How long does it take to set up a company in the UAE?

A straightforward Free Zone license typically takes 3–7 working days once documents are ready. Mainland LLCs generally take 2–4 weeks including MOA notarisation, tenancy (Ejari) and license issuance.

Do I need a local Emirati sponsor to open a company in the UAE?

For most commercial and professional activities on the Mainland, 100% foreign ownership is now allowed under Federal Decree-Law No. 32 of 2021. A local service agent or Emirati partner is only required for a limited list of strategic activities.

What is the difference between Mainland and Free Zone in the UAE?

Mainland companies are licensed by an Emirate's Department of Economic Development and can trade freely across the UAE and take direct government contracts. Free Zone companies are licensed by a specific free zone authority, get 100% foreign ownership and customs benefits, but sell into the local market through a Mainland distributor or a dual-license arrangement.

How much does it cost to set up a company in the UAE?

Free Zone packages typically start from around AED 12,500–15,000 per year for a small business. A Mainland LLC in Dubai usually starts around AED 20,000–30,000 including trade license, Ejari and initial approvals. Costs rise with visa quotas, office size and regulated activities.

Do UAE companies pay corporate tax?

Yes. UAE Corporate Tax applies at 9% on taxable profits above AED 375,000 for financial years starting on or after 1 June 2023. Qualifying Free Zone Persons can still benefit from a 0% rate on qualifying income if they meet the substance and de-minimis conditions.

Insights

Practical guides for UAE business owners.

Written by our team, focused on what actually changes how you run your finance, tax and trade operations.

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UAE Corporate Tax 2025: The Definitive Compliance Checklist

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Why Free Zone Customs Handling Is Different (and How to Get It Right)

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Backlog Accounting: Recovering 18 Months in 3 Weeks

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