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Business setup

Business setup in Dubai

Setting up a business in Dubai starts with one decision: mainland, free zone or offshore. We help you choose the structure that fits how you plan to trade, then prepare and submit every application to the authority that issues your license.

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Overview

Which business setup option fits you?

Every Dubai company needs a license or registration from a government body, and which body depends on where you set up. Mainland companies are licensed by the Department of Economy and Tourism (DET). Free zone companies are licensed by the authority of the zone they join, and the UAE has 40+ free zones. Some Dubai areas, such as International City, are licensed by Trakhees, the regulatory arm of the Ports, Customs and Free Zone Corporation (PCFC). Offshore companies sit outside both systems: registries like Jebel Ali Free Zone (JAFZA) Offshore and RAK International Corporate Centre (RAK ICC) incorporate them and issue a certificate of incorporation, not a trade license.

The right choice comes down to a few practical questions. Who are your customers, and are they inside the UAE? Do you need residence visas for yourself or your staff? Will you mainly hold assets or invoice clients abroad? Does your activity need approval from another government body? Answer those honestly and the shortlist usually narrows to one or two options.

Global Sky PRO is a private consultancy. We explain the options in plain language, prepare and type your applications, arrange translation where needed, submit everything and follow up until the authority decides. Government fees are paid at cost and listed separately from our service fee, which we quote in writing before any work starts.

Services

Find the right service

Each page explains who it's for, the documents, the official fees and every step.

Compare

Side by side

Rules depend on your activity, so we confirm the details for your case before you commit.

Mainland, free zone and offshore compared, using only published official rules
At a glanceMainlandFree zoneOffshore
Issued byDETThe free zone's own authorityAn offshore registry, such as JAFZA Offshore or RAK ICC
What you receiveTrade licenseFree zone licenseCertificate of incorporation
Foreign ownershipUp to 100% for most activities, since 1 June 2021Set by each zone's rulesSet by the registry's rules
Activities1,000+ Dubai activities open to full foreign ownership; strategic-impact activities excludedSet by each zone's activity listNo trading inside the UAE
Trading on the Dubai mainlandYesOnly with DET authorisation: a one-year branch license or a temporary permit of up to 6 monthsNo
Residence visasCan sponsor visas, subject to approvalCan sponsor visas, subject to approvalNot available
PremisesPhysical address with a lease registered on EjariSet by each zone's rulesSet by the registry's rules
Process

How it works

Each step shows who does what, so you always know where things stand.

  • You
  • Global Sky PRO
  • Authority

  1. Step 1: Tell us your plan

    You

    Describe the business in a few lines: the product or service, where your buyers are based, the number of partners and any visa needs. A short WhatsApp message or a call is enough to start.

  2. Step 2: Compare your options

    Global Sky PRO

    We match your plan to mainland, free zone or offshore rules, flag activities that need extra approvals and list the government fees each authority publishes, at cost.

  3. Step 3: Choose and send documents

    You

    Pick the structure that suits you and send passport copies, shareholder details and any company documents. We tell you exactly which ones need attestation or translation.

  4. Step 4: Prepare and submit

    Global Sky PRO

    We check trade names, type the application forms and supporting documents, and submit them to the right authority in the right order.

  5. Step 5: Review and decision

    Authority

    DET, the free zone authority, Trakhees or the offshore registry reviews the file. It may ask for more information, and it alone decides whether to issue the license or certificate.

  6. Step 6: Next steps after licensing

    Global Sky PRO

    Once your license is issued, we walk you through the establishment card, visas, tax registration and renewals so nothing is missed in your first year.

Common mistakes when choosing a structure

Most setup problems come from a mismatch between the structure and how the business actually operates. They are easy to avoid if you check them before you apply.

  • Choosing a free zone on price, then finding that most customers are on the mainland and need DET authorisation to serve
  • Assuming an offshore company comes with residence visas or can invoice UAE customers
  • Picking an activity that is too narrow, or too broad, for what you plan to do
  • Signing a lease before confirming that the premises suit the activity and the licensing authority
  • Forgetting that tax registration and renewals start as soon as the license is issued

What happens after your license is issued

A license is the start, not the finish. Most new companies then apply for an establishment card, residence visas for owners or staff, and a bank account. Visa decisions rest with the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP), the General Directorate of Residency and Foreigners Affairs Dubai (GDRFA Dubai) and the Ministry of Human Resources and Emiratisation (MOHRE), while banks make their own account decisions.

Tax applies from day one. UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% above that, and companies must register with the Federal Tax Authority (FTA). VAT is charged at 5%; registration is mandatory above AED 375,000 and voluntary above AED 187,500. If you employ staff in Dubai, health insurance for them is mandatory, and the Dubai Health Authority (DHA) can fine employers AED 500 per person per month for missing cover.

How we work with you

You deal with one team from the first question to the license, and you always know what you are paying for.

  • Government fees are paid at cost and shown separately from our service fee, which you receive in writing before we start
  • We speak English, Hindi, Urdu, Malayalam and Bengali, so you can ask questions in the language you think in
  • Our office is at Fahidi Heights in Bur Dubai, near Sharaf DG Metro Station (Exit 4), open Monday to Saturday, 10:00 to 21:00
  • We tell you when a different structure suits you better, even if it means less work for us
FAQs

Business setup: your questions

Short answers here. Your situation may differ, so ask us before you decide.

Still have a question?

An adviser replies during opening hours, Mon–Sat 10:00–21:00.

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What are the steps to register a company in Dubai?

Choose your activity and jurisdiction, then apply to the authority that licenses it. On the mainland, that means settling the legal form and trade name, obtaining DET's initial approval, sign the memorandum of association (MOA), register premises with Ejari, obtain any extra approvals and collect your license. Free zones and offshore registries run their own application processes, which we prepare and submit for you.

Which is better: mainland or free zone?

Neither is better in general; the right one depends on where your customers are. Mainland suits businesses that deal directly with customers across Dubai, with up to 100% foreign ownership for most activities. A free zone suits businesses whose activity fits a zone's list and whose customers are mostly inside the zone or abroad, because mainland work needs DET authorisation.

Can a free zone company work on the Dubai mainland?

Yes, but only with DET authorisation. A free zone company can open a branch outside the free zone or a branch licensed from the free zone, each on a one-year license, or use a temporary permit of up to six months for listed activities. These routes are set out in Executive Council Resolution No. 11 of 2025.

What is a trade license?

A trade license is the document that lets a company carry out its listed activities legally. On the mainland it is issued by DET under one of the federal license types, such as commercial, professional or industrial, while free zones issue their own licenses. It shows your activities, legal form and owners, and it must be renewed to stay valid.

How long does company formation take?

It depends on the activity, the authority and how quickly your documents are ready, so we don't promise a fixed number of days. Simple activities with complete, correctly attested documents move fastest. A rejected trade name, an activity needing approval from another government body or a lease that needs changes can all add time. Once we know your activity, we map out each stage and tell you where waiting is likely.

Which option gives me a residence visa?

Mainland and free zone companies can sponsor residence visas for owners and staff, subject to approval; offshore companies cannot. The number of visas depends on your authority, premises and activity. Residence decisions are made by ICP and GDRFA Dubai, and work permits for mainland companies by MOHRE. We prepare and submit the applications and follow them up.

What documents do I need to set up a company in Dubai?

You usually need passport copies for every shareholder and the manager, your Emirates ID and residence visa if you live in the UAE, your chosen activities and trade name options, and details of how the shares will be split. Mainland companies also need a lease registered with Ejari. Corporate shareholders need attested incorporation documents and a board resolution. Each authority sets its final list, which we confirm before you apply.

Source: u.ae: steps to start a business on the mainland

Who issues my trade license in Dubai?

It depends on where you set up. DET licenses most mainland companies, each free zone authority licenses companies in its own zone, and Trakhees, the regulatory arm of the Ports, Customs and Free Zone Corporation (PCFC), licenses businesses in areas such as International City and Dubai Maritime City. Offshore registries don't issue trade licenses at all; they issue a certificate of incorporation instead.

Source: Dubai Media Office: Trakhees transactions in H1 2026

What should I do after my trade license is issued?

Next, get your establishment card, apply for any residence visas you need and register for corporate tax. Companies incorporated from 1 March 2024 must register with the Federal Tax Authority (FTA) within three months, and late registration carries an AED 10,000 penalty. Register for VAT once taxable supplies pass AED 375,000, and in Dubai arrange the mandatory health insurance for any staff. We plan these steps with you.

Source: FTA: decision on specified timeframes for corporate tax registration

Which mistakes should I avoid when choosing a business structure?

The main one is choosing a structure that doesn't match where your customers are. A free zone company needs DET authorisation to work on the Dubai mainland, and an offshore company can't trade in the UAE or sponsor residence visas. Also avoid an activity that is too narrow for your plans, a lease signed before the premises are checked against your activity, and forgetting that tax registration deadlines run from incorporation.

Source: Dubai Legislation Portal: Executive Council Resolution No. 11 of 2025 on free zone establishments' activities

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Licenses are issued by the relevant authority (DET for Dubai mainland, or the chosen free zone authority). Global Sky PRO prepares and submits your application. Last reviewed 31 October 2026 by the Global Sky PRO team.

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