Who should set up a business in Dubai?
Dubai suits founders who want a Gulf base with 100% foreign ownership, direct access to a large local market and a choice of more than 20 free zones. It works well for traders, consultants, tech and e-commerce founders, and Indian family businesses that want a regional hub.
Dubai is a strong fit if you:
- want to sell to UAE customers through a mainland company licensed by the Department of Economy and Tourism (DET)
- need a recognised free zone address for overseas clients and banks
- plan to live in the UAE on a visa sponsored by your own company
Dubai may not be the best fit if price is your main concern. Free zones in Sharjah and Ras Al Khaimah publish entry prices from AED 5,750 at SPC and AED 6,000 at RAKEZ, about half Meydan's AED 12,500. Some regulated sectors, such as banking, insurance and telecommunications, also keep foreign ownership limits on the mainland.
Mainland, free zone or offshore: which route fits?
Choose the mainland if you will sell directly to UAE customers or bid for government work. Choose a free zone if you mainly trade abroad or with other free zone companies. Choose offshore only to hold assets or shares, or to do business outside the UAE.
| Point | Mainland (DET) | Free zone | Offshore (JAFZA) |
|---|---|---|---|
| Selling in the UAE | Anywhere in the UAE, including free zones | Needs a DET permit or a mainland branch | Needs separate UAE licences |
| Office | Premises of at least 100 sq ft; the instant licence includes a virtual site for year one | Flexi-desk, office or warehouse, per package | Registered agent's office in Dubai |
| Visas | No fixed cap; linked to premises and activity | Quota set by package or office | Only if the company owns freehold property, subject to JAFZA approval |
| Foreign ownership | 100% in more than 1,000 activities | 100% | 100% |
| Corporate tax | 0% up to AED 375,000, 9% above | 0% on qualifying income for a Qualifying Free Zone Person, 9% on the rest | Within UAE corporate tax as a UAE-incorporated company |
The main licensing bodies, with our guides:
| Authority | Route | Key published facts | Our guide |
|---|---|---|---|
| Department of Economy and Tourism (DET) | Mainland | Trade name AED 620; licences issued through the Invest in Dubai portal | Dubai mainland company setup |
| Meydan Free Zone | Free zone | From AED 12,500 a year; more than 2,500 activities | Meydan Free Zone |
| IFZA | Free zone | Based in Dubai Silicon Oasis; works through professional partners and publishes no package prices | IFZA |
| DMCC | Free zone | Basic Biz package AED 35,484 | DMCC |
| JAFZA | Free zone and offshore | Offshore registration AED 10,000 | UAE offshore companies |
Invest in Dubai also lists Dubai Airport Free Zone, Dubai Silicon Oasis, Dubai South, DIFC, Dubai World Trade Centre, Dubai Internet City and Dubai Media City. Compare routes in our mainland vs free zone guide and zones in our UAE free zones comparison.
How much does business setup in Dubai cost in 2026?
Business setup in Dubai has no single price: the cost depends on your route, activities, office and visas. Published entry prices include AED 12,500 a year at Meydan Free Zone, AED 35,484 for DMCC's Basic Biz package and AED 10,000 to register a JAFZA offshore company, while a DET mainland licence fee varies with the licence type and activities.
| Route and cost item | Published fee | What it covers |
|---|---|---|
| Meydan Free Zone licence | From AED 12,500 a year | Licence, registration and flexi-desk, up to three activity groups, no visa |
| Meydan visa allocation | AED 1,850 per visa, up to six | A visa slot; the investor or partner visa costs around AED 4,000 more |
| IFZA licence | Quoted by IFZA's professional partners | IFZA publishes no package price on its website |
| DMCC Basic Biz package | AED 35,484 | Licence and flexi-desk eligible for one visa; individual shareholders only |
| DMCC Jump Start package | AED 43,780 | Licence, flexi-desk and one residence visa |
| JAFZA Offshore company | AED 10,000 to register, AED 2,500 to renew | Registry fees only; registered agent fees are extra |
| DET trade name | AED 620 | Fixed fee for a mainland trade name |
| DET mainland licence | Varies by licence type and activity | Shown by DET's Business Set-Up Recommendations tool |
| DET eTrader licence | AED 1,070 plus AED 300 Dubai Chamber fee | Home-based sole establishment selling online |
| GDRFA establishment card | AED 200 plus VAT and service fees | Lets the company sponsor visas |
| Free Zone Mainland Operating Permit | AED 5,000 per six months | Lets a Dubai free zone company trade on the mainland |
Figures checked on each authority's website on 22 October 2026. Invest in Dubai says free zone freelance packages start from AED 5,000; this page covers company licences.
A mainland company also pays for premises of at least 100 sq ft, except in the first year of an instant licence. These figures usually leave out medical tests, Emirates ID, attestation, professional fees and renewals. Ofin gives an itemised quote once your activities, office and visa needs are clear.
Which Dubai trade licence do you need?
Your Dubai trade licence follows your activity. DET's main licence types are:
- Commercial licence: trading goods and services, import and export, logistics, retail, construction and real estate.
- Professional licence: service businesses such as consultancies, administrative services and education.
- Industrial licence: manufacturing, production and packaging; external approvals are needed before you start operating.
- Instant licence: DET states it is issued within five minutes, for activities that need no approval outside DET, with a virtual business site for the first year.
- E-Trader licence: a home-based sole proprietorship licence for selling through social media and online platforms.
- Free zone branch licence: lets a Dubai free zone company operate in the emirate through a branch; it is valid for one year, while an activity permit lasts six months.
Free zones issue their own licences; Meydan lists more than 2,500 activities. JAFZA issues trading, service, industrial and logistics licences and uses the activity list published by Dubai's economic department.
Some activities need another government body's clearance, which affects your timeline, so check before you pay. You can search licensable activities on the Invest in Dubai portal.
Visas, office space and bank accounts
A Dubai company can sponsor residence visas for its owners and staff, but the number depends on your premises on the mainland or your package in a free zone. The mainland has no fixed cap, as long as visas match your premises and activity. Free zones set a quota: Meydan allows up to six visa allocations per licence, and DMCC's standard flexi-desk is eligible for three visas.
The order is the same on every route. The company gets a GDRFA establishment card, which GDRFA expects to issue within 48 hours. Each visa holder then has 60 days on an entry permit to take a medical test at a government hospital, visit an Emirates ID centre and receive the residence visa.
Longer options exist too. The five-year Green visa covers investors and business partners, and the 10-year Golden visa covers investors with at least AED 2 million in qualifying public investments. Read our investor visa guide and Golden visa guide.
Office. Dubai's official investor portal says mainland businesses need a physical workspace of at least 100 sq ft, and DET's initial approval is needed before you register that address through Ejari. The instant licence is the exception, with a virtual site for the first year. Free zones offer flexi-desks.
Bank account. A trade licence does not automatically get you a corporate bank account. Each bank sets its own requirements and reviews your activity, risk profile and source of funds. The Dubai Unified Licence, a single licence number and QR code per business, is designed to simplify these checks. See our corporate bank account guide.
Ownership rules, legal forms and share capital
Foreign investors can own 100% of a Dubai mainland company in more than 1,000 commercial and industrial activities, under Federal Decree-Law No. 26 of 2020. Invest in Dubai says free zone companies can be 100% foreign-owned.
You still need a local partner for activities of strategic importance. Invest in Dubai lists these groups:
- security, defence and military activities
- telecommunications services
- banks, exchange houses, finance and insurance
- others, including commercial agencies, Hajj and Umrah organising, and fishing
The common mainland legal forms are:
| Legal form | Owners | Key point |
|---|---|---|
| Limited Liability Company (LLC) | 2 to 50 partners, individuals or companies | Each partner's liability is limited to their share of the capital |
| One-person LLC | One individual or company | Same rules as an LLC |
| Sole establishment | One person | The owner is personally liable for all debts |
| Civil company | Two or more partners | For professional activities such as consultancy or training |
| Branch | A foreign, GCC, free zone or other-emirate company | Carries out the parent company's licensed activities |
In free zones, the usual forms are the Free Zone Establishment (FZE), the Free Zone Company (FZCO) and a branch, with names that vary by zone.
The Dubai mainland has no standard minimum share capital; the amount depends on the legal form. Each free zone sets its own rules. A JAFZA offshore company needs one or more shareholders, who can be individuals or companies, and liability is limited to paid-up capital.
Renewal, corporate tax and VAT
Every Dubai licence must be renewed when it expires, usually each year, although DMCC and some other zones sell multi-year plans. DET sends an SMS reminder before expiry, and you can renew online, at a service centre or by SMS to 6969. DET's renewal fee depends on your activity.
| Rule | What applies in 2026 |
|---|---|
| Corporate tax registration | Within three months of getting your licence; late registration costs AED 10,000 |
| Corporate tax rate | 0% on taxable income up to AED 375,000, 9% above |
| Tax return | Within nine months of the end of each tax period |
| Small Business Relief | Revenue of AED 3 million or less in the current and all earlier tax periods; available for tax periods ending on or before 31 December 2029 |
| Qualifying Free Zone Person | 0% on qualifying income, 9% on other taxable income |
| VAT | 5%; mandatory above AED 375,000 of taxable supplies and imports, voluntary above AED 187,500 |
To keep the 0% free zone rate, a company must, among other conditions, keep adequate substance in the zone, earn qualifying income, maintain audited financial statements and keep non-qualifying revenue below the lower of AED 5 million or 5% of total revenue. Small Business Relief is not available to a Qualifying Free Zone Person.
Other yearly obligations:
- Beneficial owners: under Cabinet Decision No. 109 of 2023, companies must disclose their ultimate beneficial owners, including anyone holding at least 25% of the capital or voting rights.
- Audit: Invest in Dubai says mainland and free zone firms alike undergo annual audits. Under Ministerial Decision No. 84 of 2025, corporate tax rules require audited statements above AED 50 million of revenue and from every Qualifying Free Zone Person.
- Emiratisation: hiring targets for Emirati staff apply to mainland companies, not to free zone companies.
- Economic substance: reports are no longer required for financial years ending after 31 December 2022, under Cabinet Decision No. 98 of 2024.
Read more in our corporate tax guide, VAT registration guide and e-invoicing guide.
How does Dubai compare with other emirates?
Sharjah and Ras Al Khaimah publish cheaper free zone entry packages than the Dubai prices we checked: SPC from AED 5,750 and RAKEZ AED 6,000, about half Meydan's AED 12,500. In return, Dubai offers more than 20 free zones and, since October 2025, a permit that lets its free zone companies serve mainland customers.
| Emirate | Example published starting price | Our guide |
|---|---|---|
| Dubai | Meydan Free Zone from AED 12,500 a year; DET mainland fee depends on activity | This page |
| Sharjah | SPC Free Zone from AED 5,750; SEDD estimates AED 15,000 to 30,000 for a mainland licence in year one | Business setup in Sharjah |
| Ras Al Khaimah | RAKEZ Instant Licence Basic package AED 6,000 | Business setup in Ras Al Khaimah |
We also cover Abu Dhabi and Ajman. A cheaper licence in another emirate can be the right choice if you do not need a Dubai address or Dubai mainland customers.
Setting up in Dubai from India
Indian residents can own a Dubai company, but the money must leave India under FEMA overseas investment rules, through your authorised dealer (AD) bank. Plan this before you pay any UAE fees.
- Individuals: a resident individual can make an overseas direct investment only in an operating company that does not carry out financial services. The investment counts towards the Liberalised Remittance Scheme limit of USD 250,000 per financial year.
- Reporting: you file Form FC through your designated AD bank, then submit evidence of the investment to the bank within six months.
- Indian companies: an Indian company can set up a UAE subsidiary under the same overseas investment rules, filing Form FC through its AD bank.
- Documents: individual shareholders mainly need a passport copy and photo. Company documents from India must be attested in India and by the UAE Embassy, counter-attested by the UAE Ministry of Foreign Affairs and, for a mainland company, legally translated into Arabic. See our attestation guide.
- Travel: a free zone licence such as Meydan's can be done online, but a residence visa needs you in the UAE for the medical test and Emirates ID.
- Tax residency: moving to Dubai can change where you are tax resident, so read our Dubai from India guide before you relocate.
How Ofin helps
Ofin's UAE desk handles a Dubai setup from the first activity check to visas and tax registration, while Ofin Legal in Mumbai advises on the India side. Ofin Legal has a 4.9-star Google rating and has served more than 5,000 clients since 2019.
What we do for you:
- route and activity advice across the mainland, free zones and offshore
- trade name, initial approval, Memorandum of Association and trade licence
- office or flexi-desk, and Ejari coordination on the mainland
- establishment card, investor and employee visas, medical test and Emirates ID
- corporate bank account preparation and coordination
- VAT and corporate tax registration, accounting and PRO services
- document attestation, and advice on FEMA and India-UAE tax rules
For a straightforward mainland company, Ofin typically completes the setup in 7 to 15 working days, subject to government approvals. Call or WhatsApp Ofin's UAE desk on +971 50 523 5779.
