In just four days, you can set up a business in the UAE. The fact that this process works so well is one reason why the United Arab Emirates is ranked seventh in the world in the IMD World Competitiveness Yearbook 2024.
In June 2021, a major change did away with the need for local sponsors. This meant that foreign investors could fully own onshore businesses in most sectors. The UAE has more than 2,000 ways for businesses to register, whether you want to start a business in a free zone with a 0% corporate tax rate or on the mainland. Also, entrepreneurs have never had more options when it comes to registering a business in the UAE because there are more than 40 Free Zones in the country.
The UAE is a great place to do business, and a lot of people from other countries are interested in it. For example, the Dubai Chamber of Commerce has more than 90,000 Indian companies registered with it. It's just as important for new businesses to know how to register for VAT in UAE as it is for existing ones, especially since the corporate tax rate is only 9% (with exemptions for businesses with annual taxable profits under AED 375,000).
At CSPZone, we help serious business owners with this process because we know a lot about UAE laws and how to follow them. We are different from most setup providers because we focus on long-term stability and privacy for international holding companies, business owners, and wealthy investors.
In this complete guide, we'll show you everything you need to know about registering your business in the UAE in 2025, from choosing the right place to do it to finishing all the steps after registration.
A Real Success Story: Making a Dream Come True in Just 14 Days
Muqtar from India and Fei from Japan went to CSPZone with the goal of starting a private trading company in Dubai with AED 750,000 in capital. Both of them lived abroad and needed full remote support, which included structuring a nominee director, integrating IBKR Global, and keeping a clean compliance trail.
Our team took care of everything, from setting up their Free Zone company in Meydan to getting a VARA NOC for crypto trading and opening a bank account with Mashreq Bank. In just 14 business days, they had a fully functioning business, residency visas for the UAE, and a structure that met all the rules for trading around the world. They are now growing with full confidence, knowing that CSPZone will continue to help them with their VAT, CT, and license renewal duties.
How to Register a Company in the UAE: Types and Jurisdictions
The UAE has three different places where you can register your business, and each one has its own benefits that are best for certain business goals. You need to know the main differences between mainland, free zone, and offshore options before you choose where to register your company in the UAE.
Also read: 9 Steps to Open a Company in Dubai
Mainland Company Formation
The Department of Economic Development (DED) in each emirate gives licenses to mainland companies to do business there. These businesses can do business freely in the UAE and around the world without any restrictions. The most significant development for entrepreneurs is that recent regulatory changes now permit 100% foreign ownership in most sectors, removing the traditional requirement for a local sponsor to hold 51% of shares.
Businesses that want to do the following should look into mainland establishments:
- Do business directly in the UAE market
- Get government contracts
- Open several branches in different emirates
- Work in certain regulated industries
Free Zone Company Setup
Free zones are special economic areas set up to encourage foreign investment by offering good terms. There are more than 46 free zones in the UAE, and each one is designed for a different type of business, like technology, media, logistics, or healthcare.
Key benefits include:
- 100% foreign ownership
- No corporate or income tax (up to certain amounts)
- Full repatriation of profits and capital
- No import/export duties
- Infrastructure that is specific to the industry
However, companies in free zones usually can't do business directly in the mainland market unless they hire a local distributor or set up a branch in the mainland.
Offshore Company Registration
The main reason for setting up an offshore company is to do business and manage assets outside of the UAE. These businesses are registered by certain offshore authorities in places like Ras Al Khaimah (RAK) and Jebel Ali Free Zone (JAFZA).
Main advantages:
- No taxes
- More privacy
- Full foreign ownership
- No need for an office or employees
- Invoicing from anywhere in the world
Note: Offshore companies are not allowed to do business in the UAE.
Find out more about our Nominee Director Services
Essential Requirements for Registering a Company in the UAE
You need certain legal, financial, and administrative papers to start a business in the UAE. You need this:
Legal Documents Required
- Copies of passports (valid for at least six months)
- Copies of visas or an entry stamp from the UAE
- Emirates ID (if resident)
- Proof of address (utility bill)
- Trade name reservation
- Initial approval (DED or Free Zone)
- MOA and AOA
Visa Requirements for Business Owners
- Investor Green Visa or Golden Visa
- Proof of investment
- Approvals from local authorities
Office Space Requirements
- Mainland: Must have a certain amount of square feet per employee
- Free Zones: Options include virtual, shared, and dedicated offices
Capital Requirements
- Most LLCs don't have to have a minimum amount of money
- Practical range is AED 50,000 to AED 150,000
- Some sectors (finance and banking) need AED millions
Step-by-Step Process to Register a Company in the UAE
- Choose a business activity from over 2,000 options
- Set aside a trade name (with DED/Free Zone)
- Get the legal papers ready
- Get initial approval
- Send in the application for a license
- Get a visa
- Open a business bank account
Need help opening a bank account?
Costs for Starting a Business in the UAE
- License and registration: AED 5,500 to 50,000
- Office rent: AED 15,000 to 100,000 (Free Zone); varies in Mainland
- Visa: AED 2,490 to 3,730 per person
- Banking: AED 1,500 to 6,000 to set up and a minimum balance
Compliance Requirements After Registration
- VAT Registration: Required if taxable turnover is more than AED 375,000
- Corporate Tax: 9% on net profits over AED 375,000
- Annual Audit: Required for most Free Zones and all Mainland companies
- UBO & ESR Filing: Required across the UAE
Learn more about our VAT and corporate tax services
Conclusion
Setting up a business in the UAE is quick, easy, and trusted around the world — but only if you do it right. Choosing the right structure and following the rules is important for long-term success, whether you're a first-time founder or managing international holdings.
We don't just register your business at CSPZone. We also protect your structure, help you with your taxes, and help you grow with confidence.
Are you ready to start? Get your custom quote today
