Step-by-step guide · 2026
How to open a company in Dubai
To open a company in Dubai you choose a business activity, decide between mainland, free zone or offshore, pick a legal form, reserve a trade name, get initial approval, secure premises, sign the documents and collect the licence. Typical licence fees run AED 6,500–15,000 in a free zone and AED 10,500–18,000 on the mainland.
Typical range AED 6,500–AED 18,000 (licence and registration only, typical market range October 2026)
Facts checked 2026-10-26
Opening a company in Dubai is a sequence of decisions followed by a sequence of approvals. The decisions come first and decide almost everything else: what the company does, where it is registered, who owns it and whether the owners need UAE residence visas. Getting these right before you apply saves the most time and money.
This guide covers the whole path, from first idea to a company that can trade, hire and bank. Each step links to a more detailed guide where one exists. Prices are typical market ranges for October 2026, not quotes, and your activity can add approvals and costs.
Should you open a company on the mainland or in a free zone?
The choice depends on where your customers are. A mainland licence from the Dubai Department of Economy and Tourism lets you trade directly across Dubai and the wider UAE, but needs a registered office. A free zone licence is issued by the zone itself, usually as a package. Each zone has its own process and rules.
Dubai also offers a dual licence that lets some free zone companies operate on the mainland without extra office space. It is available with a limited number of free zones, so check that your zone is one of them.
- {'Mainland': 'trade across the UAE, Ejari office required, licence typically AED 10,500–18,000'}
- {'Free zone': 'package pricing, flexi desk options, licence typically AED 6,500–15,000'}
- {'Offshore': 'holding and international activity only, no UAE visas or office, typically AED 8,000–13,000'}
How much does it cost to open a company in Dubai?
For one owner with one residence visa in a free zone, a typical first year comes to about AED 12,900–30,500 once the licence, visa, establishment card, desk and setup support are added up. On the mainland the licence is higher and the office is a real cost.
See the full line-by-line breakdown on the trade licence cost page, or use the calculator to adjust visas, office and activity.
Can anyone open a company in Dubai, including non-residents?
Free zones are noted for 100% foreign ownership. On the mainland, check whether foreign ownership is permitted for your activity, and note that foreign investors may need approval from the residency authority before initial approval is granted. A residence visa is a separate step if you want to live and work in the UAE through the company. Some activities are regulated and need approval from a specific authority before a licence is issued, for example financial services, media, telecommunications and manpower supply.
What to do after the licence is issued
The licence is the start, not the finish. You then register an establishment card to sponsor visas, open a corporate bank account, and register for corporate tax. A new company must register for corporate tax within three months of its incorporation date. VAT registration applies once taxable supplies pass the threshold.
- Residence visas and Emirates ID for owners and staff
- A corporate bank account (the bank decides, and no result is guaranteed)
- Corporate tax registration, then VAT if you pass the threshold
- Bookkeeping from the first month, so tax filings are straightforward
The 8 steps to open a company in Dubai
Define your business activity
The activity decides the licence type, the legal form and whether extra approvals apply. The UAE government portal lists over 2,000 activities, and a business may hold more than one.
Choose mainland, free zone or offshore
Mainland suits businesses that trade across Dubai and the UAE. A free zone suits businesses that want a package with a flexi desk. Offshore suits holding and international activity with no UAE visas or office. Check whether foreign ownership is permitted for your activity.
Pick a legal form and shareholders
Mainland options include a limited liability company, partnerships and a sole proprietorship. Free zones offer their own forms, such as a Free Zone Establishment with one shareholder or a Free Zone Company with two or more.
Reserve a trade name and get initial approval
The name must fit the activity and legal form and must not duplicate a registered name. Initial approval confirms the authority has no objection to your activity, and it lets you move on to premises.
Secure premises
Mainland licences need a registered office with an Ejari tenancy contract. Many free zones accept a flexi desk or virtual office, often included in the package.
Prepare the documents and pay
Typically passport copies, the memorandum of association where required, the tenancy contract and any activity approvals. Government fees are paid before the licence is issued.
Collect the licence
Once fees are paid and approvals are in, the licence is issued. It is valid for a set term and renews on a cycle, so note the renewal date.
Set up what the company needs to operate
Establishment card and residence visas, a corporate bank account, and corporate tax registration (plus VAT if you pass the threshold).
Documents you typically need
- Passport copies of every shareholder and manager
- Emirates ID and residence visa copy for owners who already live in the UAE
- Memorandum of association, where the legal form requires one (not needed for a one-person LLC in Dubai mainland)
- Tenancy contract registered with Ejari (mainland) or the free zone lease or flexi desk agreement
- Initial approval receipt and any activity approvals from other authorities
- {'Foreign company documents, where a company is a shareholder': 'attested, translated into Arabic and attested again in the UAE'}
Things to weigh up
- Prices here are typical market ranges, not quotes. Your activity, visas and office choice change the total.
- Regulated activities need approval from the relevant authority before the licence is issued, and approvals can add time.
- If you are in a free zone and want to trade on the mainland, ask whether your zone offers a dual licence.
- Ask for an itemised quote for year one and year two before you pay anything.
Common questions
How do I open a company in Dubai step by step?
Choose your activity, pick mainland, free zone or offshore, choose a legal form, reserve a trade name, obtain initial approval, secure premises, submit the documents and pay the fees, then collect the licence. After that, set up visas, a bank account and tax registration.
Can a foreigner open a company in Dubai?
Yes. Free zones are noted for 100% foreign ownership. For mainland companies, check whether your specific activity allows foreign ownership. Foreign investors may need residency authority approval before initial approval, and regulated activities need approval from a specific authority.
How much does it cost to open a company in Dubai?
A typical free zone licence costs AED 6,500–15,000 and a mainland licence AED 10,500–18,000 for the licence alone. With one residence visa, an establishment card and setup support, a first year in a free zone typically comes to about AED 12,900–30,500.
Do I need an office to open a company in Dubai?
Mainland licences need a registered office with an Ejari tenancy contract. Many free zones accept a flexi desk or virtual office, often included in the package. Offshore companies need no UAE office but cannot hold UAE visas.
What happens after I open a company in Dubai?
You apply for an establishment card and residence visas, open a corporate bank account and register for corporate tax. A new company must register for corporate tax within three months of its incorporation date.
Do I have to renew a Dubai company licence every year?
Licences are issued for a set term and need to be renewed before they expire. The Dubai Department of Economy and Tourism lists its trade licence as valid for one year. A free zone licence renews with the zone itself.
Related pages
- How to get a trade licence in Dubai
- Free zone company formation
- Mainland company formation
- Dubai trade licence cost
- Compare UAE free zones and their starting prices
- Company setup cost calculator
More guides
- How to get a trade license in Dubai
- Corporate tax registration in the UAE
- VAT registration in the UAE
- How to open a business bank account in the UAE
- How to renew a trade license in Dubai
Sources
- Dubai.ae, starting a business in Dubai (checked 2026-10-26)
- UAE government portal, steps to start a business on the mainland (checked 2026-10-26)
- Federal Tax Authority, corporate tax registration timelines (checked 2026-10-26)
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