Business Setup & Company Formation

Business Setup in Dubai & the UAE

Mainland, free zone and offshore company formation in Dubai and across the UAE, from activity selection and licensing to visas, banking and tax registration.

Quick answer

Business setup in Dubai means choosing a licensed business activity, selecting a mainland, free zone or offshore jurisdiction, reserving a trade name, securing an office, obtaining the trade license and then arranging visas and a corporate bank account. Brown Bros. handles each step of company formation in Dubai and across the UAE, and supports the business afterwards with PRO, accounting, tax and legal services.

Last reviewed by the Brown Bros. advisory team

Company formation services

Mainland Company Formation

A Dubai mainland company is licensed by the Department of Economy and Tourism (DET).

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Free Zone Company Formation

A free zone company is licensed by one of the UAE's free zone authorities rather than the mainland economic department.

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Offshore Company Formation

A UAE offshore company is a non-resident entity registered with an offshore registry such as JAFZA Offshore or RAK International Corporate Centre (RAK ICC).

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Business Structure Advisory

Business structure advisory helps you choose the legal form and jurisdiction for your UAE company, whether that is an LLC, sole establishment, branch of a foreign company, free zone entity or holding structure.

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Trade License Processing

A trade license is the permit that allows a company to carry out its licensed activities in Dubai.

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Business Activity Consultation

Every UAE trade license lists specific approved activities, and the company may only carry out those activities.

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Shareholder Structuring

Shareholder structuring decides who owns the company, in what proportions, whether shares are held personally or through a holding company, and how management and profit rights are set out in the memorandum of association.

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PRO & Visa Services

Investor and employment visas, Emirates ID, MOHRE and government approvals after your license is issued.

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Corporate Amendments

Share transfers, new activities, name changes, restructuring and liquidation.

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Key facts: Business Setup

Service
Business setup and company formation in Dubai and across the UAE
Jurisdictions
Mainland (DET), free zones, offshore
Who it is for
Entrepreneurs, SMEs, foreign companies opening a UAE entity, and existing UAE businesses restructuring
Typical timeline
About one to two weeks for a straightforward license once documents are ready; bank account opening and external approvals can add time
Ongoing obligations
License renewal, VAT and corporate tax registration where applicable, visa renewals, bookkeeping
Office
M-23, New Al Safiya Building, Abu Hail, Dubai

Mainland, free zone or offshore: how the options compare

The jurisdiction you choose determines where you can trade, how many visas you can sponsor and how the company is regulated. Start from your customers and revenue model, not from the cheapest package.

General comparison — individual free zones and activities have their own rules.
MainlandFree zoneOffshore
Licensing authorityDET (Dubai) or the economic department of the emirateThe relevant free zone authorityOffshore registry (e.g. JAFZA Offshore, RAK ICC)
Trade within the UAE marketDirectly, anywhere in the UAEWithin the free zone and internationally; mainland trade usually needs a distributor or additional permitNot permitted
Foreign ownership100% for most activities since 2021100%100%
Office requirementPhysical office with EjariFlexi-desk, shared or dedicated officeRegistered agent address only
Residence visasYes, quota linked to office sizeYes, quota linked to package/officeNo
Typical useRetail, contracting, services for UAE clients, government contractsTrading, consulting, e-commerce, regional HQs, exportHolding companies, asset ownership, international trade

Business setup services

Each part of the setup has its own page with process, documents and FAQs: mainland company formation, free zone company formation, offshore company formation, trade license processing, business activity consultation, business structure advisory and shareholder structuring.

After the license: visas, banking, tax and compliance

A trade license is the start, not the finish. Most new companies next need an establishment card and investor or partner visas, employment visas for staff, and a corporate bank account.

From the first day of trading you need proper bookkeeping. Most businesses must also register for UAE corporate tax, and VAT registration becomes mandatory once taxable turnover passes AED 375,000.

Later changes such as share transfers, new activities or restructuring are handled through corporate amendments. Growth plans are covered on our business development page.

Business setup across the other emirates

Most of our clients set up in Dubai, but Brown Bros. also supports company formation in Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah and Umm Al Quwain. Each emirate has its own economic department and free zones, and each sets its own costs, office rules and activity lists. We compare options across emirates when location isn't fixed by your customers or operations.

How company formation in Dubai works

  1. 1

    Define the business activity

    The licensed activity decides the license type, the approving authority and whether external approvals are needed. Mismatched activities are the most common reason applications stall.

  2. 2

    Choose the jurisdiction and legal form

    Mainland, free zone or offshore, and then an LLC, sole establishment, branch or free zone entity, based on customers, visas and ownership.

  3. 3

    Reserve the trade name and obtain initial approval

    Names must follow UAE naming rules and must not conflict with existing trade names or trademarks.

  4. 4

    Arrange the office

    Mainland companies need a physical office with a registered Ejari. Free zones offer flexi-desks and shared offices.

  5. 5

    Submit documents and pay license fees

    Shareholder documents, the memorandum of association where applicable and any external approvals are submitted, then the trade license is issued.

  6. 6

    Visas, establishment card and bank account

    Immigration file, investor and employee visas, Emirates ID and corporate bank account opening.

Documents required

  • Passport copies of all shareholders and managers
  • Passport-size photographs
  • UAE residence visa or entry stamp, where applicable
  • Proposed trade names (usually three options)
  • Business plan or activity description for some activities and free zones
  • For corporate shareholders: certificate of incorporation, memorandum and articles, and board resolution — legalised and attested

Exact requirements vary by authority, activity and nationality. We confirm the list for your case.

What affects the cost?

  • Jurisdiction (mainland, which free zone, or offshore)
  • Business activity and number of activities
  • Legal form and number of shareholders
  • Office type and size
  • Number of residence visas
  • External approvals for regulated activities
  • Ongoing costs: license renewal, accounting, tax filings

Government fees change periodically. We provide a written, itemised quote before you commit.

How long does it take?

Once documents are ready and no external approvals are needed, a straightforward license is usually issued in about one to two weeks. Activities that need approval from other authorities, attestation of foreign documents, visa processing and corporate bank account opening can extend the overall timeline.

Frequently asked questions

How do I start a business in Dubai as a foreigner?

Foreign nationals can own 100% of free zone companies and, since 2021, 100% of mainland companies for most activities. You choose an activity and jurisdiction, reserve a trade name, arrange an office, submit passport copies and other documents, and obtain the trade license. Residence visas and a bank account follow.

Do I need to be in Dubai to set up a company?

Not usually. Mainland and free zone setups can be initiated remotely in most cases. You'll normally need to be in the UAE for the medical test and biometrics if you apply for a residence visa, and many banks ask to meet signatories in person.

How much does business setup in Dubai cost?

It depends on the jurisdiction, activity, office and number of visas. Free zone packages are usually the lowest entry cost, while mainland setups add office rent and Dubai Chamber and DET fees. We give a written quote once the activity and visa needs are clear.

What is the difference between business setup and company formation?

They are used interchangeably. Company formation or incorporation is the legal registration of the entity and issue of the trade license. Business setup usually also covers what follows, such as visas, the bank account, tax registrations and PRO support.

Can I convert a free zone company to a mainland company later?

Usually this means setting up a new mainland license, or registering a branch of the free zone company on the mainland, rather than converting the existing entity. Choosing the right jurisdiction at the start avoids this cost.

Is corporate tax payable by a new company in the UAE?

UAE corporate tax applies at 9% on taxable income above AED 375,000, and 0% below that threshold. Most companies must register with the Federal Tax Authority even if no tax is payable, and qualifying free zone persons can benefit from 0% on qualifying income.

Official sources

This page gives general guidance, not legal or tax advice. UAE requirements, fees and thresholds are set by the relevant authorities and change from time to time. Check the current position with the authority or speak to our team about your circumstances.

Ready to get started with Business Setup?

Talk to our team about your objectives — we'll recommend the right approach and handle everything end to end. One Partner. Endless Possibilities.