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You can set up a company in one of three main UAE jurisdictions:

• Mainland (Onshore) — licensed by the Department of Economic Development (or equivalent authority in each emirate). It allows you to operate anywhere in the UAE, access local markets, and secure government contracts.

• Free Zone — specialized economic zones (e.g. DMCC, JAFZA, DIFC, Sharjah Free Zones) with own regulatory bodies. Free zones typically offer 100% foreign ownership, tax incentives, and streamlined setup.

• Offshore — entities registered under UAE offshore regimes (e.g. JAFZA Offshore, RAK ICC, Ajman Offshore). These are designed for international business, asset holding, and tax planning, but generally cannot trade inside the UAE local market.

The trade‑offs among these (market access, taxes, regulation, costs) determine which is best depending on your business model.

Starting a business in the UAE involves a few essential steps. First, identify your business activity, which will determine the type of license you need (commercial, industrial, or professional). Next, choose a jurisdiction—Mainland, Free Zone, or Offshore—based on your business needs. Once you select your legal structure (LLC, sole proprietorship, or branch office), proceed with obtaining initial approvals, submitting registration documents, and securing your business license. You will also need to open a corporate bank account, apply for necessary visas, and hire PRO services for smooth documentation.

A Free Zone company and a Mainland company in the UAE differ mainly in where and how they can do business. A Mainland company can operate anywhere in the UAE, including directly with the local market and government clients. In contrast, a Free Zone company is limited to doing business within its own Free Zone or internationally; it can’t trade directly with the UAE mainland unless it works through a local agent or distributor. Free Zones usually allow 100% foreign ownership and offer easier setup, while Mainland companies may require more government approvals but provide wider market access.

• If your business serves local UAE customers or government contracts, Mainland is typically better.

• If you are an exporter, e‑commerce firm, consultancy, or focus on international clients, Free Zone is often ideal.

• If your business is purely international trading, asset holding, intellectual property, and you don’t need UAE local operations, Offshore might suit you best.

• Also consider cost, licensing requirements, visa quotas, tax incentives, and regulatory burden when choosing jurisdiction.

• • For Free Zone companies: No, a local UAE national sponsor is not needed — you can have 100% foreign ownership.

  • For Mainland companies: In many sectors, yes — previously 51% local ownership was required. But with legal reforms, many sectors now allow 100% foreign ownership. Check whether your business activity is exempt or still requires local partner.

  • In sectors where local involvement is compulsory (e.g. certain professional, trading, regulated industries), you may still need a UAE local partner or service agent.

• Typical incorporation timeline ranges from 5 days to 6 weeks depending on jurisdiction, approvals, regulatory sector, and completeness of documentation.

• Free Zone setups often are faster (1–3 weeks) since internal processes are streamlined.

• Mainland setups can take longer due to multiple government approvals.

• Many Free Zones either require no minimum share capital or a relatively low capital, depending on the free zone and business activity.
• In Mainland companies, share capital requirements vary by emirate and business activity. Some jurisdictions may require a nominal minimum, others more substantial capital depending on regulatory category.
• Always check the relevant authority (DED, free zone authority) for the specific activity and jurisdiction.

Yes — migration is possible, subject to regulatory conditions:

• To expand into the UAE mainland from a Free Zone, you may need to open a mainland branch or subsidiary, secure a license from DED, and fulfill local requirements. Some free zones now allow branch licensing into mainland (e.g. under new rules) for a fee.
• To move from Mainland to Free Zone, you may need to restructure / dissolve or set up a new free zone entity and transfer assets / contracts.
• Be aware of tax, accounting, licensing, and legal cost implications when migrating.

• Some business activities are regulated or restricted (e.g. financial services, health, education, pharmaceuticals, telecom, insurance). These require special permits or approvals from relevant ministries or regulatory bodies.

• Each jurisdiction (mainland or free zone) maintains a “negative list” of prohibited or restricted activities.

• Even free zone companies may need external approvals (e.g. health authority, environment, municipality) depending on activity.

• Always verify with the authority whether your intended activity is permitted or requires additional licensing or clearances.

No — generally a direct trade to the UAE mainland from a free zone company is not permitted unless through a local distributor or via a mainland entity.

Some newer rules allow free zones to open branch permits or mainland business licenses at extra cost to facilitate limited mainland operations.

Common license types:

• Commercial / Trading License — for buying/selling goods
• Professional / Service License — for consultants, professionals, service providers
• Industrial / Manufacturing License — for production, assembly, manufacturing
• Special / Regulated Licenses — for sectors like healthcare, education, food & beverage, financial services, etc.

Your license type should align with your business activity.

• Mainland: Yes, a physical office (commercial space) is generally required.
• Free Zone: Many free zones provide virtual offices / flexi-desk options, especially for startups. But for visa quota or bank account, having a dedicated office address may be required.

Always confirm with the specific authority whether flexi desk is acceptable for your license and visa needs.

• Mainland: Yes, a physical office (commercial space) is generally required.
• Free Zone: Many free zones provide virtual offices / flexi-desk options, especially for startups. But for visa quota or bank account, having a dedicated office address may be required.

Always confirm with the specific authority whether flexi desk is acceptable for your license and visa needs.

A flexi‑desk or virtual office is a flexible workspace option rather than leasing a full physical office. It typically allows:

• A registered business address
• Shared facilities (meeting rooms, reception)
• Basic presence without full dedicated space

Yes, some free zones allow flexi-desk / virtual office setups (especially for small businesses). But visa quota or expansion may require upgrading to a physical office.

Most UAE business licenses (mainland or free zone) are valid for one year and must be renewed annually. Renewal includes paying applicable fees, updating documents, clearing fines / liabilities if any.

Yes — you can often amend, upgrade, or change the license activity subject to regulatory approvals, additional fees, and documentation. Many businesses begin with a simpler license and later expand.

Yes, but with limitations:

• Non‑resident / foreign entities can open business or corporate accounts in UAE banks, especially in free zones or via branch structures, though requirements may be stricter.

• Some banks require a UAE residence visa for full account features.

Typical documents:

• Valid passport and visa (if applicable)
• Company incorporation documents & license
• Trade license / business plan / activity description
• Proof of address (local or foreign)
• Bank reference / financial statements
• Board resolution authorizing account opening
• Shareholder details, beneficial ownership documents
• Contracts / invoices / client references

Requirements vary by bank.

Often yes — for full banking services (current account, credit facilities) many banks prefer or require that the account signatories have UAE residence visas. However, some banks offer non‑resident accounts with restricted features.

Many banks impose minimum balance / monthly maintenance fees for corporate accounts. If the balance falls below the threshold, fees may apply. The exact amount depends on bank and account type.

If all documents are in order, business accounts may be approved in 1–10 business days, but in some cases it may take longer due to due diligence, compliance checks, and internal bank policies.

Yes — many UAE banks (especially in free zones) offer multi-currency accounts or accounts in major foreign currencies (USD, EUR, GBP, etc.) to support international trade.

Some banks provide digital or remote account opening for residents or specific jurisdictions, but many require in‑branch verification and biometric checks, especially for corporate accounts.

Many UAE banks accept Golden Visa / investor visa holders as they are viewed as stable, long-term residents. The process is similar to resident accounts. (Golden Visa is officially supported by the UAE government)

Common visa types associated with business:

• Investor / Partner Visa
• Employment / Work Visa
• Golden Visa (5 or 10 years)
• Freelance / Self-employment visa (in certain free zones)
• Dependent visas (spouse, children, parents)

The Golden Visa is a long-term residency permit (5 or 10 years) allowing you to live, work, and study in the UAE without a local sponsor. It targets investors, entrepreneurs, professional talents, scientists, and exceptional students.

• Golden Visa validity: 5 or 10 years depending on category and investment.
• Yes, it can be renewed provided you continue to meet eligibility criteria.

Yes — Golden Visa holders can start, own, manage, or invest in businesses in the UAE without needing a separate local sponsor.

One of the key benefits: no strict stay requirement. Golden Visa holders can remain outside UAE for extended periods without losing the visa.

Yes — Golden Visa holders can sponsor spouse, children, and in some cases parents under their visa.

Yes — if you meet the eligibility criteria for investor or Golden Visa, you can convert your existing visa to investor status or apply for Golden Visa conversion.

The cost of setting up a business in Dubai depends on various factors like the jurisdiction, business activity, and license type.

• Mainland Setup Costs: Range from AED 10,000 to AED 30,000, including licensing, office space, and related services.
• Free Zone Setup Costs: Start from AED 5,750 and can go up to AED 20,000, depending on the Free Zone and business package.
• Additional Costs: Office rent, visa fees, and PRO services may add to the total cost.

PRO (Public Relations Officer) services handle all government liaison tasks, including visa processing, labor approvals, immigration, license renewals, document attestation, and communication with ministries. Businesses often outsource this to experts to save time and ensure compliance.

You can manage PRO tasks yourself if familiar with UAE government processes. However, many businesses prefer outsourcing because of complexity, frequent changes in regulations, and the need for local knowledge.

• Protect your brand and prevent misuse
• Gain exclusive rights to use the mark in UAE
• Legal recourse against infringers
• Enhances credibility and brand value

It typically takes several months (often 6–12 months) depending on objections, opposition, and processing time.

• Validity: 10 years from registration date
• Can be renewed indefinitely (in 10-year increments) upon payment of renewal fees

You may liquidate when:

• Business is no longer profitable
• You’re relocating or shifting structure
• Regulatory or cost burdens outweigh benefit
• Strategic exit or pivot decision

Learn more about Company liquidation

It typically takes 2 to 4 months, depending on complexity of business, outstanding liabilities, approvals, and jurisdiction.

Costs include:

• Government / authority fees
• Liquidator / consultant fees
• Audit / accounting costs
• Visa cancellation costs
• Bank closure and possible penalties
• Publication of legal notices

You generally must settle or negotiate all outstanding liabilities, fines, and debts before final approval of liquidation. Authorities will review financials and claims before approving closure.

• Creditors and government dues are paid first
• Any residual assets are distributed to shareholders per their shareholding
• The company ceases to exist once the process is complete

Yes — a final audited financial statement is required to show the position of assets and liabilities before closure.

Revival or reinstatement may be possible in some jurisdictions if done within prescribed time limits, subject to legal authority approval. Otherwise you may need to set up a new entity.

• You must ensure all final tax returns, corporate tax / VAT closure
• Legal clearance so you are not liable for future claims
• Release of guarantees / bonds
• Closure of licenses, visas, bank accounts
• Record retention for certain years as per law

Setting up a business in a UAE Free Zone is straightforward and cost-effective:

• Choose a Free Zone: Select one that suits your business activity.
• Decide on Business Activity & Structure: Options include FZE (single shareholder) or FZCO (multiple shareholders).
• Submit Registration Documents: Obtain initial approvals.
• Receive Your License: Set up a flexi-desk or physical office.
• Apply for Visas: Complete visa processing for yourself and employees.

Free Zones offer 100% foreign ownership, tax exemptions, and simplified processes.

Yes, foreigners can set up a business in Dubai with 100% ownership, particularly in Free Zones and certain Mainland sectors. The recent amendments to the UAE’s commercial laws have made it easier for expatriates to start and fully own businesses without a local sponsor.

The cheapest business licenses in the UAE can be found in Free Zones, offering low-cost options like:

• Freelance License: Starting from AED 5,750.
• E-commerce License: Available from AED 7,500.
• Trading License: Starts from AED 8,000. These licenses provide cost-effective solutions for startups and small businesses, along with benefits like tax exemptions and simplified business processes.

To set up your business in Dubai:

• Identify Your Business Activity & License Type: Choose from commercial, professional, or industrial licenses.
• Select a Jurisdiction: Mainland, Free Zone, or Offshore, based on your business requirements.
• Register Your Company: Submit necessary documents and get initial approvals.
• Obtain a License: Finalize your trade license.
• Open a Bank Account & Secure Visas: Set up a corporate account and process visas for yourself and staff.

Yes — in many cases foreigners can own 100% of a company in UAE:

• In free zones, 100% foreign ownership is standard and does not require a local sponsor.

• In mainland companies, new reforms now allow 100% foreign ownership for many business activities, though some regulated sectors may still require a local partner or government approval.

• In sectors where full foreign ownership is disallowed, a local sponsor / partner (UAE national) may still be needed.

Yes, you can start a business in Dubai without a local sponsor, especially in Free Zones and for specific Mainland activities. The UAE’s new business laws allow 100% foreign ownership for a wide range of business types, eliminating the need for a local sponsor in many cases.

Dubai is an excellent destination for starting a business due to its strategic location, investor-friendly policies, and zero personal and corporate income taxes. The city offers robust infrastructure, excellent connectivity, and access to a diverse consumer base, making it an ideal hub for business growth.

The UAE has introduced a citizenship program targeting investors, skilled professionals, and exceptional talents. Applicants must meet specific eligibility criteria and be nominated by UAE officials or royal family members. However, obtaining long-term residency, such as the 10-year Golden Visa, is more common and accessible for expatriates looking for stability in Dubai.