Company Formation in Dubai
Are you looking to start a business in Dubai this 2025 but not sure where to begin? You’re not alone. Many entrepreneurs think company registration in Dubai is complex and expensive.
The truth is, Dubai has made it easier than ever to launch a new company, even if you’re a foreign investor or first-time business owner.
In fact, the UAE now allows 100% foreign ownership of onshore (mainland) companies in most sectors, eliminating the old requirement for a local sponsor in many cases.
Plus, Dubai offers world-class infrastructure, zero personal income tax, and a vibrant market – no wonder it’s a top choice for business setup.
In this guide, you’ll learn:
- Mainland vs. Free Zone – a comparison of jurisdictions to help you choose the best setup for your business.
- Step-by-step process of how to register a company in Dubai, from initial planning to getting your business license.
- Pro tips and next steps to make your Dubai business setup easy – including how Corporate Business Services (CBS) can help.
- Cost to register a company in Dubai, including what expenses to expect and how they differ by setup type.
Mainland vs. Free Zone: Choosing the Right Jurisdiction
One of the first decisions when setting up a company in Dubai is choosing where to register your business. Dubai offers two main jurisdictions for company formation: Mainland, and Free Zone.
Each option has its own advantages, rules, and cost implications. Your choice will impact everything from ownership and permitted activities to office requirements and taxes.
Which should you choose? It depends on your business needs. Here’s a quick comparison to help you decide:
Mainland Company Registration in Dubai:
A mainland company (onshore) is licensed by Dubai’s Department of Economy and Tourism (formerly DED). Mainland companies can trade anywhere in the UAE (and internationally) without restrictions. You can work with government clients and take on private projects across Dubai.
As of recent laws, most mainland businesses can be 100% foreign-owned (no local UAE partner needed). Mainland setup requires a physical office space (minimum ~200 sq ft) and has no visa limit – the number of visas you can get depends on your office size (typically one visa per 80 sq. ft.).
If you need unlimited growth potential within Dubai and the UAE market, mainland is ideal.
Free Zone Company Formation in Dubai:
A free zone company is set up in one of Dubai’s many designated free trade zones (like DMCC, JAFZA, IFZA, Dubai Internet City, etc.).
Free zones offer 100% foreign ownership, 0% corporate tax, and easy repatriation of profits. They are excellent for businesses that mainly export or do international business, or those that want a quick and simplified setup.
Free zone companies cannot directly do business in the UAE mainland without a local distributor or agent – meaning your sales within the UAE might be limited unless you open a branch or work with partners.
Free zones often have flexible office requirements; you can start with a flexi-desk or virtual office in a free zone business setup, which keeps costs low. Visa allowances depend on the package and office space (e.g. a small flexi-desk might give 2-3 visas).
If your target market is overseas or you want a cost-effective way to establish a presence in Dubai, a free zone setup can be very attractive.
Not sure which is best for you? Feel free to book a free consultation with CBS – our experts will evaluate your plan and advise whether mainland, free zone suits you best.
Step-by-Step Guide: How to Register a Company in Dubai
Now that you know the types of jurisdictions, let’s get into how to register a company in Dubai step by step. The process can be straightforward, especially with the right support.
Below are the key steps you’ll need to follow for Dubai company formation (the general order is similar whether you choose mainland or a free zone):
Step 1: Choose Your Business Activity
Start by defining the nature of your business. Dubai authorities require you to specify your business activity (or activities) upfront, as the licenses are issued based on these.
There are over 2,000 permitted activities listed by the authorities, ranging from trading and manufacturing to consulting and marketing. Pick an activity (or multiple) that best matches what your company will do.
If unsure, you can get in touch with us to identify the right activity and license category for your venture.
Step 2: Select the Jurisdiction (Mainland, or Free Zone)
As discussed earlier, decide where you want to register your company. This is a crucial step because it affects your ownership, cost, and operational freedom.
If you choose a free zone company formation, you’ll also need to pick which free zone (Dubai has over 30 free zones, each with its own focus and fee structure).
Need assistant to choose the best suit for your need? – our business setup consultants can help compare options and handle the paperwork for any jurisdiction of your choice.
Step 3: Choose a Legal Structure
Decide on the legal form of your company. Common structures in Dubai include:
- Limited Liability Company (LLC) for most commercial businesses.
- Sole Establishment (for single-owned businesses or professionals).
- Civil Company (for certain professional services partnerships).
- Branch of a foreign company.
In free zones, you might see terms like FZE (Free Zone Establishment, single shareholder) or FZ-LLC (Free Zone LLC, multiple shareholders).
Your choice will depend on the number of shareholders, the nature of business, and jurisdiction rules. An LLC is often preferred for its liability protection and flexibility.
Note: If you are a single entrepreneur, don’t worry – you can still own 100% of an LLC in mainland now, just structured as sole shareholder LLC.
Step 4: Reserve a Company Name
Next, pick a trade name for your company and get it approved. Dubai has specific naming guidelines: the name should not violate public morals or religion, avoid names of global brands, and if it’s after a person, that person’s full name must be used (no initials or abbreviations).
The name must be unique and not already registered.
Pro Tip: Try to choose a name that reflects your business activity and is easy to remember. Our CBS experts can help check name availability and handle the reservation paperwork as part of our service.
Step 5: Initial Approval and Paperwork
Before the formal trade license application, mainland authorities require an Initial Approval (also known as pre-approval). This basically says your proposed business is okay to proceed.
In a free zone, this might be part of the registration application. At this stage, you’ll typically submit initial forms including shareholder passport copies, Memorandum of Association (MOA) (If Applicable) or equivalent documents and a brief description of the business.
Pro tip: This is where having an expert business setup consultant is invaluable – Our experts can help you draft and notarize your MOA, and coordinate any required external approvals, saving you a lot of headaches with paperwork.
Step 6: Secure an Office or Address
Dubai generally requires companies to have a legal address. For mainland companies, you must lease an office space or shop and obtain a tenancy contract (Ejari registration) to present to DET before final trade license issuance.
Free zones are more flexible: many allow flexi-desk or shared offices as a start, which means you get a small desk space or just a business center agreement, and that fulfils the requirement.
CBS can assist you in finding and leasing the right office space for your company, and we handle the Ejari and paperwork, so your address meets all requirements.
Step 7: Final Company Registration & License Issuance
This is the big step where everything comes together. You will submit all required documents to the relevant authority to formally register the company and obtain your Dubai trade license.
For a mainland company, this means submitting your application to the DET (Department of Economy and Tourism) along with; approved name, initial approval certificate, MOA, tenancy contract, and shareholder documents (passports, etc.), and paying the license fee.
In a free zone, you’ll submit the application to the free zone authority with their required forms and fees (often this can be done online).
Once processed, the authority will issue your Company License (also called Trade License or business license) and registration certificate. Congratulations – your company is now legally established!
Note: Government fees are paid in this step – ensure you have the funds ready as outlined in your initial cost breakdown. If you’re working with CBS, we’ll double-check all documents and submit on your behalf to make the process seamless.
Step 8: Post-Registration – Visas and Bank Account
With your company license in hand, you can proceed to set up the operational necessities. One of the first things you’ll likely do is open a corporate bank account in the UAE.
Different banks have different requirements, but generally you’ll need your license, company documents, and KYC information on shareholders.
We can introduce you to banking partners and help with the account opening process.
Next, if you (and any staff) need to reside in Dubai, you’ll process the residency visas in Dubai under the company’s sponsorship.
For a free zone company, you will apply through the free zone for owner and employee visas (the number of visas available depends on your package/office size).
For a mainland company, you’ll apply through the General Directorate of Residency (GDRFA) after getting your establishment immigration card.
Typically, the visa process involves an entry permit, medical test, Emirates ID, and visa stamping. As the owner, you can get an investor or partner visa. You can also sponsor family members once you have your residency.
Finally, ensure you comply with any other post-setup tasks: for instance, register for VAT and corporate tax in UAE if your business expects to meet the threshold (AED 375,000 annual revenue), or obtain any further permits if needed for your activity.
At this point, your Dubai company setup is complete – congratulations, you are ready to do business!
Get Expert Business Setup Support in Dubai
Throughout these steps, it helps to have a knowledgeable partner by your side. Corporate Business Services (CBS) offers end-to-end business setup services in Dubai, meaning we take care of all the above steps for you.
From advising on the right jurisdiction to handling paperwork, liaising with government departments, and ensuring you meet all legal requirements, CBS makes registering a company in Dubai easy and hassle-free.
You focus on your business idea – we handle the rest.
Contact us today to let our team guide you through a fast and successful company registration in Dubai.
How much does it cost to register a company in Dubai?
One of the most common questions entrepreneurs ask is: What is the cost to register a company in Dubai?
The answer is it depends – The cost to register a company in Dubai varies depending on several factors, primarily your chosen jurisdiction and business setup needs.
For a free zone company, you might spend roughly AED 12,000 to AED 20,000 (approximately USD 3.3k to 5.5k) for a basic setup, which includes the license fees and possibly a flexi-desk facility.
For a mainland company, costs usually start around AED 15,000 to AED 30,000 (USD 4k to 8k) for a small business, including the trade license and office lease.
These figures cover government fees; add a bit more if you use a business setup service (though often they secure discounts or value that offsets their fee). If your setup is larger (bigger office, multiple visas, special approvals), costs will increase.
It’s worth noting these are setup costs for the first year – you’ll have recurring costs like license renewal and rent annually. Always get a tailored quote for your situation.
At CBS, we provide a detailed breakdown of all costs upfront, so you know exactly what it will take to launch your company.