Why Set Up a Company in the UAE?
The United Arab Emirates has maintained its position as the world's leading entrepreneurial nation for four consecutive years according to the Global Entrepreneurship Monitor 2024-2025 report which shows it surpasses all developed economies. The UAE achieves this outstanding performance through its carefully constructed ecosystem which includes 13 essential indicators that encompass government backing for entrepreneurship and tax and bureaucratic policies and market entry simplicity through regulatory and burden frameworks.
The UAE provides its business environment with favorable taxation because it does not collect personal income tax and imposes corporate tax only on profits exceeding AED 375,000 (102,096.37 USD) at a rate of 9%. Free zone companies that qualify for corporate tax exemptions can maintain their 0% tax rate.
All currency conversions to USD are based on the exchange rates prevailing as of July 2, 2025.
Business setup through the Basher eService enables remote operations which can be completed in 15 minutes. Foreign business owners who start companies in the UAE have the opportunity to obtain extended residence permits for both themselves and their family members, provided they fulfill the necessary qualifications.
The UAE operates with economic stability while driving innovation and accepting worldwide business activities without currency limitations and English dominates legal and commercial practices. The government implements various incentives together with streamlined procedures to support key sectors including tech and green energy and finance.
Types of Legal Entities in the UAE
Mainland companies are licensed by the Department of Economic Development (DED) in each Emirate and are permitted to operate anywhere within the UAE, including engaging in government contracts and unrestricted local trade.
Available structures for Mainland companies include:
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Limited Liability Company (LLC) – 2 to 50 shareholders, eligible for up to 100% foreign ownership in most sectors.
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Civil or Professional Company – for licensed professionals.
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Sole Proprietorship – for individual entrepreneurs.
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Private / Public Joint Stock Company (PrJSC / PJSC) – typically for larger businesses with share capital.
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Branch or Representative Office – works perfectly for companies that prefer not to establish a completely separate legal structure in a new country.
Step-by-Step Guide to Company Registration in UAE
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Choose Your Business Structure → mainland for local operations or free zone for tax benefits and foreign ownership. Then choose legal form and license type based on activity.
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Reserve Company Name → which must include legal suffix, avoid restricted terms, reflect business activity, and be unique.
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Securing initial approval → through the appropriate regulatory body for your selected jurisdiction and business activities.
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Prepare your legal documentation → includes drafting and notarizing essential papers like the Memorandum and Articles of Association, alongside securing office lease agreements when required.
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Arrange Your Business Location → lease physical office or flexi-desk, as required by the licensing authority.
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Open a Corporate Bank Account → choose a local or international bank and submit incorporation documents for account setup.
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Complete Registration Process → submit all documents, pay government fees, and obtain a trade license and establishment card.
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Finalize Your Setup → once licensed, the company can sponsor visas, open bank accounts, and begin business activities.
Cost of Company Formation in UAE
Name of the service
Start
Lite
Business🔥
Pro
Company registration, including state duty
✅
✅
✅
✅
Share certificate
✅
✅
✅
✅
Initial AML Compliance and Verification
✅
✅
✅
✅
Business license for 1 year
✅
✅
✅
✅
Visa support for 1 year
❌
✅
✅
✅
Legal address for 1 year
❌
✅
✅
✅
Corporate account
❌
❌
✅
✅
Tax number
❌
❌
✅
✅
Emirates ID
❌
❌
✅
✅
VAT number
❌
❌
❌
✅
Consultation on obtaining a Golden visa to the UAE
❌
❌
❌
✅
Shareholders’ Agreement
❌
❌
❌
✅
Total cost
12740 USD
9800 USD
13780 USD
10600 USD
15600 USD
12000 USD
16640 USD
12800 USD
*The offer is valid until 2025-11-30
Timelines & Requirements
The time to fully register a UAE company depends on the completeness of your documents and the jurisdiction:
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Free zone processing times range from as quick as 3 days to up to 4 weeks, depending on the zone authority, business sector, and license complexity.
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Mainland typically takes 2-4 weeks after submission of all required documents. For certain types of businesses on the mainland, the Basher platform is available, allowing company registration in just 15 minutes.
Common requirements include copies of all shareholders’ passports and UAE visas, a residential or UAE office address, passport-size photographs on white background, and a business plan or cover letter. Additionally, the signed MOA or LSA and the lease agreement must be submitted.
Taxation and Compliance in the UAE
Corporate tax in the UAE applies at 0% for annual profits up to AED 375,000, and 9% for anything above. Qualifying free zone companies that meet substance and reporting criteria can still benefit from a 0% rate. Personal income remains untaxed in the UAE, meaning both salaries and dividend payments are completely exempt from personal tax obligations.
VAT registration becomes mandatory when annual taxable revenue exceeds AED 375,000 (102,095.40 USD), with the standard rate set at 5%. Companies can recover input VAT to prevent double taxation scenarios. Registration with the Federal Tax Authority is required for both VAT and corporate tax compliance, including regular return submissions.
Annual audited financial statements are typically mandatory for LLCs and larger corporate structures. The UAE's extensive network of over 100 double taxation treaties provides significant advantages through reduced withholding taxes on cross-border income.
Opening a Bank Account in the UAE
Corporate bank account establishment typically requires more than 2, with some cases extending longer. UAE banks generally mandate that the company's General Manager possesses an Emirates ID, while in-person visits remain standard practice for verification and account activation.
Initial setup costs begin around AED 7,500 (2,041.93 USD), varying by institution and account specifications. Corporate banking can only commence after completing the full company registration process.
A common requirement across all banks is maintaining a minimum account balance. The required amount varies from one institution to another, depending on the account type and banking tier. Major Bank Requirements:
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Emirates NBD: Minimum balance requirements range from AED 50,000 (13,613 USD) up to AED 500,000 (136,129 USD)
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First Abu Dhabi Bank: Similar structure with minimum balances between AED 50,000-500,000 (13,613 - 136,129 USD)
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Dubai Islamic Bank: Maintains a minimum balance requirement of AED 50,000 (13,613 USD)
Residency in the UAE Through Business
The UAE offers three main residency programs for business investors: Standard Investor Visa, Green Visa, and Golden Visa.
The Standard Investor Visa allows foreign nationals to gain residency through company formation in Free Zones or Mainland areas. The visa period runs 2-3 years and can be renewed. Setup costs begin at AED 15,000 (4,084 USD) without capital requirements. The application includes company registration, medical checks, and Emirates ID processing. Holders can use public services, purchase property, and run businesses in the UAE.
The Green Visa provides 5-year residency while the Golden Visa offers 10-year terms. Both include self-sponsorship and family sponsorship capabilities with extended departure allowances. The Green Visa investment threshold is AED 1 million (272,257 USD). The Golden Visa requires AED 2 million (544,514 USD). These programs offer long-term residency status, personal income tax exemption, and business operation flexibility.
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