The United Arab Emirates remains one of the world’s most attractive destinations for business setup, recording more than 277,000 new business licenses issued in 2023 and maintaining a projected 4.5% GDP growth rate for 2025, driven by non-oil sectors.
With 100% foreign ownership available across free zones and most mainland activities, a 9% corporate tax ceiling, and access to a consumer market of over 2.5 billion people within an 8-hour flight, UAE company registration offers entrepreneurs a globally trusted base for expansion. For founders planning global company formation and international expansion, the UAE often acts as the central hub.
The country hosts 46+ specialized free zones, streamlined digital licensing systems, and competitive setup costs starting from AED 12,000, making it a preferred jurisdiction for SMEs, startups, and multinational firms seeking a Middle Eastern or international headquarters.
Through this article, we will cover the procedure for UAE company registration. Along with that, we will be covering the types of companies, document required, and most preferred Emirates for business in the UAE.
Why Register a Company in the UAE in 2026?
Entrepreneurs choose the UAE not only for tax benefits, but because it is now one of the most efficient and internationally recognized business jurisdictions.
Key advantages of business incorporation in UAE include:
1. 100% Foreign Ownership
Company incorporation in UAE allows entrepreneurs with 100% foreign ownership available in:
- All Free Zones
- Most of the mainland sectors
2. Low Corporate Tax Framework
Incorporating a business in UAE allows business owners numerous tax benefits, such as:
- 0% up to AED 375,000 profit
- 9% over AED 375,000
- Possible free zone exemptions for qualifying income
3. Strategic Geography
Business formation in UAE offers strategic access to major global markets. From Dubai, you can reach Europe in about 7–8 hours, GCC countries in 1–2 hours, India in 3–4 hours, and the United States in roughly 13 hours—making it one of the most connected business hubs in the world.
4. Free Zones
UAE has 46 free zones that specialize in technology, media, trading, logistics, finance and e-commerce.
5. Residency Options
UAE Company registration enables visa eligibility for:
- Founders
- Dependents
- Employees
The UAE is no longer a tax play — it’s a serious global headquarters jurisdiction for real companies.
Looking to grow your business in Europe and the Middle East markets? Read our guide to see how you and grow internationally today.
Types of Companies in UAE
Choosing the right type of company in the UAE is very crucial in order to succeed in the Middle East market.
Listed below are the various types of businesses you can incorporate in the United Arab Emirates:
1. LLC (Limited Liability Company)
- A limited liability company is one of the most widely used forms of business in the UAE mainland.
- A limited liability company is suitable for trade and service businesses and allows you to trade within the UAE and internationally.
- Incorporating an LLC in the UAE mainland also permits up to 100% foreign ownership in eligible sectors.
2. Free Zone Company (FZE / FZCO)
- A Free Zone Company can be 100% foreign-owned, is exempt from taxes for qualifying income, and can repatriate all profits.
- Setting up a free zone company in the UAE is ideal for entrepreneurs involved in trading, consulting, e-commerce, or tech businesses.
3. Offshore Company
- These entities are set up in specific jurisdictions under the UAE’s offshore company laws.
- A legal corporate entity created with the goal of conducting business outside of both its registration jurisdiction and the place of its ultimate ownership is known as an offshore company in the UAE.
4. Branch of a Foreign Company
- Foreign companies considering starting a business in UAE can set up a branch office.
- Branch offices can carry out the same business activities as the parent firm, and the parent company retains 100% ownership.
- However, incorporating a branch office in the UAE required appointing a local services agent.
5. Representative Office
- Similar to a branch office, a foreign parent company can also set up a representative office in the UAE.
- However, a representative office cannot engage in any revenue-generating activities and can only undertake marketing and administrative functions, but cannot conduct business within the UAE.
Free Zone vs Mainland vs Offshore: Which is Right for You?
Choosing the wrong jurisdiction can cost you time, tax, and banking credibility.
Here’s the 2026 clarity table:
| Feature | Free Zone | Mainland | Offshore |
| Ownership | 100% | Up to 100% (activity-dependent) | 100% |
| Corporate Tax | 0% qualifying / 9% non-qualifying | 9% over threshold | 0% |
| Activity Scope | Inside zone + international | UAE + international | outside UAE |
| Bank Account | Yes | Yes | Limited |
| Office | Flexi-desk allowed | Physical office required | None |
| Visa Eligibility | Yes | Yes | No |
Need help choosing the best jurisdiction for your business in the UAE? Get in touch with our UAE business incorporation specialists today.
How to Start a Business in the UAE?
In order to open a company in UAE, you must follow the steps given below:
Step 1: Select your business activity
The first step for UAE company incorporation involves selecting your business activity. The type of business you choose must align with the categories specified by the Department of Economic Development or free zone authority lists.
Step 2: Select the Jurisdiction
After choosing your business activity, you must select the jurisdiction where you wish to incorporate a company in the UAE, such as IFZA, DMCC, RAKEZ or Dubai Mainland.
Step 3: Choose the legal structure
After that, the next step to register a company in the UAE involves choosing the legal structure for your business.
You can register as a mainland LLC, set up in a free zone, or open a branch or representative office—each option affects ownership, taxation, and where you can operate in the UAE.
Step 4: Trade Name Reservation
You must choose a company name in UAE that complies with the naming laws. The trade name you select for your business in UAE must reflect your business activity and should not contain any religious terms, abbreviations, or offensive wording.
Once you have decided on the name, reserve it with the authorities, which is valid for six months.
Step 5: Draft the Company Documents
You must draft the Memorandum of Association (MOA) or Articles of Association (AOA), which covers shareholding structure, capital allocation, ownership distribution, and activity scope.
This document legally governs the company.
Our experts can help you draft the MOA and AOA of the company.
Step 6: Obtain Initial Approval
You must submit the documentation to get the initial approval for UAE company registration. This is an early-stage approval indicating that the authority has no objection to your company being incorporated. This step confirms:
- Your activity is allowed
- Your structure is compliant
- Your shareholders are eligible
Step 7: Set up a bank account
After your business has been incorporated, you must set up a business bank account to manage your business finances in the UAE.
Documents Required for UAE Company Registration
In order to register a company in UAE, you must show the documents given below:
- Passport
- Photo
- Residence permit or entry stamp
- Proof of address
- MOA / AOA
- UBO declaration
- ESR questionnaire
- Flexi-desk or office contract
- Business plan (for some activities)
Most Preferred Emirates for Business in the UAE
Listed below are the most preferred Emirates for business in the UAE:
1. Dubai
Dubai is the most popular emirate for company formation in the UAE because it offers a wide range of business activities and has the strongest banking ecosystem. Dubai is preferred for businesses seeking credibility, international presence, and access to major global markets.
Are you an entrepreneur looking to expand your business in Dubai? Read our blog to know the step-by-step process.
2. Abu Dhabi
Abu Dhabi is known for high-credibility licensing and strong government-backed sectors. It is most suitable for industrial projects, energy companies, finance, research and development.
3. Sharjah
Sharjah offers cost-effective licensing options, making it suitable for manufacturing, logistics, and small and medium enterprises (SMEs). It provides strong industrial zones and more affordable office options compared to Dubai and Abu Dhabi.
4. Ras Al Khaimah (RAK)
RAK combines affordability with flexibility and is well-known for trading and e-commerce.
5. Fujairah
It offers simple licensing with a focus on affordability.
6. Ajman
Ajman is ideal for lower-cost setups and small service firms. It is budget-friendly but has fewer high-tier banking options.
7. Umm Al Quwain (UAQ)
UAQ has one of the most affordable free zones in the UAE. It is attractive for businesses wanting a UAE license with minimal setup cost and simplified requirements.
How much time does it take to register a company in the UAE?
Company registration in the UAE typically takes 7 to 15 days, depending on whether you choose a mainland setup or a free zone jurisdiction.
Cost of UAE Company Registration
The cost of registering a company in the UAE varies depending on your business jurisdiction, business activity, visa requirements, and the type of office space selected.
The typical cost to register a company in the UAE is:
- Free Zone Company Registration: AED 12,000 – AED 35,000
- Mainland Company Registration: AED 18,000 – AED 55,000
- Offshore Company Registration: AED 8,000 – AED 20,000
Why Work With OnDemand International?
At OnDemand International, we can help you:
- Choose the right emirate or free zone for your business
- Understand banking requirements
- Navigate corporate tax
- Ensure compliance
- Secure visas
- Maintain renewals & filings
We don’t just sell licenses—we help you operate.
Book a free consultation and get a customized UAE company registration plan tailored for your business.
Conclusion
In 2026, the UAE remains one of the most attractive places in the world to register a company. With 100% foreign ownership, low corporate tax, strong infrastructure, and more than 45 free zones to choose from, business setup is efficient and globally respected. Entrepreneurs gain access to major markets, benefit from residency options, and operate in a stable and business-friendly environment.
Whether you’re setting up in the UAE mainland or a free zone, our specialists handle the entire incorporation process—along with tax structuring and compliance. Contact us today to get started.
FAQs
How much does it cost to register a company in the UAE?
The cost of UAE company registration typically ranges from AED 12,000 to AED 35,000 for free zone setups, AED 18,000 to AED 55,000 for mainland licenses, and AED 8,000 to AED 20,000 for offshore companies.
The exact cost depends on the jurisdiction, visa quota, business activity, and whether you select a flexi-desk or physical office.
Can foreigners own 100% of a company in the UAE?
Yes. In 2025, foreign investors can own 100% of their business in all free zones and most mainland sectors under recent ownership reforms. Local sponsorship is now required only for specific regulated activities.
How long does it take to register a business in the UAE?
Company registration takes approximately 3–7 working days in free zones and 7–14 working days for mainland setups. Corporate bank account opening may require an additional 10–30 days due to AML and compliance checks.
Do I need a physical office to register a company in the UAE?
Free zones allow flexi-desk office options, while mainland companies must have a physical office address. Your office type influences visa quota, banking approval, and cost.
What is the difference between mainland and free zone companies?
Free zone companies offer 100% ownership, tax incentives, and flexible office requirements, but are limited to operating within the free zone and internationally.
Mainland companies allow trading anywhere in the UAE but require physical office space and sometimes sector-specific approvals.