Company Incorporation in Dubai

While we get in touch with you, here’s a quick overview to help you understand what setting up a business in Dubai really involves.

At BizSetupGlobal, we provide end-to-end support—right from company incorporation to accounting, compliance, and ongoing advisory. Our aim is to make your journey into Dubai’s fast-growing and globally connected business environment smooth, compliant, and stress-free.

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Steps of Company Incorporation in Dubai

Before starting a business in Dubai, it’s important to understand the different setup options available—Mainland, Free Zone, and Offshore. The right choice depends on your business activity, ownership preferences, and where you plan to operate. Choosing the correct structure from the start helps ensure smooth operations and long-term success.

Step 1: Determine the Business Jurisdiction

Your first decision is choosing where to register your company—Dubai Mainland, a Free Zone, or Offshore. Each option comes with its own rules, benefits, and limitations. The best choice depends on your target market, business activity, and future expansion plans.

Step 2: Choose a Trade Name

You’ll need to select a unique and compliant trade name for your business. The name must follow UAE naming guidelines and should not conflict with public morals or religious values. Once selected, the name must be approved by the relevant licensing authority.

Step 3: Define Business Activities

In Dubai, business activities must be clearly defined at the time of incorporation. These activities determine the type of license you’ll need—Commercial, Professional, or Industrial—and must be approved by the concerned authority.

Step 4: Obtain Initial Approval

Initial approval confirms that the authorities have no objection to you setting up the business. This step allows you to move forward with documentation, but it does not permit you to start operations yet.

Step 5: Prepare and Submit Legal Documentation

At this stage, key legal documents such as the Memorandum of Association (MOA) and, where applicable, the Local Service Agent (LSA) agreement are prepared. These documents are notarized and submitted along with shareholder details and required forms.

Step 6: Secure a Business Location

Every business in Dubai must have a registered address. This can be a physical office or a flexi-desk, depending on your setup. Mainland companies require Ejari registration, while Free Zone companies need approval from the respective authority.

Step 7: Obtain the Trade License

Once all documents are approved and government fees are paid, your trade license is issued. This officially allows your business to start operating in Dubai.

Step 8: Open a Corporate Bank Account

After license issuance, you can open a corporate bank account in the UAE. Banks typically require company documents, shareholder details, and a brief business profile as part of their due diligence process.

Step 9: Visa and Immigration Formalities

After incorporation, you can apply for residence visas, employment visas, and Emirates ID for shareholders and employees, based on eligibility and office space allocation.

Fees Involved:

Trade License Fee

The cost of a trade license depends on the jurisdiction, business activity, and licensing authority. It usually includes government fees, registration charges, and administrative costs.

Registration and Incorporation Fees

These cover company registration, trade name reservation, and initial approval. Costs vary based on the chosen business structure and jurisdiction.

Office Space / Flexi-Desk Charges

A registered business address is mandatory. Costs depend on whether you choose a physical office, co-working space, or flexi-desk, as well as the jurisdiction.

Visa and Immigration Fees

Visa costs apply for shareholders and employees and include residence visas, Emirates ID, medical tests, and immigration processing.

Corporate Bank Account Setup

Most banks do not charge a fixed setup fee, but minimum balance requirements and compliance-related costs may apply.

Documents Required for Company Incorporation in Dubai

Passport Copies of Shareholders and Directors : Clear and valid passport copies of all shareholders and directors.
Passport-Size Photographs : Recent photographs as per UAE visa and incorporation requirements.
Trade Name Reservation Certificate : Approval of the proposed trade name from the relevant authority.
Initial Approval Certificate : Confirmation that authorities have no objection to the business setup.
Memorandum of Association (MOA) : A legal document outlining ownership structure, business activities, and shareholder responsibilities.
Tenancy Contract / Office Lease Agreement : Proof of a registered business address, including Ejari (for Mainland) or Free Zone approval.
Business Activity Description : A clear outline of proposed business activities for licensing approval.
Visa and Immigration Documents (if applicable) : Documents required for visas, including entry permits, medical fitness reports, and Emirates ID.

ENTITY TYPE	LIABILITY	TAXATION	FORMATION	MAINTENANCE
Sole Proprietorship	Owner is personally responsible for all business debts.	Treated as personal income; corporate tax depends on activity and thresholds	Easy and cost-effective, mainly for professional services.	Minimal compliance; annual license renewal required.
Civil Company (Professional Partnership)	Partners are personally liable unless otherwise agreed.	Profits shared among partners; taxation subject to UAE regulations.	Ideal for licensed professionals.	Annual license renewal and professional compliance required.
LLC – Mainland	Liability limited to share capital.	Subject to UAE Corporate Tax; VAT may apply.	Most common setup for commercial businesses.	Annual renewals, accounting, and compliance required.
Free Zone Company	Liability limited to share capital.	Eligible for tax benefits on qualifying income.	Fast setup with 100% foreign ownership.	Compliance as per Free Zone authority rules.
Branch of Foreign Company	Parent company bears full liability.	Taxed on UAE-sourced income.	Allows foreign companies to operate locally.	Annual renewals and parent company compliance required.
Offshore Company	Liability limited to share capital.	Generally tax-exempt; no UAE operations allowed.	Cost-effective for international use.	Minimal maintenance and annual renewal required.

Structure	Mainland LLC	Free Zone Company	Offshore Company
Legal Identity	Registered with Dubai Department of Economy & Tourism (DET).	Registered under respective Free Zone authority.	Registered under offshore jurisdiction.
Taxation	Subject to UAE Corporate Tax and VAT where applicable.	Tax benefits on qualifying income.	Generally tax-exempt; no UAE operations.
Owner’s liability	Limited to share capital.	Limited to share capital.	Limited to share capital.
Limit of shareholder	No nationality restrictions.	100% foreign ownership allowed.	Limited shareholders as per rules.
Management & Paperwork	Moderate compliance requirements.	Streamlined processes.	Minimal paperwork.
Share Capital / Ownership	Defined in MOA; no public shares.	Defined by Free Zone rules.	Mainly for asset holding.
Common uses	Businesses operating within the UAE.	International trade, startups, and HQs.	Asset holding and global structuring.