM CAN HELP YOU WITH COMPANY FORMATION IN DUBAI – CLICK HERE