Last updated: 2026-07-23
Company incorporation in Dubai takes 5–7 working days for a standard mainland licence once your trade name, initial approval, and Ejari lease are ready. A mainland LLC costs AED 18,500–28,000 all-in in 2026, while free zone incorporation packages start at AED 12,900 (2026). The Department of Economy and Tourism licenses more than 2,000 activities, and DBS Group has guided 80,000+ entrepreneurs since 2009.
Mainland, Free Zone or Offshore: Where to Incorporate in 2026
Your jurisdiction decides your market access, visa quota, tax profile and banking options before you file a single form. Mainland companies, licensed by the Department of Economy and Tourism (DET), trade anywhere in the UAE and bid on government contracts; since Federal Decree-Law No. 26 of 2020, foreigners hold 100% ownership across more than 1,000 commercial and industrial activities. If your customers are inside the UAE, start with Dubai mainland company formation — it remains the route DBS recommends for trading and services businesses targeting the local market.
How the Three Jurisdictions Compare in 2026
| Feature | Mainland (DET) | Free Zone | Offshore |
|---|---|---|---|
| 2026 starting cost | AED 18,500 | AED 12,900 | AED 9,500 |
| UAE market access | Unrestricted | Inside zone + export (mainland via distributor) | None — holding only |
| Foreign ownership | 100% on 1,000+ activities (2020 CCL amendment) | 100% | 100% |
| Visa eligibility | Tied to office size (approx. 1 visa per 9 sqm) | 1–6 on standard packages | 0 |
| Corporate tax | 9% above AED 375,000 profit | 0% on qualifying income; 9% otherwise | Out of scope if non-resident |
| Government contracts | Eligible | Not eligible | Not eligible |
A free zone company setup in Dubai wins on entry price and speed — IFZA and Meydan issue licences in 48 hours (2026) — while offshore vehicles exist purely for asset holding and international invoicing.
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The 7 Steps to Incorporate a Company in Dubai
DET processed licence applications in an average of 3 working days in 2025, but the full sequence below takes 5–7 working days when documents are complete.
Step 1: Select Your Business Activity
DET’s 2026 activity list covers 2,000+ activities across commercial, professional and industrial categories. Your activity code determines external approvals: RTA for transport, KHDA for education, DHA for healthcare, RERA for real estate brokerage. Choosing the wrong code is the single most common reason applications bounce — DBS pre-clears codes against the 2026 list before filing.
Step 2: Reserve Your Trade Name
Trade name reservation costs AED 720 (2026) and clears in 1 working day through the DET portal. Names must avoid religious references, existing trademarks, and country names without approval.
Step 3: Obtain Initial Approval
Initial approval costs AED 235 (2026) and confirms the government has no objection to your incorporation. It is valid for 6 months — your window to complete the remaining steps.
Step 4: Draft and Notarize the Memorandum of Association
The MOA fixes shareholding, capital and management powers. Notarization runs AED 1,500 for a standard two-shareholder LLC (2026), and since the 2020 CCL amendment no UAE national sponsor is required for the 1,000+ liberalized activities.
Step 5: Lease an Office and Register Ejari
Mainland licences require a physical address; Ejari registration costs AED 220 (2026). Smart desk options from AED 8,000/year satisfy the requirement for startups, and your office size caps your visa quota at roughly 1 visa per 9 sqm.
Step 6: Pay Licence Issuance Fees
DET issues the commercial licence after payment of AED 10,000–13,000 in government fees for a typical trading LLC (2026), including Chamber of Commerce membership at AED 1,200.
Step 7: Open the Corporate Bank Account and Establishment Card
The immigration establishment card costs AED 750 (2026) and unlocks visa processing through MOHRE and GDRFA. UAE banks approved standard SME accounts in 5–15 working days in 2025; DBS’s banking desk pre-packages KYC files to hit the short end of that range.
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Company Incorporation Costs in Dubai 2026
Budget against the full government fee stack, not the advertised licence price. The table below is the 2026 cost sheet DBS uses for a standard mainland trading LLC; see the full breakdown of business setup costs in Dubai for other structures.
| Activity | Government Fee (AED) | DBS Service (AED) | Total (AED) | Notes |
|---|---|---|---|---|
| Trade name reservation | 720 | — | 720 | 1 working day (2026) |
| Initial approval | 235 | — | 235 | Valid 6 months |
| MOA notarization | 1,500 | — | 1,500 | Two-shareholder LLC |
| Ejari registration | 220 | — | 220 | Office lease required |
| Licence issuance + Chamber | 11,200 | — | 11,200 | Typical trading activity (2026) |
| Establishment card | 750 | — | 750 | Immigration file |
| DBS incorporation package | — | 4,500 | 4,500 | End-to-end filing + banking intro |
| Total | 14,625 | 4,500 | 19,125 | Standard mainland LLC (2026) |
Free zone incorporation compresses this stack into a single package: IFZA starts at AED 12,900 and Meydan Free Zone at AED 12,500 for zero-visa licences (2026). Add AED 3,750–5,500 per visa allocation.
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Corporate Tax, VAT and Compliance After Incorporation
The UAE levies 9% corporate tax on profits above AED 375,000 under Federal Decree-Law No. 47 of 2022, with 0% below that threshold; registration with the Federal Tax Authority is mandatory within 3 months of licence issue. Free zone entities keep 0% on qualifying income under Cabinet Decision No. 100 of 2023. Multinational groups with global revenue above EUR 750 million pay the 15% domestic minimum top-up tax that took effect on 1 January 2025.
VAT and Ongoing Filings
VAT registration at the 5% standard rate becomes mandatory once taxable supplies exceed AED 375,000 in a rolling 12-month period (2026). Mainland companies renew licences annually at 90–95% of first-year government fees, and audited financials are required for corporate tax filings by most licence categories.
Emiratisation Deadlines
Private companies with 50+ employees in 45 target sectors must raise Emirati participation in skilled roles by 2% each year under MOHRE rules, reaching 10% by the end of 2026. Fines run AED 108,000 per unfilled slot for 2026 (AED 9,000/month). Companies of 20–49 staff in designated sectors must hire at least two Emiratis by end-2026 per the UAE Government portal.
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Corporate Banking and the 5 Pitfalls That Delay Incorporation
Banking is the step entrepreneurs underestimate: UAE banks rejected 22% of first-attempt SME account applications in 2025, almost always on incomplete KYC rather than creditworthiness (DBS banking desk data, 2025). Emirates NBD, Mashreq NeoBiz and WIO open standard accounts in 5–10 working days with minimum balances of AED 0–50,000 depending on package (2026); traditional relationship accounts at ADCB and FAB take 10–15 working days.
The 5 Pitfalls to Avoid
These five errors account for the bulk of delayed files DBS is asked to rescue:
- Wrong activity code — triggers a re-filing cycle of 3–5 working days and forfeits external approvals already paid.
- Trade name conflicts — a rejected name restarts Step 2 and its AED 720 fee (2026).
- Expired initial approval — the 6-month validity lapses while founders negotiate office leases.
- Under-sized office — a 20 sqm desk caps you at 2 visas; teams of 5+ need 45 sqm or more from day one.
- Missing attestations — corporate shareholders need MOFA-attested documents, which take 7–10 working days from most jurisdictions (2026).
Skip the paperwork — WhatsApp DBS at +971 54 332 2846 →
Why 62% of DBS Clients Chose Mainland in 2025: The DBS Advantage
Of the 80,000+ setups DBS Group has processed since 2009, 62% of 2025 incorporations chose mainland over free zone — up from 48% in 2022 — because 100% ownership removed the historic reason to stay inside a zone while UAE market access kept its full value. DBS’s incorporation desk files directly with DET, pre-clears activity codes and external approvals, notarizes the MOA under power of attorney, and hands over a licence, establishment card and bank-ready KYC file in one engagement. That is the difference between a 5-day incorporation and the 3–4 weeks entrepreneurs average when self-filing (DBS client data, 2025).
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Frequently Asked Questions
How much does company incorporation in Dubai cost in 2026?
A standard mainland trading LLC costs AED 18,500–28,000 all-in for 2026, of which roughly AED 14,625 is government fees. Free zone incorporation starts at AED 12,900 with IFZA and AED 12,500 with Meydan for zero-visa packages; each visa allocation adds AED 3,750–5,500.
How long does it take to incorporate a company in Dubai?
A mainland incorporation completes in 5–7 working days when trade name, initial approval, MOA and Ejari are filed correctly; DET’s licence step alone averaged 3 working days in 2025. Free zones such as IFZA and Meydan issue licences in as little as 48 hours (2026).
Can foreigners own 100% of a company in Dubai?
Yes. Federal Decree-Law No. 26 of 2020 abolished the 51% local-partner rule for more than 1,000 commercial and industrial activities on the mainland, and every Dubai free zone has allowed 100% foreign ownership since inception. Only a small strategic-impact list still requires Emirati participation (2026).
What is the corporate tax rate for a Dubai company in 2026?
Dubai companies pay 0% on taxable profits up to AED 375,000 and 9% above that under Federal Decree-Law No. 47 of 2022. Qualifying free zone income stays at 0% under Cabinet Decision No. 100 of 2023, and multinationals above EUR 750 million global revenue pay a 15% minimum (2025 onward).
Do I need a physical office to incorporate a company in Dubai?
Mainland licences require a leased address registered through Ejari at AED 220 (2026); smart desk solutions from AED 8,000/year satisfy the rule for startups. Most free zones include a flexi-desk in packages from AED 12,900, and your office size sets your visa quota at roughly 1 visa per 9 sqm.
What is the difference between mainland and free zone incorporation?
A mainland company trades anywhere in the UAE and bids on government contracts, costing from AED 18,500 (2026). A free zone company costs from AED 12,900, incorporates faster, and keeps 0% corporate tax on qualifying income, but needs a local distributor to sell directly into the UAE mainland market.
How many visas can a Dubai company sponsor after incorporation?
Mainland quotas scale with office size at approximately 1 visa per 9 sqm, so a 50 sqm office supports 5–6 visas (2026). Standard free zone packages bundle 1–6 visa allocations, and the establishment card that unlocks visa processing costs AED 750 through the immigration authority.
What documents are required for company incorporation in Dubai?
Expect 6 core items: shareholder passport copies, the signed MOA, trade name certificate (AED 720), initial approval (AED 235), Ejari tenancy contract (AED 220), and any external approval tied to your activity code. Corporate shareholders add attested board resolutions and certificates of incumbency (2026 requirements).
Start Your Dubai Incorporation Today
DBS Documents Clearing LLC has incorporated companies in Dubai for 17 years across mainland, free zone and offshore jurisdictions. Send your activity and shareholder count on WhatsApp at +971 54 332 2846 or email inquiry@dubaibusinessservices.com for a same-day 2026 cost sheet and timeline.
By Salem Basheer, DBS Documents Clearing LLC — last updated 2026-07-23.
