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

  1. 01

    Choose activity and structure

    Pick the licensed activity (commercial, professional or industrial) and legal form such as LLC, sole establishment or branch.

  2. 02

    Reserve the trade name

    Select a compliant name and obtain initial approval from the licensing authority.

  3. 03

    Secure premises

    Mainland needs a leased office with an Ejari tenancy contract; many free zones offer flexi-desks.

  4. 04

    Submit documents and pay fees

    File shareholder documents, the company agreement and any sector approvals.

  5. 05

    Receive the licence

    The authority issues the trade licence once approvals and fees are cleared.

  6. 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

MainlandFree zoneOffshore
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

Often needed together

Talk to an EHMC consultant

Tell us about your business and get a clear, written path with timelines and costs.