Question 1

What are the steps to set up a company in Dubai?

Accepted Answer

Select your legal structure (Mainland, Free Zone, Offshore), choose business activities, reserve a trade name, apply for initial approval, prepare MOA, lease office space, submit all documents, obtain your license, arrange visas, and open a corporate bank account.

Question 2

How long does it take to register a company in Dubai?

Accepted Answer

Free Zone company registrations typically take 1–7 business days, Mainland company formation takes 2–3 weeks, and Offshore companies can be set up in 5–10 days.

Question 3

Do I need a local sponsor for Dubai Mainland companies?

Accepted Answer

For most Mainland businesses, a UAE national sponsor holding 51% ownership is required. Recent reforms now allow 100% foreign ownership in many activities. Free Zone and Offshore companies allow full foreign ownership without a sponsor.

Question 4

What licenses can I obtain in Dubai?

Accepted Answer

Commercial, Professional, Industrial, Tourism, and specialized Free Zone licenses are available, covering sectors like finance, media, technology, and e-commerce.

Question 5

What are office space requirements?

Accepted Answer

Mainland companies must have a physical office with Ejari tenancy contract. Free Zones offer options such as flexi-desks, serviced offices, or warehouses based on activity.

Question 6

What documents do I need to provide?

Accepted Answer

You must provide passport copies, trade name reservation, initial approval certificates, MOA/AOA, tenancy contract, business plan, and bank reference letters. Some sectors require additional approvals.

Question 7

What taxes apply to Dubai companies?

Accepted Answer

Corporate tax of 9% on profits exceeding AED 375,000 applies; VAT at 5% applies if turnover exceeds AED 375,000. Many Free Zones offer tax holidays or exemptions subject to conditions.

Question 8

Can I open a corporate bank account easily?

Accepted Answer

After license issuance, submit required documents and attend bank interviews. Bank account opening can take 2–4 weeks depending on the bank.

Question 9

Are there ongoing compliance requirements?

Accepted Answer

Annual license renewals, VAT filing, auditing (where applicable), and corporate tax compliance are mandatory. Free Zone companies must comply with economic substance regulations.

Question 10

Can I do business across the UAE with a Free Zone license?

Accepted Answer

Free Zone companies can conduct business internationally and within Free Zones. To operate in the UAE mainland, they may require a local distributor or a dual license.

Dubai Company Formation

Frequently Asked Questions