Company Formation in UAE: Complete Guide 🥇
A Simple Start for Your UAE Business Journey
You start a company in the UAE when you want growth with stability. You register a legal entity under clear laws. You choose a jurisdiction with rules that fit your plan. You run operations with proper licenses and approvals. You protect the business with sound compliance from day one.
The UAE gives you three broad routes. You choose Mainland when you want reach across the country. You choose a Free Zone when you want a focused hub with facilities and customs benefits. You choose Offshore when you want an international holding vehicle without local trading. Each route meets a unique goal. Each route asks for specific documents, timelines, and checks.
Mubarak Al Ketbi (MAK) Auditing guides owners through every step. Our team explains rules with plain words. Our advisors map activities to license types. Our specialists prepare filings with accuracy and speed.
Where Your Company Should Live: Jurisdictions Compared
You pick a home for the business. You match the route with your operations.
Mainland in Plain Words
You register on the Mainland when you want to sell anywhere in the UAE. You bid for government projects with proper eligibility. You set your office in a location that fits your team. Updated rules let many activities use 100% foreign ownership. Some strategic lines still need special approvals. The Department of Economic Development (DED) or an equivalent body licenses you. You follow national tax and labor laws with full duty to comply.
Mainland works well when you:
- sell to local customers in multiple emirates,
- hire staff with flexible office options,
- need public tender access,
- want a broad activity list under one license, subject to approvals.
Free Zone in Plain Words
You register in a Free Zone when you want a contained hub. You get streamlined setup with service counters. You get warehouses or modern offices inside the zone. You usually enjoy customs advantages while goods stay in the zone. You can hold 100% ownership. Entities that meet the QFZP conditions may access a 0% rate on qualifying income under corporate tax rules. You still file on time and keep substance where the law requires it.
Free Zone fits when you:
- export or re-export through ports or airports,
- need plug-and-play offices or industrial units,
- run e-commerce or services with minimal friction,
- plan global sales and occasional mainland access through approved channels.
Offshore in Plain Words
You register Offshore when you need a clean holding vehicle. You don’t trade with the UAE market. You don’t lease a local shop. You usually don’t sponsor visas. You keep a registered agent who handles filings. This format suits asset protection, global shareholding, and contract vehicles.
Offshore fits when you:
- hold foreign subsidiaries or IP,
- structure a neutral joint venture parent,
- separate assets from operating risk,
- want simple annual renewals with prudent governance.
Legal Forms You May Choose
The form shapes risk, roles, and governance.
- LLC (Limited Liability Company): You use this for trading and services. You cap liability at paid capital. You can hold 2–50 shareholders. Many activities allow 100% foreign ownership.
- Professional Company: You use this for experts and advisory work. You may own 100% for permitted lines. In some cases, a local service agent supports government touchpoints.
- Branch of a Foreign Company: You extend an overseas parent. The parent carries liability. The branch uses the parent’s name and scope by approval.
- Branch of a UAE Company: You expand from an existing entity. You align activities with parent permissions.
- Free Zone FZE / FZCO: You create a single-owner or multi-owner entity inside a zone. You run under zone rules and facility terms.
- Offshore IBC: You set a holding company for international work with a registered agent.
Mubarak Al Ketbi (MAK) Auditing helps match each form to your needs. We compare liability, capital, and regulator expectations.
The Setup Path: Step-by-Step
A clear path saves time and cost. You move from plan to license with order.
1) Scope Your Activity and Market
You define what you sell and where you sell. You list primary and secondary activities with codes. You note if the work needs an external regulator, such as health, education, tourism, or media. You estimate staff needs with office size.
2) Select the Jurisdiction and Form
You pick Mainland, Free Zone, or Offshore. You choose LLC, professional company, or branch. You decide shareholding, voting rights, and director powers. You document these choices in a simple term sheet.
3) Reserve a Trade Name
You submit two or three names for approval. The name observes public order and avoids restricted terms. The suffix (LLC, FZE, etc.) follows the rulebook. You keep spelling consistent across documents.
4) Secure Initial Approval
You file owner IDs and activity details. The authority issues a no-objection to proceed. You use that approval to finalize tenancy and notarization.
5) Prepare Tenancy and Utilities
You lease an office or desk in the correct emirate or zone. You register the lease (Ejari in Dubai or equivalent). You plan utilities and IT with the landlord or zone team.
6) Draft the MOA and Other Acts
You draft the Memorandum and Articles with clear objects. You add board powers and signing limits. You notarize documents where required. You collect corporate resolutions for any entity shareholder.
7) Obtain External Approvals (If Required)
You engage the proper regulator for special lines. You submit forms for KHDA, Health Authority, Municipality, Civil Defense, or Tourism where relevant. You complete inspections if the activity needs them.
8) Receive the License and Registration
You submit the full pack to the authority. You pay fees. You receive the license, the registration certificate, and, where relevant, the lease.
9) Open Immigration and MoHRE Files (Mainland)
You open an establishment card. You gain the right to hire staff. You start visa processes for owners and employees.
10) Open the Corporate Bank Account
You select a bank that fits your flows. You prepare a KYC file with business rationale, org chart, and sample contracts. You maintain consistent addresses and signatures across documents.
11) Register Tax Where Applicable
You register for corporate tax and VAT where thresholds and rules apply. You set an accounting calendar. You adopt basic controls for spending and approvals.
Documents You Usually Prepare
- Passports and Emirates IDs (where applicable) for owners and managers.
- Proof of address, recent and clear.
- Trade name reservation certificate.
- Initial approval from the authority.
- MOA / AOA or professional agreement, notarized if needed.
- Tenancy contract or zone space agreement.
- Board resolutions and powers of attorney for corporate owners.
- UBO declaration and partner lists.
- External regulator certificates where needed.
- Digital forms and signatures submitted through the portal.
Tip: You keep a simple folder structure. You label files with dates. You store notarized copies and clean scans.
Banking and Substance: Practical Notes
Banks follow strict AML rules. You supply a crisp business plan with counterparties and reasons for payments. You show projected flows and geographies. You share contracts when you have them. You keep an org chart with shareholders and UBOs. You answer follow-up questions fast. You respect sanctions screening and compliance reviews.
Substance matters. You keep a real office for operational lines. You keep employees on proper contracts. You keep invoices, receipts, and ledgers. You use accounting software with VAT features when needed. You record board minutes for key decisions.
Corporate Tax, QFZP, and Reporting
Corporate tax applies under federal law. The standard rate is 9% on taxable income above the threshold, with reliefs and elections defined by law. Qualifying Free Zone Person (QFZP) status may allow a 0% rate on qualifying income, if strict conditions are met. That includes adequate substance, audited financials, qualifying activities, and de-minimis limits. Non-qualifying income is taxed at the normal rate. You follow transfer pricing rules with documentation. You keep audited statements when rules require them.
Mubarak Al Ketbi (MAK) Auditing helps decide if your entity should seek QFZP status. We map income streams to qualifying lists. We set controls that preserve status with clear evidence.
Customs and Logistics
Mainland imports pass through customs with duties where applicable. Free Zone goods enjoy suspension of duty while they remain in the zone. Goods that enter the mainland attract duties. You classify goods with correct HS codes. You record duty on the books. You keep packing lists, invoices, and clearance forms.
Visas and Hiring
Mainland visa capacity links to office size and local rules. Free Zones assign visa quotas with lease type and facility size. You plan budgets with medical tests, Emirates ID, and renewals. You pay wages through WPS. You track expiries with reminders. You maintain a simple HR file with contracts and job offers.
Office, IT, and Security
You assess space for desks, storage, and meeting areas. You install a reliable internet line. You secure systems with access control and backups. You prepare an asset register for laptops and devices. You apply the UAE Personal Data Protection Law (PDPL) where your processing falls in scope.
Timeline and Cost Drivers
A simple case moves fast when documents are clean. Special approvals add weeks. Costs include license fees, lease, notarization, immigration files, and potential audit. Banks may set minimum balances. You reduce total time when you prepare full packs early.
Frequent Mistakes and How to Avoid Them
- Picking the wrong activity and reissuing the license later.
- Signing a lease that won’t support your visa plan.
- Starting marketing before the external approval arrives.
- Delaying tax registration past a deadline.
- Skipping bookkeeping until the first audit request.
- Using inconsistent addresses across bank and license files.
How to fix it: You confirm activities upfront. You align lease size with headcount. You build a filing calendar. You assign one owner for compliance tasks. You create a one-page banking brief with flows and counterparties.
Sector Snapshots with Quick Notes
- Consulting: You keep a professional license and show resumes for key staff.
- E-commerce: You set a gateway with KYC, delivery SOPs, and returns policy.
- Light manufacturing: You plan Civil Defense approvals and utility capacity.
- Tourism and events: You obtain DET approvals and venue permits.
- Health and education: You meet strict regulator standards before hiring or marketing.
Example Paths That Work
- Tech services in a Free Zone: You set a desk first, then scale to an office. You keep QFZP evidence if relevant.
- Retail on the Mainland: You open a store in a busy district. You onboard staff under MoHRE.
- International holding Offshore: You hold shares in foreign subsidiaries. You open a bank account with clear purpose notes.
A Short Checklist Before You Apply
- Define main and secondary activities with codes.
- Choose jurisdiction with a written rationale.
- Select the legal form and draft a term sheet.
- Prepare IDs, proofs, and board papers.
- Reserve a name with variants.
- Plan office space with visa math.
- Line up bank options with a KYC pack.
- Build a tax and accounting calendar.
- Assign a compliance owner and backups.
What Can Help — Work With Mubarak Al Ketbi (MAK) Auditing
Mubarak Al Ketbi (MAK) Auditing helps you plan the route, prepare documents, and open accounts with clarity. Our team sets activity lists with care. Our lawyers draft MOA clauses with precise powers. Our PRO specialists run government steps on schedule. Our tax and audit teams create ledgers and reports that meet law and bank standards. Our method reduces risk with good governance and steady reporting, so your company grows with confidence—because the early bird catches the worm.
Contact points you asked to show:
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Contact / WhatsApp: +971 50 276 2132
