Can foreigners own 100% of a UAE company?

Yes, in 2025 most sectors allow 100% foreign ownership on the mainland and in free zones.

What is the minimum capital to open a company?

Most free zones no longer require large capital deposits, making setup easier for small businesses.

How long does it take to get a trade license?

In many cases, a license is issued within a few working days if documents are complete.

Do I need to live in the UAE to open a company?

No, you can set up remotely, but a resident manager or representative may be required.

How does Mubarak Al Ketbi (MAK) Auditing support entrepreneurs?

We provide business setup services, VAT and tax compliance, and financial advisory to help your company grow.

UAE Company Setup 2025 Step-by-Step Business Guide 🥇

Introduction – UAE Still a Business Magnet

The United Arab Emirates (UAE) remains one of the most popular business hubs in the world. Investors love the country for its strong economy, modern infrastructure, and global connectivity. Entrepreneurs find it easy to operate because the government supports innovation and offers clear business rules.

Although the UAE introduced a 9% corporate tax on certain businesses in 2023, it still offers one of the lowest rates worldwide. Free-zone companies can even qualify for 0% corporate tax if they meet the conditions set by the authorities. This balance of regulation and incentives keeps the UAE attractive for foreign investors and startups.

Why UAE is Ideal for Entrepreneurs

Business owners choose UAE because:

It’s strategically located between East and West
It has top-class infrastructure and airports
It offers 100% foreign ownership in many sectors
It provides fast company setup services
It has a large expat community from over 200 nations

Dubai, with its modern skyline and dynamic culture, is the jewel of the country, offering opportunities for trade, technology, and tourism.

Step 1 – Select Your Business Activity

Your business activity decides the license type and legal structure. There are six main types of licenses:

Industrial
Commercial
Professional
Tourist
Agricultural
Occupational

A company may have multiple activities, with more than 2,000 options approved by UAE authorities.

Step 2 – Choose Legal Structure

Legal structure impacts ownership and liability. Common options include:

Limited Liability Company (LLC)
General Partnership
Sole Establishment
Private Joint Stock Company
Civil Company
Free-zone Entity
Branch of Foreign Company

In 2025, 100% foreign ownership is allowed in many mainland sectors, giving investors more control over their companies.

Step 3 – Pick Your Trade Name

The trade name must meet UAE rules:

It must match your business activity
It must not offend public morals
It must not include religious or political references
It must not duplicate a registered name

Once approved by the Department of Economic Development (DED), the trade name is reserved for your use.

Step 4 – Get Initial Approval

Initial approval means the government agrees with your business plan. You may now prepare documents like the Memorandum of Association (MoA) or Local Service Agent Agreement (LSA).

Step 5 – Prepare and Sign Documents

The MoA or LSA must be signed in front of a notary public or legal authority in the UAE. This document outlines your company structure, shareholding, and responsibilities.

Step 6 – Secure Your Office Space

Every business must have a physical or virtual office in the UAE. Lease agreements may need attestation by Dubai’s Real Estate Regulatory Agency (RERA).

Step 7 – Apply for Additional Approvals

Some businesses require extra approvals from ministries or regulators. Examples include transport, healthcare, education, tourism, and financial services.

Step 8 – Collect Your Business License

Submit all documents, pay the fees, and receive your trade license. The process is now streamlined through government portals, and many licenses are issued digitally within days.

Cost of Setting Up

Budget between AED 20,000 and AED 30,000 depending on your license, office size, and additional approvals. Free-zone companies may cost less with virtual packages.

Tax and Residency Benefits

Even with the new 9% corporate tax, UAE remains attractive for business owners. Free-zone companies can still enjoy 0% tax on qualifying income. Setting up a business also allows you to apply for a UAE residence visa and sponsor your family members.

What Can Help – Mubarak Al Ketbi (MAK) Auditing

Starting a business in the UAE can be confusing with all the rules, licenses, and compliance requirements. Mubarak Al Ketbi (MAK) Auditing helps entrepreneurs with business setup, accounting, and corporate tax registration. As they say, “The early bird catches the worm,” so starting right saves time and money.

Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
WhatsApp/Call: +971 50 276 2132