Company formation in the UAE in 2026

Updated 6 October 2026

The Emirates have more than forty free zones, each with its own prices, licences and rules. We match the zone to your business, register the company, arrange visas and see it through to the bank account.

The UAE is one of the few countries where a foreigner owns 100% of a company without a local partner and pays 0% corporate tax up to a threshold. Corporate tax of 9% has applied since 2023, but only to profit above about $103,000 a year.

The main choice is not the country but the type of company: a free zone company, a mainland company or an offshore company. It determines the price, the right to work with clients inside the country and the number of visas.

Free zone, mainland or offshore: what to choose in the UAE

Since 2021 the Commercial Companies Law has allowed foreigners to own 100% of a mainland company for most activities. A free zone company works inside its zone and abroad, and to sell on the mainland it usually needs a local distributor or a separate permit.

An offshore company is the cheapest, but it has no office, no licence to trade in the country and no visas. It is a tool for ownership, not for doing business.

How to register a company in the UAE: steps

1. Choose the zone and activity. The licence is issued for specific activities, which set the price and office requirements.
2. Name check and initial approval from the zone's or emirate's registrar.
3. Founders' documents: passport, photo, proof of address, and legalised corporate documents for a corporate founder.
4. Articles, office agreement and licence. In a free zone the licence is usually issued in 1-3 weeks.
5. Establishment card for visas, medical test and residence permit for the owner and staff.
6. Bank account - the longest stage, often 1-3 months.
7. Tax registration for corporate tax, and for VAT once turnover exceeds the threshold.

How much it costs to open a company in the UAE in 2026

The price is made up of the zone's licence fees, the office agreement, visas and our work. The cheapest option is an offshore company, the most expensive are the prestigious Dubai zones and the Abu Dhabi financial centre.

The licence and office agreement are renewed every year, so count not only the start but also the upkeep. The full price list for each zone is below.

What taxes a UAE company pays

• Corporate tax - 0% on profit up to about $103,000 a year and 9% above.
• A qualifying free zone company pays 0% on qualifying income if it has real substance and audited accounts.
• Small business relief - with revenue up to about $820,000, corporate tax can be avoided by electing it in the return.
• VAT - 5%, with mandatory registration once annual turnover exceeds about $103,000.
• Dividends carry no withholding tax.

Every company, including free zone companies, must register for corporate tax. Late registration carries a penalty of about $2,800 from the tax authority, and the return is due within 9 months of the end of the tax year.

A company and residence in the UAE

The licence allows residence visas for the owner and staff, usually for 2 years. The number of visas depends on the office: a virtual office gives one or two visas, a separate space more. An offshore company gives no visas at all.

Business owners with large investments may qualify for a 10-year golden visa, which we arrange separately.

Why registration takes longer

A free zone licence is issued quickly; the time goes on the bank. UAE banks check the source of funds, the payment flows and the company's links with other countries, and questions for owners from some countries can take longer. Another common reason is a licensed activity that does not match the real payments: the bank will not accept such a company.

Fees

See also

Business account · Personal account · Investment property · All country programs

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