The short answer
Setting up a UAE company is a defined, repeatable process — the variables are jurisdiction, activity and how many visas you need. Here is the whole thing in one view.
- Structure: Choose free zone, mainland or offshore. Free zone suits most consultants, agencies, e-commerce and holding companies; mainland is for trading or serving the local UAE market directly; offshore is a non-resident holding vehicle with no visas.
- Licence: Government licence fees start from around AED 12,500 in a value free zone such as Meydan, and from around AED 15,000+ on the mainland — that is the raw authority cost, before visas, PRO work and support.
- Visas: Budget AED 3,500-6,000 per visa for processing (medical, Emirates ID, stamping). Your licence package sets how many visa slots you get.
- Bank: A UAE corporate bank account typically takes 1-4 weeks depending on the bank and your activity profile.
- Tax: Corporate tax is 9% on taxable profit above AED 375,000 (0% on qualifying free zone income). VAT registration is mandatory once taxable turnover passes AED 375,000.
- Total timeline: A free zone licence can issue in 2-7 working days; add 1-3 weeks for visas and Emirates ID, and 1-4 weeks for the bank account. Most founders are fully operational — licence, visa and bank — within four to six weeks.
Step by step: how to set up a UAE company
Seven steps take you from decision to a fully licensed, bankable UAE company. The order matters — each step unlocks the next.
- Choose your structure — free zone, mainland or offshore. This is the single decision that shapes cost, tax treatment, where you can trade and whether you get residence visas. Free zones give you 100% ownership, fast setup and 0% tax on qualifying income but restrict direct trade inside the local UAE market. Mainland lets you sell anywhere in the UAE and bid for government work; offshore is a paper holding company with no physical presence or visas. If you are unsure, our free zone vs mainland vs offshore guide walks through the trade-offs.
- Pick your business activity. The UAE licenses you against a specific list of permitted activities, and your choice determines your licence type (commercial, professional, industrial), which authority you use, and sometimes whether you need external approvals. Group related activities under one licence where you can — adding unrelated activities later can mean a fresh approval. For e-commerce specifically, activity and zone choice interact, which we cover in our best free zone for e-commerce guide.
- Reserve your company name. Submit up to three name options to the authority for approval. UAE naming rules are strict — no religious references, no offensive terms, no abbreviating personal names, and it must reflect your activity. Approval is usually same-day to 48 hours. Reserve the name before you commit to anything else, because a rejected name resets your paperwork.
- Apply for the trade licence. You submit your application, passport copies, activity list and initial approval to the authority, pay the licence fee, and receive the trade licence plus your Memorandum of Association. In most free zones this issues in 2-7 working days once documents are clean. The licence is your legal right to operate and the anchor document every later step references.
- Get your establishment card and residence visas. Once the licence is live, apply for the establishment (immigration) card, then process residence visas for yourself and any staff — each visa runs through an entry permit, medical test, Emirates ID biometrics and passport stamping. Expect 1-3 weeks per visa cycle and AED 3,500-6,000 per visa in processing. Your Emirates ID is your operational identity for banking, tenancy and government portals.
- Open a corporate bank account. With your licence, MoA, Emirates ID and a clear business description, apply to a UAE bank. Approval typically takes 1-4 weeks and banks scrutinise activity, source of funds and expected transaction flows — a clean, specific business profile speeds this up. Our guide to opening a UAE business bank account covers what banks actually look for.
- Register for corporate tax and VAT if applicable. Corporate tax registration with the Federal Tax Authority applies to essentially all UAE businesses, even where the effective rate is 0%. Register for VAT once your taxable turnover exceeds AED 375,000 (voluntary registration is available from AED 187,500). If you are in a free zone and want to protect the 0% rate, understand the qualifying rules early — see our note on what QFZP status means for free zone companies.
How much it costs
There are two very different numbers here, and blurring them is how founders get surprised. Keep them separate.
- Government licence (raw authority cost): From around AED 12,500 for a value free zone such as Meydan, and from around AED 15,000+ on the mainland. This buys the licence only — no visas, no PRO work, no bank support, no single point of contact when something stalls.
- CorpWise all-in setup package: From AED 25,000 for free zone and from AED 45,000 for mainland. This bundles the licence, visa processing, PRO services and hands-on support behind one point of contact — the difference between a licence document and a company that is actually running. Offshore structures are also available on request.
What drives the final figure: the jurisdiction you pick, the number of residence visas, whether you need physical office space or a flexi-desk, your specific activity and any external approvals it triggers. Per-visa processing runs AED 3,500-6,000 on top of the licence. For a full breakdown by scenario, see our detailed cost of setting up a company in Dubai guide.
How long it takes
Timelines depend on document readiness and your activity, but the realistic sequence for most founders looks like this. These are general guidance ranges — a complex activity or additional approvals can extend any stage.
- Name reservation and initial approval: Same day to 48 hours.
- Free zone trade licence: 2-7 working days once documents are clean.
- Establishment card: A few working days after the licence issues.
- Residence visa and Emirates ID: 1-3 weeks per person (entry permit, medical, biometrics, stamping).
- Corporate bank account: 1-4 weeks depending on the bank and activity profile.
- Realistic end-to-end: Licence, visa and bank account in place within four to six weeks for a straightforward setup.
Free zone vs mainland vs offshore - which to choose
Most founders overthink this. The decision comes down to where you actually sell and whether you need residence.
- Free zone: Best for consultants, agencies, e-commerce, tech and holding companies serving clients outside the UAE or online. You get 100% ownership, fast setup, residence visas and 0% tax on qualifying income. The trade-off: you cannot sell directly into the local UAE market without a distributor or a mainland arrangement.
- Mainland: Best if you serve UAE-based customers directly, open a physical shop or office, or want to bid for government contracts. Broader reach, higher baseline cost, and licence fees starting from around AED 15,000+ at the authority level.
- Offshore: Best purely as a holding or asset-protection vehicle. No residence visas, no physical office, no local trade — it exists to hold shares, IP or property.
If you want the full decision framework, read our free zone vs mainland vs offshore comparison, or talk to us for a quote mapped to your exact activity.
Frequently asked questions
How much does it cost to set up a company in Dubai?
Two numbers. The government licence alone starts from around AED 12,500 in a value free zone or from around AED 15,000+ on the mainland — that is the authority fee only. A CorpWise all-in package, covering licence, visa, PRO and support through one point of contact, starts from AED 25,000 for free zone and AED 45,000 for mainland. Per-visa processing adds AED 3,500-6,000.
How long does it take to set up a UAE company?
A free zone trade licence typically issues in 2-7 working days once your documents are clean. Residence visas and Emirates ID add 1-3 weeks, and a corporate bank account takes 1-4 weeks. Most founders are fully operational within four to six weeks.
Do I need to be a UAE resident to open a company?
No. You do not need to be a resident before you start — setting up the company is itself the route to residence. Your trade licence lets you sponsor your own residence visa and Emirates ID. Offshore structures require no residence at all, but they also come with no visas and no local trade rights.
Do I need a physical office?
Not always. Many free zones offer flexi-desk or shared-desk options that satisfy the licensing requirement without a full office lease, which keeps early costs down. Mainland activities and certain regulated activities can require dedicated space. The right answer depends on your zone, your visa count and your activity — general guidance only, so confirm before you commit.
Free zone or mainland — which is better?
Neither is universally better; it depends on where you sell. Choose free zone if your customers are outside the UAE or online, you want 100% ownership and the lowest entry cost. Choose mainland if you sell directly to UAE customers, need a physical retail presence or want government contracts. See our full comparison to decide.
Can you set up my UAE company remotely?
In most cases, yes. A large part of the process — name reservation, licence application and initial approvals — can be handled remotely. Some steps, such as medical testing and Emirates ID biometrics for your residence visa, require a short visit to the UAE. We manage the remote portion end-to-end and tell you exactly when your presence is needed. Get a quote and we will map the sequence to your situation.
