UAE business setup in 2026: (1) choose mainland or free zone; (2) select legal structure (LLC, FZ-LLC, branch); (3) reserve trade name; (4) draft and attest MOA; (5) obtain trade licence; (6) apply for establishment card + visa; (7) open business bank account. Typical timeline: 3–6 weeks for a straightforward free zone company, 6–10 weeks for a mainland LLC with a UAE national shareholder requirement.
Mainland vs free zone — choosing the right jurisdiction
| Factor | Mainland | Free Zone |
|---|---|---|
| UAE market access | Full — sell directly to UAE market | Restricted — need mainland agent/distributor for direct retail |
| Foreign ownership | 100% for most activities (MOEC list) | 100% in the free zone |
| Corporate Tax (CT) | 9% on taxable income above AED 375K | 0% for QFZPs on qualifying income; 9% on non-qualifying |
| Trade licence | DED (Dubai) / MOEC (other emirates) | Free zone authority |
| Visa quotas | Flexible — based on office space | Capped per licence type |
| Minimum share capital | AED 300,000 for LLC (often waived for small LLCs) | Varies by free zone — often AED 10,000–50,000 |
| Suitable for | Trading with UAE market, government contracts, retail | International trade, professional services, digital businesses |
Step-by-step UAE business setup process
Step 1: Choose jurisdiction and legal structure
Mainland (LLC is most common) or free zone (FZ-LLC or FZ-Establishment). For mainland trading businesses, an LLC with 1–50 shareholders is standard. For professional activities in free zones (consulting, tech, media), an FZ-LLC or solo FZ-Establishment works.
Step 2: Reserve your trade name
Apply for trade name reservation with DED (mainland) or the free zone authority. Name must not duplicate existing registrations, use prohibited words (bank, insurance without regulatory approval), or be offensive. DED name reservation is valid 60 days; free zone varies.
Step 3: Draft and attest the Memorandum of Association (MOA)
For mainland LLCs, the MOA is drafted by a registered legal drafting firm, signed by all shareholders before a UAE notary, and submitted to DED. Free zone entities submit a simpler Articles of Association (AoA) to the authority — no notarisation required in most free zones.
Step 4: Obtain the trade licence
Submit the complete application to DED or the free zone authority. For mainland: include tenancy contract (Ejari-registered), MOA, shareholder documents, and activity approvals. Free zones: submit AoA, shareholder documents, business plan (some free zones), and rental agreement. Licence issuance: 2–10 business days after all documents accepted.
Step 5: Apply for establishment card and investor/employee visas
The establishment card (from GDRFA for Dubai, ICP for other emirates) enables the company to sponsor visas. Apply for the investor/director visa first (typically 3-year UAE residence), then employee and dependant visas. Each free zone has its own HR/visa portal.
Step 6: Open a corporate bank account
Apply to a UAE bank with: trade licence, MOA/AoA, shareholder passports and Emirates IDs, tenancy contract, and business plan. UAE banks have strict AML/KYC requirements — expect 2–6 weeks for account opening. Some free zones have banking partnerships that accelerate this.
UAE business setup costs in 2026
- Free zone company (e.g., DMCC, DAFZA, Dubai South): AED 10,000–30,000 for initial year (licence + registration fee + desk/flexi-desk). Annual renewal: AED 8,000–20,000.
- Mainland LLC: AED 15,000–40,000 (DED licence + notarisation + local service agent fee if applicable). Annual DED renewal: AED 5,000–12,000 depending on office size.
- DIFC/ADGM company: USD 7,000–25,000 (registration fee + annual supervision fee). Premium jurisdictions with higher regulatory standards.
- Investor/director visa: AED 3,000–5,000 per visa (medical, Emirates ID, GDRFA/ICP fees). Not included in typical licence cost quotes.
- Professional/consultant fees: AED 3,000–10,000 for a business setup agent for a free zone company; AED 8,000–20,000 for a mainland LLC with MOA drafting and notarisation.
Not sure which UAE jurisdiction is right for your business?
We advise on mainland vs free zone vs DIFC/ADGM, draft the MOA, and handle the full registration. Fixed fee — no hidden government fee surprises.
Frequently asked questions
Can a foreigner own 100% of a UAE mainland company?+
Yes — since the Companies Law amendment (Cabinet Resolution 16/2021), foreigners can own 100% of most mainland business activities. A small negative list of strategic activities (oil and gas, utilities, some defence activities) still requires UAE national majority ownership. Check MOEC’s current permitted activities list for your specific activity.
How long does UAE business setup take?+
A free zone company: 3–6 weeks from initial application to trade licence and establishment card. A mainland LLC: 6–10 weeks (longer because of MOA notarisation, DED approvals, and sometimes activity-specific licences from other authorities like health, education, or food). Banking adds 2–6 weeks to the total timeline.
What is the minimum share capital for a UAE company?+
Mainland LLC: AED 300,000 is the nominal minimum under the Companies Law, but DED in Dubai and ADM in Abu Dhabi rarely enforce a paid-up requirement for service LLCs. Free zones: most free zones set nominal capital at AED 10,000–50,000 per shareholder. DIFC/ADGM: USD 2,000–50,000 depending on entity type and activity.
Do I need a UAE national partner for a mainland company?+
No — since 2021, most activities permit 100% foreign ownership. However, for certain licensed activities (real estate brokerage, certain trading activities), a local service agent (a UAE national who is not a shareholder but provides administrative services) may still be required. This is different from a shareholder — it is a contractual arrangement, typically AED 3,000–8,000 per year.
What is a free zone establishment card?+
The establishment card (or company immigration card) is issued by GDRFA (General Directorate of Residency and Foreigners Affairs) after the trade licence is issued. It allows the company to sponsor employee and investor residence visas. Each free zone has a visa quota attached to the licence type — flexi-desk licences typically allow 1–3 visas.
Can a UAE free zone company sell to UAE mainland customers?+
Free zone companies cannot directly retail to UAE mainland customers — they need to either work through a mainland distributor/agent, or set up a mainland entity. However, free zone companies CAN provide professional services and consultancy to mainland clients, import/export between free zones and internationally, and sell B2B to UAE-based businesses (with proper invoicing and customs formalities for goods).