The full Dubai company formation sequence in 12 steps, with a jurisdiction decision framework, document checklist, realistic week-by-week timeline, and the ordering mistakes that add weeks to an otherwise simple setup.
Dubai company formation fails on sequencing far more often than on eligibility. The licence itself is procedural; what costs founders weeks is starting document attestation after the licence issues, signing a lease before confirming the activity, or leaving the bank application until the visa is done. JB Consultants (Jitendra Business Consultants), which has formed more than 5,300 companies in the UAE since 2001, works to the sequence below. This is the full checklist, with the jurisdiction decision that has to come first.
Everything else follows from this. Three routes exist, and the right one is determined by who your customers are.
| Factor | Free zone | Mainland (DET) | Offshore |
|---|---|---|---|
| Foreign ownership | 100% | 100% on most activities | 100% |
| Sell inside the UAE | Via distributor or branch | Unrestricted | No |
| Government contracts | Generally no | Yes | No |
| Workspace | Flexi-desk acceptable | Ejari office required | None |
| Residence visas | Yes | Yes | No |
| Year one, one visa | AED 20,000 - 35,000 | AED 32,000 - 55,000 | Structure-dependent |
The decision rule: customers outside the UAE, or UAE businesses contracting with you rather than buying across a counter, point to a free zone. Invoicing government entities, retail premises or staff on client sites across the Emirates point to mainland. Holding assets, IP or shares without trading points to offshore. Full foreign ownership on the mainland follows Federal Decree-Law No. 26 of 2020, which opened more than 1,000 Dubai activities, excluding a small set of strategic-impact sectors.
Pick the activity code, not a description. It determines licence type, ownership eligibility, whether a regulator must approve you, and how a bank will read your application later. A mismatch between the licensed activity and your actual business plan is the single most common cause of bank rejection.
Get written confirmation that your exact activity permits full foreign ownership in Dubai. Healthcare, education, financial services and food handling need sector approvals that add both fees and weeks.
Individual shareholders need passport copies and, in some cases, proof of address. Corporate shareholders need certificate of incorporation, memorandum and articles, a board resolution and a power of attorney, each notarised, legalised in the home country and attested by the UAE Embassy, then MOFA-attested in the UAE. Budget AED 500 to AED 2,500 per document set. Start this at step 3, not step 9.
Within the free zone route, zones differ sharply on price, activity fit, visa quota and bank acceptability. Entry pricing runs from around AED 5,750 at the cheapest zones to roughly AED 31,000 to AED 49,941 at DMCC. Pick on activity fit and quota, not on the headline number.
AED 600 to AED 2,000 with initial approval. Foreign-language and non-Arabic names attract a surcharge. Reservations expire, so time this against your lease.
Confirms the authority has no objection to you carrying out the activity. Not a licence, and not permission to trade.
Free zone: flexi-desk from around AED 3,000, dedicated office AED 15,000 to AED 20,000 and up. Mainland: an Ejari-registered tenancy at AED 15,000 to AED 40,000 plus AED 220 Ejari. Critical point: your visa quota is tied to the workspace, so size it to your hiring plan, not just to today.
AED 1,500 to AED 3,500, higher for corporate shareholders or bespoke profit-share arrangements.
Free zone licences typically run AED 9,000 to AED 25,000, mainland AED 12,000 to AED 25,000 and above. Mainland commercial licences also carry Chamber membership of AED 600 to AED 1,500 and an annual market fee of 5 percent of office rent.
AED 1,000 to AED 2,000 in a free zone, AED 2,000 to AED 5,000 on the mainland. You cannot sponsor anyone, including yourself, until this exists.
Entry permit, status change, medical fitness test, Emirates ID and residence stamping: AED 3,000 to AED 6,500 per two-year free zone visa, AED 4,000 to AED 7,000 on the mainland. Health insurance is compulsory and frequently missing from quotes.
Prepare this during step 11, not after it. Banks expect a resident signatory, a business plan matching the licensed activity, certified corporate documents, UBO passports and proof of address, and source of funds evidence. Expect four to eight weeks and minimum balance requirements from AED 25,000 to AED 500,000 depending on the bank. UAE bank account opening is the step that most often stalls an otherwise complete setup.
| Week | What should be happening |
|---|---|
| Week 1 | Activity and jurisdiction confirmed; attestation started; trade name reserved |
| Week 2 | Initial approval; workspace secured; MOA drafted |
| Weeks 2-3 | Licence issued (free zone often faster; mainland 2-4 weeks) |
| Weeks 3-4 | Establishment card and immigration file; visa application filed |
| Weeks 4-6 | Medical, Emirates ID, residence stamping; bank file prepared in parallel |
| Weeks 6-10 | Bank account opened and funded; corporate tax registration completed |
If your activity is trade-related, confirm at step 1 whether you need a general trading licence rather than a narrower commercial one, because widening it later means amending the licence rather than adding a line.
A free zone licence can issue within days and a mainland licence in two to four weeks. A fully operational company with visa, Emirates ID and a funded bank account realistically takes six to ten weeks. Attestation and bank onboarding are the variables.
A lean free zone licence with no visa starts near AED 12,500. With one visa, plan AED 20,000 to AED 35,000 for a Dubai free zone entity or AED 32,000 to AED 55,000 for a mainland LLC. Sharjah entry zones start lower, from around AED 5,500.
Largely, yes. Formation can be handled through a power of attorney. The medical test and Emirates ID biometrics require your presence, and some banks insist on meeting the signatory in person.
Not for a free zone company, and not for most mainland activities since Federal Decree-Law No. 26 of 2020 removed the majority Emirati shareholder requirement. A branch of a foreign company on the mainland still requires a national service agent, which is an administrative agency arrangement rather than a shareholding.
The licence, then the establishment card, then the visa. You cannot sponsor anyone until the immigration file exists, which is why the establishment card is a step in its own right rather than a formality.
For individual shareholders: passport copies, passport photographs, and often proof of address and a CV for professional activities. For corporate shareholders: certificate of incorporation, memorandum and articles, board resolution and power of attorney, all attested. Have these ready before week one.
Follow the order and Dubai setup is predictable. Get the order wrong and a two-week licence becomes a three-month project. To get your activity, jurisdiction and timeline mapped with an itemised quote covering licence, visas and renewal, explore our business setup in Dubai services or speak to the JB Consultants team.
Contact our experts to discuss your business setup requirements and find the perfect solution.
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