Company Formation in UAE

The company formation in UAE is a well-structured process that investors can follow. It is on a surge driven by the growing business opportunities in the region. The following business benefits are making UAE the No.1 destination for setting up a new Company by investors.

 Ease of doing business
Government support
A robust network of international & local commercial banks

UAE is home to thousands of multinational companies including Fortune 500 companies. There are more than 40+ Free Trade Zones functioning here offering various packages for setting up a company in UAE.


Company formation on Mainland is a popular choice for traders, professional services, and retail businesses. As there is immense scope for expansion by adding more branches and opening up more retail stores.
An investor can set up his company in the Mainland of Dubai, Sharjah, Ras Al Khaimah, Ajman, and other Emirates. To set up a company in the Mainland of UAE there are many options. Limited Liability Company is the most popular one. For single ownership companies, the investor can choose a Sole Proprietorship. Investors in the field of legal services, accounting, doctors, Accountants, etc., can obtain a professional license from the Dubai Economy. This license enables the company to operate in the UAE Mainland.
For large and medium companies in sectors like manufacturing, heavy equipment maintenance, etc., a commercial license is the preferred business license. UAE Mainland offers competitive rates for a commercial license along with land and pre-built facilities for the manufacturing companies.


There are 7 emirates in the United Arab Emirates (Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah, Umm al-Quwain). Each Emirate has its Free Zones that have a special tax, customs, and import regime.
The Free Zone Companies in UAE are the best choice for setting up a business for foreign investors. The Free Zone Companies enjoy the freedom of 100% foreign ownership. no taxation, full profit repatriation, world-class office infrastructure, visa quotas, 24/7 access, and more. The Company Formation Process in the Free Zones is relatively easy and straightforward. These Free Zones allow 100% foreign ownership to the investors.



The Company Formation Process in UAE across the three main business jurisdictions varies depending on multiple factors. They are the legal framework, documentation, and approvals required for doing the business. There is a step-by-step process to be followed for a successful company formation in UAE.

Name and Activity Approval

Company Incorporation and License

obtaining Residency Visa

Stamping Visa

Bank Account


Getting the Trade Name and Business Activity Approval is the first step of the company formation process in UAE. Selection of the right business license type and business activities under the trade license is also an important aspect of the company formation process. In the Free Zones, the governing authority will be the specific Free Zone Organization. Similarly, in the Mainland of UAE, it is the Department of Economic Development of the respective Emirate.


Once the business jurisdiction, business license, and business activity are confirmed, look for convenient office space and prepare the tenancy contract. The investor has to now submit the required documents, and the business license fee to secure their company license. The Investor will also receive all the company documents such as the Memorandum of Association, Company Stamp, etc, along with the trade License.


Once the trade license and company documents are obtained, the investor can proceed to apply for the UAE Residence Visa. The Investor Visa under the company is for 3 years (renewable). The company will also be eligible to apply for employment visas (2 years renewable) depending on the visa allocation. The company owners have to go through a Medical Test and process their Emirates IDs to complete the UAE Residence procedures.


As the investor receives the company documents, UAE residence visa, and Emirates ID, they can proceed to open a personal and corporate bank account for the company to initiate the trade operations.


There are few documents the investor will receive from the authorities for a new Company Formation in Dubai. They are:
  Company Incorporation Certificate
  Memorandum of Association & Articles of Association
  Trade License with the selected business activities listed
  Company Establishment Card
  Shareholding Certificate for capital investment in the company
  Side Agreements with Local Sponsor (if any)
  Tenancy Contract/ Lease Agreement for the Office (if any)
  Emirates ID and UAE Residence Visa for the Investor (if any)
  Any other supporting document as per the business activity and business jurisdiction