Company Formation
Company Formation in Dubai & the UAE
Company formation in the UAE is the legal registration of a business under one of three jurisdictions: mainland (licensed by Dubai’s Department of Economy and Tourism), free zone (licensed by a zone authority) or offshore (for holding and international trade). The right choice depends on where you sell, who you hire and how you bank.
Last reviewed · Reviewed by Mahmoud Mansour, Founder & Managing Director (lawyer in the UAE since 2006) · EH Management Consultancy LLC, Dubai
At a glance
Key facts about company Formation
- Jurisdictions
- Mainland, free zone, offshore
- Foreign ownership
- Up to 100% for most activities since the 2021 company-law reform; a short list of strategic activities still needs UAE national participation
- Dubai mainland licensor
- Department of Economy and Tourism (DET)
- Typical sequence
- Activity → trade name → initial approval → premises → licence → visas → bank account
- Timeline
- Days to several weeks, driven mostly by external approvals and bank onboarding
Who it is for
Is this the right service for you?
- First-time founders launching a UAE entity
- Foreign companies expanding into the Gulf
- Freelancers and consultants moving to a full licence
- Owners restructuring an existing company
Process
How it works, step by step
-
01
Choose activity and structure
Pick the licensed activity (commercial, professional or industrial) and legal form such as LLC, sole establishment or branch.
-
02
Reserve the trade name
Select a compliant name and obtain initial approval from the licensing authority.
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03
Secure premises
Mainland needs a leased office with an Ejari tenancy contract; many free zones offer flexi-desks.
-
04
Submit documents and pay fees
File shareholder documents, the company agreement and any sector approvals.
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05
Receive the licence
The authority issues the trade licence once approvals and fees are cleared.
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06
Apply for visas and open a bank account
Start owner and staff residency and corporate banking onboarding.
Compare
Mainland vs free zone vs offshore
| Mainland | Free zone | Offshore | |
|---|---|---|---|
| Where you can trade | Anywhere in the UAE and abroad | Inside the zone and internationally; UAE mainland via a distributor or branch | International only, not inside the UAE |
| Ownership | Up to 100% for most activities | Up to 100% | Up to 100% |
| Premises | Physical office with Ejari | Flexi-desk or office, varies by zone | No office required |
| Residency visas | Linked to office size | Zone quota | Cannot sponsor visas |
| Best for | Local sales, government work | Services, international trade, speed | Holding and asset structuring |
Documents
What you typically need
- Passport copies for every shareholder and director
- Proposed trade name options
- Description of business activities
- Business plan (required for some activities)
- Sector approvals where the activity is regulated
Cost
What drives the price
Fees depend on your situation, so we quote after a short consultation with no hidden extras. The main factors are:
- Jurisdiction and licence category
- Number of licensed activities
- Premises type and size
- Visa quota and number of visas
- Government, approval and PRO fees
- Annual renewal and audit requirements
Frequently asked
Questions about company Formation
Which is better: mainland or free zone?
Choose mainland if you will sell directly to UAE customers or bid for government work. Choose a free zone for faster setup, simpler premises and mainly international or in-zone business. Your customer base and visa needs decide it, not price alone.
Can a foreigner own 100% of a UAE company?
Yes for most activities. Free zones have always allowed full foreign ownership, and the 2021 company-law reform opened most mainland activities too. A small list of strategic-impact activities still requires UAE national participation.
Do I need a physical office?
Mainland licences need a leased office with an Ejari tenancy contract. Many free zones accept a flexi-desk or virtual office, though some activities still require dedicated premises.
How long does company formation take?
It depends on the activity, approvals and jurisdiction. Straightforward free zone setups can complete in days; mainland and regulated activities take longer. Bank account opening is usually the slowest step.
Official sources
Verify it yourself
Rules and fees change. These government and regulator pages are the authoritative references behind this page.
Related services
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Talk to an EHMC consultant
Tell us about your business and get a clear, written path with timelines and costs.