Company formation in the UAE is well-suited to international trade, IT, consulting, holding structures, and business relocation. You can choose between three formats: a mainland company, a free zone company, or a classic offshore company. We will help you select the right structure, register your business in Dubai or another emirate, arrange your residence visa, and guide you through opening a UAE bank account.
Benefits of Setting Up a Company in the UAE
Opening a company in the UAE offers access to a predictable legal system, a clear tax regime, and modern business infrastructure. These are the main reasons international entrepreneurs choose to open a business in Dubai and other emirates.
| Benefit | Description |
|---|---|
| 100% foreign ownership | Foreign individuals and companies can own up to 100% of a UAE company across all three formats: mainland, free zone, and offshore. The requirement for a local resident partner was removed for most business activities in 2021. |
| Clear tax regime | Corporate tax of 9% on profits above AED 375,000, a 0% rate for qualifying free zone companies, 5% VAT, and no personal income tax. |
| No currency controls or CFC rules | Free movement of capital and profits. The UAE has no controlled foreign company (CFC) rules applicable to UAE residents. |
| Residence visa for business and family | Founders, employees, and their family members can obtain a UAE residence visa through the company. |
| Developed business and financial infrastructure | A wide range of banks and payment systems, office space, logistics hubs, and services for international business. |
| Double tax treaties | The UAE has signed over 140 active tax treaties. Mainland companies and qualifying free zone companies can obtain a UAE tax residency certificate. |
About the UAE
The UAE is located on the southern coast of the Persian Gulf and consists of seven emirates: Abu Dhabi (the country’s capital), Dubai, Sharjah, Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain. The official language is Arabic, although English is widely used in business and government websites are available in English.
The national currency is the UAE dirham (AED), pegged to the US dollar at around USD 0.27 per dirham. This fixed peg supports stable settlements in international trade. In The Heritage Foundation’s Index of Economic Freedom, the UAE consistently leads the Middle East and North Africa region and is classified as a “mostly free” economy.
Dubai is the country’s largest commercial and financial centre and the leading hub across the wider Middle East. It offers the UAE’s widest range of free zones, making it the most popular emirate for company registration.
Types of Companies in the UAE: Registration in Dubai
Depending on the operating territory, three main types of companies are available in the UAE:
- mainland companies (onshore entities);
- free zone companies (registered in free economic zones);
- offshore companies.
Mainland and free zone companies can operate within the UAE, although on different terms, whereas offshore companies can only operate outside the UAE.
For example, you can register a company in Dubai either on the mainland or in any of Dubai’s free zones, each of which has its own rules, costs, and permitted activities.
| Feature | Mainland companies | Free zone companies | Offshore companies |
|---|---|---|---|
| 100% foreign ownership | ✅ | ✅ | ✅ |
| Access to the UAE market | ✅ Full access |
⚠️ Limited access |
❌ No access |
| Taxation | Subject to UAE tax law | Free zone tax incentives | Not taxed in the UAE |
Mainland Company Registration in the UAE
Mainland companies, also known as onshore companies, are registered on the UAE’s main territory (outside the free zones) and are designed for full operational activity within the country. They can also conduct business abroad.
| Taxation and reporting | For tax periods beginning on or after 1 June 2023, profits are subject to corporate tax at 9%. Mainland companies can obtain a UAE tax residency certificate in order to benefit from the country’s double tax treaties. All mainland companies are required to prepare financial statements and undergo audit. |
|---|---|
| Foreign ownership | Since 1 June 2021, mainland companies in the UAE can be 100% foreign-owned. Individuals of any nationality and entities from any country can now establish a mainland company, and a UAE-resident partner is no longer required. Previously, such companies were required to have a UAE-resident partner (a “sponsor”) holding at least 51% of the shares, with the foreign shareholder limited to a maximum of 49%. These restrictions now apply only to companies in industries designated by the government, as well as companies owned by the federal government or the governments of individual emirates. |
| Company directors | No restrictions apply to the nationality or residence of directors. The exception is companies in strategic industries, where the required proportion of UAE nationals on the board and in the shareholding is set by the competent authority. |
| Office | Registering a mainland company in Dubai or any other emirate requires a physical office. The share capital must also be paid in. |
Free Zone Company Registration in the UAE
The UAE is home to several dozen free economic zones, both general-purpose and sector-specific (covering areas such as manufacturing, IT, finance, science and technology, and more). Today, setting up a company in a UAE free zone is one of the most popular routes for foreign investors looking to open a business in Dubai or in another emirate.
| Activity | Free zone resident companies may operate within the free zone under their licence and outside the UAE. They cannot conduct business directly on the UAE mainland; this is only possible through a local agent or distributor. |
|---|---|
| Taxation | Free zone resident companies benefit from a full tax exemption. This exemption is preserved even after the introduction of corporate tax (9% for tax periods beginning on or after 1 June 2023), provided that the company does not conduct business on the UAE mainland or with mainland UAE companies. Free zone companies that meet the residency criteria can obtain a UAE tax residency certificate and access the country’s double tax treaties. |
| Reporting and audit | Free zone companies must prepare and file financial statements. In some zones, an audit is also required. |
| Ownership | A free zone company can be 100% foreign-owned. Foreign investors face no restrictions on the repatriation of profits or capital. |
| Directors | There are no nationality or residency requirements for directors. |
| Share capital | Share capital must be paid in. The minimum amount may vary depending on the specific free zone. |
| Office | A physical office in the UAE is not required; flexi-desk and virtual office options are available. |
Each free zone authority may set its own rules and requirements for registered companies (for example, minimum share capital, reporting and audit obligations, and the types of company structures and purposes permitted).
We Register Companies in Leading UAE Free Zones
Uniwide Advisors is an official partner of several leading UAE free zones. This partner status gives us a direct channel for filing documents and priority handling of applications.
UAE Free Zones: How to Choose
Choosing the right UAE free zone for your business depends on a range of factors, including the company’s purpose and planned activities, specific infrastructure requirements, and ongoing administration costs. We will help you open a free zone company in Dubai or in any other emirate, including:
- Dubai Multi Commodities Centre (DMCC),
Dubai. Commodities, precious metals, and general business activity; home to over 25,000 companies. - International Free Zone Authority (IFZA),
Dubai. General-purpose zone with a low setup threshold: consulting, trading, and services. - Jebel Ali Free Zone (JAFZA),
Dubai. Logistics, manufacturing, and import-export at Jebel Ali Port. - Meydan,
Dubai. Affordable general-purpose zone for consulting and small businesses. - Dubai International Financial Centre (DIFC),
Dubai. Financial centre operating under English common law: banking, funds, and fintech. - Dubai Airport Free Zone (DAFZ),
Dubai. Air cargo, electronics, e-commerce, and pharmaceuticals at Dubai International Airport. - Dubai Internet City,
Dubai. IT, software development, and telecoms; home to leading global tech companies. - Dubai World Trade Centre (DWTC),
Dubai. Exhibitions, events, consulting, and professional services. - Abu Dhabi Global Market (ADGM),
Abu Dhabi. Financial services under English common law: investment funds and family offices. - Ajman Free Zone (AFZ),
Ajman. General-purpose, affordable zone: manufacturing, trading, and services. - Sharjah Research, Technology and Innovation Park (SRTIP),
Sharjah. R&D, tech startups, and industrial innovation. - Ras Al Khaimah Economic Zone (RAKEZ),
Ras Al Khaimah. General-purpose zone with affordable packages: manufacturing, trading, and services. - RAK International Corporate Centre (RAK ICC),
Ras Al Khaimah. Offshore companies and holding structures. - and others – we will help you choose one that suits your business profile.
Offshore Companies in the UAE
The third format is the “classic” offshore company. These companies are fully exempt from UAE tax and conduct business exclusively outside the country of registration.
UAE offshore companies can serve as holding structures and own assets. However, they cannot obtain a business licence in the Emirates, enter into transactions with UAE residents, or employ them.
A UAE offshore company can be 100% foreign-owned. There are no residency or nationality requirements for its directors or shareholders. Registering an offshore company does not require a physical office in Dubai or any other emirate. Offshore companies are not required to prepare financial statements or undergo audit (with the exception of those registered in the Jebel Ali Free Zone).
UAE offshore companies do not meet all the criteria for tax residency. As a result, they cannot obtain a tax residency certificate or access the country’s double tax treaties.
At present, only three emirates allow offshore company registration (alongside their mainland and free zone offerings):
- Ras Al Khaimah: RAK International Corporate Centre (RAK ICC);
- Dubai: Jebel Ali Free Zone (JAFZA);
- Ajman: Ajman Free Zone.
Taxation of UAE Companies
Before setting up a company in the UAE, it is essential to understand which taxes will apply and what reliefs are available.
- Corporate tax: Since 1 June 2023, the UAE has imposed a corporate tax on company profits, which is an important factor to consider when registering a UAE company. The regime is governed by Federal Decree-Law No. 47 of 2022, with official guidance published by the UAE Ministry of Finance. The tax applies to both mainland and free zone companies. The tax base is the company’s worldwide income (earned both in the UAE and abroad), less deductible expenses.
- Corporate tax rate: 0% on profits up to AED 375,000 (around USD 102,000), with the standard 9% rate applying to profits above this threshold. A temporary Small Business Relief is also available for tax periods up to and including 2026: it can be claimed by companies whose revenue has not exceeded AED 3 million in the current and any preceding tax period.
- Corporate tax for free zone companies: Free zone companies may either be taxed under the standard regime or claim the 0% rate. The 0% rate applies where the company qualifies as a Qualifying Free Zone Person. To qualify, the company must derive predominantly “qualifying” income, maintain adequate substance in the UAE, and prepare audited financial statements.
- VAT: A 5% value added tax has applied in the UAE since 1 January 2018. It is charged on supplies of goods and services and on imports. VAT registration is mandatory where a company’s taxable supplies during the previous 12 months have exceeded AED 375,000.
The Cost of Registering a Company in the UAE
The cost of registering a company in the UAE, and in Dubai in particular, depends primarily on the chosen format – a free zone or the mainland. The final price is also affected by the specific free zone, your business activities, the number of visas and shareholders, and the licences required.
| Service | Price |
|---|---|
| Company registration in a free zone (the cost depends on the specific free zone) | from AED 12,000 (around USD 3,260) |
| Setting up a mainland company in Dubai, excluding employee visa costs | from AED 19,100 (around USD 5,200) |
| First visa for a founder (employee). Additional official fees may include the entry permit, medical test, biometrics, visa issuance, health insurance, and so on. | from AED 2,800 (around USD 760), plus official fees |
You can get a preliminary budget estimate. For a detailed quote tailored to your specific needs, request a personalised cost calculation.
How to Register a Company in the UAE
Setting up a company in the UAE with our support involves several consecutive stages, from the initial consultation through to an open bank account. The exact timeframes and procedures depend on the chosen format: mainland or free zone.
Initial Information and Payment
You answer questions about the planned company and bank account: the business activity, the ownership structure, and your preference for a free zone or the mainland. Based on your answers, we prepare a commercial offer and begin the work once payment is made.
Preparing Documents and Registering the Company
We prepare the constitutional documents, the licence application, and the accompanying forms, then submit the package to the registration authority. For free zone companies, the process is completed remotely with online verification. For mainland companies, the founder must be physically present in the UAE. On average, registration takes between two and seven working days, depending on the jurisdiction.
Obtaining the Licence and Incorporation Documents
The registration authority issues the licence, the incorporation documents, and the certificate of registration. We order the company seal and provide you with the full set of documents. At this stage the company is formally established, but opening a bank account will still require the founder’s residence visa.
Arranging the UAE Residence Visa
First, an entry permit is issued: in a free zone this is done remotely, while for the mainland the founder must be in the UAE in person. The founder then travels to the UAE to undergo a medical test, provide biometric data, and obtain an Emirates ID. The immigration authorities issue the residence visa, usually for two to three years, with the option to renew.
Opening a Corporate Bank Account in the UAE
With the complete set of documents and a residence visa in place, we accompany the founder to the bank. We help with the due diligence and KYC procedures and prepare the explanations the bank expects on the source of funds and the nature of the business. Opening the account usually takes between two and six weeks, depending on the chosen bank and the business profile.
Documents for Registering a Company in the UAE
The basic set of documents is the same in most cases, but some requirements depend on the chosen format (mainland, free zone, or offshore) and the specific free zone. The standard set includes:
- A copy of the passport photo page for each founder and director
- Proof of residential address – a utility bill or bank statement no more than three months old
- Copies of the UAE residence visa and Emirates ID, if available
- Two or three proposed company names for approval by the registrar
- A brief description of the planned business activities
- The founder’s CV – required by certain free zones, in particular DMCC, ADGM, and DIFC
- Colour passport-size photographs (needed at the residence visa stage)
- For a corporate founder – the legalised constitutional documents of the corporate shareholder (the articles of association, the certificate of incorporation, and an extract showing the ownership structure)
For certain business activities, proof of qualifications, professional certificates, or an approved business plan may also be requested. We will agree the exact list with you once the company format and chosen jurisdiction are confirmed.
Obtaining a UAE Residence Visa
A UAE residence visa is a permit to live in the country for a period of one to ten years, depending on the type of visa. It is available to a foreign national who is already in the UAE on an entry permit, or a short-term or long-term tourist visa.
Holding a UAE residence visa allows you to:
- open bank accounts in the UAE;
- use a range of financial products;
- obtain a driving licence;
- access public healthcare services and medical insurance;
- enrol your children in state or private schools;
- travel visa-free to a number of destinations, and more.
There are several ways to obtain a UAE residence visa, including routes for entrepreneurs who want to set up a company in Dubai. The Emirates may grant a residence visa to a foreign national who:
- is employed by a UAE company (a “work visa“); or
- owns a company registered on the UAE mainland or in one of the UAE free zones, as a founder or shareholder holding more than 25% of the shares (an “investor visa”); or
- buys residential property in the UAE (a “property owner visa”).
The applicant’s children, parents, close relatives, and domestic staff may also obtain a residence visa.
Opening a Bank Account in the UAE
Opening a bank account in the UAE is often more complex and time-consuming than setting up the company itself. Here are the main points to keep in mind.
- Types of banks in the UAE: the UAE is home to domestic Emirati banks and banks owned by international financial groups (from Europe and the US). Note that UAE banks currently apply restrictions to residents of the Russian Federation under the international sanctions regime.
- Account opening procedures: before opening a personal or corporate account, UAE banks carry out customer checks under due diligence and know-your-customer (KYC) procedures. They request an extensive list of documents and assess the risk for each client individually. Once the account is open, the bank continues to monitor transactions on it under anti-money laundering and counter-terrorist financing legislation.
- Focus on UAE residents: banks in the Emirates primarily serve UAE residents. These include mainland and free zone companies, as well as individuals holding a residence visa and Emirates ID.
- Requirements for opening accounts: when opening and maintaining accounts for mainland companies, banks check for a genuine physical office in the UAE. They also request the addresses and contact telephone numbers of all shareholders and authorised signatories.
- Initial investment: non-residents can usually open an account only by making a substantial investment – for example, placing a certain amount on deposit. All the bank’s other requirements must also be met.
To run the account smoothly, the authorised signatory should ideally have a good enough command of English to communicate with the bank manager.
We Help You Open an Account with Leading Banks
FAQs About UAE Company Formation
How long does it take to register a company in the UAE?
Registration times depend on the chosen zone. In free zones, the process usually takes five to seven working days, while for mainland companies registration can take two to three working days if all the necessary documents are in place.
What are the requirements for a company’s registered address in the UAE?
The requirements depend on the company format. A mainland company must rent physical commercial premises, which also serve as its registered address. In a free zone, the address is usually assigned by the zone itself: flexi-desk or virtual office options are available, and physical premises are not always needed.
If you need to change the address later, you simply update the registration documents and notify the registration authority. We help you find an office at the registration stage.
Can you register a company in the UAE remotely, without the founder travelling there?
Yes, if the company is registered in a free zone. Registering a mainland company requires the founder to be present in person. In addition, the founder will need to make at least one visit to the UAE (of around one to two weeks) to arrange the residence visa and open the bank account.
Does the company’s founder need a work permit in the UAE?
This is not required at the company registration stage. However, to open a bank account, banks usually require at least one of the founders to hold a UAE residence visa.
Which is faster: registering a company in the UAE with individual founders or with corporate founders?
Setting up a company with individual founders is much faster. When corporate entities are involved, the process becomes more complex, with additional checks and documents, which increases the registration time.
Can you set up a sole proprietorship in Dubai or other emirates?
The UAE does not have a sole proprietorship in the usual sense. The closest equivalent is a freelance licence, available to foreign nationals. It is issued for a single professional specialisation (such as designer, photographer, consultant, or developer) approved by the registration authority. A freelance licence entitles the holder to obtain a UAE residence visa. It is issued in a number of free zones, and the cost and the list of permitted professions vary from zone to zone.
Is a freelancer in the UAE an individual or a legal entity?
A freelance licence holder remains an individual but carries out commercial activity under a separate licence, as an entrepreneur. For tax purposes and when dealing with banks, they are treated as self-employed rather than as an employee. Unlike a company, a freelance licence does not create a separate legal entity and does not allow you to hire staff.
What is the minimum share capital for a company in the UAE?
Share capital requirements depend on the zone of registration. There is no minimum threshold for mainland companies. Some zones do not require share capital at all – for example, IFZA. Others require a certain amount to be paid into an account or through the registrar’s portal. In DMCC, this is from AED 50,000.
On what basis can a company’s founder and director obtain a residence visa in the UAE?
A founder obtains the visa on the basis of company ownership, including a shareholding in its capital, while a director obtains it as an employee. Such visas are usually valid for two to three years, with the option to renew.
Do you provide accounting and tax services for a company in the UAE?
Yes. Our team handles bookkeeping, the preparation of financial statements, and full tax support for companies in the UAE, and liaises with the local authorities where necessary.
Do you need UAE national employees to set up and run a company in the UAE?
In most cases, no: Emiratisation quotas generally do not apply to free zone companies. Mandatory targets apply to mainland companies: those with 50 or more employees must increase the share of UAE nationals in skilled roles each year, while companies with 20–49 employees in 14 designated sectors must hire a minimum number of UAE nationals. Financial penalties apply for missed targets.
For how long can a company’s operations in the UAE be suspended?
A UAE company’s licence is renewed annually. However, some free economic zones allow a company’s operations to be frozen for up to five years, provided the relevant fees are paid. This option is not available for mainland companies: the licence must either be renewed each year or the company must be formally liquidated.
Can you carry out wholesale trade in the UAE without importing goods into the country?
Yes, and many companies do this. You can enter into wholesale deals with overseas suppliers without moving the goods through the UAE.
Can I own a UAE company without living in the UAE?
Yes. There are no residency or nationality requirements for shareholders or directors, so you can own and manage a UAE company while living abroad. A UAE residence visa becomes relevant mainly for banking, as banks usually expect at least one founder to hold one. Owners who plan to relocate can obtain an investor visa through the company.
If your situation has particular nuances – for example, an unusual business activity, several founders, or questions about choosing between a free zone and the mainland – we will discuss them during a consultation and find the best option for you.
Business Support Services in Dubai
Uniwide Advisors FZCO is a corporate services provider licensed in the DMCC free zone in Dubai (licence No. DMCC-897115).
We specialise in company formation in the UAE – from choosing the format and free zone through to opening a bank account. We guide founders through every stage, dealing with the bureaucracy so they do not have to, and we handle the matters that come up after registration.
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- Free Zone Company Formation
- UAE Residency
- UAE Company Taxes Overview
- Opening a Bank Account
- Cost of Services
- Formation of Mainland Companies
- UAE offshore company setup
- Document Attestation and Legalisation in the UAE
- PRO Services in Dubai and the UAE
- Company Liquidation in the UAE
- Company Formation in Abu Dhabi
- Trade License Suspension