To register a company in Dubai, choose mainland, free zone, or offshore. Pick a business activity and legal form. Reserve a trade name, get initial approval from the Department of Economy and Tourism (DET) or a free zone authority, sign your Memorandum of Association, secure an office or Ejari lease, pay the license fee, then apply for visas. Free zone setups take 3 to 5 working days. Mainland setups take around two weeks.
Costs range from around AED 12,000 in free zone to AED 60,000 or more for a mainland company in year one. Corporate tax sits at 9% above AED 375,000 profit, with 0% available below that threshold and for qualifying free zone income.
Key Takeaways
- Dubai offers three registration paths: mainland (DET), free zone, and offshore. Each suits a different business model.
- Most mainland activities now allow 100% foreign ownership, with no local UAE sponsor required.
- A mainland trade license costs roughly AED 10,000 to AED 25,000. Total first-year setup usually lands between AED 25,000 and AED 60,000.
- Entry-level free zone licenses start from about AED 5,800 to AED 12,500, though larger zones like DMCC charge AED 20,000 and up.
- UAE corporate tax is 9% on profits above AED 375,000. Profits below that are taxed at 0%.
- Qualifying free zone companies can keep a 0% corporate tax rate on qualifying income if they meet strict conditions.
- VAT registration is mandatory once taxable turnover passes AED 375,000, and optional above AED 187,500.
- Free zone companies cannot trade directly inside the UAE mainland without a distributor or a mainland branch.
At-a-Glance: Dubai Company Registration
| Factor | Details |
| Definition | The legal process of licensing a business to operate in Dubai through DET (mainland), a free zone authority, or an offshore registrar |
| Cost | AED 10,000–25,000+ for the license; AED 25,000–60,000 total first year on mainland; free zones from AED 5,800 |
| Time | 3–5 working days (free zone); around 2 weeks (mainland); regulated activities take longer |
| Requirements | Trade name, business activity, legal form, MOA (for LLCs), office/Ejari lease, passport copies, visa applications |
| Benefits | 100% foreign ownership, 0% personal income tax, access to UAE and global markets, fast setup |
| Risks | Non-compliant naming, wrong activity code, missing external approvals, late corporate tax registration fines |
| Best For | Mainland: local trading and government contracts. Free zone: exporters, consultants, e-commerce. Offshore: holding structures |
What does it mean to register a company in Dubai?
Registering a company in Dubai means obtaining a legal trade license from a recognized authority. It allows your business to operate legally, issue invoices, sign contracts, open bank accounts, and sponsor employee visas.
The licensing authority depends on your business location. DET issues mainland licenses, while free zone authorities issue licenses within their zones. Offshore companies register through authorities such as JAFZA Offshore or RAK ICC.
Registration confirms your business activity, your legal structure, your shareholders, and where you are allowed to operate. Without it, you cannot open a corporate bank account, sponsor employee visas, or sign binding contracts as a company.
What is the difference between mainland, free zone, and offshore companies in Dubai?
Mainland companies can trade anywhere in the UAE and bid on government work. Free zone companies get tax perks but face limits on direct mainland trade. Offshore companies cannot trade inside the UAE at all.
| Feature | Mainland | Free Zone | Offshore |
| Regulator | DET | Zone authority (DMCC, IFZA, RAKEZ, etc.) | JAFZA Offshore, RAK ICC |
| Foreign ownership | Up to 100% for most activities | 100% | 100% |
| UAE mainland trade | Unrestricted | Restricted, needs distributor or branch | Not permitted |
| Physical office | Usually required | Flexi-desk often accepted | Not required |
| Government contracts | Eligible | Not eligible | Not eligible |
| Corporate tax on qualifying income | 9% above AED 375,000 profit | 0% if Qualifying Free Zone Person | Generally not applicable, no local trading income |
| Typical setup time | ~2 weeks | 3–5 working days | 1–2 weeks |
| Best for | Retail, contracting, local services | Consultants, trading, e-commerce, tech | Holding companies, asset protection |
What are the steps to register a company in Dubai?
Choose your activity and legal form, reserve a trade name, get initial approval, draft your MOA, secure office space, pay fees, then apply for visas.
- Pick your business activity. DET and free zones list over 2,000 approved activities. The activity decides your license type: commercial, professional, or industrial.
- Choose a legal structure. Common options are a Limited Liability Company (LLC), a sole establishment, a civil company, or a branch office.
- Reserve your trade name. Names must avoid religious, political, or offensive terms and cannot copy an existing trademark.
- Apply for initial approval. This is a government no-objection confirmation that lets you proceed with setup. It does not grant a license yet.
- Draft and notarize the Memorandum of Association (MOA). Required for LLCs, this document sets out shareholders, shares, and management.
- Get external approvals if needed. Activities like healthcare, education, food, or transport need sign-off from bodies such as the Dubai Health Authority or the Roads and Transport Authority.
- Secure a physical office or flexi-desk and register it through Ejari, Dubai’s official tenancy registration system.
- Pay the license fee and government charges. You will typically receive a payment voucher after document review.
- Receive your trade license. Digital licenses can be issued the same day once fees clear.
- Register with MOHRE for an Establishment Card, then apply for investor or employee visas through the General Directorate of Residency and Foreigners Affairs (GDRFA).
- Open a corporate bank account and register for corporate tax and VAT with the Federal Tax Authority (FTA) via the EmaraTax platform.
Documents You Need
- Passport copies of all shareholders and managers, plus visa pages for UAE residents
- Emirates ID copies for UAE nationals and existing residents
- Passport-size photographs
- No Objection Certificate (NOC) if a shareholder holds a UAE residence visa under another sponsor
- Proposed trade name options
- Business plan (some free zones and regulated activities require this)
- Notarized Memorandum of Association for LLCs
- Proof of registered office or Ejari certificate
- Bank reference letter or deposit certificate (required by some free zones)
How much does it cost to register a company in Dubai?
Mainland license fees run roughly AED 10,000 to AED 25,000, with total first-year costs often between AED 25,000 and AED 60,000 once office rent and one visa are included. Free zones start lower, from about AED 5,800.
| Item | Mainland (DET) | Free Zone (entry-level) |
| Trade name reservation | AED 620–2,000 | Often bundled in package |
| Initial approval | AED 2,000–5,000 | Bundled |
| License fee (professional) | AED 10,000–18,000 | AED 5,800–12,500 |
| License fee (commercial/trading) | AED 18,000–22,000 | AED 12,500–20,000+ |
| Office/flexi-desk and Ejari | AED 5,000–20,000+ | Often included in package |
| Establishment card | AED 2,000–3,000 | Included in some packages |
| Investor visa (per person) | AED 3,500–5,000 | AED 3,500–6,000 |
| Typical first-year total | AED 25,000–60,000 | AED 12,000–30,000 |
Renewal fees repeat every year at close to the same rate as the initial license. Late DET renewal triggers daily fines, so mark your renewal date as soon as the license is issued.
Timeline
| Stage | Mainland | Free Zone |
| Name reservation and initial approval | 1–3 days | 1–2 days |
| License issuance | 5–10 working days | 2–3 working days |
| Establishment card | 2–3 days | 2–3 days |
| Visa stamping (per person) | 1–2 weeks | 1–2 weeks |
| Total to fully operational | ~2–3 weeks | ~1–2 weeks |
Regulated activities such as clinics, schools, and financial services take longer because they need sector-specific approval before the license can be issued.
Conclusion
Dubai company registration comes down to mainland, free zone, or offshore. Pick your structure based on who you plan to sell to. Costs, licensing steps, and tax treatment all follow from that one decision.
Not sure which structure fits your business? Contact us today and we will help you register the right way, the first time.
