Structure and jurisdiction advice
Mainland, free zone or offshore, legal form, activities and shareholding, compared on cost, tax and banking.
Business Setup in Dubai and the UAE: Mainland, Free Zone or Offshore, Step by Step, With Tax Set Up From Day One
Business setup in Dubai and the UAE means choosing a jurisdiction (mainland, free zone or offshore), a legal form and licensed activities, then obtaining the licence, office, bank account and visas. Since 2024, a new company must register for corporate tax within three months of incorporation, keep beneficial ownership records and register for VAT once supplies pass AED 375,000. SGA World handles both.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
Business setup at a glance
- Options
- Mainland, free zone, offshore
- Ownership
- 100% foreign ownership for most activities
- Corporate tax
- Register within 3 months of incorporation
- VAT
- Register above AED 375,000
- After setup
- Bookkeeping, audit and tax
Business setup in Dubai and the UAE is fast compared with most countries: many free zone companies are licensed within days. But the choices made at the start, mainland or free zone, which licensed activities, which legal form and who owns the shares, decide your corporate tax position, banking, audit duties and ability to trade for years.
SGA World helps founders, investors and groups with business setup in Dubai, Abu Dhabi and the other emirates. Because we are auditors and tax advisers, we look beyond the licence: we make sure corporate tax registration, VAT, beneficial ownership records, bookkeeping and the bank account are set up correctly from day one, so the company does not have to be fixed later.
- Trade anywhere in the UAE
- Mainland
- 0% QFZP rate possible on qualifying income
- Free zone
- Holding and asset-owning structures
- Offshore
- To register for corporate tax after incorporation
- 3 months
At a glance
Business Setup in the UAE: Key Points
- Jurisdiction: mainland for UAE-wide trade and government work, free zone for international, free zone and holding activity, offshore for holding assets.
- Ownership: 100% foreign ownership is allowed for most mainland commercial and industrial activities; a few strategic activities are restricted.
- Corporate tax: a company incorporated on or after 1 March 2024 must register within three months of incorporation, even before trading. Late registration costs AED 10,000.
- VAT: register once taxable supplies pass AED 375,000; voluntary registration from AED 187,500.
- UBO: keep a beneficial ownership register and file it with the registrar under Cabinet Decision No. 109 of 2023.
- Banking: banks expect clear ownership, a business plan, and proof of real activity and substance.
Our services
What Do Our Business Setup Services Include?
Company formation and licensing
Trade name, initial approval, memorandum of association, office or flexi-desk and the trade licence.
Visas and Emirates IDs
Coordination of establishment card, investor and employee visas, medicals and Emirates IDs.
Bank account preparation
Business plan, ownership chart and source-of-funds pack, and introductions to suitable banks.
Tax and UBO registrations
Corporate tax within three months, VAT when required, and beneficial ownership records.
Accounting from day one
Bookkeeping, VAT and corporate tax returns, and the annual audit when required.
Choosing a jurisdiction
Should You Set Up on the Mainland, in a Free Zone or Offshore?
- Mainland companies are licensed by the economic department of each emirate, such as Dubai Economy and Tourism (DET) or the Abu Dhabi Department of Economic Development (ADDED). They can trade anywhere in the UAE, open shops and offices across emirates, and bid for government contracts.
- Free zone companies are licensed by one of the UAE's free zone authorities, such as DMCC, JAFZA, IFZA (Dubai Silicon Oasis), Meydan, ADGM, DIFC, RAKEZ or SHAMS. They suit international trade, services, holding companies and start-ups, may access the 0% Qualifying Free Zone Person rate on qualifying income, and usually need a permit or distributor to sell to the mainland.
- Offshore companies, such as JAFZA Offshore or RAK ICC entities, are used to hold shares, property or other assets, not to trade in the UAE or sponsor visas.
The right answer depends on who your customers are, where you will operate, how many visas you need and your tax position.
Compare
How Do Mainland, Free Zone and Offshore Companies Compare?
| Point | Mainland | Free zone | Offshore |
|---|---|---|---|
| Where you can trade | Anywhere in the UAE | Inside the zone and abroad; mainland via permits | Not in the UAE |
| Corporate tax | 0% up to AED 375,000, 9% above | 0% on qualifying income for a QFZP; otherwise standard rates | Depends on residence and activity |
| Small business relief | Available up to AED 3m revenue | Not available if a QFZP | Usually not relevant |
| Annual audit | LLCs must appoint an auditor | Required by many zones | Depends on the registry |
| Office | Physical office with Ejari usually required | Flexi-desk options in many zones | Registered agent address |
| Visas | Based on office size and activity | Based on the package | None |
| Government contracts | Eligible | Usually needs a mainland presence | No |
How it works
What Are the Steps to Set Up a Company in Dubai?
Step01
Plan the structure
Choose activities, jurisdiction, legal form, shareholders and the corporate tax route.
Step02
Name and initial approval
Reserve the trade name and obtain initial approval from the authority.
Step03
Documents and office
Sign the memorandum of association, and lease an office (Ejari) or choose a flexi-desk.
Step04
Licence
Pay the fees and receive the trade licence and establishment card.
Step05
Visas and bank account
Process investor and employee visas, Emirates IDs and the corporate bank account.
Step06
Tax and records
Register for corporate tax within three months, file UBO details, register for VAT if needed and start the books.
Why SGA World
Why Choose SGA World for Business Setup in the UAE?
Set up by auditors and tax advisers
We design the company around its tax position, audit duties and banking, not just the licence.
Ministry-approved audit firm
SGA World is a Ministry of Economy and Tourism approved audit firm, so our reports are accepted where it matters.
Audit and tax in one team
Auditors, VAT, corporate tax and transfer pricing specialists work together, so nothing falls between advisers.
Qualified chartered accountants
A team of chartered accountants qualified in India and the UK, focused on UAE rules.
500+ clients
Mainland and free zone companies, from start-ups and SMEs to regional groups.
Listed with major UAE banks
Our audit work is recognised by major UAE banks for facilities and account reviews.
Legal forms
Which Legal Form Should Your UAE Company Use?
Limited liability company (LLC)
The most common mainland form, with one or more shareholders and limited liability.
Sole establishment
A mainland business owned by one person, usually for professional activities, with unlimited liability.
Branch of a UAE or foreign company
An extension of an existing company with no separate legal personality; the parent is liable.
FZE, FZCO and FZ-LLC
Free zone companies with one or more shareholders, with names and rules set by each zone.
Holding company
A free zone or offshore company that owns shares in operating companies, often using the participation exemption.
Civil company
A mainland partnership of professionals, such as consultants or engineers.
Costs
How Much Does Business Setup in Dubai Cost?
- Licence and registration
- The authority's fees for the trade licence, registration and initial approvals; varies widely by zone, activity and number of activities.
- Office or flexi-desk
- Mainland offices need an Ejari-registered lease; many free zones offer cheaper flexi-desks.
- Establishment card and visas
- Immigration file, visa quota, entry permits, medical tests and Emirates IDs for each visa.
- Share capital
- Some authorities and activities require a minimum capital or bank guarantee.
- Bank account
- Banks may require a minimum balance; some charge monthly fees.
- Accounting, audit and tax
- Bookkeeping, corporate tax and VAT filings, and the annual audit where required.
Packages advertised "from" a low price usually exclude visas, office and annual costs. We prepare a full first-year and annual cost estimate for your chosen structure.
What to prepare
What Documents Do You Need for Business Setup in the UAE?
Individual shareholders
Passport copies, photos, proof of address, UAE visa or entry stamp, and CVs for some activities.
Corporate shareholders
Certificate of incorporation, memorandum and articles, board resolution and good standing certificate, usually attested.
Business information
Proposed trade names, activities, business plan, expected customers and countries of trade.
Manager and signatories
Details of the general manager and authorised signatories, with ID documents.
Office
Tenancy contract or flexi-desk agreement for the licence and Ejari.
For the bank
Source of funds, ownership chart, contracts or invoices showing real activity, and UBO details.
After the licence
What Must a New UAE Company Do After It Gets Its Licence?
The licence is the start of compliance, not the end. In the first months a new company should:
1. Register for corporate tax on EmaraTax within three months of incorporation, even if it has not started trading. Missing it costs AED 10,000. 2. Keep and file beneficial ownership records under Cabinet Decision No. 109 of 2023, and update them within 15 days of any change. See our UBO compliance service. 3. Register for VAT once taxable supplies pass AED 375,000 in 12 months, or are expected to in the next 30 days. See our VAT registration service. 4. Choose a financial year and accounting system, and keep records for 7 years. See our bookkeeping service. 5. Check whether the authority requires an annual audit, and plan for it before renewal. 6. Decide the corporate tax route: small business relief, QFZP or the standard rules. See our corporate tax service. 7. For mainland companies, register employees with MOHRE, pay salaries through WPS, and plan for Emiratisation targets once you reach 50 employees.
Corporate shareholders' documents usually need attestation; see our document attestation service.
Worked example
Example: A Consultancy Choosing Between Mainland and Free Zone
A two-partner management consultancy expects most of its clients to be UAE mainland companies, with some in Saudi Arabia.
- Free zone option: cheaper set-up and a flexi-desk, but services to mainland clients are generally non-qualifying income for QFZP purposes. With most revenue from the mainland, the company would fail the de minimis test and pay the standard rates anyway, while needing permits to work on the mainland.
- Mainland option: a Dubai mainland LLC can serve clients across the UAE directly. With expected revenue under AED 3 million, it can elect small business relief for tax periods ending on or before 31 December 2029.
Result: for this business the mainland is the better fit, despite the higher office cost. A trading company re-exporting goods from Jebel Ali would usually reach the opposite answer. We run this comparison before you apply.
Banking
How Do You Open a Corporate Bank Account in the UAE?
Opening a bank account is often the slowest part of business setup. Banks assess money laundering risk before accepting a new company. To improve your chances:
- prepare a short business plan with expected customers, suppliers and countries;
- have a clear ownership chart down to the beneficial owners;
- show the source of funds for the initial capital;
- provide contracts, quotes or invoices that show real activity;
- make sure licence activities match what you actually do.
We help you prepare this pack and introduce you to banks that suit your profile.
Fees and timing
How Long Does Business Setup in the UAE Take?
Typical timelines, once documents are ready:
- Free zone licence: often a few days to two weeks.
- Mainland licence: usually one to three weeks, longer if external approvals are needed.
- Visas and Emirates IDs: a few weeks per person.
- Bank account: commonly two to eight weeks, depending on the bank and your profile.
Time and cost increase with corporate shareholders (attested documents), regulated activities that need extra approvals, multiple visas and complex ownership. We confirm a full timeline and fixed fee for our work before starting.
Avoid problems
Common Business Setup Mistakes
Choosing a free zone to serve mostly mainland clients
No 0% benefit and extra permits
Missing the 3-month corporate tax registration
AED 10,000 penalty
Activities on the licence that do not match the business
Bank account refusals and compliance issues
Comparing "from" package prices only
Visa, office and annual costs are missed
No UBO register
Penalties and bank delays
No bookkeeping from day one
Costly clean-up at the first audit or tax return
Setup desk
Set Up Your UAE Company the Right Way
Tell us what your business will do, who will own it and where your customers are. We will recommend the structure, give you a full cost estimate and handle setup and tax registrations.
We handle
- Jurisdiction and structure advice
- Company formation and licensing
- Bank account preparation
- Corporate tax, VAT and UBO registration
- Bookkeeping and audit from day one
Location: Dubai & Abu Dhabi
Talk to Our Team
Our offices in Business Bay, Dubai and Al Bateen, Abu Dhabi support clients across the UAE.
Dubai
Office 1923, The Exchange Tower, Business Bay, Dubai
Abu Dhabi
Khalidiya Towers M-B6, W10, Al Bateen, Al Khalidiyah, Abu Dhabi
Talk to an auditor
Tell us your company type, jurisdiction and deadline. We will confirm the scope, timeline and fee.
- WhatsApp us+971 50 627 3556
- Call us+971 4 570 1795
- Email us[email protected]
- Book an appointmentChoose a time that suits you
Prefer a form? Send us a detailed enquiry.
Who prepared this page
Written and reviewed by SGA World's audit and tax team
This guide is prepared by chartered accountants at SGA World Auditing Accounting L.L.C S.P.C in Business Bay, Dubai, a Ministry of Economy and Tourism approved audit firm, and checked against Federal Tax Authority legislation and guidance. It is reviewed whenever the rules change.
- Last reviewed 14 October 2026
- Chartered accountants from India and the UK
- FTA representation through Saif Chartered Accountants
Have a question about your company?
Tell us your activity, jurisdiction and deadline. A chartered accountant will reply.
Ask an expertFrequently asked questions
Business Setup in Dubai and the UAE – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.What is the best way to set up a business in Dubai?
It depends on your customers and activity. Mainland suits businesses serving UAE clients and government; a free zone suits international trade, services and holding activities; offshore suits holding assets. We compare the options for your case.
02.Can a foreigner own 100% of a UAE mainland company?
Yes, for most commercial and industrial activities. A small number of strategic activities still have ownership restrictions or need additional approvals.
03.Is a free zone company better than a mainland company?
Not always. A free zone may offer the 0% QFZP rate on qualifying income, but income from mainland customers is generally non-qualifying, and selling to the mainland usually needs a permit or distributor.
04.How much does it cost to set up a company in Dubai?
Costs depend on the jurisdiction, activities, office and number of visas. Beyond the licence fee, budget for office or flexi-desk, establishment card, visas, bank requirements and annual accounting, audit and tax.
05.How long does business setup in the UAE take?
A free zone licence can take a few days to two weeks and a mainland licence one to three weeks. Visas and the bank account usually take longer.
06.When must a new company register for corporate tax?
A company incorporated on or after 1 March 2024 must register within three months of incorporation, even if it has not started trading. Late registration carries an AED 10,000 penalty.
07.When does a new company need to register for VAT?
Once its taxable supplies over the past 12 months, or expected in the next 30 days, exceed AED 375,000. Voluntary registration is possible from AED 187,500.
08.Does a new company need an audit?
Mainland LLCs must appoint an auditor, and many free zones require audited accounts at renewal. An audit is also needed for QFZP status and for revenue above AED 50 million.
09.Do I need a physical office?
Mainland companies usually need an Ejari-registered office. Many free zones offer flexi-desks, though visa quotas depend on the office size.
10.Can a free zone company work with mainland clients?
Often yes, through a mainland permit, branch or distributor, depending on the zone and emirate. For corporate tax, mainland income generally affects QFZP status.
11.What is an offshore company used for?
Holding shares, property or other assets. Offshore companies cannot trade in the UAE or sponsor visas.
12.What documents are needed to open a company?
Passports and photos of shareholders and managers, proof of address, proposed names and activities, and, for corporate shareholders, attested company documents.
13.Why do banks reject new company accounts?
Usually because of unclear ownership, unexplained source of funds, activities that do not match the licence, or high-risk countries. A prepared business and ownership pack helps.
14.What must a mainland company do when hiring staff?
Register with MOHRE, pay salaries through WPS, provide health insurance and, once it has 50 or more employees, meet Emiratisation targets for skilled roles.
15.Do you help after the company is set up?
Yes. We handle bookkeeping, VAT and corporate tax filings, UBO updates, audits and virtual CFO support.
References:UAE government portal: starting a business · Dubai Economy and Tourism (DET) · Federal Tax Authority · Ministry of Economy and Tourism · Ministry of Human Resources and Emiratisation (MOHRE) — reviewed 14 October 2026
