guide
How to open a company in the UAE, step by step
The route depends on whether you license on the mainland or in a free zone. Here are the official steps in order, and the tax duties that follow the licence.
Choose your route first
Decide which licence fits you before the steps. These routes are published by the official bodies:
- Mainland: you license through the economic department of your emirate, with the steps below.
- Free zone: you apply to the authority of the free zone you choose. Each one has its own rules, and not every zone registers every entity type.
- Home based in Dubai: the eTrader licence, AED 1,070 plus AED 300 for Dubai Chamber membership.
- No premises in Abu Dhabi: if your business does not need physical premises, you can get a licence to operate online instantly through TAMM.
Mainland licence steps
The UAE government portal lists these steps. Details vary by emirate, so confirm them with yours.
- Choose your business activity. It determines the type of licence.
- Select a legal form that suits your needs and matches the activity.
- Apply for a trade licence.
- Register your trade name with the local economic department.
- Get initial approval. It means the government has no objection. It does not authorise you to operate.
- Prepare and sign the Memorandum of Association, the local service agent agreement, or both.
- Secure a business location that meets local requirements.
- Get any additional government approvals your activity requires.
- Submit the documents, pay the fees and collect the licence.
There are more than 2,000 business activities to choose from. The same page says businesses owned completely by non GCC residents need a local service agent from the UAE. You must pay for your trade licence within 30 days of receiving the payment voucher. In Dubai, the lease must be registered with Ejari.
In Dubai, an instant licence is issued within five minutes for a group of activities that need no external approvals. It includes a virtual site for the first year, Dubai Chamber membership, an establishment card from GDRFA and one from the Ministry of Human Resources and Emiratisation with the option to employ three people, for certain legal forms.
Free zone licence steps
The free zone steps are fewer and happen with the authority of the zone you choose:
- Choose your sector, then a free zone that supports it.
- Choose the legal entity: a limited liability company, a free zone company, a free zone establishment, a public limited company or a branch of another company.
- Review setup costs with the zone's own tools or the cost estimates Invest in Dubai publishes.
- Choose a trade name and check with the free zone authority or the Department of Economic Development that it is allowed and not already registered.
- Apply online through the free zone authority's website, with the company information and documents.
After review and approval, the licence is issued within 14 working days.
After the licence
| Corporate tax rate | 9% on taxable income above AED 375,000, and 0% up to AED 375,000 | u.ae, the UAE Government platform: Corporate taxChecked 19 October 2026 |
|---|---|---|
| Corporate tax registration | Required for juridical persons subject to Corporate Tax. Free of charge, processed within 20 business days of a completed application | Federal Tax Authority: Corporate tax registrationChecked 19 October 2026 |
| Late registration penalty | AED 10,000 | Federal Tax Authority: Corporate tax registrationChecked 19 October 2026 |
| VAT registration | Mandatory above AED 375,000 and voluntary from AED 187,500, tested over the previous 12 months and the next 30 days | Federal Tax Authority: Registration for VATChecked 19 October 2026 |
The deadline for a new company to register for corporate tax is set in Federal Tax Authority Decision No. 3 of 2024. Check it for your company before you are late.
Work out your number before you pay
Fees depend on your activity, premises and visas, so no single figure fits everyone. The free setup cost calculator gives a first year estimate. For a full first year plan for your exact activity, start free.
Work out your own numbers
Common questions
- How long does it take to open a company in the UAE?
- In a free zone, the licence is issued within 14 working days after review and approval. In Dubai, an instant licence is issued within five minutes for activities that need no external approvals, and the Department of Economy and Tourism says a normal licence service is completed within 10 minutes. That is the service time only: the contract, location and approvals are separate steps.
- Can a foreigner own 100% of a company in the UAE?
- On the mainland, yes for most activities. The UAE government portal says Federal Decree Law No. 26 of 2020 abolished the requirement for a majority Emirati shareholder or local partner. Some activities remain restricted, so check yours with the licensing authority.
- Do I need an office to open a company in the UAE?
- On the mainland you need a business location that meets local requirements, and in Dubai the lease is registered with Ejari. If your business does not need physical premises, Abu Dhabi offers a licence to operate online instantly through TAMM. The article on whether you need an office goes further.
- What do I do after I get the licence?
- Register for corporate tax with the Federal Tax Authority, and for VAT if your supplies pass AED 375,000. The section above lists the figures.
Sources
Every figure in this article comes from these official pages, as of the date each page was checked. Fees and rules change, so check the source before you act.
- u.ae, the UAE Government platform: Steps to start a business on the mainlandu.aeChecked 19 October 2026
- u.ae, the UAE Government platform: Starting a business in a free zoneu.aeChecked 19 October 2026
- u.ae, the UAE Government platform: Full foreign ownership of commercial companiesu.aeChecked 19 October 2026
- Abu Dhabi Department of Economic Development: Establish your businesswww.added.gov.aeChecked 19 October 2026
- Invest in Dubai (DET): Request to issue a trade licencewww.investindubai.gov.aeChecked 19 October 2026
- u.ae, the UAE Government platform: Corporate taxu.aeChecked 19 October 2026
- Federal Tax Authority: Corporate tax registrationtax.gov.aeChecked 19 October 2026
- Federal Tax Authority: Registration for VATtax.gov.aeChecked 19 October 2026