How long does it take to set up a company in Dubai?

Mainland licences take 5–10 working days; free-zone licences can be issued in 3–7 days once documents are approved.

Is there a minimum capital requirement in 2026?

No. Most activities no longer require minimum share capital, but visa allocations still reference paid-up capital.

Can I run an online business from a free zone?

Yes. Free-zone licences allow e-commerce and global clients, but selling to UAE mainland customers needs a local distributor or dual licence.

Do I need an office space?

Free zones accept flexi-desks; mainland LLCs need Ejari tenancy contract unless you qualify for the new remote-work visa.

What is the corporate tax rate?

9 % on profits above AED 375,000. Free-zone qualifying income may still be taxed at 0 % if substance rules are met.

Can I Set Up Business in Dubai? 2026 Guide

Quick answer

Yes. Expats and tourists can set up a business in Dubai in 2026. The fastest route is to obtain a mainland or free-zone licence through approved portals such as ICP or the free-zone authority (IFZA, DMCC, ADGM). Minimum capital is no longer required for most activities, and 100 % foreign ownership is now allowed.

Why Dubai remains attractive in 2026

Dubai continues to welcome overseas founders. Low tax, fast digital licensing and world-class infrastructure make it one of the easiest places to launch a company. Many expats choose Dubai because they can combine residence visa sponsorship with business ownership.

Step-by-step: how to set up a company

1. Choose your legal structure

Options include a Limited Liability Company (LLC) on the mainland, a free-zone company, or a branch office. Mainland LLCs give you direct access to the UAE market; free zones offer 100 % ownership and tax perks but restrict trading inside the UAE without a local distributor.

2. Pick the right jurisdiction

Mainland – overseen by the Department of Economy and Tourism (DET). Ideal for retail, consultancy, or any activity serving UAE clients.
Free zones – IFZA, DMCC, Meydan, SPC offer fast e-licensing and 0 % personal tax.
Financial free zones – ADGM and DIFC for fintech, funds and legal services.

3. Reserve your trade name and activity

Use the DET or free-zone portal to check name availability and select your Dubai activity code. Most consultants, e-commerce sellers and tech founders pick “management consultancy” or “IT services”.

4. Submit documents online

Typical uploads: passport copies, passport-size photos, proof of address, and a business plan for certain activities. No Arabic translation is required for most free-zone applications.

5. Pay fees and obtain the licence

Fees vary. Mainland licences start around AED 15,000–25,000 for the first year; free-zone packages range from AED 12,500 (IFZA) to AED 35,000 (DMCC). Always verify current fee with the issuing authority.

6. Open a corporate bank account

Once the licence is issued, visit a bank with your documents. Emirates NBD, Mashreq and RAKBANK remain popular with new founders. Expect KYC questions and at least one in-person visit.

7. Apply for residence visas

Your company can sponsor up to three residence visas for every AED 50,000 paid-up capital (mainland) or for every two visas per 10 m² of office space (free zone). Medical test and Emirates ID are required.

Common mistakes expats make

Choosing a free-zone licence when they need to sell directly to UAE customers.
Skipping Ejari tenancy for mainland visas, delaying visa stamping.
Underestimating annual compliance—audits, VAT registration, and renewal fees.
Assuming mainland and free-zone rules are interchangeable.

Cost comparison: mainland vs free zone (2026)

Item	Mainland LLC	IFZA Free Zone
First-year licence	AED 15,000–25,000	AED 12,500–18,000
Flexi-desk / office	Market rent	AED 6,000–15,000
Visa allocation	3 per AED 50k capital	2 per 10 m²
Market access	Full UAE access	Needs distributor

Tax obligations you must know

Corporate tax is 9 % on taxable income above AED 375,000. VAT at 5 % applies if turnover exceeds AED 375,000. Free-zone “qualifying income” can still enjoy 0 % tax if substance rules are met. Personal income tax remains zero.

Visa options tied to your business

Investor visa – 2 or 5 years, renewable, tied to your licence.
Remote work visa – 1 year, for founders who keep an overseas company but want UAE residency.
Golden visa – 10 years if you invest AED 2 million in property or AED 250,000 in a startup approved by the Ministry of Finance.

Tips from expats who succeeded

Start with a free-zone licence if you’re testing the UAE market; upgrade to mainland later.
Use a PRO service for the first year to handle ICP medicals and typing.
Register for VAT early—even if turnover is low—so you can reclaim input tax.
Keep physical records; free zones can request three years of documents during renewal.

Can tourists set up a company?

Tourists on 90-day entry permits can start the application online. However, you must convert to a residence visa within 60 days of licence issuance. Many founders enter on a 60-day entry stamp, complete paperwork, then do the medical and Emirates ID inside the UAE.

Key takeaway

Yes, you can set up a business in Dubai in 2026. Choose the jurisdiction that matches your target customers, budget AED 20,000–40,000 for the first year, and plan for ongoing compliance. With the right licence and a corporate bank account, you can live and operate legally in the UAE as both business owner and resident.