Setting up a company in Dubai: mainland, free zone or offshore

Every year, thousands of founders and investors register a company in Dubai. The pull is well known: no personal income tax, full foreign ownership for most activities, a time zone that overlaps Asia and Europe, and a registration process you can finish from abroad for most company types. The part people get wrong is the first decision. Mainland, free zone and offshore are three different legal animals with different costs, different rights and different obligations, and choosing badly means paying to start again. This guide covers the choice, the costs and the sequence.

Many of our readers set up a company for one reason: to hold Dubai property through it. If that is you, read the offshore section and the question on corporate ownership of property at the end before anything else.

Who registers companies in Dubai?

It depends on the type:

• Mainland companies are licensed by the Dubai Department of Economy and Tourism (DET).
• Free zone companies are licensed by the authority that runs the particular free zone.
• Offshore companies are registered through offshore jurisdictions such as the Jebel Ali Free Zone Authority (JAFZA) or the Ras Al Khaimah International Corporate Centre (RAK ICC).

Which authority you need follows from your activity, your ownership structure, who your customers are and where you intend to operate.

The three company types

Mainland

A mainland company can operate anywhere in the UAE. It can sell directly to UAE customers, bid for government contracts and open offices anywhere in Dubai. Full foreign ownership of a mainland company has been possible for most activities since 2021; the old requirement for a local majority partner is gone for the majority of licences.

The cost of that freedom is an office. Every mainland company needs physical premises with a registered tenancy contract (Ejari).

Free zone

A free zone company sits inside one of Dubai's designated zones and is built for businesses that trade internationally or within the zone itself. Registration is fast, office requirements are flexible (a shared desk is often enough) and ownership is 100% foreign.

The restriction: a free zone company cannot sell directly into the UAE mainland market unless it opens a mainland branch or works through a local distributor.

Offshore

An offshore company is a UAE-registered entity for international business, holding assets and estate planning. It cannot do business inside the UAE, cannot rent an office and cannot sponsor residence visas. What it can do is useful to investors: hold shareholdings in other companies, own real estate in the designated areas that allow it, and run a UAE bank account.

Investors use offshore companies mainly to hold Dubai property for inheritance planning or asset protection.

Mainland vs free zone vs offshore

Feature	Mainland	Free zone	Offshore
Trade directly within the UAE	Yes	Limited (branch licence or distributor)	No
Foreign ownership	100% for most activities	100%	100%
Physical office	Required (Ejari mandatory)	Flexible (flexi desk available)	Not required
Residence visas	Yes	Yes	No
Government contracts	Yes	No	No
Setup time	2 to 4 weeks	3 to 10 business days	1 to 2 weeks
Best for	Businesses selling to the UAE market	International trade, start-ups, consultancies	Asset holding, estate planning, international investment

The registration process, step by step

The order is broadly the same in every jurisdiction, even if the forms differ.

Step 1: choose the business activity

Every company declares its activity at registration. The activity decides the licence type, the authority and sometimes the most suitable free zone. Some activities need a second approval before a licence can be issued:

• Healthcare: Dubai Health Authority
• Education: Knowledge and Human Development Authority
• Financial services: Central Bank or Securities and Commodities Authority

Step 2: choose the jurisdiction

Match the structure to your market, your office needs, your visa needs and your budget. Selling to UAE clients directly points to mainland. An international consultancy or e-commerce business fits a free zone. Holding assets or managing investments abroad points to offshore.

Step 3: reserve the trade name

The name must follow UAE naming rules: no religious or political references, nothing offensive, and nothing that duplicates an existing registration. Reservation goes through DET for mainland and through the free zone authority otherwise. Expect a fee of AED 600 to AED 2,000 depending on the authority.

Step 4: initial approval

Initial approval is the government's confirmation that it has no objection to the business. It is not a licence, but you cannot proceed without it. DET issues it for mainland companies; free zone authorities handle it internally.

Step 5: prepare and attest the documents

The core set:

• Passport copies of all shareholders and directors
• A Memorandum of Association setting out structure and shareholding
• Proof of office address
• A No Objection Certificate from a current UAE employer, where the applicant already holds a residence visa

For mainland companies some documents may need attestation at the UAE embassy in your home country and then at the UAE Ministry of Foreign Affairs. Requirements differ by nationality, so confirm with the authority before you send anything.

Step 6: sign the Memorandum of Association

The MOA is the founding document: company name, registered address, activities, share capital and the shareholders' rights and duties. Mainland MOAs are notarised before a UAE notary public; free zones usually supply a standard template.

Step 7: receive the trade licence

Once documents are approved and fees paid, the licence is issued. It is the official confirmation that the business may operate in the UAE, and it is renewed annually. Free zone licences typically arrive 3 to 10 business days after the final submission; mainland licences take 2 to 4 weeks.

Step 8: open a corporate bank account

Separate from registration, and often the slowest part. UAE banks have tightened their compliance checks considerably. Most will ask for:

• The trade licence
• The Memorandum of Association
• Emirates ID for every signatory
• Evidence of the business activity
• Sometimes a business plan, or proof that the company already trades

Budget 2 to 8 weeks for this; the bank and the type of business decide where in that range you land.

Step 9: apply for visas

With the licence issued, the company can sponsor residence visas for shareholders and staff. The visa quota is tied to the size of the office. The government fees for one investor visa, item by item:

Item	Fee (AED)
Entry permit	500 to 1,200
Status change (if you are already inside the UAE)	600 to 1,000
Medical fitness test	350 to 700
Emirates ID, 2 years	370
Visa stamping	1,000 to 2,000
Basic health insurance (mandatory)	800 to 2,500
Total per visa	about 4,000 to 6,500

What it costs

Costs depend on jurisdiction, visa count and office needs. These are ranges for budgeting, not quotes.

Cost item	Free zone (AED)	Mainland (AED)
Trade licence	5,500 to 30,000	18,500 to 50,000
Office or flexi desk	8,000 to 50,000	25,000 to 120,000 (physical office with Ejari)
Investor visa (per person)	4,000 to 6,500	4,000 to 6,500
Trade name reservation	600 to 2,000	600 to 2,000
MOA notarisation	Not needed	1,500 to 3,000
First year, one visa	18,000 to 42,000 (with flexi desk)	75,000 to 150,000

The free zone packages advertised "from AED 5,500" almost always leave out the compulsory add-ons. Ask for the all-in first-year figure, then the renewal figure.

Documents by company type

Exact lists vary by jurisdiction and activity, but most draw on the same core. Anything issued abroad (a passport is fine, a company extract or a power of attorney is not) usually has to be legalised or attested before the authority accepts it.

Document	Mainland	Free zone	Offshore
Passport copies, every shareholder and director	Yes	Yes	Yes
Memorandum of Association	Yes	Yes	Yes
Emirates ID (UAE residents)	Yes	Yes	No
Proof of address	Ejari tenancy contract	Flexi desk or office agreement	Not needed
NOC from current employer (if on a UAE visa)	Yes	Yes	No
Attested documents	Some nationalities	Rarely	Rarely
Business plan	No	No	Sometimes, for the bank account

Corporate tax

The UAE introduced federal corporate tax in June 2023. The rates:

• 0% on taxable profit up to AED 375,000
• 9% on taxable profit above AED 375,000

Both mainland and free zone companies are in scope. A free zone company can obtain a 0% rate on qualifying income, but only by meeting the five conditions of a Qualifying Free Zone Person:

1. Adequate economic substance in the UAE
2. Income that meets the qualifying definition, mainly from other free zone companies or overseas clients
3. Passing the de minimis test: non-qualifying revenue must stay under the lower of 5% of total revenue and AED 5 million
4. Not electing to be taxed as a mainland person
5. Arm's length pricing on all related-party transactions

Income from mainland UAE clients is generally non-qualifying and taxed at 9% above the threshold. The 0% rate is not a feature of the licence; it has to be earned and kept through ongoing compliance.

Registration with the Federal Tax Authority (on the EmaraTax portal) is compulsory for every company in every jurisdiction, and so is an annual corporate tax return, due nine months after the financial year closes.

Residence visas through a company

Company formation is one of the most common routes to UAE residency. Two visa types matter.

Standard investor visa

For shareholders and directors. Valid 2 to 3 years, renewable. Government fees about AED 4,000 to AED 6,500 per person. Dependants can be sponsored at roughly AED 5,000 to AED 7,000 each.

Golden residency

The Golden Visa is a 5- or 10-year residence permit. Business owners can qualify through:

• An investment of AED 2 million or more in a UAE company or approved fund, held for at least two years: 10-year visa
• A business with annual revenue of AED 1 million or more: 5-year visa
• A start-up valued at AED 500,000 or more and approved by an accredited UAE incubator: 5-year visa

A Golden Visa stays valid even if the holder spends more than six months a year outside the UAE, which is the main reason investors who split their time between countries prefer it. The property route to the same visa is covered in our Golden Visa guide.

Can you set up without living in Dubai?

Yes. Residency is not a condition of registering a company. Free zone and offshore registrations can be done remotely. The only steps that require you in person are the medical test and the Emirates ID biometrics, and those only apply if you want a residence visa through the company. A founder who does not want a visa never has to travel: the whole file can be handled online and the attested originals couriered in.

Which free zone?

Dubai has more than 30 free zones, each built around particular industries. The choice affects the licence cost, office options, visa quota and how smoothly the bank account opens. The most used:

Free zone	Best for	Licence from (AED)
Dubai Multi Commodities Centre (DMCC)	Trading, commodities, crypto	18,000
International Free Zone Authority (IFZA)	Consultancy, e-commerce, general trading	11,500
Dubai Internet City (DIC)	Technology, software, digital	15,000
Dubai Media City (DMC)	Media, marketing, publishing	15,000
Dubai Healthcare City (DHCC)	Healthcare, pharmaceuticals, wellness	20,000
Sharjah Media City (SHAMS)	Media, consultancy, freelancers	5,500

Annual renewal and compliance

A company is not a one-off purchase. To stay in good standing:

• Trade licence renewal every year, at a fee close to the original. Missing the deadline brings fines and, eventually, deregistration.
• Visa renewal every 2 to 3 years for investor visas; every 5 or 10 years for Golden Visas.
• Corporate tax filing within nine months of the financial year-end. A company whose year ended on 31 December 2025 must file by 30 September 2026.
• VAT registration at 5% once annual taxable supplies exceed AED 375,000, with quarterly or annual returns depending on turnover.

Using a company to buy property

If the purpose of the company is to hold an off-plan unit, two points before you register:

• Corporate ownership is only possible in designated areas that permit it. Confirm the area for the specific project with the Dubai Land Department before you commit, not after.
• The developer and the DLD will need the company's documents at the time of the sale contract and again at registration. Set the company up first; a booking made in your personal name is not always transferable to the company without cost.

Our verification guide lists the checks to run on the project itself before any money moves.