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How to Start a Business in the UAE: Company Registration in Dubai – Mainland, Free Zone, or Offshore | First Bit

Publication date 28 May 2026 • 10 min read
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Anna Sharygina
Content Writer
Dubai is an attractive destination for various types of businesses, including local trading, international services, IT projects, e-commerce, logistics, and holding companies. Before registering a company, it is important to choose the right jurisdiction: Mainland, Free Zone, or Offshore. This decision affects the company's ability to operate in the UAE market, office requirements, visa options, taxation, banking compliance, and ongoing business maintenance costs.

Mainland, Free Zone, or Offshore: Which Type of Company Should You Set Up in the UAE?

Mainland is suitable for businesses that need to sell goods and services throughout the UAE and work with government clients. A physical office is required, and the number of visas depends on its size. Free Zone companies are commonly chosen for exports, IT, consulting, and e-commerce: a flex desk may be used instead of a traditional office, but direct sales to the mainland are restricted. Offshore structures are intended for holding companies and ownership of assets outside the UAE, without visas or office premises.
Criteria Mainland Free Zone Offshore
Where you can operate Throughout the UAE and internationally Within the free zone and outside the UAE; mainland operations require a distributor, an agent, or a separate permit Outside the UAE only
Company legal forms LLC, Sole Establishment, Civil Company, branch FZE, FZ LLC / FZ Co., branch International Business Company (RAK ICC, JAFZA Offshore)
Foreign ownership 100% for most business activities 100% 100%
Office requirements A physical office with a lease agreement is mandatory (Ejari registration in Dubai) Flex desk, smart office, or office space depending on the free zone package Not required: the registered office address is provided by the registration agent
Visas Visa quota depends on office size and regulatory requirements Visa quota depends on the free zone and office package Not available
Registration authority The emirate's economic department (in Dubai, DET, formerly DED) The relevant free zone authority A licensed registration agent
Best suited for Trading and services in the UAE market, government contracts IT, consulting, e-commerce, logistics, exports, international trading Holding structures and ownership of overseas assets and equity interests
Corporate Tax 0% on taxable profits up to AED 375,000; 9% above that threshold 0% on Qualifying Income for a Qualifying Free Zone Person, 9% on other income; without qualifying status, the 0% / 9% rules apply as for Mainland companies Corporate Tax registration is mandatory, with rates of 0% / 9%; eligibility for free zone relief should be assessed by a tax adviser
Audit Mandatory where revenue exceeds AED 50 million Mandatory for Qualifying Free Zone Persons and where revenue exceeds AED 50 million; many free zones also require an audit for licence renewal Mandatory where revenue exceeds AED 50 million
Restrictions Office and licensing requirements, and restrictions on regulated activities Direct operations in the UAE mainland market are restricted No business operations within the UAE; no visas or office premises
Corporate Tax rates are set out in Federal Decree-Law No. 47 of 2022, while audit requirements are governed by Ministerial Decision No. 82 of 2023.

Mainland: A Company for Business in the UAE and Internationally

A mainland company can operate throughout the UAE, selling goods, providing services, working with local customers, and opening branches. This structure suits businesses that need access to the domestic UAE market while also conducting international operations.

Mainland Company Legal Forms: LLC, Sole Establishment, Civil Company

A mainland company can be registered under various legal structures, including:
  • Limited Liability Company, LLC — a limited liability company;
  • Sole Establishment — a sole proprietorship;
  • Civil Company — a structure for professional services;
  • General Partnership — a partnership with unlimited liability;
  • Limited Partnership — a limited partnership;
  • Public Joint Stock Company, PJSC — a public joint stock company;
  • Private Joint Stock Company, PrJSC — a private joint stock company;
  • Local Company Branch — a branch of a UAE company;
  • Foreign Company Branch — a branch of a foreign company;
  • Free Zone Company Branch — a branch of a free zone company;
  • Holding Company — a holding company.
In practice, small and medium-sized businesses usually consider an LLC, Sole Establishment, Civil Company, or branch. The specific legal form depends on the business activity, number of shareholders, ownership structure, and regulatory requirements.

What Activities Can a Mainland Company Carry Out?

Mainland companies can obtain licences for a wide range of activities, including trading, services, manufacturing, construction, consulting, imports, exports, e-commerce, and more.
When registering a company, you must select the appropriate licensed business activity. This determines what the company may legally do, which approvals it requires, and which requirements apply from banks, tax authorities, and licensing bodies.
Certain activities may require additional approvals. For example, legal, tax, insurance, medical, educational, and financial services are generally regulated by the relevant authorities.

Free Zone: A Company in a UAE Free Zone

A free zone company suits foreign entrepreneurs planning to operate within their chosen free zone and outside the UAE. This structure is often used for international trade, IT, consulting, logistics, e-commerce, and service businesses. The UAE has over 40 free zones, where foreign investors can own 100% of a company.
Registration conditions depend on the particular free zone. The authority determines the permitted business activities, office or flex desk requirements, share capital, visa quota, and licence costs.

How Much Does a UAE Free Zone Licence Cost?

Licences in lower-cost UAE free zones start at AED 5,750 (SPC Free Zone in Sharjah), while in Dubai they start at AED 12,500 (Meydan Free Zone). These are licence-only prices, excluding visas. A package with one visa at SPC costs around AED 13,000, while zones requiring physical premises, such as JAFZA, generally cost AED 40,000 or more in the first year.
Free zone Emirate Licence starting from Key considerations
SPC Free Zone (Sharjah Publishing City) Sharjah AED 5,750 (e-commerce), AED 6,875 (standard) Approximately AED 13,165 with one visa
Meydan Free Zone Dubai AED 12,500 Licence price excludes visas and office space
Jebel Ali Free Zone (JAFZA) Dubai Approximately AED 5,000–5,500 Premises must be leased, bringing the first-year cost to around AED 40,000 or more (illustrative estimate)
Ajman Free Zone Ajman As calculated using the free zone's pricing tool The price depends on the selected package and the zone's requirements
Prices were checked on October 6, 2026, using the free zones' official websites. Final costs depend on the licence type, number of business activities, visas, office and warehouse space, registration fees, and additional services.

Free Zone Company Legal Forms: FZE, FZ LLC, FZ Co.

Companies in UAE free zones are generally registered under one of the following forms:
  • Free Zone Limited Liability Company;
  • FZ LLC, Free Zone Company, FZ Co.;
  • Free Zone Establishment, FZE.
Some free zones also allow branches of foreign or local companies. The official UAE government portal lists LLC, FZ Co., and FZE as free zone company structures.
An FZE is commonly used for a company with a single shareholder, while an FZ LLC or FZ Co. can be suitable for businesses with several shareholders. The exact requirements for shareholders, capital, and documents should be checked with the chosen free zone.

What Types of Licences Do UAE Free Zones Issue?

Each free zone has its own list of permitted business activities. Some zones specialize in logistics, manufacturing, media, IT, trading, education, consulting, or e-commerce. The UAE Ministry of Economy lists commercial, media, warehousing, consulting, e-commerce, industrial, manufacturing, educational, and freelance licences among the available free zone licence types.
Before choosing a free zone, verify that it permits the company's actual activities. Businesses planning to serve clients in the UAE mainland market may need a local distributor, an agent, an additional permit, or a separate mainland entity.

Offshore: A Company for Business Outside the UAE

An offshore company in the UAE has a registered address in the country but may only conduct business outside it. This structure is suitable for international trading, asset ownership, and holding company purposes, but not for selling goods or services within the UAE. An offshore company generally does not provide eligibility for residence visas, commercial office leases, or operational activities in the Emirates. It must also register for Corporate Tax, even if it has no operations within the country.

Types of Offshore Companies in the UAE

UAE offshore companies are generally established as International Business Companies (IBCs). Common jurisdictions include JAFZA Offshore and RAK ICC.

What an Offshore Company Can and Cannot Do

Offshore companies are used for international business, asset ownership, holding shares in overseas companies, and holding structures. However, they cannot conduct commercial activities within the UAE, and banking, insurance, and other regulated activities are generally unavailable or require separate assessment.

Company Registration in the UAE: A Step-by-Step Guide to Mainland, Free Zone, and Offshore

A UAE company is registered through one of three routes: Mainland companies through the emirate's economic department (DET in Dubai), Free Zone companies through the relevant free zone authority, often online, and Offshore companies through a licensed agent. A free zone licence is typically issued in 1–10 working days, while mainland registration in Dubai takes approximately two weeks. Opening a bank account can take a further 2–6 weeks.

How to Register a Mainland Company in Dubai: 9 Steps

To register a mainland company, you need to select a business activity, reserve a trade name, obtain initial approval, arrange the business licence, and secure office premises. Regulated activities may require additional approvals.
The main registration steps are:
  1. Choose the business activity and licence type.
  2. Reserve a trade name.
  3. Obtain initial approval for company registration (Initial Approval).
  4. Sign an agreement with a local service agent, if required.
  5. Lease or purchase office premises (in Dubai, lease agreements are registered through Ejari).
  6. Prepare and submit documents to the emirate's economic department (DET in Dubai, formerly DED).
  7. Obtain the business licence.
  8. Apply for an Establishment Card if the company plans to arrange residence visas for owners or employees.
  9. Open a corporate bank account.
A business licence is usually valid for one year. When it expires, it must be renewed or the company must be formally closed. Simply failing to pay the renewal fee does not automatically close the company.

Documents Required to Register a Mainland Company in the UAE

The standard set of documents generally includes:
  • Initial approval for registration
  • A copy of the office lease agreement
  • Memorandum of Association (MoA)
  • The business licence or licence application
  • A local service agent agreement (if required for the chosen legal structure or activity)
  • A copy of the entrepreneur's passport
  • A colour photograph against a white background
All documents are submitted to the economic department of the emirate where the company is being registered (DET in Dubai). Additional documents may be requested for certain business activities or complex ownership structures.

How to Set Up a Company in a UAE Free Zone

A free zone company is registered through the authority of the chosen free zone, often online. The entrepreneur selects the zone, business activity, legal form, office package, and number of visas, then submits an application and pays the registration fees.
The free zone authority reviews the documents, confirms details relating to office space, visas, and licensing, and helps prepare the incorporation documents and complete registration. The licence is usually valid for one year and must subsequently be renewed.
Following registration, the company may need to open a corporate bank account, pay in share capital if required by the free zone, pay additional fees, and obtain an Establishment Card to arrange residence visas for owners or employees.

Documents Required to Register a Free Zone Company

The list of documents depends on the free zone, business activity, and ownership structure. A typical minimum package includes:
  • A resolution appointing the director
  • A power of attorney for the director, if required
  • Memorandum and Articles of Association
  • A specimen signature of the director
  • A colour photograph of the director against a white background
  • Information on share capital
  • Passport copies of the shareholders and director
  • Company registration application
Some documents may require notarisation. For certain business activities, the free zone may request additional information about the business, its owners, source of funds, or intended markets.

How to Register an Offshore Company in the UAE

An offshore company in the UAE is registered in the chosen jurisdiction through a licensed registration agent. This structure is intended for international business outside the country. The process generally involves choosing a jurisdiction, preparing incorporation details, submitting an application through the agent, and obtaining the registration documents.

Documents Required to Register an Offshore Company

The standard document package generally includes:
  • Articles and Memorandum of Association;
  • Full name and address of each founder;
  • Information on share capital;
  • Details of the number of shares and their nominal value;
  • Passport copies of shareholders and directors;
  • Proof of residential address.
The exact document requirements depend on the offshore jurisdiction and ownership structure.

What to Do After Registering a UAE Company: Banking, Visas, Taxes, and Accounting

After obtaining a licence, a company has several mandatory steps to complete within specified deadlines. The FTA can impose penalties for missing some of them, even if the business has not yet generated any revenue.

How to Open a Corporate Bank Account in the UAE

A corporate bank account is opened after the business licence has been issued. The bank conducts Know Your Customer (KYC) checks and requests the licence, incorporation documents, owners' passports and visas, proof of address, business description, projected turnover, counterparties, and source of funds. Digital banks may open an account in 1–2 weeks, while traditional banks typically take 2–6 weeks. Applications are most commonly rejected because the business model or source of funds is unclear.
If the company has several founders, a corporate shareholder, or non-resident owners, verification may take 6–10 weeks. Banks conduct ongoing KYC reviews even after an account is opened, so it is useful to keep contracts, invoices, and bank statements in an accounting system from the outset. They can then be retrieved whenever requested.

How to Obtain a Residence Visa After Company Registration

The company first obtains an Establishment Card. The owner then applies for a renewable two-year investor or partner visa, involving an entry permit, medical examination, and Emirates ID. Government fees for one visa in lower-cost free zones are around AED 4,000–6,000. Employee visa quotas depend on the office premises and the rules of the regulator or free zone.
When arranging a visa through a registration agent, the total cost is usually AED 10,000–18,000. Investors who invest at least AED 2 million in a company's capital may qualify for a 10-year Golden Visa.

When Must a New Company Register for VAT?

VAT registration is mandatory when taxable supplies and imports exceed AED 375,000 over the preceding 12 months or are expected to exceed this threshold within the next 30 days. The application must be submitted within 30 days; otherwise, a penalty of AED 10,000 applies. Voluntary registration is available from AED 187,500. The VAT rate is 5%; returns are generally filed quarterly and are due within 28 days after the end of the tax period.
From April 14, 2026, VAT penalties are governed by Cabinet Decision No. 129 of 2025, with the penalty for late registration remaining AED 10,000. Once the company receives its Tax Registration Number (TRN), all invoices must meet tax invoice requirements. Read more in our guide on how to register for e-invoicing.

When to Register for Corporate Tax and File the First Return

All UAE companies, including free zone and offshore entities, must register for Corporate Tax even if they have no income. New companies must register within three months of incorporation. The tax rate is 0% on taxable profits up to AED 375,000 and 9% on profits above this amount. The first tax return is due within nine months after the end of the tax period. The penalty for late registration is AED 10,000.
The FTA waives the late registration penalty if the first return is filed within seven months after the end of the first tax period. Companies with revenue of up to AED 3 million may qualify for Small Business Relief and pay no Corporate Tax for periods ending no later than December 31, 2026. The 0% rate for free zone companies applies only to Qualifying Income. Learn how to account for these requirements on our page about financial and tax accounting with 1C in the UAE.

Is Accounting and Auditing Mandatory?

Yes. Every UAE company must maintain accounting records in accordance with IFRS and retain tax documentation for at least seven years, even if it has no turnover or works exclusively with overseas customers. Audited financial statements are mandatory for businesses with revenue exceeding AED 50 million and for free zone companies applying the 0% rate. Many free zones also require an audit for licence renewal.
Audit requirements are set out in Ministerial Decision No. 82 of 2023. It is more convenient to manage IFRS accounting, VAT, and Corporate Tax information in a single system from day one. We explain how to set this up below.

What to Do When Hiring Your First Employees

Employees are hired under employment contracts registered with MoHRE (for mainland businesses) or the relevant free zone authority. Salaries are paid through the Wage Protection System (WPS). From January 1, 2025, employers across all emirates must provide employees with health insurance, while employees arrange Involuntary Loss of Employment (ILOE) insurance. The company also accrues an end-of-service gratuity provision.
FirstBit ERP generates WPS files for banks and automatically calculates end-of-service gratuity in accordance with UAE labour law. Learn more about payroll processing and WPS.

First-Year Checklist After Setting Up a Company

During its first year, a new UAE company must complete several time-sensitive tasks: open a bank account, arrange visas, register for Corporate Tax and VAT, file its first return, and renew its licence. Most deadlines are calculated from the licence issuance date rather than the first sale, so penalties can arise even when there is no turnover. The key steps and deadlines are listed below.
  1. Open a corporate bank account immediately after obtaining the licence; this takes 1–6 weeks.
  2. Obtain an Establishment Card and arrange visas during the first few weeks.
  3. Register for Corporate Tax within three months.
  4. Set up accounting and document retention from the first transaction.
  5. Register for VAT within 30 days after exceeding AED 375,000.
  6. File the first Corporate Tax return within nine months after the end of the first tax period.
  7. Renew the licence after 12 months, including an audit if required by the free zone.

How to Set Up 1C Accounting After Opening a Company in Dubai

Accounting records must be maintained from the date of registration, even if the business has not yet generated any turnover. The company must register for Corporate Tax and retain tax documents for at least seven years. Initially, an accounting module supporting VAT and Corporate Tax is sufficient. Warehouse, procurement, and sales modules can be added as the business grows, without migrating data.
Setting up accounting for a new company with FirstBit ERP from First Bit involves five steps:
  1. Configure a chart of accounts in line with IFRS and FTA requirements.
  2. Set up tax rules: 5% VAT, reverse charge on imports, and data for Corporate Tax.
  3. Import master data and opening balances as of the start date.
  4. Configure user roles and management reports for the owner.
  5. Train the team in Russian.
FirstBit ERP has been listed in the FTA Tax Accounting Software Registry since 2018 and can generate VAT returns and the FTA Audit File (FAF). Learn more about financial and tax accounting with 1C in the UAE and FirstBit ERP pricing.
At the beginning of the implementation, it is important to document business processes, define reporting requirements, migrate opening data, and train employees. This helps establish reliable accounting from the company's first month of operation and prepare the business for the requirements of banks, auditors, and tax authorities.

Conclusion

Starting a business in Dubai begins with choosing a jurisdiction: Mainland for operating in the domestic UAE market, Free Zone for businesses based in a free zone and conducting international operations, or Offshore for structures operating outside the country.
Once the company is registered, it is important to arrange banking, visas, accounting, taxes, and document management without delay. This reduces the risk of errors when dealing with banks, tax authorities, employees, and counterparties.

Frequently Asked Questions About Setting Up a Company and Accounting in the UAE

How Much Does It Cost to Set Up a Company in the UAE?

The minimum budget for a company with one visa is approximately AED 13,000–15,000 in lower-cost free zones in Sharjah. In Dubai, a free zone company with one visa typically costs from AED 25,000, while a trading company in JAFZA with warehouse space starts at AED 40,000 in the first year. Mainland company setup is more expensive because of the mandatory office requirement.

How Long Does Company Registration Take in the UAE?

Free zone licences are issued within 1–10 working days, and some zones offer same-day issuance. A mainland licence in Dubai takes around two weeks. Including bank account opening and visas, the entire setup process usually takes 6–10 weeks.

Can a Russian Citizen Set Up a Company in the UAE?

Yes. There are no general nationality restrictions on company registration: foreign investors can own 100% of businesses in most sectors, both on the mainland and in free zones. The main challenge is often bank KYC, as banks carefully review sources of funds and counterparties. It is therefore advisable to prepare supporting documentation on the origin of funds in advance.

Do Companies Still Need to File Economic Substance Regulations (ESR) Reports?

No. Cabinet Decision No. 98 of 2024 abolished ESR requirements for financial periods beginning on or after January 1, 2023, so new companies do not need to submit ESR notifications or reports. Substance requirements remain relevant for free zone companies applying the 0% Corporate Tax rate.

Can a Russian 1C Database Be Migrated to a Company in the UAE?

It is technically possible to migrate data, but a standard Russian 1C configuration cannot be used directly in the UAE because it does not support UAE VAT, Corporate Tax, e-invoicing, and other FTA requirements. When moving to a localized platform such as FirstBit ERP, companies typically migrate master data, opening balances as of the transition date, and general ledger information rather than transferring the entire database unchanged.

How Long Does It Take to Migrate from Russian 1C to a UAE-Localized Accounting System?

The timeline depends on data volume, the number of business lines, and the level of customization required. It can range from a few weeks for a small business to a couple of months for a complex structure with multiple legal entities. Key stages include migrating master data and opening balances, configuring VAT and Corporate Tax rules, and training the team to use the new system.

How Can Accounting Be Prepared for VAT, Corporate Tax, and E-Invoicing When Relocating a Business to the UAE?

Start by setting up the chart of accounts and tax categories according to UAE requirements, as the standard Russian 1C configuration is not designed for them. Next, ensure that VAT is calculated correctly for each transaction, adjustments required for Corporate Tax are recorded, and the system is ready for the transition to e-invoicing within the deadlines set by the FTA.

I'm Setting Up a Company in the UAE. Which Accounting Software Should I Choose?

Choose a system listed in the FTA Tax Accounting Software Registry that supports VAT, Corporate Tax, and e-invoicing readiness, works in a language familiar to your team, and allows you to add modules without migrating data. At the start, an accounting module covering VAT and Corporate Tax is usually sufficient; warehouse, procurement, sales, and payroll functions can be added as the business grows. FirstBit ERP follows this model: it is listed in the FTA Tax Accounting Software Registry, supports IFRS accounting, and generates VAT returns and the FTA Audit File (FAF).

Is There an Equivalent to 1C in Dubai for Russian-Speaking Businesses?

Yes. For example, FirstBit ERP is built on the 1C:Enterprise platform and localized for UAE VAT, Corporate Tax, and FTA requirements. Its workflows are familiar to 1C users, while accounting follows IFRS and supports reporting to the UAE tax authorities. First Bit provides implementation, Russian-language training, and support in the UAE.

Do I Need a Separate ERP System If My Company Has Only 10 Employees in Dubai?

For a team of this size, a full ERP system may not be justified from day one. A basic accounting module is often enough initially, with warehouse, procurement, and sales functions added as the company grows. There is no need to pay for features you do not yet use, but it makes sense to choose a system that can scale without another data migration. Starting with an accounting module and adding other functions only when needed is a practical approach for most companies of this size.

Can I Access 1C Remotely from the UAE If My Company Is Registered There?

Remote access depends on whether the system is hosted in the cloud or on a local server. A cloud deployment provides access from anywhere with an internet connection; an on-premises deployment requires remote access to the company's server to be configured. The choice should reflect data security requirements and whether an IT specialist is available to maintain the infrastructure. FirstBit ERP supports both cloud and on-premises deployments, with access through a browser or mobile application.

Can a Free Zone Company's Accounting Be Managed in 1C?

Yes, provided the 1C-based system is localized for the UAE. The standard Russian configuration is not suitable because it lacks UAE VAT and Corporate Tax functionality. FirstBit ERP is listed in the FTA Tax Accounting Software Registry and supports IFRS accounting, VAT, and the FTA Audit File (FAF) in one database, as well as multiple companies and currencies. The system also supports separate accounting for Qualifying Income (0% rate) and Non-Qualifying Income (9% rate).


author
Anna Sharygina
Content Writer
Anna has extensive experience in the IT industry and shares her expertise with our blog readers, helping them better understand how to implement digital solutions for businesses across the GCC region.
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