Last updated: August 2026
UAE company setup for foreigners: complete 2026 guide
Federal Decree-Law No. 26 of 2021 fundamentally changed UAE company ownership rules. Foreigners can now own 100% of most UAE companies — free zone or mainland. Here is what that means in practice.
The law
100% foreign ownership: what changed and what did not
Before 2021, mainland UAE companies required a 51% UAE national shareholder — the “local sponsor” model. Federal Decree-Law No. 26 of 2021 abolished this requirement for most activities. Foreigners can now own 100% of a mainland company in the majority of commercial and professional activities.
A restricted list of activities still requires UAE national participation. These include certain defence, policing, security, media, and insurance activities. If you are in a regulated sector, always check the DED activity list for your specific activity code.
Free zones have always allowed 100% foreign ownership — the 2021 law made mainland equally attractive for most founders.
Step-by-step process for foreign founders
Choose your structure
Free zone companies allow 100% foreign ownership and are the easiest route for remote setup. Mainland now also allows 100% foreign ownership in most activities — choose based on where you need to trade and whether you need UAE residency visas.
Free zone vs mainland comparison →Prepare and attest your documents
You will need: valid passport (6+ months), passport photo, proof of address (utility bill or bank statement, dated within 3 months). Most free zones require these to be notarised and — for some nationalities — apostilled or attested through the UAE Ministry of Foreign Affairs (MOFAIC). If your country is in the Hague Apostille Convention, an apostille stamp is sufficient. If not, you need a full MOFAIC chain: notarised → foreign ministry → UAE embassy → MOFAIC.
Choose and reserve a trade name
Submit 3 options in order of preference. Names cannot contain political references, offensive terms, or words that imply a government affiliation. If you are registering a professional services company, your name often needs to include the owner's full name or initials.
Submit the application (remotely or in-person)
Most free zones accept remote applications via their online portal. Documents are submitted digitally; signed originals are sometimes couriered after approval. For mainland DED, a licensed PRO representative can handle many steps, but some stages may require physical presence.
Receive your licence and establishment card
Licence is issued in 3–10 working days (free zone) or 5–15 days (mainland). The establishment card (AED 1,500–3,000) is a separate document required before applying for investor visas — it confirms the company is authorised to sponsor employees.
Apply for your investor visa (optional)
Your UAE company entitles you to a 2-year renewable investor (owner) visa. This gives UAE residency rights, an Emirates ID, and access to UAE banking as a resident. Timeline: 7–10 working days. Cost: AED 3,000–5,000 including medical fitness test and Emirates ID.
Residency through company setup guide →Open a corporate bank account
This is the hardest step for non-resident founders. Traditional UAE banks (Emirates NBD, Mashreq, ADCB) require in-person visits and have high minimum balances (AED 25,000–100,000). Digital-first banks (Wio, Zand) are more accessible remotely. Budget 4–8 weeks for a traditional bank, 2–4 weeks for a digital bank.
UAE corporate bank account guide →Enhanced due diligence: when banks look harder at foreign founders
UAE banks conduct Enhanced Due Diligence (EDD) — extra compliance checks — for certain profiles. This is not a rejection, but it means more documents, longer timelines, and often a relationship manager conversation. EDD is commonly triggered by:
- ◆Nationalities from FATF grey-listed or high-risk countries
- ◆Businesses in financial services, money transfer, or crypto
- ◆Complex ownership structures with multiple layers
- ◆Business activities with large cash transactions
- ◆Non-resident directors in high-compliance-scrutiny industries
Preparing a strong corporate profile — including your business plan, source-of-funds documentation, and a UAE digital presence — significantly reduces EDD delays. This is one area where Simobi's brand setup work directly supports your banking application.
Frequently asked questions
Setting up a UAE company from abroad?
Simobi handles the full remote setup — from document attestation and free zone registration to digital presence and bank account preparation. The first conversation is free.