Dubai lets foreigners own 100% of a company, pay 0% personal income tax and run a business from one of the best-connected cities in the world. The decision that shapes everything else is where to register.
Free zone or mainland?
| Free zone | Mainland | |
|---|---|---|
| Where you can trade | Inside the zone and internationally; selling in the UAE market needs a distributor or a branch | Anywhere in the UAE |
| Office | Flexi-desk packages available | Physical office usually required |
| Starting cost | From roughly AED 12,000–20,000 per year including one visa | From roughly AED 20,000–30,000 plus office rent |
| Best for | Freelancers, IT, consulting, e-commerce selling abroad | Shops, restaurants, services for UAE clients, government contracts |
Six steps to your licence
- Choose your business activity. Every licence lists approved activities; pick the ones you actually do, because adding later costs money.
- Pick free zone or mainland. Use the table above, then let a licensed setup partner confirm the best match for your plans.
- Reserve a trade name. Names cannot reference religion or governments and must match your activity.
- Apply for the licence. Passport copies, a short business plan for some zones, and the application form. Approval takes from two days to two weeks.
- Office and visas. Your licence comes with an establishment card; then you apply for residence visas (medical test, Emirates ID, biometrics).
- Open a bank account. The slowest step. Banks want the licence, a lease or flexi-desk contract, proof of address at home and an explanation of your business and expected turnover.
What it costs
Budget for the licence, visa fees per person (about AED 3,500–6,000 each), the office or flexi-desk, a bank account minimum balance and accounting. Corporate tax is 9% on profits above AED 375,000; VAT registration is required above AED 375,000 turnover.
Common mistakes
- Choosing a cheap free zone that your bank does not like.
- Picking activities that do not match what you sell.
- Forgetting the yearly renewal cost when comparing offers.
Frequently asked
Can a foreigner own 100% of a company in Dubai?
Yes. Free zone companies have always allowed full foreign ownership and most mainland activities do too since 2021.
How long does it take to set up a company?
A free zone licence can be ready in a few days; visas and a bank account typically add four to eight weeks.
Do I need to live in Dubai to own a company there?
No, but a residence visa makes banking and daily operations far easier, and you must enter the UAE at least once every six months to keep it.