Last updated: August 2026
UAE company setup: the complete 2026 guide
Three structure types, five steps, real costs, visa options, corporate banking, and a 9% corporate tax that applies from day one. This guide covers every decision point so you start the right way.
Key facts for 2026
- 100% foreign ownership is permitted for most mainland and free zone activities under Federal Decree-Law No. 26 of 2020. (UAE Ministry of Economy)
- UAE Corporate Tax of 9% applies on taxable income exceeding AED 375,000, effective for financial years starting on or after 1 June 2023. (Federal Tax Authority (FTA))
- The UAE has over 45 licensed free zones across seven emirates, each with its own activity list, pricing, and banking track record. (UAE Ministry of Economy)
- VAT was introduced in 2018 at 5%. Mandatory registration applies once taxable turnover exceeds AED 375,000; voluntary registration from AED 187,500. (Federal Tax Authority (FTA))
What UAE company setup involves
Setting up a company in the UAE means choosing a jurisdiction (where your licence is issued), a legal structure (LLC, sole establishment, or branch), and an activity list that matches what you actually do. The jurisdiction determines your trading rights, visa allocation, office requirement, and — critically — how smoothly you will open a corporate bank account.
The UAE has three main setup options: free zone companies, mainland companies, and offshore companies. Each serves a different purpose. Most founders start with a free zone for its lower cost and simpler process, then add a mainland licence when they need direct UAE market access. Offshore is a separate category used for asset holding or international structuring, not day-to-day UAE operations.
Beyond the licence, a complete setup includes: an establishment card (for visa applications), at least one investor visa, Emirates ID registration, and a UAE corporate bank account. These post-licence steps add 3 to 10 weeks to the timeline and are where most founders encounter delays if they are not prepared.
The three UAE company structures
Each structure has distinct trading rights, cost profiles, and tax implications. Choosing the wrong one early creates operational friction that is expensive to fix.
A company registered within a designated economic zone such as IFZA, RAKEZ, Meydan, or DMCC. Free zones offer 100% foreign ownership, simplified registration, and purpose-built ecosystems for specific industries. They are the most cost-effective starting point for founders who invoice internationally or operate online.
Best for
International services, remote businesses, e-commerce, consulting, media
Key limitation
Cannot trade directly with UAE mainland customers without a local agent or separate mainland licence
A company registered with the Department of Economic Development (DED) of the relevant emirate. Mainland licences allow you to trade anywhere in the UAE without a distributor, sign government contracts, and operate physical retail locations. Since 2021, 100% foreign ownership applies to most activities.
Best for
UAE market sales, retail, hospitality, government contracting, professional services to UAE clients
Key limitation
Higher cost than most free zones; some regulated activities require local ownership
A legal entity registered through RAK ICC or JAFZA Offshore with no UAE trading rights, no visa entitlement, and no office requirement. Used for asset holding, IP ownership, international trade structuring, and estate planning. Corporate tax at 0% applies to non-UAE-source income in most cases.
Best for
Holding company, IP ownership, international trading, estate planning
Key limitation
Cannot conduct business inside the UAE, open retail premises, or sponsor UAE visas
For a full breakdown of differences, costs, and when each structure applies, see our free zone vs mainland UAE guide. For the offshore option in detail, read UAE offshore company formation.
Free zone vs mainland vs offshore: at a glance
How to set up a company in the UAE: 5-step overview
The sequence below applies to both free zone and mainland setups. Timelines and costs vary by jurisdiction and activity.
Choose your business activity
Every UAE company licence is issued for specific approved activities. The Department of Economic Development (DED) and individual free zones each maintain their own activity lists. Your activities determine which jurisdictions are available, the type of licence you need, and the DED/free zone approval fees. Mapping your activities first prevents expensive changes later.
Choose your jurisdiction and structure
Once you know your activities, compare free zone vs mainland access, visa requirements, setup cost, and banking track record. If you export internationally and want low setup cost, a free zone is usually the right call. If your primary customers are UAE-based or you need government contracts, go mainland. Use our decision framework below to confirm.
Reserve your trade name
Submit 2–3 trade name options to the free zone or DED for clearance. Names must not conflict with existing registrations, contain restricted words, or misrepresent the company's activities. Mainland name reservation through DED costs approximately AED 750. Most free zones include it in their package fee.
Apply for the licence and establishment card
Submit your application with the required documents: passport copies, No Objection Certificate if sponsored in UAE, Memorandum of Association (mainland), and any activity-specific approvals. The licence is issued by the free zone or DED. The establishment card (issued by the Ministry of Human Resources) is a separate document needed before the visa process begins.
Apply for investor visa, Emirates ID, and bank account
With a valid licence and establishment card, you can apply for an investor visa. The process includes a medical fitness test, Emirates ID registration, and entry permit stamping — typically 7 to 10 working days. Bank account opening follows and is the most variable step: well-prepared applications at the right bank can complete in 2 to 3 weeks; under-prepared ones stall for months.
See the full step-by-step breakdown with documents and timelines in our how to register a company in UAE guide.
UAE company setup cost: snapshot
The figures below are realistic year-one totals including licence, establishment card, one investor visa, and a basic office arrangement. They exclude bank account minimum balance requirements, which vary by bank.
AED 12,500 – 30,000+
Depends on zone, package, and visa quota. Meydan and IFZA are among the most affordable.
AED 30,000 – 50,000+
DED licence + Ejari (tenancy), establishment card, approvals, visa. More variables than free zone.
AED 8,000 – 15,000
Licence only. No visa, no office. Annual renewal typically AED 5,000 – 8,000.
Hidden costs to budget for: Most advertised licence prices exclude establishment card (AED 1,500–3,000), medical fitness test, Emirates ID, typing fees, and notarisation. Real year-one total is typically AED 8,000–15,000 more than the headline licence price. See the full UAE company setup cost breakdown.
UAE residency through your company
Most UAE free zone and mainland licences entitle the licence holder to apply for a 2-year investor visa, which grants UAE residency for you and, with a separate application, for dependants (spouse, children). The visa application follows the licence — you need the establishment card before you can begin the visa process.
2-Year Investor Visa
Standard with most free zone and mainland licences. Cost: AED 3,000–5,000 including medical test and Emirates ID. Processing: 7–10 working days.
Golden Visa (10-Year)
Available to company founders who invest AED 2 million+ in company capital or qualifying UAE property. No sponsor required. Renewable indefinitely.
Dependant Visas
Once the investor visa is active, you can sponsor spouse and children. Quota depends on licence type and office category. Each dependant visa costs AED 2,000–3,500.
Full details on timelines, costs, and Golden Visa eligibility are in the UAE residency through company formation guide.
Opening a UAE corporate bank account
Banking is the step that catches most founders off-guard. The UAE has strict AML/KYC requirements, and banks review not just the licence but the coherence of the whole application: activity codes vs actual invoicing, the company's digital presence, the founder's source of funds, and expected transaction flows. An application that does not satisfy these checks at a major bank may take months or be declined.
What banks check
- Activity codes match actual invoicing (a company licensed for 'consulting' that invoices for software development will be flagged)
- A functional website and professional digital presence consistent with the business type
- Clear expected transaction flows — volumes, currencies, counterparty countries
- Source of funds documentation for initial deposits
- No high-risk jurisdictions in the ownership or counterparty chain
Full guidance on bank selection, documents, and common rejection reasons is in the UAE corporate bank account guide.
UAE corporate tax and VAT: what you need to register for
Corporate Tax (CT)
- 9% on taxable income exceeding AED 375,000 per financial year
- 0% on income up to AED 375,000
- All UAE businesses must register with the FTA — there is no threshold-based CT registration exemption
- Qualifying free zone persons may access 0% on qualifying income, subject to substance and activity conditions
VAT
- 5% VAT on most goods and services sold in the UAE
- Mandatory registration when taxable turnover exceeds AED 375,000 in 12 months
- Voluntary registration available from AED 187,500
- Zero-rated on exports, international transport, healthcare, and education
- Free zone businesses supplying into the UAE mainland may trigger VAT obligations
See the UAE VAT registration guide.
Which UAE structure is right for you?
Answer these four questions to get to the right structure faster.
Who are your customers?
Mostly international or remote clients → Free zone. Mostly UAE businesses or consumers → Mainland. You want to hold assets, not operate → Offshore.
Do you need UAE government contracts?
Yes → Mainland only. No → Free zone or offshore are options.
What is your year-one budget?
Under AED 20,000 → Cheapest free zones (Meydan, Ajman FZ). AED 20,000–35,000 → Most free zone packages with a visa. AED 35,000+ → Mainland, or premium free zones.
Do you need a UAE residence visa?
Yes → Free zone or mainland (offshore does not offer a visa). No → All three structures are available.
Deep-dive guides for every part of UAE company setup
Each guide covers one decision in full detail — use them to build a complete understanding before you commit.
Jurisdictions
Free Zone vs Mainland UAE: Which Is Right for You?
Comparison table, trading rights, costs, and when each structure applies.
Best Free Zone in UAE for Your Business Type (2026)
Score of 8 free zones on cost, speed, visa quota, and activity breadth.
RAKEZ vs IFZA: Which Free Zone Wins in 2026?
Head-to-head comparison of the two most popular affordable free zones.
UAE Offshore Company Formation: When It Makes Sense
RAK ICC vs JAFZA offshore, 0% tax, no visa — use cases and limitations.
Costs
Process
How to Register a Company in UAE: Step-by-Step 2026
7 concrete steps with timelines, costs, and exact documents for each stage.
UAE Trade License Types: Professional, Commercial & More
The 5 licence types, activity selection, DED approved lists, and costs by type.
UAE Company Setup for Foreigners: The Complete Guide
100% ownership rules, remote setup, document attestation, EDD for foreign founders.
Post-Setup
How to Open a UAE Corporate Bank Account (2026 Guide)
Bank selection, AML/KYC requirements, and why applications get declined.
UAE Residency Through Company Formation: Visa Guide 2026
2-year investor visa, Golden Visa eligibility, dependants, and renewal.
UAE Corporate Tax Registration Checklist (FTA Guide)
Step-by-step FTA registration, qualifying free zone conditions, and deadlines.
UAE VAT Registration: TRN Guide for New Businesses
AED 375,000 threshold, registration documents, and quarterly filing overview.
Frequently asked questions
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