Dubai makes it surprisingly straightforward for non-residents to launch a company whether you’re selling online, consulting, or opening a trading firm. This guide walks you through the process in clear, practical steps, with tips to avoid delays and hidden costs.
At a glance: Mainland vs Free Zone vs Offshore
- Mainland (DET/DED license): Trade anywhere in the UAE + abroad, work with government tenders, flexible office choices. Many activities allow 100% foreign ownership (some strategic activities still have special rules).
- Free Zone (e.g., IFZA, DMCC, Meydan, RAKEZ, SHAMS): Fast setup, visa quotas tied to flexi-desk/office package, great for import/export or e-commerce, and simplified customs.
- Offshore (JAFZA Offshore, RAK ICC): No UAE on-shore trading; mainly for holding assets, international trading, or SPVs.
Tip: If you’ll sell services/products inside the UAE market (B2C/B2B), choose Mainland or a Free Zone with a local distributor arrangement when needed.
Step-by-Step: From Idea to Trade License
1) Define your activity & business model
List what you’ll actually do (consulting, general trading, e-commerce, marketing, F&B, logistics, etc.). Your chosen activity dictates documents, approvals, and whether you need a physical office.
2) Pick your jurisdiction
- Decide Mainland vs Free Zone based on:
- Where your customers are (UAE vs global)
- Whether you need government tenders/retail presence
- Visa needs and office requirements
- Cost & renewal preferences
3) Choose legal structure
Common options:
- LLC (Mainland) – flexible, popular for SMEs.
- Sole Proprietorship / Civil Company – service professionals.
- FZE/FZ-LLC (Free Zone) – single/ multi-shareholder companies.
4) Reserve your trade name
Submit 2–3 preferred names (comply with naming rules, avoid restricted words). You’ll receive a Name Reservation Certificate.
5) Get initial approval
Regulator confirms your proposed activity and shareholders. For regulated activities (healthcare, education, finance, food), you may need external approvals.
6) Lease office or select a flexi-desk
- Mainland: Ejari (tenancy registration) is usually required.
- Free Zones: Choose a flexi-desk, shared office, or private office – the package can affect visa quotas.
7) Draft & sign constitutional docs
- Memorandum of Association (MoA) or Articles, plus UBO declaration.
- Notarize/sign digitally as required by the authority.
8) Submit final application & pay license fees
Provide the full pack (passports, photos, MoA, lease/Ejari, name reservation, initial approval). Once issued, you get your Trade License and company establishment docs.
9) Immigration file & visas
- Open establishment card with immigration.
- Apply for owner/investor visa and any employee visas (entry permit → status change → medical test → Emirates ID biometrics → stamping).
10) Open a corporate bank account
Typical requirements: trade license, MoA, shareholders’ passports/visas/Emirates IDs, office lease, business plan, proof of source of funds, sample invoices/contracts if available.
Pro tip: Prepare a concise business profile and expected transaction flows, this speeds up KYC.
11) Tax & registrations (do this early)
- VAT (5%): Register if you hit the mandatory threshold or plan to voluntarily register (often useful for trading businesses).
- Corporate Tax: UAE applies corporate tax; free zone companies may access preferential treatment on qualifying income if they meet conditions. Maintain compliant books and file returns on time.
- Customs: If importing, set up a customs code.
12) Ongoing compliance & renewals
- Renew trade license annually.
- Maintain proper bookkeeping and audited accounts if your authority requires it.
- Keep UBO, economic substance, and AML (where applicable) obligations up to date.
- Update activity or office changes promptly to avoid fines.
Documents you’ll typically need
- Passports + passport photos of all shareholders/ managers
- UAE entry stamp/visa (if available)
- Business name options, activity list, and brief business plan
- Office lease/Ejari or free zone facility agreement
- MoA/Articles & UBO form (we’ll draft these)
For corporate shareholders: board resolution, certificate of incorporation, and legalized corporate docs
Timeline & cost pointers (ballpark)
- Timeline: 3–15 working days depending on activity, approvals, and bank KYC.
- Costs: Vary by authority, activity, visa package, and office type. Expect a license package (with or without visa quota) + establishment/immigration fees + office. Banking is usually free to open but may have minimum balance requirements.
(Exact fees change by authority and activity, ask for a current quote before you commit.)
FAQs (fast answers)
- Can foreigners own 100%?
Yes – many activities now allow 100% foreign ownership on the Mainland; Free Zones have always allowed full foreign ownership. Some strategic sectors still have special rules.
- Do I need a local sponsor?
For most common activities, no. For restricted/regulated activities, special approvals or partnerships can apply.
- Do I need to be in Dubai to register?
A lot can be done remotely; you’ll need to be present for visa medicals/biometrics and sometimes for bank account finalization.
- What if I only sell online?
E-commerce is straightforward in several free zones and on the Mainland. Choose the jurisdiction based on where buyers are and whether you’ll hold stock locally.
- Which free zone is “best”?
The “best” one aligns with your activity (e.g., trading vs media vs tech), visa needs, logistics, and budget, not one-size-fits-all.
Smart setup tips to save time & money
- Plan banking early: Shortlist 2–3 banks and prepare a clean KYC pack.
- Pick the right activity codes: They drive approvals, office needs, and even insurance.
- Think ahead on visas: Choose a facility package that matches your planned headcount.
- Keep your records clean: From day one, use accounting software – easier tax/VAT and bank reviews.
- Use an expert partner: Navigating approvals is simpler (and often cheaper) when you know the path.
Ready to start?
