Set up your UAE company: mainland, free zone or offshore
Three legal routes, each with its own licensing authority, office rules and visa options. Start with the one that matches where your customers are.
Facts checked October and November 2026 against the official sources listed below.
3 guides, each with its timeline and official sources
The deciding question is who your customers are. Sell inside the UAE and the mainland is usually right. Sell abroad or online and a free zone is often cheaper and faster. Hold assets and an offshore company may be enough.
Mainland company
A mainland company is licensed by the economic department of its emirate and can trade with customers anywhere in the UAE, including government bodies. Most activities no...
- 100%
- Foreign ownership for most activities
- 9
- Steps in the standard mainland process
Free zone company
A free zone company is licensed by the zone's own authority, which also issues the visas and leases the office. It trades freely abroad and within its zone; selling on th...
- AED 5,555
- Lowest published entry licence, Ajman Free Zone, no visa
- 14 days
- Working days to a free zone licence after approval
Offshore company
A UAE offshore company receives a certificate of incorporation, not a trade licence, and cannot do business with people inside the UAE. It is used to hold shares, propert...
- 2 days
- For RAK ICC to incorporate once documents are in
- 1
- Minimum shareholder at Jafza
Mainland, free zone or offshore?
Who licenses you, where you can trade, visas, office and corporate tax for each structure.
| Feature | Mainland | Free zone | Offshore |
|---|---|---|---|
| Licensed by | The emirate's economic department | The free zone authority | A registry such as Jafza or RAK ICC, through an agent |
| Where it trades | Anywhere in the UAE, including government clients | Within the zone and abroad; mainland sales through a distributor, a branch or the Dubai permit | Outside the UAE only |
| Visas | Yes, through MOHRE and immigration | Yes, through the zone, by desk or office size | No |
| Office | Registered lease, RERA-attested in Dubai | Flexi desk, coworking or office in the zone | Registered agent address |
| Corporate tax | 0% to AED 375,000, then 9% | 0% on qualifying income if conditions are met | Depends on residence and income |
| Best for | Shops, restaurants, contractors, clinics, local services | Consultants, e-commerce, tech, trading abroad | Holding companies, property, IP |
Sources: UAE Government Portal, running a business in a free zone; Dubai Media Office, Free Zone Mainland Operating Permit; Jafza, offshore business. Checked October and November 2026.
The numbers that matter
Each figure links to the official source it comes from.
| Guide | Figure | What it means |
|---|---|---|
| Mainland company | 100% | Foreign ownership for most activities1 |
| 9 | Steps in the standard mainland process2 | |
| 15 min | Government figure for setting up online on Basher2 | |
| 50 | Maximum partners in an LLC3 | |
| Free zone company | AED 5,555 | Lowest published entry licence, Ajman Free Zone, no visa13 |
| 14 days | Working days to a free zone licence after approval11 | |
| AED 5,000 | Dubai Free Zone Mainland Operating Permit, per six months14 | |
| 0% | Corporate tax on qualifying income of a Qualifying Free Zone Person15 | |
| Offshore company | 2 days | For RAK ICC to incorporate once documents are in24 |
| 1 | Minimum shareholder at Jafza22 | |
| 100% | Foreign ownership allowed22 |
Step by step, with published timeframes
Green steps are handled by a government authority. Plan your own dates with the setup timeline planner.
Mainland company
- Trade name and initial approvalAbout 15 minutes online2
- Office leaseVaries2
- Trade licence issuedAfter approvals and fees2
- Establishment card2 working days8
- Work permit and entry permitPermit valid 60 days7
- Medical test40 minutes, result in 1 to 2 days9
- Labour card and residence visaWithin 60 days of entry7
- Bank account3 business days10
- Corporate tax registration20 business days5
Free zone company
- Choose the zone and activityYour decision12
- Application and documentsVaries by zone11
- Free zone licence14 working days after approval11
- Investor entry permitValid 60 days19
- Medical test30 to 40 minutes, result in 1 to 2 days9,21
- Emirates ID and residenceWithin 60 days of entry20
- Bank account3 business days10
- Corporate tax registration20 business days5
Common questions about company setup
Do I need a local partner for a mainland company?
Not for most activities. The UAE allows full foreign ownership of commercial companies, with exceptions for a list of activities of strategic impact.1 Mainland company guide
Can I set up a mainland company online?
Yes. The federal Basher platform lets you register a mainland company online; the government says it takes 15 minutes once you have the information ready.2 Mainland company guide
Do I need an office?
A mainland licence needs a registered address with a lease. In Dubai the lease is attested by RERA. Many economic departments accept small offices or business-centre desks.2 Mainland company guide
Which free zone is the cheapest?
Prices change often and depend on visas and office type. Our cost finder lists the published entry prices of nine zones with the date we checked them.13 Free zone company guide
Can a free zone company open a bank account?
Yes. UAE banks open accounts for free zone companies; they ask for the certificate of incorporation, share certificate and the owners' IDs instead of a memorandum.17 Free zone company guide
Do I need a physical office?
Each zone sets its own office rules. Many entry packages include a desk: the Ajman Free Zone licence at AED 5,555 includes a coworking lease, and Meydan Free Zone includes a flexi desk.13,18 Free zone company guide
Does an offshore company give me a residence visa?
No. It has no trade licence in the UAE and does not sponsor visas. For a visa you need a free zone or mainland company.23 Offshore company guide
Can an offshore company open a UAE bank account?
Yes. Jafza says its offshore companies can bank with UAE or foreign banks in the currency they choose; each bank applies its own checks.22 Offshore company guide
Sources, checked October and November 2026
- UAE Government Portal: Full foreign ownership of commercial companies
- UAE Government Portal: Steps to start a business on the mainland
- Dubai.ae: Business set-up options
- UAE Ministry of Economy and Tourism: Cabinet Decision No. 109 of 2023 on beneficial owner procedures (PDF)
- Federal Tax Authority: Corporate Tax Registration
- Federal Tax Authority: Registration for VAT
- UAE Government Portal: Recruiting on the mainland
- MOHRE: Issuance of an establishment card
- UAE Government Portal: Medical fitness test for residence, MOHAP (PDF)
- Central Bank of the UAE Rulebook: SME account opening
- UAE Government Portal: Starting a business in a free zone
- UAE Government Portal: Running a business in a free zone
- Ajman Free Zone: All-inclusive packages
- Dubai Media Office: Dubai launches Free Zone Mainland Operating Permit (8 October 2025)
- Federal Tax Authority: Free Zone Person bulletin (PDF)
- UAE Government Portal: Corporate tax
- ADIB: Business banking documents checklist (PDF)
- Meydan Free Zone: Company setup cost breakdown
- ICP: Green entry permit for investors and partners
- ICP: Green residence for investors and partners
- Dubai Health Authority: Smart Salem medical fitness service (PDF)
- Jafza: What you need to know about an offshore business
- Jafza: How to set up an offshore company
- RAK ICC: New incorporation FAQs
- Dubai Land Department: Know your rights (PDF)
- Dubai Land Department: Company registration application
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