Free zone or mainland?
There are two main company types in Dubai. Free zone companies are registered in a special economic zone; they are quick and inexpensive, with 100% foreign ownership. It's the usual choice for consulting, software, e-commerce and international trade.
Mainland companies are licensed by Dubai's Department of Economy and Tourism (DET). You need one to sell directly to customers inside the UAE, open a shop or bid for government contracts. Since 2021 most activities no longer require a local partner, but costs and office requirements are usually higher.
| Free zone | Mainland | |
|---|---|---|
| Setup time | A few days – 2 weeks | 1–4 weeks |
| Office | Virtual office or flexi desk is often enough | Usually a leased office (Ejari) |
| Selling inside the UAE | Restricted | Unrestricted |
| Cost | Low | Medium – high |
Popular free zones and starting prices
The figures below are starting levels compiled from package prices published in 2026. Your activity, number of visas and current promotions will change the price.
| Free zone | Emirate | Licence, no visa | Note |
|---|---|---|---|
| SPC | Sharjah | ≈ AED 6,900 | ≈ AED 14,300 with 1 visa; large visa quota |
| Shams | Sharjah | ≈ AED 6,900 | Popular for media and creative work |
| RAKEZ | Ras Al Khaimah | ≈ AED 6,000 – 14,000 | Manufacturing and trading options |
| Meydan | Dubai | ≈ AED 12,500 | Good if you want a Dubai address |
| IFZA | Dubai | ≈ AED 12,900 | 1-visa packages ≈ AED 17,000 – 20,000 |
| DMCC | Dubai | ≈ AED 20,000 + | Prestigious; commodities and trading; higher first-year cost |
You can live in Dubai with a company registered in Sharjah or Ras Al Khaimah; a residence visa is valid across the UAE whichever emirate issues it.
Step by step
- Choose your activity. Your licence defines what you're allowed to do. Consulting, trading and e-commerce activities are available in most free zones.
- Choose the zone and package. Decide early how many visas you'll need; the visa quota depends on the package.
- Pick a company name and prepare documents. Usually a passport copy and photo, sometimes an entry stamp or current visa.
- Get the licence. In free zones this often takes a few working days.
- Establishment card and visas. Each visa needs a medical test and Emirates ID biometrics.
- Open a bank account. Usually the slowest step: it can take several weeks and many banks ask for a minimum balance.
Tax: corporate tax and VAT
The UAE has applied corporate tax since June 2023: 0% on taxable profit up to AED 375,000 and 9% above. Free zone companies that meet certain conditions can apply 0% to their "qualifying income". Every company must register for tax.
VAT is 5%; registration is mandatory once annual turnover exceeds AED 375,000. See the Federal Tax Authority for details.
Frequently asked questions
What is the cheapest way to set up a company in Dubai?
A free zone licence without visas. In Sharjah zones such as SPC and Shams, government fees start at about AED 6,900. Adding a residence visa roughly doubles the total.
Do I need to live in Dubai to set up a company?
No. Most free zones allow remote setup. To get a visa you must be in the UAE for the medical test and biometrics, and opening a bank account usually requires a visit.
Does owning a company give me residency?
Yes. As a shareholder you can get an investor/partner visa through your own company. It's usually valid for 2 years and renewable.
Can a free zone company sell to customers in Dubai?
To a limited extent. Exporting services and selling internationally is fine; selling goods directly to customers inside the UAE usually needs a mainland licence or a distributor. Rules differ by zone.