Business
UAE — Business: Company Formation
UAE company formation follows a 7-step process: (1) define business activity from the UAE's approved activity list, (2) choose a legal structure (Sole Establishment, LLC, or branch of foreign company), (3) reserve a trade name with the relevant emirate authority (DET in Dubai, DED elsewhere) — must carry the legal structure's abbreviation as a suffix, (4) prepare legal documents including the Memorandum of Association (MOA) for LLCs, (5) secure a physical office (mainland LLCs require Ejari registration; a flexi-desk starting near AED 12,000/year can satisfy this), (6) submit the license application and receive the trade license, (7) register for Corporate Tax with the FTA (a post-license step). Mainland incorporation typically takes 2-4 weeks. 2026 indicative costs: Free Zone AED 12,000-35,000 (incl. one visa, basic office); Mainland AED 15,000-50,000+ (excl. office rent). A mainland LLC can trade freely UAE-wide, take government contracts, and open branches without a local distributor — advantages a Free Zone entity generally lacks outside its zone.
Key facts
- 7-step process: activity → legal structure → trade name reservation → MOA/documents → physical office → license → Corporate Tax registration.
- Mainland incorporation: 2-4 weeks; costs AED 15,000-50,000+ (excl. office rent).
- Free Zone incorporation: AED 12,000-35,000, including one visa and basic office.
- Only a mainland LLC can trade UAE-wide and take government contracts without a local distributor.
Steps
- 1. Define business activity — Select from the UAE's approved activity list; multiple related activities may fall under one 'General Trading' or 'Service' license umbrella.
- 2. Choose legal structure — Sole Establishment, LLC, or branch of a foreign company; LLC is typically the safest choice for commercial businesses.
- 3. Reserve trade name — With DET (Dubai) or DED (other emirates); name must include the legal-structure abbreviation as a suffix and avoid inappropriate wording.
- 4. Prepare legal documents — MOA (for LLCs), passport copies, shareholder details, proposed structure, and formation forms.
- 5. Secure a physical office — Mainland requires Ejari registration; a compliant flexi-desk starts near AED 12,000/year.
- 6. Submit license application — Trade license issued after documents and fees are submitted.
- 7. Register for Corporate Tax — Post-license registration with the FTA; standard rate 9% above AED 375,000 taxable profit.
Costs
- Free Zone formation (incl. 1 visa, basic office): AED 12,000-35,000
- Mainland formation (excl. office rent): AED 15,000-50,000+
Timelines
- Mainland incorporation: 2-4 weeks
Required documents
- Passport copies
- Memorandum of Association (LLC)
- Trade name reservation certificate
- Ejari office registration (mainland)
Common mistakes
- Choosing a Free Zone entity when the business plan requires UAE-wide mainland trading or government contracts.
- Overlooking that Corporate Tax registration is a separate post-license step, not automatic upon licensing.