Which UAE company route should you choose?
Choose a free zone if you mainly serve clients outside the UAE or other free zone companies and want a low-cost start. Choose the mainland if most of your customers are in the UAE. Choose an offshore company only to hold assets or shares, because it cannot trade inside the UAE and generally cannot sponsor visas.
| Point | Free zone | Mainland | Offshore |
|---|---|---|---|
| Who licenses it | The free zone authority | The emirate's economic department, for example Dubai's Department of Economy and Tourism | An offshore registry such as JAFZA Offshore or RAK ICC |
| Customers | Outside the UAE and inside the zone; mainland sales through a distributor, branch or permit | Anywhere in the UAE and abroad | Outside the UAE only |
| Ownership | 100% foreign | 100% foreign for most activities | 100% foreign |
| Office | Flexi-desk or co-working lease in most entry packages | A registered office lease is usually required | No office; a registered agent |
| Residence visas | Yes, quota set by package and office | Yes, quota set by office size | Generally no |
| Typical start | Online application, licence in days | Trade name, approvals, lease, licence | Registered agent files the company |
Read the full comparison in our guide to mainland vs free zone, and see offshore companies for holding structures.
How much does it cost to set up a company in the UAE?
A free zone company with no visa can start from about AED 5,750 to AED 6,000 a year in Sharjah and Ras Al Khaimah (SPC also has a narrow ePublishing licence at AED 4,999), and from AED 12,500 in Dubai at Meydan. Each residence visa then adds the zone's visa fees, a medical test, the Emirates ID and health insurance.
These are each authority's own published entry prices, checked on 22 October 2026:
| Option | Emirate | Published entry price |
|---|---|---|
| SPC Free Zone | Sharjah | AED 5,750 (Publishing or E-commerce); AED 6,875 (Standard); AED 4,999 (narrow ePublishing licence) |
| Shams | Sharjah | AED 5,760 (Media Package) |
| RAKEZ | Ras Al Khaimah | AED 6,000 (Instant Licence Basic) |
| Meydan Free Zone | Dubai | AED 12,500 (Regular licence) |
| IFZA | Dubai | Quoted through IFZA's partners |
| DMCC | Dubai | AED 35,484 (Basic Biz) |
| Ajman Free Zone | Ajman | No package price published; Ofin's licence-only package from AED 5,555 |
Mainland costs depend on the activity, the emirate and the office lease, so they are quoted case by case. Our emirate guides set out the published fees: Dubai, Abu Dhabi, Sharjah, Ajman and Ras Al Khaimah.
Which emirate is right for your company?
Dubai has the widest choice of free zones and the strongest business network, but higher costs. Sharjah, Ajman and Ras Al Khaimah publish lower entry prices and suit cost-conscious founders, traders and light industry. Abu Dhabi suits companies working with the Abu Dhabi government, energy and financial services.
- Dubai: mainland licences from the Department of Economy and Tourism, and free zones including Meydan, IFZA and DMCC.
- Sharjah: the Sharjah Economic Development Department for mainland, and free zones including SPC and Shams.
- Ras Al Khaimah: RAKEZ for free zone and non-free zone licences, and RAK ICC for offshore companies.
- Ajman: the Ajman Free Zone beside Ajman Port, and the Ajman Department of Economic Development for mainland.
Visas and a bank account after the licence
Once the licence is issued, the company gets an establishment card (immigration file) and can apply for residence visas. Each visa goes through an entry permit, a change of status if you are already in the UAE, a medical fitness test, Emirates ID biometrics and the visa itself. Free zones publish their visa fees separately from the licence, so compare the total for the number of visas you need, not just the licence price.
A UAE corporate bank account is opened after the licence. Banks run their own checks: expect to show the licence, the company documents, passports, proof of address and evidence of the business you will run, such as contracts or invoices. Most banks want to meet the signatories. See investor visa, golden visa and corporate bank account for the detail.
Tax for UAE companies
Every UAE company, including free zone companies, must register for corporate tax. The rate is 0% on the first AED 375,000 of taxable income and 9% above it. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on the rest. Small Business Relief, for revenue up to AED 3 million, applies to tax periods ending by 31 December 2029 for businesses that are not Qualifying Free Zone Persons.
VAT is charged at 5%. Registration is mandatory once taxable supplies pass AED 375,000 in 12 months, and voluntary from AED 187,500. See UAE corporate tax and VAT registration for the details.
Setting up a UAE company from India
Most Indian founders can apply online and visit the UAE only for the visa medical test and biometrics. The India side needs planning before you transfer money:
- Choose the route and zone, and confirm your activity is licensed there.
- Collect passport copies and photos; get any corporate documents attested in India and by the UAE Embassy.
- Tell your Indian bank (the AD bank) about the investment and follow the RBI's Overseas Investment rules.
- Remit the capital and fees under the Liberalised Remittance Scheme, capped at USD 250,000 per financial year for resident individuals.
- After the investment, file the Annual Performance Report each year by 31 December through your bank.
- Take advice on tax residence and the tax treaty between India and the UAE if you will manage the company from India.
Our business setup in Dubai from India guide covers each step.
How Ofin helps
Ofin Legal works from Mumbai, and its UAE desk trades as Ofin Global. One team handles both sides: the UAE licence, establishment card, visas and bank introductions, and the Indian documents and FEMA questions your bank will raise.
Tell us your activity, visa count and budget, and we will compare the options and send a written cost estimate. Call or WhatsApp the UAE desk on +971 50 523 5779, or use the form on this page.
