Company registration in the UAE
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
- Activity and jurisdiction. Pick the licence activity that matches what you actually do.
- Trade name and initial approval. Reserve the name and get approval to proceed.
- Legal documents and premises. Memorandum of association and an office, flexi desk or virtual office as the authority requires.
- Licence issued. Your trade licence and certificate of incorporation.
- Establishment card and visas. For the company, then for owners and staff.
- Corporate bank account. Often the slowest step, so documents are prepared early.
- Corporate tax registration. Within three months of incorporation, even before trading.
- VAT registration. Mandatory once taxable supplies and imports pass AED 375,000 over twelve months, voluntary from AED 187,500.
- Books from day one. A bookkeeping setup that will support your first tax return and, if needed, your eInvoicing provider.
Next: corporate tax and VAT and accounting and bookkeeping.
Sources
Quick answers
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