Dubai has become one of the most attractive centers for foreign entrepreneurs, thanks to both tax advantages and global trade opportunities as we head towards 2026. However, the process of establishing a company in Dubai and obtaining a residence visa through this company can appear complex at first glance due to the choice of license type, costs, visa procedures, and local regulations.
In this guide, you will find detailed information about establishing mainland and free zone companies in Dubai from a 2026 perspective, step-by-step processes, costs, and how this establishment is related to residence visa in Dubai.
Establishing a Company in Dubai: Mainland or Free Zone?
When establishing a company in Dubai, you essentially choose one of three structures:
- Mainland (Dubai DET licensed)
- Free Zone
- Offshore (generally for structuring purposes, not residency)
In this guide, we will focus on the two most critical structures in terms of residency and business development: mainland and free zone companies.
Mainland Company (Dubai DET) – Who is it Suitable For?
Mainland companies are licensed by the Dubai Department of Economy and Tourism (DET) and offer you the freedom to trade not only in Dubai but throughout the UAE.[1] This structure is particularly suitable for the following profiles:
- Those who want to open a physical store, office, or branch in Dubai,
- Those who want to work directly with local customers (B2B/B2C),
- Companies planning to employ a large number of employees,
- Those aiming to trade in other emirates of the UAE.
The process in the mainland model has largely been digitized: the selection of business activity, determination of legal structure, and submission of documents progress online through official portals.[1]
Free Zone Company – Who is it Suitable For?
There are dozens of free zones in Dubai. Some prominent free zones include:
- Dubai CommerCity (focused on e-commerce and trade)
- Dubai Internet City (technology and digital business models)
- Dubai Media City (media, production, agencies)
- DAFZA – Dubai Airport Free Zone Authority (focused on aviation and trade)[1]
Free zones offer simplified customs procedures, dedicated support teams, and often fast licensing.[1] They are generally ideal for:
- Those who want to provide international trade or online services only,
- Low startup cost startups and SMEs,
- Consulting/IT firms looking to start with a flexi desk or virtual office,
- Startups that do not plan to physically enter the UAE domestic market for now.
The process in free zones consists of steps such as name reservation, preliminary approval, submission of incorporation documents, and selection of flexi desk/office space. Authorities like DAFZA facilitate planning with clear procedures and timelines.
Dubai Mainland Company Formation: Step-by-Step Process for 2026
1. Obtaining Initial Approval
First, you determine your company name and business activity, then you obtain initial approval from the Dubai Economy and Tourism (DED/DET).[3] This approval indicates that the government has no objection to your business model in principle.
Foreign applicants must have a valid entry permit or residency status processed by the General Directorate of Residency and Foreigners Affairs.[1]
Generally required documents include:[1]
- Valid passport
- Clean criminal record
- List of activities and proposed company structure
Approval time: Typically 1–2 business days.[1]
2. Preparing the Memorandum of Association (MOA)
Memorandum of Association (MOA) details the company’s:
- Share/ownership structure,
- Management roles and authorities,
- Permitted activities
Although at least two partners are generally required for an LLC, structures are more flexible as of 2026 with the removal of capital requirements.
You need to have the MOA notarized through the relevant court or authorized notary.[1]
- MOA preparation and notarization cost: Approximately AED 2,000–5,000 (including legal fees).[1]
3. Securing Office Space and Ejari Registration
A physical address is mandatory for mainland companies.[1] Depending on your type of activity:
- Flexi desk or shared office,
- Larger commercial office or retail space
You create the official address registration linked to your license by registering the lease agreement through the Ejari system.[1]
- Annual rent cost: AED 20,000–50,000 (depending on location and square meters)[1]
- Ejari registration: AED 220[1]
4. Obtaining the Establishment Card
The Establishment Card is issued by the Ministry of Human Resources and Emiratisation (MOHRE) and allows your company to:
- Be a sponsor for employee visas,
- Appear as an employer registered in the UAE labor system
[1]
- Establishment card cost: Approximately AED 1,000–2,000[1]
5. Applying for a Trade License
After completing all documents, you apply for a trade license for final review. Once approved, your license officially registers your company’s legal existence and activity permission.[1]
Main types of licenses include:
- Commercial License: Trading, general commerce, e-commerce
- Professional License: Consulting, IT, education, freelance
- Industrial License: Manufacturing, assembly, industrial activities
- License cost: Typically AED 10,000–25,000 (depending on activity type)[1]
- Completion time: 1–3 business days[1]
6. Opening a Corporate Bank Account and Visa Applications
Once your license is active, you can open a corporate bank account in the UAE.[1] Banks will request your company documents, partners’ identities, and compliance (KYC) documents. Minimum balance requirements vary by bank.
Then, you can apply for employee and partner visas with your establishment card and company documents.[1]
- Visa cost: Approximately AED 3,000–5,000 per person (depending on type and duration)[1]
- Bank minimum balance: Generally AED 50,000 or more in most banks[1]
Free Zone Company Formation
Free zone companies are preferred, especially by entrepreneurs targeting fast setup and low operational costs. Each free zone has its own regulations and packages; however, the process is generally similar.
Name Reservation and Preliminary Approval
First, you submit the company name and basic partnership/activity details to the free zone authority. The authority checks the name’s suitability and whether your activity is on the permitted list.[1]
- Name reservation typically takes a few hours to 1 business day.
- With preliminary approval, you can proceed to the next step of incorporation documents.
Submission of Incorporation Documents and MOA
Free zone authorities request documents such as partners’ passports, proof of address, resumes, and in certain cases, proof of financial eligibility. At this stage:
- MOA or similar incorporation agreement is prepared,
- Notarization and translations are completed if necessary,
- The company’s share structure and activities are officially registered.
Many free zones accept incorporation agreements and documents digitally, making it easier to apply from abroad.
Office/Workspace Selection
In free zones, you can choose one of the following options based on your company type:
- Flexi desk/hot desk: Specific hours in a shared office environment,
- Serviced office: Ready-furnished offices with reception services,
- Warehouse/logistics area: Especially for trade and e-commerce.
These costs are often bundled with annual license packages.
Advantages of Establishing a Company in a Free Zone
- 100% foreign ownership and generally fast licensing,
- Most areas offer VAT and customs advantages,
- Flexibility for intra-free zone and international trade,
- Suitable infrastructure for obtaining residence visas and opening bank accounts.
However, keep in mind: Free zone companies generally require a local distributor or additional structuring to make direct sales to the UAE domestic market.
Costs of Establishing a Company in Dubai and Tax Aspects (2026 Perspective)
The total cost varies based on the type of license you choose, office standard, number of partners, and visa needs. According to research data and current market practices, averages are:
- Mainland license + registration: AED 10,000–25,000[1]
- MOA and notarization costs: AED 2,000–5,000[1]
- Office rent (annual): AED 20,000–50,000 (excluding Ejari)[1]
- Establishment card: AED 1,000–2,000[1]
- Visa costs: AED 3,000–5,000 per person[1]
- Banking minimum balance: Typically AED 50,000 and above in most banks[1]
In free zone packages, the license + office + a certain number of visa limits are offered as a package. In some entry-level free zones, the total initial year cost may be lower than mainland.
On the tax side:
- There is no personal income tax in the UAE.
- As of 2023, a 9% corporate tax applies to company profits above a certain threshold; however, you can optimize your tax burden through structuring thanks to free zone advantages and double taxation agreements.
- A 5% VAT applies to most activities; however, there may be exemptions for exports and certain free zone transactions.
Here, it is essential to evaluate the current regulations for corporate tax, accounting, and VAT obligations in the UAE alongside the international accounting dimension.
Residence Visa in Dubai – Its Relation to Company Formation
Establishing a company in Dubai is often one of the most practical ways to obtain a residence visa. The visa you receive as a partner, manager, or employee allows you to live, work, and open a bank account in Dubai.
Main Types of Residence Visas
- Investor/Partner Visa: A visa you receive as a company partner or investor, usually for 2–3 years. It is based on the company license and capital structure.
- Employment Visa: A visa you receive as an employee in your own company or another company. It is subject to HR and quota processes.
- Long-Term Visa Programs: Programs like the Green Visa and Golden Visa developed by the UAE come into play when sufficient investment or qualifications are demonstrated.
For a summary framework regarding general provisions and validity periods, you can review the general provisions on the UAE official portal.
Steps to Obtain a Residence Visa Through the Company
After your company is established, the typical process is as follows:
- 1. Entry Permit: If you are coming from abroad, an entry permit is uploaded to the system. With this permit, you enter the UAE or make a status change.
- 2. Medical Test: You undergo checks such as blood tests and chest X-rays at an authorized center.
- 3. Emirates ID Application: Biometric data (fingerprint, photo) is taken.
- 4. Visa Stamping: A residence visa stamp is placed in your passport and electronically recorded in the system.
These steps are usually completed within 5–10 business days (depending on appointment availability and application volume).
Sponsorship for Family and Staff
After obtaining residency as a company owner or employee:
- You can sponsor your spouse and children with a family visa.
- Depending on the size of your company and area of activity, you will receive a certain employee visa quota.
At this point, you can also plan for international workforce mobility, including sending personnel to Europe, payroll and tax optimization under the posted worker model. This is where Corpenza’s EOR (Employer of Record), payroll, and personnel leasing expertise comes into play.
How Can You Optimize the Company Formation and Residence Visa Process with Corpenza in Dubai?
Establishing a company in Dubai does not end with obtaining a license; for long-term scalability, the following topics need to be addressed together:
- Choosing the right structure: Mainland or which free zone, single company or holding structure?
- Compliance of UAE corporate tax and VAT obligations with international structure,
- Opening a corporate bank account and minimum balance strategy,
- Structuring residence visas for partners and key personnel,
- Integration of investment, golden visa, and citizenship options related to Europe or other countries,
- Structuring multinational payroll, EOR, and posted worker setups through your company.
As Corpenza, we design company formation in Dubai, UAE residence visas, international accounting and payroll management, and solutions for residency/citizenship through company establishment in Europe under a single roof. This way, we help you establish a structure that not only provides “a license” but also enables tax and cost optimization on a global scale.
In particular:
- We evaluate the company type and country combination (Dubai + EU countries, etc.) together,
- We integrate your residency visa goals (family, Golden Visa, European residency, etc.) into your business model,
- We make the company you established in the UAE suitable for employing workers under remote, posted worker, or EOR models in other countries.
This way, the step you take in Dubai becomes a sustainable and auditable structure aligned with your global growth strategy.
Conclusion: Dubai Towards 2026, Not Just a Company Formation Address, but a Global Bridge
As we approach 2026, Dubai is establishing itself as a strategic center for entrepreneurs looking to start a business and globalize with its low income tax environment, accelerating digital processes, and expanding residence visa programs.
However:
- A poorly chosen free zone,
- A poorly structured partnership,
- Neglecting accounting and tax obligations,
- Planning residence and visa structures disconnected from the business model
can lead to costly and difficult-to-reverse mistakes in the long term.
With professional structuring, you can make both the company formation and residence visa processes in Dubai transparent and predictable, and strengthen this structure by integrating it with Europe and other markets. Corpenza is here to plan and implement this integration end-to-end.
Disclaimer
This text is prepared for general informational purposes and does not constitute legal, financial, or tax advice. Immigration, tax, and corporate law regulations in the UAE and other countries can change frequently. We recommend checking current regulations from official sources (such as relevant ministries, immigration authorities, and official government portals) and obtaining individual advice from a qualified professional before making any decisions. Corpenza can only provide specific advice as part of its direct one-on-one consulting services.
