COMPANY FORMATION · UNITED ARAB EMIRATES
Setting up in the UAE, clearly explained.
Mainland or free zone, FZE or LLC, DMCC or IFZA: the UAE offers dozens of ways to set up a company. This guide explains the main choices, indicative costs and the steps, so your first conversation with advisers starts from clarity.
AT A GLANCE
The essentials, October 2026.
Indicative figures checked against official and specialist sources. Always confirm with licensed advisers.
- Ownership
- 100% foreign ownership in free zones, and for most mainland activities since the 2021 reforms
- Corporate tax
- 9% on taxable profits above AED 375,000; special regime for qualifying free zone persons
- Personal income tax
- None
- VAT
- 5%
- Typical timeline
- From one to four weeks for a free zone licence, longer for bank accounts
- Residence visas
- Linked to the company’s licence and visa quota
STRUCTURES
Company types
| Type | What it is | Good to know |
|---|---|---|
| Mainland LLC | Licensed by the Department of Economy and Tourism (Dubai) or its equivalent in other emirates | Trade directly across the UAE market and with government; full foreign ownership for most activities; office lease required |
| Free Zone Establishment (FZE) | One shareholder, inside a free zone | Simple structure for a single owner; 100% foreign ownership; activity limited to the free zone and abroad unless a mainland route is arranged |
| Free Zone Company (FZCO / FZ-LLC) | Two or more shareholders, inside a free zone | As FZE, for partners and joint ventures |
| Branch of a foreign company | Mainland or free zone | Extension of an existing overseas company; the parent remains liable |
| Offshore company | For example RAK ICC or JAFZA Offshore | Holding assets, shares or property; cannot trade within the UAE and does not carry residence visas |
FREE ZONES
The main free zones
More than forty free zones operate across the seven emirates. These are the ones our clients ask about most.
DMCC
Jumeirah Lakes Towers. Commodities, trading and services; one of the largest and best-known free zones.
DIFC
Financial centre with its own common-law courts; finance, family offices, wealth and holding structures. Higher cost.
ADGM
Financial centre on Al Maryah Island, English common law applied directly; funds, family offices and holdings.
JAFZA
Jebel Ali: logistics, manufacturing and trading next to the port; also offers offshore companies.
DAFZA
Beside Dubai International Airport; trading, aviation, technology.
IFZA
Popular for consultancy and service companies; competitive packages.
Meydan Free Zone
Flexible licences close to Downtown; consultancy, e-commerce, services.
Dubai Silicon Oasis
Technology and innovation companies.
RAKEZ
Cost-effective licences and industrial land; flexible visa packages.
SHAMS
Media and creative licences, among the lowest entry costs.
The right structure, in the right place.
ATLAS MAISON · Business concierge
COSTS
What to budget for.
Indicative only. Packages and government fees change; your advisers confirm the exact figures.
- Entry-level free zone licences in the northern emirates, such as SHAMS, RAKEZ or Ajman, have been advertised from roughly AED 5,000 to AED 6,000 a year, often without visas.
- Popular Dubai free zones such as Meydan or IFZA have advertised packages from roughly AED 12,000 to AED 13,000 a year before visas.
- DMCC, DIFC and ADGM cost materially more, with office requirements and regulatory fees that depend on the activity.
- Add residence visas (often several thousand dirhams each, including medical and Emirates ID), office or flexi-desk, document attestation and annual renewal.
- Mainland companies add an office lease and Department of Economy and Tourism fees. Budget for bank onboarding, which can take several weeks.
THE PROCESS
Four clear steps.
- 1
Activity & structure
With your advisers: activity list, mainland or free zone, single or multiple shareholders.
- 2
Name & initial approval
Trade name reservation and initial approval from the authority.
- 3
Documents & licence
Passports, attested documents, memorandum of association, office or flexi-desk; licence issued.
- 4
Visas & banking
Establishment card, residence visas, Emirates ID, and bank account opening.
IMPORTANT
This guide is general information, checked in October 2026, and not legal, tax or immigration advice. Fees, thresholds and rules change; licensed professionals confirm what applies to you. ATLAS MAISON coordinates the process and introduces licensed corporate service providers, lawyers and accountants.
Questions, answered
Can a foreigner own 100% of a UAE company?
Yes. Free zone companies have always allowed full foreign ownership, and since 2021 most mainland activities can also be 100% foreign-owned. Some strategic activities still have restrictions.
What is the cheapest free zone in the UAE?
Entry-level licences in the northern emirates, such as SHAMS, RAKEZ or Ajman, have been advertised from around AED 5,000–6,000 a year, usually without visas. The cheapest zone is not always the right one: activity, visas, banking and reputation matter more.
Do UAE companies pay corporate tax?
Yes. Since 2023 the UAE applies a federal corporate tax of 9% on taxable profits above AED 375,000. Qualifying free zone persons can benefit from 0% on qualifying income. Your tax adviser confirms how it applies.
Free zone or mainland?
A free zone suits international trading, consulting and holding businesses; a mainland company suits businesses selling directly to UAE customers or government. Many groups use both.
Does a UAE company give me residency?
Free zone and mainland companies can sponsor residence visas within their quota. Offshore companies cannot. Investors may also qualify for the Golden Visa through other routes.
COMPANY FORMATION
Continue exploring.
BUSINESS CONCIERGE
Set up with the right people.
Tell us what you are planning. We introduce licensed providers and coordinate every step. Confidentiality agreement on request.