Business Setup & Company Formation

What you need to know

Business Setup Dubai

Would you like to start a company in Dubai or relocate your existing business to the UAE? Trust one of the leading, award-winning agencies for company formation in Dubai. Benefit from our experience with over 1,000 successful incorporations – with personalized consulting and legally compliant implementation.

Whether you are considering a Freezone, Mainland, or holding structure, we provide tailored and transparent advice on the best setup for your business model. Take advantage of tax benefits, 100 % ownership, and a business-friendly environment in the heart of the UAE. Our experts will guide you through the entire formation process – from selecting the right license to handling visa applications, bank account opening, and family visa support. This makes setting up a company in Dubai simple, predictable, and stress-free.

When establishing a company in Dubai, there are many crucial aspects to consider to ensure the process doesn’t turn into a costly or complicated experience. From official regulations and laws within the UAE to local requirements – every detail matters. Another key factor is the tax implication, especially if you plan to establish a company in Dubai while maintaining residence in Germany.

Choosing the right Freezone and defining the appropriate business activity are equally critical decisions that can determine whether your company will be able to open a bank account later on. Often, small details can become deal-breakers down the road. Overall, there are numerous pitfalls to avoid – making the choice of the right partner all the more important.

Start your business in Dubai – with EmiratesSetup, you rely on experience, expertise, and personal guidance. Begin your new entrepreneurial journey today!

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Leading and award-winning agency

For your business setup in Dubai

EmiratesSetup is one of the leading business setup agencies in Dubai, proudly distinguished with the Platinum Award by the International Freezone Authority.

Our team of more than 15 highly qualified professionals — including company formation specialists, legal and tax advisors, and financial experts — is dedicated to providing seamless, transparent, and efficient business setup solutions tailored to your needs.

Since 2016, EmiratesSetup has successfully supported more than 1,000 entrepreneurs and companies in establishing their businesses in Dubai and across the UAE.

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Why to establish a company in Dubai?

Business Setup in Dubai Freezone

This company form is intended for companies that want to use the tax advantages of Dubai or the UAE but do not plan to conduct business within the UAE. In Dubai there are over 30 free zones (free trade zones) where foreign companies can settle accordingly. In principle, almost all Freezones offer the same activities and it is therefore advisable to pay attention to price/performance and the reputation of the Freezone. Of course, we know exactly which free zone is best for you. You have a clear advantage when founding a company with us.

Low or Non-existent Taxation

Individuals are not subject to income tax, and businesses face a maximum tax rate of 9%, with an allowance of approx. 94,000 Euros and the possibility of complete tax exemption.

Minimal Accounting Requirements

Companies operating within the free zones are only required to maintain simplified accounting records (income and expenses) and submit annual financial statements or tax returns.

Enhanced Privacy and Data Protection

100% Privacy! Our partner freezones do not maintain publicly visible company registers, and registration is not mandatory but entirely optional.

Non-participation in CRS Data Exchange

If you possess a residence visa, our partner banks consider you a UAE resident, ensuring that your bank account remains exempt from reporting requirements.

No Mandatory Share Capital

There's no obligation to deposit or demonstrate share capital when establishing a Freezone company; this requirement exists solely on paper.

Real Estate Acquisition Opportunities

A Freezone company can not only acquire and manage real estate outside the UAE but also within the country, including areas like Dubai or Abu Dhabi.

Streamlined Company Formation

Our Dubai-based experts will handle all formalities associated with company establishment, visa procedures, and the opening of bank accounts on your behalf.

Comprehensive Services in One Place

At EmiratesSetup, you can access a wide range of services if desired, including company formation, visa services, bank account setup, tax advice, annual financial statements, etc.

Excellent Service

100% Recommended

Business Setup in Dubai Freezone

Costs for business setup in Dubai

The costs for a company formation and business setup in Dubai depend on the respective activity, the free zone and last but not least on the required visa eligibilities. The costs for a business setup in Dubai currently start at AED 12.900 (USD 3.510) without a visa or around AED 16.900 (USD 4.600) with one visa eligibility and including all costs for the first year. The final costs of a company formation in Dubai depend on several factors, including the specific freezone selected, the chosen business activities, and, importantly, the number of required visas. Additional considerations involve the number of shareholders and whether any of them are classified as corporate shareholders, meaning they represent a (foreign) company.

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Prices shown are for a 1-year term · excluding add-ons

Calculated using the original prices of IFZA. On request we also incorporate in other freezones – for example Meydan Free Zone, where we are a Gold Partner.

Do you need a Residence Visa?

We will then show only the packages that fit.

🎁 Current promotion

Lifetime free visa

One Residence Visa stays free for as long as your licence is active – plus 25% off our service fees for company formation and bank account opening.

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Company formation without a Residence Visa – for founders who already hold one or do not need one. With the visa process removed, the licence is all you pay for.

The most affordable route into the freezone – no service fees, just the freezone’s original licence fee at the direct price.

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We file every application and our step-by-step guide takes you through the appointments. You get a full initial consultation and pay no service fees – only freezone and authority fees.

Same price as going direct – you pay the freezone’s original prices plus authority fees; our consultation and review come at no extra charge.

We assist you

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We handle the bulk of the process for you – with personal support and WhatsApp assistance. One of our team accompanies you to the visa appointments.

The route without the red tape – we accompany you to the appointments, collect your Emirates ID and answer your questions via WhatsApp.

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We guide you personally through the entire process – from incorporation to your bank accounts. We coordinate every appointment and authority visit for you.

The most convenient route, banking included – we open your personal and corporate accounts online, with no bank appointment required.

More than 20 Free Zones in Dubai

Which Free Zone is the Best?

There are currently 21 free zones or free zone authorities in Dubai, with some authorities operating multiple physical branches. Determining which free zone is the best isn’t a simple or universal answer — it always depends on your specific business requirements.

The right free zone depends on several key factors, such as:

  • Are you offering services or engaged in trading?
  • Do you need to store physical goods or require a customs-free warehouse?
  • Are you involved in financial services or managing third-party capital?
  • Or are you operating in the gold or diamond trade?


The costs of setting up a business in Dubai are another important factor to consider — especially when it comes to office space requirements. Every company in Dubai must have a registered physical address, but some free zones solve this cost-efficiently with Flexi Desks or Shared Desks. Others, however, require a dedicated physical office once a license or visa is issued. This can significantly increase the overall setup costs and should therefore be carefully factored into the decision-making process.

Ultimately, the best free zone for you depends on your business model and practical needs. The cheapest free zone is not always the right or most economical choice. Each free zone has its own advantages, focus areas, and specializations that make it particularly attractive for certain industries.

Moreover, your decision may also depend on current local developments and regulatory changes — such as updates to visa quotas, license structures, or bank acceptance policies — which often become clear only upon closer examination.

Dubai Silicon Oasis

IFZA


IFZA (International Freezone Authority) is a free zone hub within the Dubai Silicon Oasis (DSO) and is considered one of Dubai’s most dynamic economic zones. It stands out particularly for its temporary, exclusive special offers — such as the “lifetime free visa.” In addition, IFZA offers a wide variety of business activities, ranging from trading and services to consulting, IT, and industrial licenses.

4–5 days for company formation
1–3 days for the establishment card
3–5 days for the eVisa
3–4 days for the residence visa

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Dubai’s Free Zone

MEYDAN FZ


The Meydan Free Zone is currently one of the most popular free zones in Dubai – thanks to its excellent and fast service. The processes are so efficient that processing times are sometimes measured in hours. In some cases, company formation is even possible in under 60 minutes. Thanks to its affiliation with Dubai Holding, it enjoys an excellent reputation among banks and government authorities.

24 hours for company formation
1–2 days for the immigration card
1 day for the eVisa
12–24 hours for the residence visa

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Dubai Multi Commodities Centre

DMCC


The DMCC (Dubai Multi Commodities Centre) is arguably one of the most well-known free zones — not only in the United Arab Emirates but worldwide. It is recognized as a leading hub for international commodities trading and is also specialized in gold, diamond, and precious metals trading. In addition, activities in the crypto and blockchain sectors can also be licensed.

7–9 days for company formation
2–5 days for the establishment card
2–3 days for the eVisa
3–4 days for the residence visa

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Jebel Ali Freezone

JAFZA


The JAFZA (Jebel Ali Free Zone) is one of the largest free trade zones in the United Arab Emirates and is located at Dubai’s port. Thanks to its strategically advantageous location and world-class infrastructure, it is particularly attractive for companies engaged in international trade. JAFZA offers an extensive customs-free logistics area as well as modern office, warehouse, and industrial facilities.

7–14 days for company formation
2–3 days for the establishment card
2–3 days for the eVisa
3–4 days for the residence visa

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Process, Requirements and Documents

How to setup a business in Dubai?

How to setup a business in Dubai? To establish a company in Dubai, an appropriate license must be applied for. Depending on the location, these licenses must be applied for either directly at the Freezone or for Mainland companies at the DED (Department of Economic Development). The process of company formation also varies slightly depending on the activity and location. In the first step, it depends on the sector in which the future company will operate, i.e., whether a Mainland license might be necessary. For some activities (investment and management of third-party capital and client funds), formation in a specially regulated Freezone may be necessary.

Therefore, in the first step, specifically during the consultation, it must be clarified which company form (Mainland or Freezone)will be the optimal solution for your future business. The most commonly required company form is usually the Freezone company, and the process would then be as follows:

Process of setting up a business in Dubai

  • Clarification of the activity, distribution of company shares, and assignment of positions
  • Submission of information (type of company, number of shareholders, desired name, etc.)
  • Submission of documents (currently, only a copy of the passport and a passport photo are required for private shareholders)
  • Application for the license in the respective Freezone
  • Application for the Establishment Card if visas are to be applied for through the company
  • Application for the E-Visa for the applicant(s), managing directors
  • Entry of the visa applicant for the visa procedure in Dubai (medical test and Emirates ID Center)
  • Application for the Residence Visa and the Emirates ID
  • Application and opening of company and personal bank accounts
  • Application for any Family Visas, after receiving one's own visa

Requirements for setting up a company in Dubai

As far as the requirements go, they are actually quite manageable. Ultimately, to set up a company, you only need to be at least 18 years old and submit the required documents (a copy of your passport and a passport photo). However, it should be noted that the minimum age for the company account that is usually required at most banks is 21 years old.

dubai business setup
​100% tax free?

Really no taxes in Dubai?

Dubai is a city of superlatives and offers another priceless advantage for private individuals and companies (with special requirements): 100% tax exemption - there are currently no private taxes in Dubai.

A corporate tax was introduced in June 2023, but in principle only affects mainland companies. This means that companies in the UAE free zones can qualify for tax exemption, for which certain requirements must be met. In addition, it only applies to annual profits of more than AED 375,000 (approx. Euro 95,000), i.e. only profits above this exemption limit have to be taxed accordingly.

At the same time, salaries, office, telephone, etc. etc. can of course be claimed as expenses and accordingly reduce profits and therefore also reduce taxes. This means that if you live in the UAE, you can pay yourself a correspondingly high salary (no income tax) and thus reduce the corporate tax back to 0% in most cases.

In addition, if you have an annual turnover of no more than AED 3 million (approx. EUR 750,000), you can apply for a general exemption from this corporate tax. This general exemption is then valid until a maximum of December 31, 2026 and provided that the annual turnover does not exceed the limit of AED 3 million in any tax period.

What company suits me best?

Case Studies

EXAMPLE 1

You own several companies or assets in Europe or would like your new company in Dubai to become a shareholder in other companies in the future. But you don't want to move your residence to Dubai. You don't need a bank account either. The company serves the sole purpose of a holding company.

Company form: FreeZone company with 0 Visa


EXAMPLE 2

You run a marketing agency, an ECommerce store, etc. and with this company you mainly look after international customers. Since you can carry out your activities from anywhere, you want to relocate your company and possibly your residence to Dubai, but plan little or no customers in the UAE. A bank account is absolutely necessary.

Company form: FreeZone company with visa


EXAMPLE 3

You want to open a restaurant, beauty salon or any other service business in Dubai. Customers should be greeted on site in a shop or office. You also want to move to Dubai. A bank account is therefore of course absolutely necessary.

Company form: Mainland company with visa


EXAMPLE 4

You work in the financial industry, crypto or NFT sectors and accept foreign funds from others. You need comprehensive advice and a company account. As those activities are strictly regulated they require incorporation in designated freezones such as the DMCC, DIFC or ADGM.

Company form: Regulated FreeZone company with visa

BUSINESS SETUP IN DUBAI

MAINLAND COMPANY UAE

Probably the most popular and common form of company for companies that conduct most of their business within the United Arab Emirates is the Mainland Company. There are two basic subject areas under which all companies must be classified. On the one hand there is trade and industry (Commercial) and on the other hand there is the area of service and consultancy (Professional).

SOLE OWNERSHIP - NO LOCAL PARTNER REQUIRED
Nowadays it is possible to set up an LLC (Limited Liability Company) for most of the sectors and a local partner or local agent is not a requirement anymore throughout the UAE. The company can be solely owned (100%) by a foreign national.


Activity - Trade and Industry : Commercial
The trade and industry license includes activities related to trade and industry. The license for commercial activities includes, for example, general trading and car rentals. Industrial activities include the production and processing of food. This type of license no longer requires a local partner and is the most common business model to date. The legal form can be an LLC (limited liability company). The company is 100% foreign owned.

Examples: Food and Beverage Trade, E-commerce, Car and Motorbike Rental, Business Brokerage, Food Processing, etc.

Activity - Service and Consultancy : professional
This type of license no longer requires a local partner and has been rapidly growing in popularity in recent years as part of the migration wave that hit Dubai after the Corona Pandemic. The legal form can be an LLC (limited liability company). The company is 100% foreign owned.

Examples: Beauty Salon, Restaurant, Supermarket, Architect, Construction Company, Real Estate Agents, etc.

Advantages of a Mainland Company in Dubai

  1. very low corporate tax
  2. 100% ownership possible
  3. No income tax for UAE residents
  4. No share capital deposit necessary
  5. Unlimited Visa Eligibility
  6. Business relationships with all Emirati and GCC companies


The shareholders can be both, private individuals and/or foreign companies and an authorized signatory manager or director is required.

Costs for a mainland company in Dubai

The following cost breakdown refers to a Mainland Company formation including the license, virtual office space, one residence visa and all other related charges. In general, all the emirates, such as Dubai or Abu Dhabi, have quite similar rules and regulations regarding the establishment of a Mainland Company.

COST BREAKDOWN 1st YEAR
License Fee: around EURO 4000*
AoA, Establishment Card and Labor Card: EURO 700
Office contract: EURO 1800 (not applicable if you rent your own office)
Residence Visa: Euro 950 (2 years validity)
Emirates Setup Service Fee: from EURO 1500
TOTAL: FROM EURO 8950

*For General Trading activity, the authorities charge an additional fee of EURO 5000

COST BREAKDOWN 2nd YEAR
License Renewal Fee: around EURO 4000*
Office contract: EURO 1800 (not applicable if you rent your own office)
Emirates Setup Service Fee: from EURO 600
TOTAL: FROM EURO 6400

* Fees are dependent on the chosen activities and the nature of the business

business setup dubai emiratessetup
BUSINESS SETUP UP DUBAI

OFFSHORE COMPANY UAE

This form of company is currently still offered by many agencies. Since it is practically impossible to obtain a bank account for an offshore company, this form of company can actually be ruled out from the outset.

If you nevertheless decide on this form of company, please note the following:

- No residence visa authorization hence no corporate bank account - only suitable if one of the partners hold a valid Residence Visa and Emirates ID
- No business relationships with companies within the UAE

Important Information

Company Formation in Dubai

The cost of starting and running a business in Dubai depends on the visa eligibilities and the Freezone itself. There are significant price differences from Freezone to Freezone. There are currently almost 50 Freezones in the UAE, most of which share the same list of activities and offer similar packages. It is therefore difficult for potential owners to determine the right free zone.

Another factor that should not be underestimated is opening a company bank account. If you set up the company in one of the cheap free zones, problems are usually inevitable. It is very difficult or almost impossible to open a company bank account if you own a company in emirates like Umm Al Quwain, Ras Al Khaimah, Fujairah or Sharjah.

If you form the company with us, you benefit from our many years of experience. We know how things work around a successful company setup. We make sure that you receive a company bank account by choosing the right Freezone and activity.

DUBAI FREEZONE NOW CHEAPER

Until recently, the company set-up costs in the Freezones in Dubai were more expensive compared to other Emirates. In order to save costs, one had to switch to the Emirates of Fujairah, Ras Al Khaimah, Sharjah or Umm Al Quwain.

Most customers, however, still preferred a company address in Dubai as it is more prestigious and also the banking problem mentioned above, should not be underestimated.

Nowadays some of the Dubai Freezones have adjusted their prices and fees accordingly to be more competitive. This means that it is now possible to set up a company in Dubai at very comparable prices.

Our recommendation clearly goes into opening your company in a Freezone in Dubai, because the advantages are obvious. In addition to faster and easier processing of visa applications, opening a company bank account is easier in Dubai. The price differences between Dubai Freezones and a cheaper Emirate like Umm Al Quwain for example, are only marginal, but the advantages of a Dubai Freezone company are definitely given.

DUBAI FREEZONE - WHAT'S INCLUDED?

The prices always include the license (business license), office rental contract (flexi desk - cannot be used), establishment card, residence visa and our service costs.

The emirate in which you open your company generally has no influence on your future place of residence, since the visa is always valid for the entire emirate so if you open your company in Dubai, you can live in Abu Dhabi for example.

CAN I GET A BANK ACCOUNT WITH A FREEZONE COMPANY?

Although at the beginning of 2022 the requirements for opening a corporate bank account were tightened across the Emirates, it is still possible to do so, even with a Freezone company. Thanks to our excellent contacts and large network, we can ensure that you will get a company account. Our banking packages even come with a money-back guarantee.

However, the coveted account can only be obtained if one of the partners has a valid residence visa for the United Arab Emirates. Also the activity of the company has to be considered (we will advise you accordingly) and the nationality of the shareholder plays a role too. We will recommend a bank package to you, taking all this into consideration.

WHAT EXACTLY IS A RESIDENCE VISA?

If you want to live in the Emirates permanently or need a company bank account, then you need a so-called residence visa. This is a 2-year residency permit for the UAE. In the course of setting up the company, you acquire the corresponding eligibilities for a specified number of residence visas. Each visa eligibility costs around EUR 500 and includes the authorization to apply for a 2-year visa. In addition, the fees of the authorities have to be paid, which add up to around EUR 960.Service fee is not yet included.

The residence visa is valid for the entire Emirates and you also receive the so-called Emirates ID, comparable to an identity card from any other country worldwide. This allows you to live anywhere in the United Arab Emirates and is not limited to just one emirate. The bank account can also be opened at selected banks in the United Arab Emirates and is not limited to the emirate where your company is located.

DO I ACTUALLY HAVE TO LIVE IN DUBAI?

No, with this visa you are not obliged to live in the Emirates. It is sufficient if you enter the country every 6 months (employee Visa) or once a year (Investor Visa) so that the visa remains valid. There is also no obligation to register your place of UAE residence.

100% TAX FREE?
Dubai is a city of superlatives and offers another priceless advantage for private individuals: 100% tax exemption - there are currently no income taxes in Dubai. Only in August 2023 a low corporate tax of 9% was incorporated. However, it will not affect most of the small and medium sized businesses as there is a tolerance threshold of AED375,000 profit per year. If you stay below, you are exempt from this tax. You can also pay out employee salaries and shareholders dividends almost as you like. The corporate tax was implemented due to pressure from outside and the government is seeing this very relaxed. So it cannot be compared to the strictness of tax laws in other parts of the world! Most companies will still enjoy the freedom of not paying taxes.

VAT
There is also the value-added tax (VAT) for mainland companies, which is only 5% and is of course only a pass-through item for local companies. Companies in the free zone are not affected by the VAT unless their income generated with UAE clients exceeds AED375,000 per year.

Is a residence visa in Dubai necessary?
No, it is not mandatory to be a resident in the UAE to set up a company in Dubai. Depending on the type of company form and the respective license, there are different provisions. In principle, however, one person in the company needs residency and Emirates ID to set up a company corporate account.

Cost of starting a company?
The costs for company formation depends on the respective activity, the free zone and last but not least on the required visa authorizations. Currently, the prices for founding a Dubai company with 1 visa entitlement starts at around $5500 including all costs for the first year.

How long does it take to set up a company?
Once all the required documents and information has been collected, founding a company usually only takes 3 to 5 working days. You don't have to be physically present during the setup procedure. We are an official Freezone partner and can set up the company with your digital signature.

How long does the visa process take?
The visa process is started after the company is incorporated and the immigration card and e-permit are received and takes about 5 business days. For the issuance of the (digital) Emirates ID, you have to reckon with around 5-12 working days. After that a corporate bank account in the UAE can be opened.

firma gruenden dubai platinum partner emiratessetup
About us

Company formation agency in Dubai

EmiratesSetup is a service provided by The Austrians LLC, a Mainland LLC based in the United Arab Emirates since 2016, with offices in Dubai and Abu Dhabi. The shareholders are Ms. Barbara Roessle and Mr. Gerhard Strasser. EmiratesSetup is one of the first European run agencies in the UAE and trusted partner since many years of almost all Freezones in the UAE.

The Commercial License number is CN-2167310 and can be verified on the DED website (https://www.adbc.gov.ae/).

100% recommendation from customers! EmiratesSetup is the first and leading local German-Speaking Agency. Since July 2016, we have been active in the field of company formation, and we have now successfully supported over a thousand individuals with company formation, residence visas and the opening of bank accounts in Dubai.

FAQ Business Setup in Dubai | EmiratesSetup

Frequently asked questions

FAQ: Business Setup in Dubai

The questions founders ask us most often, answered briefly and without varnish. Use the search or filter by topic.

Getting started & requirements

Who can set up a company in Dubai?

Practically any adult, regardless of nationality. Foreign founders can own 100 % of a UAE company – for most activities a local partner or local agent is no longer required, in free zones as well as on the mainland.

The formal requirements are modest: you need to be at least 18 years old and submit the required documents. Note that most banks set the minimum age for a corporate account at 21.

Do I need to be a UAE resident to set up a company?

No. Residency is not a condition for incorporation. Depending on the company form and the licence, the provisions differ, but as a rule you can set up the company without moving to the UAE.

One exception matters: to open a corporate bank account, at least one person in the company needs a valid Residence Visa and an Emirates ID. If banking is part of your plan, the visa is not optional.
Do I have to travel to Dubai to set up the company?

Not for the incorporation itself. We are an official free zone partner and can register the company using your digital signature – you do not need to be physically present.

The Residence Visa is different: the medical test and the biometric appointment at the Emirates ID centre have to be done in person, so one trip is required once the visa process starts. If you only need a holding company without a visa and without a bank account, you never have to come.

What documents do I need?

For private shareholders the standard set is short:

  • a copy of your passport
  • a passport photo

Depending on the free zone, the chosen activity and the bank, a proof of address in English (a utility bill or bank statement) may be requested on top. We tell you exactly what is needed before you start collecting paperwork.

Do I have to deposit share capital?

No. Setting up a free zone company requires neither a deposit nor proof of share capital – the figure exists on paper only. The same applies to a mainland LLC in most cases.

This is one of the practical differences to a German GmbH or a similar European entity, where capital has to be paid in before the company exists.

Company form

What is the difference between a free zone and a mainland company?

It comes down to where you are allowed to trade, and it is the most important decision of your setup.

  • Free zone company: built for international service providers, consultants, agencies and online businesses that do not trade inside the UAE market. Faster to set up, no share capital, and the most cost-efficient route.
  • Mainland company: required if you serve customers inside the UAE directly – a shop, a restaurant, a salon, a clinic, or any business with local walk-in clients. It also allows business relationships with all Emirati and GCC companies.

Free zone licences are issued by the respective free zone authority, mainland licences by the DED (Department of Economic Development).

When do I need a mainland licence?

Whenever you operate on the local UAE market. Mainland licences fall into two categories:

  • Commercial – trade and industry: general trading, e-commerce, car and motorbike rental, business brokerage, food processing.
  • Professional – services and consultancy: beauty salon, restaurant, supermarket, architect, construction company, real estate agency.

For most sectors an LLC can now be 100 % foreign owned, with no local partner required. An authorised signatory manager or director is needed.

What about an offshore company?

Many agencies still sell offshore companies. We generally advise against them, for one blunt reason: it is practically impossible to obtain a bank account for an offshore company.

If you still choose this route, be aware of two limits: an offshore company gives no residence visa eligibility, so a corporate account only becomes possible if one of the partners already holds a valid Residence Visa and Emirates ID – and it cannot do business with companies inside the UAE.

Which company form fits my business model?

Four constellations from our day-to-day practice:

  • Pure holding: you own companies or assets in Europe, want your Dubai entity to hold shares in them, are not moving and need no bank account. → free zone company with 0 visas
  • Agency, e-commerce, international services: location-independent, mostly international clients, bank account essential. → free zone company with visa
  • Restaurant, salon, retail: customers come to your premises, you plan to relocate. → mainland company with visa
  • Financial services, crypto or NFT with third-party funds: the activity is regulated. → designated free zone such as DMCC, DIFC or ADGM, with visa

These are orientation cases, not a recommendation for yours. Which form fits usually comes down to details – the exact activity, and whether you need banking.

Which free zone is the best?

There is no universal answer, and anyone giving you one is selling their standard package. It depends on concrete factors: are you providing services or trading? Do you need to store goods or a customs-free warehouse? Do you handle third-party capital? Are you in gold or diamonds?

Cost is the second half of the question, and office space drives it. Every UAE company needs a registered physical address. Some free zones solve this cost-efficiently with a FlexiDesk or shared desk; others require a dedicated office once a licence or visa is issued, which raises the total considerably.

The cheapest free zone is rarely the right one. Some criteria only surface on closer inspection – changes to visa quotas, licence structures or bank acceptance policies. We track those developments and will tell you when our default choice does not fit your plan.
Which free zones do you work with, and how fast are they?

Four cover the vast majority of cases. Processing times are typical values, not guarantees:

  • IFZA (in Dubai Silicon Oasis) – our default for most setups and where we hold Platinum Partner status. Wide range of activities from trading and services to consulting, IT and industrial licences, with recurring special offers. Roughly 4–5 days for the company, 1–3 days for the establishment card, 3–5 days for the eVisa, 3–4 days for the residence visa.
  • Meydan Free Zone – the fastest of the four and excellently regarded by banks and authorities thanks to its Dubai Holding affiliation. Company formation in about 24 hours, sometimes under 60 minutes; 1–2 days for the immigration card, 1 day for the eVisa, 12–24 hours for the residence visa. We are a Gold Partner here.
  • DMCC – the best-known free zone worldwide, a leading hub for commodities and specialised in gold, diamond and precious metals trading; crypto and blockchain activities can also be licensed. About 7–9 days for the company, 2–5 days for the establishment card, 2–3 days for the eVisa, 3–4 days for the residence visa.
  • JAFZA – at Dubai's port, one of the largest free trade zones in the UAE, with an extensive customs-free logistics area plus office, warehouse and industrial facilities. About 7–14 days for the company, 2–3 days for the establishment card, 2–3 days for the eVisa, 3–4 days for the residence visa.
How many free zones are there in Dubai and the UAE?

Dubai currently has 21 free zones or free zone authorities, with some authorities operating several physical branches. Across the United Arab Emirates there are close to 50.

Most of them share largely the same list of activities and offer similar packages, which makes it genuinely hard for a founder to tell them apart. The differences that matter are price, reputation with banks, and office requirements.

Cheap emirates come at a price. Opening a corporate bank account is very difficult, at times impossible, for companies registered in Umm Al Quwain, Ras Al Khaimah, Fujairah or Sharjah. Dubai free zones have adjusted their pricing in recent years, so the saving is marginal while the banking disadvantage is not.

Costs

What does a business setup in Dubai cost?

We work with three packages, priced with the original fees of IFZA and a one-year term for one shareholder:

  • Eco – from AED 20,650: self-managed. We file every application, you follow a step-by-step guide to the appointments. No service fees – you pay the free zone and authority fees only.
  • Standard – from AED 31,160: we handle the bulk of the process, accompany you to the visa appointments, collect your Emirates ID and answer questions by WhatsApp. Up to 2 shareholders included.
  • Premium – from AED 35,360: full service including banking. We coordinate every appointment and open your personal and corporate accounts online, with no bank appointment required.

All three include the licence, the FlexiDesk with an official tenancy contract, the establishment card and a Residence Visa valid for two years.

Prices exclude add-ons and depend on your activity, the number of visas and the number of shareholders. Build your personal quote in three steps.
What exactly is included in the price?

Every package contains the elements you cannot do without: the business licence, the office tenancy contract (FlexiDesk), the establishment card and the Residence Visa eligibility, plus our work on the applications.

The step up between packages is the amount of work you keep. Eco gives you an in-depth initial consultation, the selection and bankability check of your activity, all filings and a written guide – but you attend the appointments yourself. Standard adds a VIP medical test, health insurance arrangement if required, Emirates ID collection and personal assistance. Premium adds UAE driving licence support and the online opening of both your personal and corporate bank accounts.

Do I pay more by going through an agency?

No. You pay the free zone's original prices plus authority fees – our consultation and review come at no extra charge, and in the Eco package there are no service fees at all.

Going direct to the free zone does not make it cheaper; it only means nobody checks whether your chosen activity will survive a bank's review, and nobody catches the details that become deal-breakers later.

What does a mainland company cost?

The following breakdown covers a mainland formation including licence, virtual office space, one residence visa and all related charges:

  • Licence fee: around EUR 4,000*
  • AoA, establishment card and labour card: EUR 700
  • Office contract: EUR 1,800 (not applicable if you rent your own office)
  • Residence Visa: EUR 950 (two years' validity)
  • Our service fee: from EUR 1,500
  • Total first year: from EUR 8,950

* For a General Trading activity the authorities charge an additional fee of around EUR 5,000.

Rules and fees are broadly similar across the emirates, so an Abu Dhabi mainland company costs roughly the same as a Dubai one.

What are the costs in the second year?

For a mainland company the recurring costs drop, because the one-off items fall away:

  • Licence renewal: around EUR 4,000*
  • Office contract: EUR 1,800 (not applicable if you rent your own office)
  • Our service fee: from EUR 600
  • Total second year: from EUR 6,400

* Fees depend on the chosen activities and the nature of the business.

For free zone companies the renewal is quoted per free zone and visa count – we give you that figure before you commit, not after.

What drives the final price?

Five factors, in roughly this order of impact:

  • the free zone – above all whether a FlexiDesk is accepted or a dedicated office is required
  • the activities on the licence
  • the number of visas you need
  • the number of shareholders, and whether one of them is a corporate shareholder, meaning a foreign company
  • current offers and discounts of the free zones, which change several times a year

Timeline & process

How long does the company formation take?

Once all documents and information are in, a free zone company usually takes 3 to 5 working days. In the fastest free zones it is quicker still – Meydan issues licences in about 24 hours and, for some activities, in under 60 minutes.

You do not have to be present. We are an official free zone partner and register the company with your digital signature.

How long does the visa process take?

The visa process starts once the company exists and the immigration card and e-permit have been issued. From there it takes roughly 5 working days. The digital Emirates ID follows in about 5 to 12 working days.

Only after that can a corporate bank account be opened – which is why the visa and the account are best planned together rather than one after the other.

What does the process look like step by step?

For a free zone company:

  • 1. Clarify the activity, the distribution of shares and who holds which position
  • 2. Submit the basic information: type of company, number of shareholders, desired name
  • 3. Submit the documents – passport copy and passport photo for private shareholders
  • 4. Apply for the licence with the free zone
  • 5. Apply for the establishment card, if visas are to be issued through the company
  • 6. Apply for the e-visa for the applicants and managing directors
  • 7. Enter the UAE for the medical test and the Emirates ID centre
  • 8. Receive the Residence Visa and the Emirates ID
  • 9. Apply for and open corporate and personal bank accounts
  • 10. Apply for family visas, once your own visa is issued
Why do some activities take longer?

Because regulated activities need clearance from authorities outside the free zone, and the licence is only issued once those have signed off. This applies in particular to the investment and management of third-party capital and client funds, which require incorporation in a designated free zone such as DMCC, DIFC or ADGM.

For these cases we do not give a firm date. We would rather tell you that upfront than miss a promise.

Residence Visa & Emirates ID

What exactly is a Residence Visa?

It is a two-year residence permit for the United Arab Emirates. You need it if you want to live in the Emirates or if you need a corporate bank account.

When you set up the company you acquire eligibility for a defined number of residence visas. Each visa eligibility costs around EUR 500 and entitles you to apply for a two-year visa; authority fees of roughly EUR 960 come on top. Our service fee is separate and depends on your package.

How long is the visa valid, and where?

Two years, renewable without a fixed limit as long as your company is active.

It is valid across all seven emirates, not just the one your company is registered in. If you set up in Dubai you can live in Abu Dhabi, and your bank account is not restricted to the emirate of your licence either. Along with the visa you receive your Emirates ID, the UAE equivalent of a national identity card.

Do I actually have to live in Dubai?

No. The visa does not oblige you to live in the Emirates, and there is no requirement to register a UAE address.

That is the UAE side of it. Whether you remain tax resident in your home country is decided by that country's law, not by a UAE visa. Holding a Residence Visa on its own does not end tax residency anywhere.
How often do I have to enter the UAE?

This is where the two visa types differ:

  • Investor or partner visa: one entry per year is sufficient to keep it valid.
  • Employment visa: you must enter the UAE at least every 6 months.

For entrepreneurs who want to stay flexible, the investor visa is usually the better choice.

What happens at the medical test and the Emirates ID appointment?

Two appointments, both in person and both short:

  • Medical test: a blood test and a chest X-ray.
  • Biometrics: fingerprints, an eye scan and an official photo at the Emirates ID centre.

Both fit comfortably into one trip. In the Standard and Premium packages we book a VIP medical test, accompany you and collect the Emirates ID on your behalf.

Can I bring my family?

Yes. Once your own Residence Visa has been issued, you can sponsor family visas for your spouse and children – it is a standard part of the process and we handle the applications for you.

The sequence matters: your visa has to be in place first, so plan the family visas as a second step rather than expecting them at the same time.

Tax

Is Dubai really 100 % tax free?

For private individuals, essentially yes. There is no personal income tax in the UAE – no tax on salary, no capital gains tax, no withholding tax.

For companies it is more nuanced. A corporate tax of 9 % applies to financial years beginning on or after 1 June 2023, and only to the portion of annual profit above AED 375,000 (approximately USD 102,000). Profits below that threshold are not taxed.

Because salaries, office costs and similar operating expenses reduce taxable profit – and there is no income tax on the salary you pay yourself as a UAE resident – many owner-managed companies end up at or close to 0 % in practice.

Tax free does not mean obligation free. Registration with the Federal Tax Authority, proper bookkeeping and timely filings are mandatory regardless of whether any tax is actually due.
Who has to pay UAE corporate tax?

Every UAE company falls within the scope of the corporate tax regime – free zone companies included. What differs is the rate they end up paying, not whether the rules apply to them.

  • Mainland companies pay 9 % on profits above AED 375,000.
  • Free zone companies can reach 0 % on their qualifying income as a Qualifying Free Zone Person, provided they meet the conditions.
  • Small companies of either kind can reach 0 % through Small Business Relief.
Registration is mandatory in every case – including for companies with no revenue and companies that will pay nothing. Missing the deadline triggers an automatic penalty.
What is Small Business Relief and does it apply to me?

The most relevant rule for the majority of founders: companies with an annual turnover of up to AED 3 million (approximately USD 817,000) pay no corporate tax at all. Ministerial Decision No. 131 extended the relief to tax periods ending on or before 31 December 2029 – it had originally been set to expire at the end of 2026.

  • It is not automatic. The relief has to be elected actively, in a return filed on time, for every single tax period.
  • Registration still applies. Even at 0 % you must register with the Federal Tax Authority and keep books – a simplified return and cash-basis accounting are permitted.
  • Exceed it once and it is gone for good. Cross AED 3 million in any single period and you lose the relief for that period and all future ones.
  • You must be a UAE resident person. Members of multinational groups with consolidated global revenue above AED 3.15 billion are excluded.
Small Business Relief or QFZP – not both. Both routes lead to 0 %, but a Qualifying Free Zone Person that elects the relief risks losing QFZP status for the current and the following four tax periods.
How does a free zone company reach 0 % (Qualifying Free Zone Person)?

Through QFZP status, which exempts qualifying income from the 9 % rate. It is not granted automatically – it has to be earned and maintained:

  • audited annual financial statements
  • the de minimis threshold: non-qualifying revenue below 5 % of total revenue or below AED 5 million, whichever is lower
  • demonstrable substance in the UAE, plus transfer pricing documentation

Miss the conditions and you pay 9 % on everything above the threshold. Which of the two routes to 0 % is cheaper for you depends on your turnover, your client mix and your substance – we work that out before incorporation, not when the first return falls due.

What about VAT?

VAT in the UAE is 5 %. Registration becomes mandatory once your taxable turnover reaches AED 375,000 within the UAE.

  • Revenue inside the UAE above that threshold → regular VAT registration.
  • Revenue generated exclusively outside the UAE → an application for exemption instead.

Both are time-bound. Note that an exemption also means no input VAT recovery, so for a company with substantial UAE costs a regular registration is often the better deal. We calculate that with you rather than defaulting to one option.

What are my obligations after incorporation?

A company formation does not end with the licence. Four items keep your structure compliant:

  • Corporate tax registration with the Federal Tax Authority, within the statutory deadline. Missing it means automatic fines.
  • Bookkeeping and annual filings – free zone companies generally keep simplified records of income and expenses and file annual statements or returns.
  • UBO reporting: the ultimate beneficial owners must be registered, and the register updated whenever ownership changes.
  • VAT registration or exemption from AED 375,000 of annual turnover.

We handle the registration and the deadlines, so none of these dates are yours to remember.

Can I set up in Dubai and keep my residence abroad?

Yes – nothing in UAE regulation prevents it. Whether it works for you is decided entirely by the tax law of the country you live in.

Four questions tend to determine the outcome, whatever your home country:

  • Where is the company effectively managed? If the real decisions are taken from your home country, most jurisdictions will treat the company as resident there and tax it accordingly.
  • Do CFC rules apply? Many countries attribute the profits of low-taxed foreign companies to their resident shareholders, even when nothing is distributed.
  • Is there an exit tax? Moving your own residence can trigger taxation of unrealised gains on your shareholdings.
  • Is there a double taxation treaty with the UAE? Several countries have none – Germany's treaty, for example, ended in 2021 – which means double taxation is possible in principle.
Get this wrong and it surfaces years later, with interest. We build the structure with your tax adviser at home, not around them. For founders from Germany, Austria and Switzerland our German-language pages cover the national rules in depth.

Banking

Can I get a corporate bank account with a free zone company?

Yes. Requirements tightened across the Emirates in 2022 and banks review applications far more closely than they used to, but with the right preparation it works reliably. Our banking packages come with a money-back guarantee.

Three conditions have to line up: one of the partners must hold a valid Residence Visa and Emirates ID, the company's activity has to be acceptable to the bank, and the nationality of the shareholders plays a role in the assessment. We recommend a bank package with all three in mind.

The decision always rests with the bank. No agency can issue an account, and anyone promising otherwise is overselling.
Why does the business activity decide whether I get an account?

Because the bank reads your licence before it ever speaks to you. The activity written on it is not an administrative detail – it is the basis on which your application is assessed, and its exact wording frequently decides whether an account is opened at all.

That is why we check the bankability of your activity before the licence is applied for. Correcting it afterwards is possible, but it costs time and money.

Which type of bank is right for me?

It depends on whether you need speed or standing:

  • Established banks for long-term business relationships and the strongest external impression.
  • Modern neobanks for a fast operational start, often within a few days.
  • Both – operational from day one through the neobank, backed long-term by a traditional institution.

In the Premium package we open your personal and corporate accounts online, with no branch appointment required. Which combination suits you, we settle before any application is filed.

Will my account be reported to my home country (CRS)?

That depends on your tax residency, not on where the bank is.

If you move your centre of life to the UAE and evidence it to the bank with an Emirates ID and a UAE address, the bank will treat you as a UAE tax resident, and an account attributed solely to UAE residency is not reported under CRS.

If you keep your residence abroad, you remain taxable and reportable there. Give a foreign tax number or address during onboarding – which banks regularly require where UAE substance is thin – and the bank reports accordingly. And an absent report never replaces a tax return: we advise on a lawful basis only.

Working with EmiratesSetup

Who is behind EmiratesSetup?

EmiratesSetup is a service of The Austrians LLC, a mainland LLC based in the United Arab Emirates since 2016, with offices in Dubai and Abu Dhabi. The shareholders are Barbara Roessle and Gerhard Strasser.

The commercial licence number is CN-2167310 and can be verified on the DED website. We are one of the first European-run agencies in the UAE and a long-standing partner of almost all free zones in the country.

What does the Platinum Award mean?

EmiratesSetup is an authorised partner of the International Freezone Authority (IFZA) and was distinguished with its Platinum Award – held by only a handful of agencies worldwide. With Meydan Free Zone we are a Gold Partner.

For you it translates into short routes to the authority, faster processing and fewer surprises. Behind it stands a team of more than 15 specialists on the ground – company formation experts, legal and tax advisers and finance professionals – and more than a thousand completed setups since 2016.

What does an initial consultation cost?

Nothing. The initial consultation is free and without obligation, by phone or video.

We use it to settle what actually matters before any money moves: whether your sector needs a regulated free zone or a mainland licence, which activity fits your business and will pass a bank's review, and what the setup will realistically cost. If Dubai is not the right answer for you, we say so.

Is EmiratesSetup a government authority?

No. EmiratesSetup is a private consultancy offering paid company formation services. We are not a government body of the UAE.

All official documents – the licence, the establishment card, the visa and the Emirates ID – are issued exclusively by the competent government authorities. Our role is to guide you through that process and make sure your applications are complete and approvable the first time.

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No two setups are alike. Tell us briefly what you have in mind and we will tell you honestly which structure fits and what it costs. Free and without obligation.

In the UAE since 2016 1,000+ company formations IFZA Platinum Partner

This information is provided for orientation and does not constitute tax or legal advice. The rules of the competent authorities and your individual circumstances prevail. Last reviewed: September 2026.