Setting up a company in the UAE as a foreigner, step by step

Setting up a UAE company as a foreigner follows the same broad order whichever free zone you choose: choose the activity, decide between a free zone and the mainland, choose a zone, reserve a name and apply, receive the licence, then obtain the establishment card, residence visa and Emirates ID, open a bank account and register for tax. The free zone authority runs the licensing steps, the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) issues the establishment card, residence permit and Emirates ID, and the Federal Tax Authority (FTA) handles corporate tax and VAT registration. The UAE Government portal states that free zone companies can be fully owned by foreign investors.

The steps at a glance

1. Choose your activity

The UAE Government portal's guide to starting a business in a free zone begins with selecting the sector you want to work in. The activity decides which licence you need and whether another authority must approve it: the same page names, for example, media regulators and food safety authorities for those sectors. Browse zones by activity on the industries page.

2. Free zone or mainland

The UAE Government portal states that free zone companies can be fully foreign-owned and can import, export and re-export, but that to sell locally a free zone company must work through a licensed mainland distributor or establish a mainland branch or company.

Mainland companies follow a different route. The portal's mainland steps include choosing a legal form, registering the trade name with the emirate's economic department, and an initial approval, before which foreign investors must obtain approval from the General Directorate of Residency and Foreigners' Affairs (GDRFA). The same page states that all businesses in the UAE must have a physical address, and that in Dubai the lease must be registered with Ejari.

Our guides to free zone vs mainland and whether a UAE company suits your business cover this choice in more detail.

3. Choose a zone

Zones differ in the activities they license, the packages they publish, how many visas each package allows and which office options they offer. The site compares zones on three reference set-ups:

The table below shows zones that publish a price for a set-up with one residence visa, lowest first:

Figures are as published by each zone, with the date checked; see how we verify. For other set-ups, see the cheapest options for a founder with one visa or the free zone finder.

4. Reserve a name and apply

The UAE Government portal lists the legal entities available in free zones, including the Private LLC, FZ Co., FZE, PJSC and a branch of a local or international company, and notes that not all free zones register all types. It says to confirm the trade name with the free zone authority and sets out the general naming rules: the name must include the legal form (for example LLC or FZE), must not already be registered, must suit the activity, and should not contain the names of any religion or governing authority.

According to the same page, you apply online through the free zone authority's website, giving basic company information and uploading documents. Ask the zone for its own document list, including whether passport copies or other documents need to be certified.

5. Receive the licence

The UAE Government portal states that, after review and approval, the licence is issued within 14 working days. Each zone page shows the incorporation time the zone states; our setup time guide explains how these compare. Activities that need another regulator's approval can take longer.

6. Establishment card

ICP describes the electronic establishment card as holding the company's registered data, such as trade name, licence number, partners and type of activity. For free zone companies, ICP states that the request goes through the free zone authority the company belongs to. ICP's requirements include a valid licence and a valid Emirates ID for one authorised signatory, or a Unified Number for visitors without an Emirates ID. Ask the zone whether its package covers the card.

7. Residence visa and Emirates ID

The UAE Government portal states that free zone companies apply for work permits and residence visas through their free zone authority, and that the number of visas a business can get depends on factors such as its package.

The general steps are an entry permit (or a change of status if you are already in the UAE), a medical test, the Emirates ID application and the residence permit. ICP states that the stay to complete residence issuance procedures must not exceed 60 days from entry. The UAE Government portal states that applicants aged 18 and over must pass a medical test and a security check and apply for an Emirates ID, and that sponsored residence visas are issued for 1, 2 or 3 years.

ICP also lists a 5-year Green Residence for investors and partners, with conditions including a minimum investment of AED 1,000,000. Our guide to the residence visa through your company covers owner visas, family sponsorship and the Golden Visa.

8. Bank account

The UAE Government portal's banking page lists the documents most commonly required to open an account, including an Emirates ID and a valid UAE residence visa, and for self-employed people a trade licence and company documents. It states that approval time depends on the bank. Each bank sets its own requirements; our bank account guide lists the questions to ask the bank and the zone.

9. Tax registrations

Corporate tax. FTA Decision 3 of 2024 provides that a company incorporated or established in the UAE, including a Free Zone Person, must submit its corporate tax registration application within three months of incorporation. The FTA's corporate tax registration page lists a penalty of AED 10,000 for late registration. Corporate tax applies to free zone companies; the 0% rate applies only to the Qualifying Income of a Qualifying Free Zone Person that meets every condition. See the Qualifying Free Zone Person guide.

VAT. The FTA sets the mandatory registration threshold at AED 375,000 of taxable supplies and imports over the previous 12 months, or expected in the next 30 days, and the voluntary threshold at AED 187,500. Whether and when you must register depends on your supplies; check with the FTA or a licensed tax adviser. Our guide to VAT and corporate tax registration covers both.

After setup

The licence, establishment card and visas each have their own renewal dates, and companies have yearly filing obligations. See our guides to annual compliance and renewal costs.

Next steps

Start with your activity on the industries page, then shortlist zones with the free zone finder or the free zones list. If you plan to live outside the UAE, read our guide to running a UAE company from abroad before you choose a zone.