How to open a company in Dubai in 2026
A step-by-step guide to opening a Free Zone, Mainland, Offshore or Holding company in Dubai: costs, documents, bank account, visa, tax and annual compliance. You can start the analysis remotely from Spain, Latin America, Europe, the United Kingdom or the United States, while coordinating the structure with your country of residence.
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Opening a company in Dubai from outside the UAE.
Most clients do not start the process while already in Dubai. We coordinate the incorporation remotely around a single strategy: the right company, a defensible license, a realistic banking route and tax reviewed from your country of residence.
Remote incorporation
The consultation, activity analysis, jurisdiction selection, name reservation, document preparation and license application can all move forward before you travel. The trip is planned only when it adds value: residence, Emirates ID, banking or specific meetings.
Personal tax residency
Before registering the company, we review where you are tax resident, where the business is managed from, how you will receive dividends or salary, and which personal obligations may continue to exist outside the UAE.
Activity and a defensible license
The license must reflect the real activity, the clients, the expected revenue, the need for employees and the type of presence the authority requires. A poor selection can complicate banking, tax and renewals.
Banking and substance
Banks review source of funds, activity, residence, contracts, website, clients and economic coherence. We prepare the structure so the corporate account and subsequent compliance make sense from day one.
International documentation
Depending on the structure, a passport and basic details may be enough, or corporate documents, powers of attorney, certifications, translations or additional validations may be required. Better to know before choosing the jurisdiction.
In-person steps
In-person steps depend on the visa, Emirates ID, biometrics, banking requirements and the level of substance your structure needs. Not every company requires the same calendar or the same degree of presence in the UAE.
How to open a company in Dubai step by step.
Eleven common phases to incorporate a company in Dubai, from the initial analysis to the license, banking and annual obligations.
- 01
Define objective and activity
Before incorporation, clarify what the company will do, where its clients are, whether it needs employees, whether residence is required and what tax obligations remain in your country.
- 02
Choose jurisdiction and legal form
The key decision is Mainland, Free Zone, Offshore or Holding. If a Free Zone applies, you also need to choose the zone that fits the activity, visa plan and banking route.
- 03
Calculate costs and scope
Costs depend on the license, jurisdiction, office, visas, banking and later services. Before registration, separate official fees, advisory, renewal and annual compliance.
- 04
Prepare required documentation
Basic documentation usually includes a valid passport, passport-size photo, shareholder details, intended activity and additional corporate documents for company-shareholder structures.
- 05
Reserve name and activity
The trade name and business activity must be accepted by the relevant authority. A poor activity selection can block banking, visas or tax treatment later.
- 06
Prepare legal forms
Incorporation requires official forms and, depending on the case, Memorandum of Association, corporate resolutions, shareholding structure and manager appointment.
- 07
Pay official fees
The relevant registration and license fees are paid to the authority before the company documents and trade license are issued.
- 08
Registration and trade license
Once approved, the authority issues the trade license and company documents. From that moment, the company legally exists in the UAE.
- 09
Visa and Emirates ID if needed
If residence is part of the plan, the process continues with entry permit, medical test, biometrics and Emirates ID. Not every company needs a visa from day one.
- 10
Corporate bank account
Banks review activity, source of funds, clients, residence, substance and risk profile. The account file should match the license and the real operating model.
- 11
Operations and annual compliance
After incorporation, the recurring work begins: bookkeeping, Corporate Tax, VAT when applicable, license renewal, substance, contracts and banking obligations.
Which documents do you need to open a company in Dubai?
Typical documentation requested during each phase of the process. Exact requirements change depending on the authority, activity, shareholders, visa plan and bank.
Company name
Three name options in order of preference. The authorities pick one based on availability and proximity to existing brands.
- Minimum 2 words and consistent with the activity (not just "Trading" or "Consulting").
- Cannot start with: Global, International, Gulf, The, Corporate, or 2-letter abbreviations.
- Forbidden: Holding, Group, University, Institute, Online, Ecommerce, Middle East, plus religious, offensive or political terms.
- No registered trademarks (Apple, Rolex), countries or cities (Dubai, Japan), or domains (.com, .ae).
- People's names only if that person is a shareholder, and with full name.
Per shareholder
- Passport in colour scan, with all 4 corners visible.
- Emirates ID on both sides plus residence visa, if you're already a resident.
- Country ID from the country of origin, scanned on both sides.
- Digital photograph, passport size, taken in a professional studio. Scans of printed photos are not accepted.
- Current residential address.
- Proof of address: bank statement or utility bill in your name.
- Nationality: primary and any other nationalities, if applicable.
- Contact: phone number and email.
- UAE history: dates and reasons of previous visits to the Emirates, if any.
Corporate structure
- Number of shareholders.
- Total share capital.
- Unit value of each share.
- Capital distribution per shareholder, if applicable.
For visa application
Additional information required by the immigration authorities.
- Mother's and father's full name.
- Scanned cover page of the passport.
- Monthly salary.
Important notes
Minimum of 10,000 AED share capital. For investor or partner visa, a minimum capital of 50,000 AED is required. If capital exceeds 150,000 AED, payment proof is required.
Additional cost of 1,000 AED. Allows entry to the country once a year, instead of every 6 months.
Advantages of opening a company in Dubai.
100% foreign ownership
In Dubai's free zones, foreign investors are allowed to hold 100% of the shares without the need for a local partner.
Full repatriation of capital
Transfer your profits and the company's capital back to your country of origin without restrictions.
Attractive tax regime
No personal income tax. Corporate Tax is 9%, applied only to profits exceeding 375,000 AED.
Strategic location
Dubai sits at the crossroads of Europe, Asia and Africa, making it ideal for trade, logistics and regional expansion.
Top-tier infrastructure
Modern airports, ports, business hubs, industrial areas and service zones that make day-to-day operations significantly more efficient.
Business-friendly environment
Regulations designed to attract foreign investment, streamlined procedures, multiple specialized free zones, and a legal framework that simplifies setup.
Which type of company can you set up in Dubai?
Sole establishment.
Registered on the mainland, with the owner assuming full legal liability. It allows you to operate in the local market and hire employees. More requirements than a freelance license, but broader commercial reach.
International offshore.
Designed for asset management or international trade, without operating in the local market. Allows 100% foreign ownership, no mandatory physical office, and few requirements.
Discover →Free Zone.
Located in Dubai's special economic areas, it offers tax advantages and full foreign ownership. Requires an office within the zone and a specific license. Medium complexity and certain limitations on operating outside the free zone.
Discover →Mainland LLC.
Operates freely across the entire UAE. 100% foreign ownership permitted in most activities. No geographic restrictions: you can open branches in any Emirate and bid for public tenders.
Holding structure.
A company created to concentrate shareholdings, subsidiaries, assets or international investments. Useful for tax planning, M&A, family wealth and regional expansion.
See holding structure →UAE foundation.
A wealth structure with no shareholders, designed for succession, asset protection and family governance. Available in RAK ICC, ADGM and DIFC.
See UAE foundation →Comparison between Free Zone, Mainland, Offshore, Holding and Foundation
| Type | Complexity | Foreign ownership | Local operations | Requirements | Ideal for |
|---|---|---|---|---|---|
| Sole Establishment | Low | 100% (sector-dependent) | Yes | DET license, full liability | Self-employed with local clients |
| Offshore | Medium-low | 100% | No | Simple registration, no physical office required as the registered address is the CSP's | Holding, asset management, international trade or international activities |
| Free Zone | Medium | 100% | Limited (some activities cannot be carried out outside the free zone) | Office in Free Zone (or flexi desk), additional regulations on many activities | Consulting firms, international companies and professional services |
| Mainland LLC | High | 100% (activity-dependent) | Full | Physical office, local licenses, visas | Companies operating across the UAE or needing physical presence (shops, real estate agencies, projects within the country) |
| Holding | Medium | 100% | Not necessarily operational | Corporate structure, assets or shareholdings, substance depending on the case | Holding shares, subsidiaries, investments, M&A and wealth planning |
| UAE Foundation | Medium-high | Not applicable: it has no shareholders | No standard commercial operations | Charter, by-laws, council, guardian and beneficiary rules | Succession, asset protection, family office and wealth governance |
How much does it cost to open a company in Dubai?
Approximate cost to set up your company and annual renewal by structure. Figures are indicative and vary depending on activity, the chosen Free Zone and additional services (visa, office, accounting).
| Structure | Setup cost | Annual renewal | Note | Time |
|---|---|---|---|---|
| Free Zone | 3,500 to 15,000 USD | from 3,800 USD | Three tiers: budget, mid-range, premium. Includes 1 visa and a flexi desk | 2 to 10 days |
| Mainland LLC | from 12,000 USD | from 6,500 USD | Includes 1 visa. Office not included (mandatory) | 14 to 21 days |
| Offshore | from 4,500 USD | from 3,500 USD | No visa | 2 to 5 days |
Each case is quoted individually based on activity, Free Zone, office and required visas. Reference rate: 1 USD ≈ 3.67 AED (fixed peg).
Request a quote →Tax obligations in Dubai.
Value Added Tax
- Mandatory registration
- If sales exceed 375,000 AED.
- Voluntary registration
- If sales or expenses exceed 187,500 AED.
- Standard rate
- 5%
- Zero rate
- 0% on healthcare, exports, transport, etc.
Corporate Tax
- Registration
- Mandatory for all companies (except natural persons < 1M).
- Exempt threshold
- First 375,000 AED of profit: 0%.
- Standard rate
- 9% on everything above 375,000 AED.
- Special regimes
- Small Business Relief, Qualifying Free Zone Activity at 0%.
Most common mistakes
Dubai Law 13/2011 + Federal Law 32/2021. Fines of up to AED 50,000, plus suspension or closure of the company until the situation is regularized.
Federal Decree-Law No. 47 of 2022 and Cabinet Decision No. 75 of 2023. Fines of 10,000 AED for late registration and 5,000 to 20,000 AED for failing to submit required information.
Federal Law No. 32 of 2021, Federal Decree-Law No. 47 of 2022 and Cabinet Decision No. 75 of 2023. Fines of 10,000 to 20,000 AED and risk of being unable to renew the license.
Spain vs Dubai: tax and corporate comparison.
Key difference between operating from Spain and operating from Dubai for international entrepreneurs. Indicative simplified figures; each case depends on activity, tax residency and structure.
| Concept | Spain | Dubai |
|---|---|---|
| Corporate income tax | 25% | 0% up to 375,000 AED, 9% above. With Small Business Relief, 0% if revenue is below 3,000,000 AED. |
| Dividend taxation | up to 28% | 0% |
| VAT | 21% | 5% |
| Time to incorporate | 4 to 8 weeks | 2 to 21 days |
| Resident's personal income | progressive scale up to 47% | 0% |
| Double taxation treaty | yes, signed in 2006 | yes, signed in 2006 |
| Capital repatriation | with restrictions | 100% free |
Simplified figures. Source: Spanish Corporate Income Tax Law 27/2014, UAE Federal Decree-Law No. 47 of 2022, Spain-UAE treaty 2006.
Let's discuss your case →
Can I live in Dubai if I open a company?
Yes. If you register a company in Dubai, you can apply for a residence visa tied to the company, allowing you to live, work and open bank accounts in the UAE. This visa is normally issued for 2 or 3 years and can be renewed as long as the company remains active and meets legal requirements.
There are different types of visa, with the most relevant being:
- Investor or partner visa: for owners or shareholders of a company registered in Dubai.
- Employee visa: for workers hired by a local or free-zone company.
- Dependent visa: for direct family members of the holder (spouse, children, parents).
- Golden Visa: for investors, entrepreneurs or highly qualified professionals, with a duration of up to 10 years.
Each visa type has its own requirements, but all of them require a valid commercial license, a sponsor or registered entity, and compliance with the residency and medical procedures established by UAE authorities.
See visa types →Common mistakes when opening a company in Dubai.
The 6 mistakes we see most often in clients reaching us after trying on their own. Knowing them in advance saves you time and money.
Choosing the wrong Free Zone
Each Free Zone has its own list of qualifying activities, costs and banking reputation. Registering in a cheap Free Zone without aligning it with your real activity forces you to migrate the company later, losing time and license.
Confusing Mainland with Free Zone
A Free Zone does not allow direct sales to the local UAE market without a local distributor. If your model is B2C in Dubai (shop, restaurant, real estate agency), you need Mainland.
Ignoring the physical office requirement
Mainland requires a physical office from day one. Free Zones accept a flexi desk for up to 3 visas, but from the fourth visa onwards a physical office is required. Ignoring this limit blocks the issuance of additional visas.
Choosing the wrong activity
If the activity on your license doesn't match what you actually do, or if some activity is missing, fines in an inspection start at 10,000 AED.
Not registering for Corporate Tax
Corporate Tax registration is mandatory and must be completed within 3 months of license issuance. Missing the deadline triggers a 10,000 AED fine and compliance issues.
Not keeping proper accounting
Accounting is mandatory under UAE regulations. Most Free Zones require audited financial statements to renew the annual license. Without up-to-date accounting, the license is not renewed and the company becomes inactive.
When expert support matters for opening a company in Dubai.
Company formation can look like a simple filing process, but decisions around activity, jurisdiction, banking, residence and tax shape the whole operating model.
No abusive contracts
Most clients trying to transfer their company to us run into trouble because their previous providers impose abusive clauses that block the change. With LorcaBase there is no such clause: your company is always yours.
Personal guidance
From the initial consultation through licensing and bank account opening, we manage every step: name, documentation, visas, licenses.
Selection between Mainland, Free Zone and Offshore
We assess where your company should be located and, when Free Zone applies, which one best fits your activity and visa plan.
End-to-end process
We don't stop at incorporation: we manage accounting, taxation, visas and ongoing regulatory compliance after registration.
Emirati expertise
Years working with European and international companies. We know the UAE's legal, tax and administrative environment in depth.
Bilingual by design
Every document, meeting and deliverable in your language: English or Spanish. No rough translations or misunderstandings on operations that move serious capital. A clear bridge between Spain, Latin America and the UAE.
Comparing Dubai with other emirates?
Open a company in Sharjah.
Compare SEDD mainland with SPC Free Zone, Shams, SAIF Zone, Hamriyah and SRTI Park: licenses, facilities, costs and visas.
Read the guide → 02 · Ras Al KhaimahOpen a company in Ras Al Khaimah.
Compare RAKEZ, RAK mainland and RAK ICC: licenses, industrial facilities, costs, banking and offshore structures.
Read the guide → 03 · UAEUAE company formation hub.
Return to the overview to compare emirate, jurisdiction and structure before deciding where to incorporate.
Compare options →What else do we offer?
Accounting and finance.
A complete accounting service that ensures regulatory compliance and financial control for your Dubai-based company, with full transparency and efficiency.
Discover → 03 · CorporateCorporate solutions.
Corporate bank account opening, license management, visas, company liquidation and corporate amendments.
Discover → 04 · TaxCorporate taxation.
We optimize your company's tax structure, ensuring compliance with all tax rules and maximizing the benefits of operating in a tax-friendly environment.
Discover → 05 · M&AMergers and acquisitions.
We advise on merger, acquisition or sale processes, performing thorough financial and legal analysis that secures safe and efficient transactions.
Discover →Key terms for opening a company in Dubai.
Dictionary of technical terms you'll see during the company formation process in the UAE. If anything is unclear, we'll explain it in English or Spanish.
VAT (Value Added Tax)▸
UAE 5% tax on goods and services. Mandatory registration if you exceed 375,000 AED in annual sales, voluntary from 187,500 AED.
Corporate Tax (CT)▸
9% tax on profits exceeding 375,000 AED. Effective since June 2023. Qualifying Free Zones may keep 0%.
Small Business Relief▸
Regime allowing 0% Corporate Tax if annual revenue is below 3,000,000 AED. Effective until December 2026.
Free Zone▸
Special economic zone with tax benefits and 100% foreign ownership. Each Free Zone has its own authority and license catalog. More than 45 across the UAE.
Mainland▸
Territory outside Free Zones. A Mainland-registered company can operate freely throughout the UAE and contract with the public sector.
MOA (Memorandum of Association)▸
Foundational legal document defining shareholders, share capital, distribution and company activity.
Trade License▸
Mandatory commercial license to operate. Three main types: commercial, professional and industrial. Annual renewal.
Flexi desk▸
Shared workspace in a Free Zone office. Meets the physical address requirement at the lowest cost.
Emirates ID▸
UAE national ID. Essential to open a bank account, rent property, and contract utilities and services.
Golden Visa▸
Long-term residence visa of 5 or 10 years for investors, entrepreneurs, qualified professionals and specialized talent.
ESR (Economic Substance Regulations)▸
Regulation that between 2019 and 2022 required certain companies (banking, holding, intellectual property, etc.) to demonstrate real economic activity in the UAE. Repealed by Cabinet Decision 98/2024 for financial years starting on or after 1 January 2023; substance requirements were transferred to the Corporate Tax regime, especially for Qualifying Free Zone Persons.
UBO (Ultimate Beneficial Owner)▸
Natural person who controls the company at the end of the corporate chain. Disclosure mandatory since 2020.
AED▸
Emirati Dirham, the official UAE currency. Pegged at approximately 1 USD = 3.67 AED.
DMCC, IFZA, JAFZA, Meydan▸
The most popular Free Zones in Dubai. Each one has its own license catalog, costs and specialization: DMCC commodities, IFZA generalist, JAFZA logistics, Meydan startups.
CSP (Corporate Service Provider)▸
Company authorized to handle incorporations, licenses and compliance. LorcaBase acts as a CSP for its clients.
NOC (No Objection Certificate)▸
Letter of no objection issued by the current employer or sponsor. Required for certain visa or license changes, or administrative procedures such as property purchase.
What people most often ask us.
How much does it cost to open a company in Dubai?
It depends on the structure, the activity and the services included. Free Zone ranges from 3,500 to 15,000 USD depending on the tier (budget, mid-range or premium). Mainland LLC from 12,000 USD and Offshore from 4,500 USD. See the full table in the Indicative costs section.
Note: these figures are indicative; every case is quoted individually.
How much tax does a company pay in Dubai?
Since June 2023, UAE federal regulations set Corporate Tax at 0% for the first AED 375,000 of profit, and 9% on profits above that threshold. There is also a 5% VAT on goods and services.
Can a foreigner set up a business in Dubai?
Yes. The UAE allows foreign investors to hold 100% ownership in many structures, especially in free zones or under foreign direct investment regulations. Depending on the sector or company type, there may be additional requirements such as a physical office or visas.
Can I open a company in Dubai from abroad?
Yes. The process can start remotely from your country with digital documentation, structure selection, name reservation and license preparation. In many cases you only need to travel if you want to activate residence, complete biometric steps or move forward with certain banks.
The key is coordinating the UAE company with your personal tax position at home: tax residency, personal income tax, related companies, reporting obligations and the real substance of the structure.
Do I need to travel to Dubai to incorporate the company?
Not always. Part of the process can be handled remotely, especially defining the structure, collecting documents, reserving the name, applying for the license and coordinating with the free zone or relevant authority.
Travel may be necessary or advisable for residence, Emirates ID, biometrics, bank meetings or more complex cases.
Can I open a company in Dubai without being a UAE resident?
Yes. You can incorporate a company in Dubai without being a UAE resident. A separate question is whether you need an investor visa, Emirates ID, an office, a local bank account or physical presence to operate normally.
The right structure depends on whether you plan to operate internationally, sell inside the UAE, hire employees, invoice from a free zone or use the company as a holding.
What happens tax-wise if I remain a tax resident in my country?
Opening a company in Dubai does not automatically change your personal tax residency. If you remain a tax resident elsewhere, reporting obligations, anti-abuse rules, international tax transparency regimes or dividend taxation may still apply.
That is why we analyse the corporate structure together with your tax residency and your real operations, not as an isolated filing.
Can I open a corporate bank account from outside the UAE?
It depends on the bank, activity, risk profile, nationality, residence and the company’s substance. Some banks allow remote phases, but many operations require an interview, Emirates ID, residence or physical presence.
LorcaBase prepares the banking file, aligns activity and license, and tells you before incorporation which banking route is most realistic for your case.
Is it possible to own 100% of a business in Dubai?
Yes. Foreign investors can currently hold 100% of the ownership in most sectors, particularly in free zones. Mainland 100% ownership is also allowed in many cases, except for strategic activities regulated by the government.
How much do you need to earn in Dubai to live well?
A monthly income of between 20,000 and 25,000 AED supports a comfortable lifestyle for a single person. For families, a larger budget is recommended depending on schooling and housing costs.
What is the 6-month rule in Dubai?
This rule states that if a person stays outside the Emirates for more than 6 consecutive months, their residence visa may be invalidated. In that case, a new residency must be processed or reactivated upon return. The investor visa allows entry once a year.
Which jobs are most in demand in Dubai?
The sectors with the highest demand include: technology, engineering, construction, hospitality, digital marketing and healthcare. Companies look for qualified profiles with strong English, especially in technical and management roles.
What is the strictest rule in Dubai?
UAE laws are very clear regarding visa compliance, respect for local rules and public conduct. Penalties for administrative or legal breaches can be severe, so it is important to stay informed and always act within the legal framework.
How exactly can LorcaBase help me?
At LorcaBase we accompany our clients throughout the entire company formation process in Dubai, from the first consultation until the company is ready to operate. Our team of lawyers, tax advisors and finance experts handles every step: defining the right legal structure, preparing the legal documentation, obtaining commercial licenses, managing visas and opening corporate bank accounts. We also provide accounting, tax and real estate advisory.
The trust of those already working with us
Your company in Dubai, structured with precision from day one.
Book an initial consultation, no commitment. You'll receive a tailored diagnosis covering structure, licensing, taxation and the right visas for your project.
Book a consultation →Dubai Marina, UAE