UAE business services

Company registration in the UAE

Setting up a UAE company means choosing mainland or free zone, getting your trade licence, then registering for corporate tax within three months of incorporation. Ihya coordinates the whole path with licensed setup partners, including the tax registrations most setup guides leave out.

Mainland or free zone?

Mainland companies are licensed by the economic department of an emirate and can trade directly with customers anywhere in the UAE. They suit businesses that sell locally, bid for local contracts or need a shop front.

Free zone companies are licensed by one of the UAE's free zone authorities. They usually come as packaged licences with office options and visas, and they suit regional and international trading, holding companies and service businesses. Trading directly on the mainland generally needs a mainland licence, branch or permit, which Dubai now offers to free zone companies, and the 0% corporate tax rate on qualifying income only applies to Qualifying Free Zone Persons that meet strict conditions.

The right choice depends on your activity, your customers and your visa needs. We map that on the first call, before you pay any authority fee.

The steps, in order

  1. Activity and jurisdiction. Pick the licence activity that matches what you actually do.
  2. Trade name and initial approval. Reserve the name and get approval to proceed.
  3. Legal documents and premises. Memorandum of association and an office, flexi desk or virtual office as the authority requires.
  4. Licence issued. Your trade licence and certificate of incorporation.
  5. Establishment card and visas. For the company, then for owners and staff.
  6. Corporate bank account. Often the slowest step, so documents are prepared early.
  7. Corporate tax registration. Within three months of incorporation, even before trading.
  8. VAT registration. Mandatory once taxable supplies and imports pass AED 375,000 over twelve months, voluntary from AED 187,500.
  9. Books from day one. A bookkeeping setup that will support your first tax return and, if needed, your eInvoicing provider.
The step most guides skip: the corporate tax registration deadline runs from incorporation, not from your first sale. A company that registers late faces a fixed AED 10,000 penalty, waived only if its first return is filed within seven months of the end of its first tax period.
Who does the regulated work. Ihya Digital is a marketing and technology company. Company licensing is handled by licensed setup partners, tax registration and filing by tax agents registered with the Federal Tax Authority, and accounting by licensed accounting firms. We coordinate the work, keep your compliance calendar and stay your single point of contact.

Next: corporate tax and VAT and accounting and bookkeeping.

Sources

Quick answers

It depends on the authority and how complete your documents are. Licences in many free zones can be issued within days of a complete application, while visas and the corporate bank account usually take longer. We give you a realistic timeline on the first call.
Yes. Resident companies, including free zone companies, must register for corporate tax. Qualifying Free Zone Persons can benefit from 0% on qualifying income, but only if they meet the conditions and still register and file.
Companies incorporated on or after 1 March 2024 must register within three months of incorporation under FTA Decision No. 3 of 2024. Late registration carries an AED 10,000 penalty.
Only if your taxable supplies and imports have passed AED 375,000 over the last twelve months, or will within the next 30 days. Voluntary registration is possible from AED 187,500.
Yes, through our licensed setup partners. Logistics is where Ihya works most, so we can help with the licence route and then with the marketing, website and systems once you are open.

Ready to open your UAE company?

Book a fifteen minute call. We will tell you straight what you need, what it costs and how fast it can be done.

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