How to start a company in United Arab Emirates

Last checked: November 2026 · Currency: AED

In the UAE the first decision is free zone or mainland. A free zone company (licensed by a free zone authority such as DIFC, ADGM, DMCC, IFZA or RAKEZ) is 100% foreign-owned and quick to set up, but cannot sell directly to the UAE mainland market without a distributor, branch or permit; a mainland company (licensed by the emirate's economic department, e.g. Dubai DET or Abu Dhabi ADDED) can trade anywhere in the UAE and bid for government contracts. Every company must register for corporate tax, and budget and timelines are driven more by licence, office and visa costs than by registration itself.

General information, not legal or tax advice. Rules and fees change; always check the official source.

Recommended for co-foundersMost investor-bound co-founder teams pick a free zone company, often in DIFC or ADGM because their common-law rules and courts are familiar to international investors; choose mainland if your main customers are UAE businesses, consumers or government bodies.

Company types

Type	Minimum capital	Liability	Best for
Free zone company (FZ-LLC / FZCO) Limited liability company licensed by a free zone authority	Set by each free zone; many require none or a nominal amount, some up to about AED 50,000 Check the official source	Limited	International or online startups, 100% foreign-owned teams, and those targeting the 0% Qualifying Free Zone Person tax regime
DIFC / ADGM private company Private company limited by shares in a financial free zone with English common law courts	Typically no minimum for non-regulated activities Check the official source	Limited	Venture-backed startups wanting a familiar common-law structure (share classes, ESOPs, SAFEs)
Mainland LLC Limited Liability Company licensed by an emirate economic department (e.g. Dubai DET, Abu Dhabi ADDED)	No fixed federal minimum for most activities; some emirates or activities set one Check the official source	Limited	Teams selling directly to UAE customers or government; 100% foreign ownership allowed for most activities

Registration, step by step

1
Agree on equity, roles and vestingAgree ownership, roles and vesting in writing before you choose a licence. Free zone (especially DIFC/ADGM) articles can hold vesting and share-transfer rules; mainland articles are more standardised, so use a separate shareholders' agreement.u.ae: Starting a business in a free zone
2
Choose free zone or mainlandFree zone: 100% foreign ownership, fast setup, but restricted mainland trade. Mainland: trade anywhere in the UAE and access government tenders; Dubai also offers a permit letting some free zone firms operate on the mainland.ADDED: Abu Dhabi's mainland and free zones
3
Pick activity, name and legal formChoose your licensed business activities (they decide which free zone or authority fits), reserve a trade name, and select the entity type the authority offers.Ministry of Economy: Company registrars in free zones
4
Apply for the licence and registerSubmit founders' passports, the business plan (some zones), and articles to the free zone authority or emirate economic department, and secure the required office or flexi-desk. Free zone licences are typically issued within about 14 working days of a complete application.u.ae: Starting a business in a free zone
5
Get establishment card, visas and bank accountObtain the establishment/immigration card and residence visas for founders who will live in the UAE, then open a corporate bank account. Bank onboarding often takes several weeks and requires detailed KYC on every shareholder.u.ae: Running a business in a free zone
6
Register for corporate tax (and VAT if needed)Every UAE company, including free zone companies, must register for corporate tax with the Federal Tax Authority via EmaraTax. VAT registration is mandatory once taxable supplies exceed AED 375,000 a year (voluntary from AED 187,500).Federal Tax Authority: Corporate tax
7
Register your trademarkYour trade licence does not protect your brand. File a UAE trademark with the Ministry of Economy (examination, publication with a 30-day objection period, then registration).Ministry of Economy: Register trademark

Costs and time

Item	Amount
Free zone licence and registration (first year, no visas)	Roughly AED 6,000–AED 25,000 depending on the free zone and package; DIFC/ADGM startup licences differ Check the official source
Mainland licence and registration (first year)	Roughly AED 15,000–AED 40,000 including office/Ejari requirements Check the official source
Residence visa per founder (incl. medical, Emirates ID)	Roughly AED 3,000–AED 7,500 each Check the official source
Corporate tax registration	Free
Trademark (Ministry of Economy, per class)	About AED 6,500 (AED 750 examination + AED 750 publication + AED 5,000 registration)

How long it takes: Free zone: about 1–3 weeks to a licence; mainland: about 2–4 weeks. Visas and a corporate bank account can add 3–8 more weeks.

Taxes

Tax	Rate	Note
Corporate tax	0% up to AED 375,000 taxable income; 9% above	All companies must register with the FTA and file returns, even if no tax is due.
Corporate tax for a Qualifying Free Zone Person	0% on qualifying income; 9% on non-qualifying income	Only if substance, qualifying-income and transfer-pricing conditions are met; the AED 375,000 band does not apply to non-qualifying income. Check the official source
Small Business Relief	Treated as no taxable income	Electable if revenue is AED 3 million or less in the current and all previous periods; reported as extended to tax periods ending by 31 Dec 2029. Not available to Qualifying Free Zone Persons. Check the official source
VAT	5%	Mandatory registration above AED 375,000 annual taxable supplies; voluntary above AED 187,500.

Protect your name

TrademarkUAE Ministry of EconomyAbout AED 6,500 per class (AED 750 examination + AED 750 publication + AED 5,000 registration); expedited examination AED 2,250 Trademark office Trademark basics →

PatentUAE Ministry of Economy (Intellectual Property)Patent office Patent basics, and when not to bother →

Tips for co-founders

Match the licence to your first customers: a free zone company selling to UAE mainland clients may need a distributor, branch or permit.
Start bank account onboarding as soon as the licence is issued, because it is often the slowest step.
If you want 0% corporate tax as a Qualifying Free Zone Person, plan real substance (staff, office, management) in the zone from day one.
Many investors prefer DIFC or ADGM entities because they support share classes, vesting and option pools under common-law rules.

The co-founder agreement checklist →

Official links

General information, not legal or tax advice. Rules and fees change; always check the official source. Last checked: November 2026.

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