Company formation in the UAE.
Registering a company in the UAE is easy. Registering one that a bank will accept, that can invoice the clients you actually have, and that will not need restructuring in eighteen months is a different exercise entirely.
The decision that comes first
Before any registration: what will this company be doing in three years? Holding property? Invoicing European clients? Employing staff and bidding for local work? Sitting as a holding layer above operating assets? Four different jobs, four different correct answers.
The activity wording on the licence, the shareholding, the zone and the substance requirements all follow from that question. Get it wrong and the fix is not an amendment — it is a new company, a new bank account and migrated contracts.
What the zones actually cost
| Zone | Licence per year | Positioning |
|---|---|---|
| RAKEZ, SHAMS | AED 5,500–6,000 | Budget |
| IFZA | AED 12,750–12,900 | Best value for service companies |
| Meydan | AED 12,500 | Same, with a Dubai address |
| DMCC | AED 15,000+ (flexi-desk from 6,500) | Premium, strongest banking reception |
| JAFZA, DAFZA | AED 25,000+ | Logistics, air cargo |
| DIFC | AED 50,000+ | Financial services, family offices |
What the headline never includes: flexi-desk AED 5,000–10,000 a year, establishment card around AED 1,500, immigration card around AED 1,500, each visa AED 4,000–5,000, basic health insurance around AED 1,500 per person. A realistic first year for one shareholder with one visa is AED 22,000–26,000 at IFZA or Meydan, AED 100,000+ at DMCC with several visas.
Year two is the surprise nobody mentions: licence renewal, office renewal, card renewals, visa renewals, insurance, accounting, audit, corporate tax filing. Budget AED 20,000+ minimum for a single-shareholder service company.
Where it breaks
The zone chosen on price
Banking reception varies enormously between zones and is invisible in any price comparison. Saving AED 7,000 on the licence regularly costs two months without a working account — and occasionally costs the account altogether.
Activity wording that does not match the business
If the licence says consultancy and the projected transactions look like trading or crypto, the bank declines. Activities should be selected against the transactions the company will actually run, not against what reads well.
Visa quota discovered after registration
Base packages at Meydan, IFZA and SHAMS start at zero or one visa. DMCC, DIFC and JAFZA typically include two to four. A founder planning to bring a family and two employees finds the ceiling after the licence is issued.
Free zone invoicing mainland clients
Not permitted directly. If the revenue model depends on UAE corporate customers, this is a structural problem, not an administrative one.
What I do
- Establish what the company must be able to do, in three years, not this month
- Select the jurisdiction and the specific zone on banking reception, visa quota and activity fit
- Draft the activity list so it matches the real transaction profile
- Design the shareholding for tax treatment, succession and bank acceptance
- Coordinate registration, cards and visas through licensed providers
- Hand over a company that is ready for a bank, not one that merely exists
From AED 15,000
Jurisdiction selection, activity structuring and coordination of registration. Free zone charges, government fees and third-party costs are separate and paid directly by the client. Mainland setup from AED 25,000.
Common questions
How long does it take to register a company in the UAE?
Three to five working days for the licence in the faster free zones such as IFZA and Meydan, five days at DMCC, up to nine at JAFZA and DWTC, and seven to fifteen working days for a mainland licence. Add three to five days for the establishment and immigration cards. A working company, excluding the bank account, takes one to three weeks.
How much does it cost to set up a company in the UAE?
Licence fees range from around AED 5,500 in budget zones to AED 12,500–12,900 at IFZA and Meydan, AED 15,000+ at DMCC and AED 50,000+ at DIFC. A realistic first year for a single shareholder with one visa is AED 22,000–26,000 at IFZA or Meydan. Coordination and structuring from my side starts at AED 15,000.
Which free zone should I choose?
The one whose banking reception, visa quota and activity list match what the company will actually do. Choosing on licence price alone is the most expensive mistake in this market: a company in a well-regarded zone opens a bank account in two to four weeks, while budget or newer zones can mean four to eight weeks, additional due diligence, or refusal.
What is the difference between free zone and mainland?
A free zone company generally cannot invoice mainland UAE customers directly — it needs a distributor, branch, service agent or dual licence. If most revenue comes from UAE corporate clients, retail or government tenders, mainland may be the correct answer despite the higher cost.
Do free zone companies pay 0% corporate tax?
Only conditionally. The 0% rate applies to qualifying income of a qualifying free zone person — a test with substance and activity conditions, not a status that comes with the licence. Registration and annual filing are mandatory even where no tax is due.
Can I add business activities later?
Yes, but costs vary sharply by zone. IFZA includes up to three activities at no extra charge; DMCC charges around AED 7,500 for each additional one. Activity wording also determines whether a bank will accept the company, so it is worth getting right at registration.
Zone by zone
Each free zone has its own cost base, visa quota and banking reception. Detailed breakdowns:
If you are weighing jurisdictions and want the decision made against banking and tax rather than licence price, describe your situation →.
Describe your matter
Two or three sentences on the substance. I respond within one business day.
Reviewed by Denis Chernikov, Private Client Advisor, nine years in the UAE private client sector.