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Middle EastRemote-friendly Verified · 31 Jul 2026

How to found a company in the United Arab Emirates

You’d incorporate a Free Zone Company (FZ-LLC).

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The numbers

Government filing fee
—Varies by free zone and licence type — roughly AED 5,500 to AED 50,000 in year one. A zero-visa licence starts around AED 4,900–7,500; a one-visa package runs about AED 9,000–12,000. Too wide a range to state a single figure.
Typical turnaround
~1 week
Corporation tax
9%0% on taxable income up to AED 375,000, 9% above. A Qualifying Free Zone Person pays 0% on Qualifying Income only — non-qualifying income is taxed at 9% with no threshold relief.
VAT threshold
AED 375,000Mandatory above AED 375,000 of taxable supplies. Voluntary registration available from AED 187,500. VAT is 5%.
Minimum directors
1No residency requirement to own the company. A residence visa is usually obtained alongside it.
Minimum shareholders
1

What you’ll need

  • Selection of a free zone — cost and permitted activities differ substantially between them
  • A trade licence matching the company's actual activities
  • Office or flexi-desk space within the chosen zone
  • Emirates ID and medical screening where a residence visa is taken

Watch out

  • ⚠️Failing any single Qualifying Free Zone Person condition makes the entity's entire income taxable at 9% for that period, without the AED 375,000 band.
  • ⚠️Free zone companies are restricted from trading directly in the UAE mainland without a local distributor or a mainland branch.
  • ⚠️The trade licence renews annually — the headline setup figure is not the running cost.
  • ⚠️The activities listed on the licence govern what the company may lawfully invoice for.
  • ⚠️Establishing UAE tax residency does not by itself end tax obligations in a founder's previous country.

The steps

  1. 1

    Choose the free zone

    You5 days

    Zones differ in cost, permitted activities, visa allocation and standing with banks.

  2. 2

    Select the licence activity

    You1 day

    The licensed activity list determines what the company can invoice for.

  3. 3

    Submit the incorporation application

    Founding3 days

    Passport copies, application forms and the licence fee.

  4. 4

    Trade licence and establishment card issued

    The registry5 days

    The trade licence is the operative registration document.

  5. 5

    Residence visa and Emirates ID

    You~3 weeks

    Entry permit, medical screening, biometrics, then visa stamping.

What you’ll need around it

All products

Which products work with a FZ-LLC hasn't been established yet.

Checked 31 Jul 2026 against an official source. Rules and fees change — confirm anything you are about to act on. Founding is not a law firm and this is not legal or tax advice.