Forming a company in Dubai in 2026: requirements, cost and step-by-step process
Requirements for forming a company in Dubai, the choice between a free zone and the mainland, documents, timing, visas, banking, tax and the first-year cost with current figures.
Forming a company in Dubai rests on three basic decisions: the structure of the company, its activity and the number of people who will receive a visa. Cost, timing and the customer base you can sell to follow from these three decisions. This guide takes up, in order, the questions most often asked by those who want to form a company in Dubai: requirements, choice of structure, steps, documents, cost, visa, banking and tax. The figures rest on Ortac Global's current prices and on official UAE sources; the information is current as of 10 October 2026.
Who can form a company in Dubai?
To form a company in Dubai you do not need to be a UAE national or to reside in the UAE. Foreign individuals of any nationality and foreign companies can be shareholders of a company in Dubai. According to the official UAE portal, free zone companies can be wholly owned by foreign investors. On the mainland too, 100% foreign ownership has been possible since 2021; restrictions apply only to the strategic-impact activities determined by the UAE Cabinet. A summary of the rule is on the official UAE portal.
What are the requirements for forming a company in Dubai?
The requirements for forming a company in Dubai are few: a valid passport, the activity to be written on the licence, a company name that complies with UAE naming rules and the company's registered address. In a free zone formation the address requirement is met by the shared office address included in the licence package. The formation application is carried out remotely and no wet-ink signature is required. The only stage that requires you to be in the UAE is the visa: the medical test and biometrics cannot be done by proxy.
The activity is the item whose importance is most often overlooked among the requirements. A licence is valid only for the activities written on it, and some activities are subject to additional approval. The activity areas in which companies are formed are covered in business ideas in Dubai. Free zone activity codes can be explored with the IFZA activity code tool; for name candidates you can use the company name generator.
Which structure should you choose when forming a company in Dubai?
A company in Dubai is formed in one of three structures: a free zone company, a mainland company or an offshore company. What decides the choice is, to a large extent, where your customers are. Changing the structure later is not easy: converting a free zone company into a mainland company means a new formation.
| Structure | Who issues the licence | Who it is for |
|---|---|---|
| Free zone | The free zone's own authority (such as IFZA, Meydan, DWTC) | E-commerce, software, consulting and agency activities whose customers are outside the UAE |
| Mainland | Dubai Department of Economy and Tourism (DET) | Businesses that will open a shop, restaurant or warehouse in the UAE or sell directly to local customers |
| Offshore | The authority that keeps the offshore register | Structures that do not operate inside the UAE and hold shares and assets |
An offshore company is not a structure used to trade inside the UAE or to obtain a residence visa; the rest of the guide covers the free zone and mainland structures.
A free zone company costs less to form, does not require renting a physical office and is handled remotely. A mainland company operates freely in the UAE domestic market; in return it requires a physical address and a higher total cost. The differences between the two structures, which suits which activity and moving from one to the other are compared in detail in free zone or mainland in Dubai.
How does forming a company in Dubai proceed, step by step?
Forming a company in Dubai takes seven steps. The first three are the decision stage and are completed in the same meeting; the waiting time starts when the file is submitted to the authority.
- Company name: three candidate names are submitted in order of preference; eligibility is checked and the name is reserved.
- Activity and licence type: the activity code and licence class are matched to the product or service offered.
- Choice of structure: free zone or mainland; if a free zone is chosen, which free zone it will be is decided.
- Formation application and registration: the articles of association and annexes are prepared and submitted to the authority; digital approval and signature are obtained from you.
- Trade licence: the licence is issued by the authority and the company can begin operating legally.
- Visa, medical test and Emirates ID: after the entry permit is issued you come to the UAE; the medical test and biometrics are completed.
- Bank account: the application file is prepared and submitted to the bank; the decision belongs to the bank.
How long does it take to form a company in Dubai?
In the files Ortac Global handles, forming a company in Dubai is typically completed in 5-6 days. Together with the visa application the process concludes in 14 days at most. For the medical test and biometrics you need to stay in Dubai for about 5 working days; with this visit the total time reaches three weeks. If the activity code is subject to additional approval, the licence stage can take longer. The bank account is outside this timetable: its timing and outcome are determined by the bank. The current steps are on the company formation in Dubai page.
Which documents are needed to form a company in Dubai?
All the documents requested for forming a free zone company in Dubai are submitted digitally; there is no need to send documents by courier.
- A colour scan of the passport (valid for at least 6 months)
- A passport-style photograph on a white background
- Proof of address: a utility bill or residence document from the last 3 months
- A short description of the activity and the target customer
- Three company names in order of preference
The articles of association, the share structure, name approval and the licence application are prepared during the process; for these documents only your approval and signature are requested. If one of the shareholders is a company, that company's registration documents are added to the file. Additional documents may be requested depending on the activity code and the chosen authority. Information on post-formation transactions such as changes of shareholders and managers is on the Dubai corporate advisory page.
How much does it cost to form a company in Dubai in 2026?
The cost of forming a company in Dubai has four items: formation and licence, visa, accounting and, where relevant, additional services. The figures below are not a market average; they are Ortac Global's 2026 prices. Ortac Global has no package structure for Dubai: the items you need are added to the base price.
| Item | Amount (USD) | Note |
|---|---|---|
| IFZA formation + 1-year licence | USD 5,120 | Shared office address included |
| Meydan formation + 1-year licence | USD 5,300 | Shared office address included |
| DWTC formation + 1-year licence | USD 5,820 | Shared office address included |
| Visa | USD 1,953 / person | Shareholder or employee; optional |
| VIP visa service | USD 800 | Optional |
| Accounting | USD 350 / month | USD 3,500 if paid annually |
Amounts exclude VAT; VAT in the UAE is 5%. Only one of the three free zones is chosen. Flights, accommodation, physical office rent and family visas are not included in these items.
As an example, the formation cost of a company set up at IFZA with a visa for its single shareholder is USD 5,120 + USD 1,953 = USD 7,073. If accounting is paid annually, USD 3,500 is added to this amount. If no visa will be obtained, the first item is sufficient on its own; a visa can also be added later. The scope of the items is explained in detail in the cost items of forming a company in Dubai.
What does a Dubai company cost in the second year?
In Dubai the licence is renewed every year; the largest item in the second year is the licence renewal. A discount applies if the licence is bought upfront for several years: at IFZA 15% for 2 years, 20% for 3 years and 30% for 5 years; at Meydan 15% for 2 and 3 years. At DWTC the licence is renewed annually only.
| Item | When | Note |
|---|---|---|
| Licence renewal | Every year | A discount applies on multi-year upfront purchases; the amount is shown on a separate line in the quotation |
| Visa renewal | Every 2 years for a shareholder visa | For each person holding a visa |
| Accounting | Every month | USD 350 / month or USD 3,500 a year |
| Corporate tax return | Once a year | Within 9 months of the end of the tax period |
| VAT return | Every three months for VAT-registered companies | Registration threshold AED 375,000 |
If the licence is not renewed before it expires, a penalty applies and the bank account is put at risk.
Do you get a residence permit when you form a company in Dubai?
Yes. As a shareholder of a company in Dubai you can obtain a 2-year residence visa; the company can also apply for visas for its employees. After the residence permit is issued, a family visa can be applied for for a spouse and children. An Emirates ID is issued with the residence; this ID is requested for most official procedures in the UAE, including banking.
How many people a Dubai company can obtain visas for is determined by the licence package and the office type. For this reason the number of visas is discussed before formation; increasing the quota later requires a change of package or office. A shareholder visa lapses if you stay outside the UAE for 12 uninterrupted months, and an employee visa after 6 months. Living in Dubai is not required, but you must enter the UAE before these periods expire. The application steps are on the Dubai residence visa page, and the cost of daily life in Dubai is in living in Dubai.
How is a bank account opened for a Dubai company?
A corporate bank account in Dubai is opened in the name of a company that has completed formation and obtained its licence. The application is made to banks such as Wio, Mashreq, Emirates NBD and First Abu Dhabi Bank. Account opening cannot be guaranteed: the decision belongs to the bank alone and no intermediary can commit to it. The bank asks about the activity, the ownership structure, the source of the funds that will enter the account and the expected transaction volume.
These questions arise from the UAE's anti-money laundering rules; the answers given need to match the activity on the licence and the documents submitted. Ortac Global prepares the application file in the form the bank requests; if an application is rejected, an application is made to a second bank. For card and platform collections, channels such as Stripe, PayPal, Binance, Amazon Payment Services and Network International are brought into use after the account is opened. Details are on the Dubai bank account page and the Dubai AML compliance page.
How much tax does a Dubai company pay?
Forming a company in Dubai does not mean operating free of tax. Corporate tax in the UAE is calculated on net profit: a rate of 0% applies to the part of taxable income up to AED 375,000 and 9% to the part above it. Free zone companies are also subject to this tax. The legislation provides a 0% rate for qualifying free zone companies, but its conditions are demanding and most small companies do not meet them; it is prudent to prepare the budget on the 9% rate. The rates are on the official UAE portal.
| Tax | Rate or rule | Note |
|---|---|---|
| Corporate tax | 0% up to AED 375,000, 9% above | On net profit; free zone companies included |
| Corporate tax registration | Within 3 months of formation | Registration and a return are mandatory even if no profit is made |
| Corporate tax return | Within 9 months of the end of the period | Once a year |
| VAT | 5% | Registration is mandatory if taxable supplies exceed AED 375,000 in 12 months |
| Personal income tax | None | No income tax is levied on salary and dividends in the UAE |
Source: official UAE portal, UAE Ministry of Finance and Federal Tax Authority. Companies whose revenue does not exceed AED 3 million may choose small business relief for periods ending on or before 31 December 2029; registration and filing obligations continue in this case too.
Every company in Dubai must keep accounting records; there is no distinction between free zone and mainland on this. The voluntary VAT registration threshold is AED 187,500, and the return is filed by the 28th day following the period. To calculate on your own figures you can use the UAE corporate tax calculator and the UAE VAT tool. The rules are explained on the Dubai tax page, and the monthly routine on the Dubai accounting page.
What should a shareholder living outside the UAE consider when forming a Dubai company?
Forming a company in Dubai does not automatically change your tax position in your country of residence. A person who remains tax resident in their home country may be required to declare income earned abroad there. If profits or salary from the Dubai company are transferred to your home country, that country's rules come into play; whether a double taxation treaty exists between your country and the UAE, and how it applies, should be assessed together with those rules.
The second matter is where the company is actually managed. If the place where decisions are taken, contracts are signed and the activity is carried out is your home country, a tax liability may also arise there for the Dubai company. Four factors decide the outcome: the real activity, the place of management, your residence status and the type of income. This article is not personal tax advice; we recommend that you assess your position with a tax adviser in your country of residence before formation. The personal tax side of the subject is covered in countries with no income tax.
What are the most common mistakes when forming a company in Dubai?
- Choosing the structure on price: a free zone licence is not sufficient for a business that will open a shop or restaurant inside Dubai; changing the structure means a new formation.
- Choosing the activity code too broadly or incorrectly: the bank assesses whether the activity on the licence matches the actual activity.
- Leaving the number of visas for later: the quota depends on the licence package; increasing it requires a change of package.
- Treating the bank account as certain: the decision belongs to the bank; a payment and collection plan should not be started before the account is opened.
- Preparing the budget on the assumption that there is no tax in Dubai: 9% corporate tax applies to profit above AED 375,000 and 5% VAT to sales.
- Leaving out the second year: the licence is renewed every year, and accounting and filing obligations continue every year.
- Leaving the home-country tax side until after formation: tax residency and place of management should be assessed before formation.
The fit test offers a preliminary assessment of whether Dubai suits your activity in a few questions. A comparison of Dubai with the UK and Northern Cyprus is on the country comparison page, and sector-specific information is on the e-commerce and software and technology pages. You can start the formation online or contact us.
Frequently Asked Questions
How much does it cost to form a company in Dubai?
At Ortac Global, forming a company in Dubai costs USD 5,120 at IFZA, USD 5,300 at Meydan and USD 5,820 at DWTC, including a 1-year licence. A visa is USD 1,953 per person and accounting is USD 350 a month. Amounts exclude VAT.
How many days does it take to form a company in Dubai?
Registering a company in Dubai typically takes 5-6 days. Together with the visa procedures the process is completed in 14 days at most; with the roughly 5 working days spent in Dubai, the total time reaches three weeks.
Can a company be formed in Dubai without going there?
Yes, company registration in Dubai is completed remotely with a digital signature. If a visa will be obtained, you need to come to Dubai once for the medical test and biometrics, and also for the bank signature.
Is a local partner needed to form a company in Dubai?
No. A free zone company can be wholly owned by a foreign shareholder. On the mainland too, 100% foreign ownership has been possible since 2021; activities classed as having a strategic impact are the exception to this rule.
Does a Dubai company pay tax?
Yes. 9% corporate tax applies to the part of a Dubai company's net profit above AED 375,000, and VAT is 5%. No income tax is levied on individuals in the UAE. Details are on the Dubai tax page.
Is it mandatory to keep accounts for a Dubai company?
Yes. All free zone and mainland companies in Dubai must keep accounting records and file a corporate tax return. At Ortac Global, accounting in Dubai is USD 350 a month. Details are on the Dubai accounting page.
Can I get a residence permit with a Dubai company?
Yes. As a shareholder of a Dubai company you can obtain a 2-year residence visa. A shareholder visa lapses if you stay outside the UAE for 12 uninterrupted months. The application steps are explained on the Dubai residence visa page.
Is opening a bank account for a Dubai company guaranteed?
No. The decision to open an account in Dubai belongs to the bank alone. Ortac Global prepares the application file in the form the bank requests; if an application is rejected, an application is made to a second bank.
Should I form a free zone company or a mainland company in Dubai?
If your customers are outside the UAE, a free zone suits; if you will set up a physical business such as a shop or restaurant inside Dubai, a mainland structure suits. A detailed comparison is in free zone or mainland.
What does a Dubai company need to do every year?
A Dubai company renews its licence every year, keeps accounting records and files its corporate tax return within 9 months of the end of the period. VAT-registered companies also file a VAT return every three months.
Related serviceCompany formation in DubaiFormation steps, three free zones and a price calculation starting from USD 5,120.View the ServiceThe tax and ownership rules are taken from the official UAE portal (u.ae) and from texts published by the UAE Ministry of Finance and the Federal Tax Authority. Prices and timings are Ortac Global's own prices and the typical timings in its own files. The information is current as of 10 October 2026.
This article is for general information only and is not personal tax, legal or immigration advice. Prices are Ortac Global's prices dated 10 October 2026 and exclude VAT; timings are typical timings, not commitments.
