Set up a company in Dubai with Merritt
In short
Setting up a company in Dubai requires choosing between a free zone and the mainland before reserving a trade name.
Merritt's 8 packages range from 17,900 AED (IFZA, no visa quota) to 51,900 AED (IFZA, expanded quota).
Mainland packages start at AED 24,971 for one primary activity.
Free zone license processing time: 3 to 10 business days. Mainland license processing time: 7 to 15 business days.
Tax is not automatically zero: 9% on taxable profits above AED 375,000, with a specific regime for Qualifying Free Zone Persons.
Company formation, establishment card, residence visa, and Emirates ID are separate processes, each with its own fees.
Free zone or mainland: which should you choose?
Your choice of jurisdiction determines ownership, the scope of business activities, recurring costs and the number of residence visas available. Reconsidering that choice is not cost-free: transferring a licence from a free zone to the mainland requires a new company registration, a new address and, often, a new business purpose.
| Criterion | Free zone (FZ-LLC / FZE) | Mainland (LLC) |
|---|---|---|
| Share capital | Flexible; most free zones impose no minimum, with the amount stated in the articles of association | Generally flexible; a minimum capital is required for certain regulated activities |
| Foreign ownership | 100% foreign-owned, without a local sponsor | 100% foreign ownership for most activities since 2021; restrictions apply to strategic activities |
| Residence visas | Quota linked to the premises package (flexi-desk, shared office, private office) | Quota calculated based on the area of the registered lease, generally 1 visa per 9 m² of usable space |
| Business activity | Activities authorised by the free zone authority; direct trade in the local market excluded without an approved distributor | All activities, public and private contracts, tenders and direct invoicing to UAE clients |
| Taxation | 9% above AED 375,000; 0% on qualifying income if QFZP status is obtained and maintained | 9% above AED 375,000; 5% VAT on taxable transactions |
| Address | Registered address provided by the free zone | Commercial lease registered with Ejari |
| Incorporation time | 3 to 10 business days | 7 to 15 business days |
| Initial cost | From AED 17,900 | From AED 24,971 |
Qualifying Free Zone Person (QFZP) status is not automatic. It requires genuine substance in the free zone (qualified staff, assets and operating expenditure), qualifying income and non-qualifying revenue within the de minimis threshold set by federal regulations. Otherwise, the free zone company is subject to the standard 9% regime.
In practice, three profiles stand out:
- Consultant or international service provider: a UAE free zone company offers the best cost-to-visa-quota ratio, with predictable taxation.
- Business involving UAE clients, public contracts or a physical presence: a UAE mainland company is the appropriate choice, with a commercial lease and a licence issued by Dubai’s Department of Economy and Tourism.
- Holding structure or multi-jurisdiction project: combining a free zone holding company with an operating subsidiary is common, subject to alignment with transfer-pricing rules.
Mainland incorporation follows a regulated process, from selecting the business activity to issuing the licence, with payment of the licence fee within 30 days of the payment notice (UAE Government).
Company formation, step by step
The timeline below applies to a complete application submitted with no missing documents, for an unregulated activity. Each step shows the indicative timeframe observed by Merritt since 1998.
Legal and tax assessment – 48 hours
- Activity selection → check the activity against the DET and free zone classifications, and identify any required third-party approvals.
- Structure review → choose between an LLC, FZ-LLC, FZE or branch, based on projected revenue and the number of partners.
Trade name reservation – 24 to 72 hours
- Trade name reservation → three proposals, approved by the issuing authority.
- Initial approval → prior approval from the DET for the mainland, no-objection certificate for the free zone.
Preparing the application – 3 to 5 business days
- KYC and compliance file → passports, proof of address, CV, business activity description, proof of bank address.
- Corporate documents → parent company articles of association, resolutions, apostille certificates and legal translation when a legal entity is a shareholder.
Signing incorporation documents – 2 to 4 business days
- Memorandum of Association → memorandum of association, drafted in English and Arabic for the mainland.
- Lease and Ejari → commercial lease registered with Ejari for the mainland, flexi-desk or office contract for the free zone.
Licence issuance – 24 to 72 hours
- Trade licence → trade license, primary and secondary activities, annual validity.
- Establishment card → establishment card, prerequisite for any visa application and for opening immigration rights.
Immigration and Emirates ID – 2 to 4 weeks
- Entry permit → entry permit for each relevant shareholder and employee.
- Medical fitness test and biometrics → medical examination, fingerprint submission, and issuance of the Emirates ID.
Bank account opening and setup – 2 to 6 weeks
- Corporate bank account → banking KYC file, compliance interview, access activation.
- Accounting and compliance set-up → chart of accounts, VAT and corporate tax filing calendar, shareholder register.
The full sequence, from the initial meeting to an operational bank account, takes between 4 and 10 weeks. Each phase is documented in the guide setting up a company in Dubai.
How much does it cost to set up a company in Dubai?
The cost of setting up a company in Dubai consists of three parts: authority fees, service provider fees, and immigration fees, which are often omitted from comparative quotes. A price listed without an establishment card, medical examination, and Emirates ID does not reflect the true cost of the first year.
What each package includes:
- Business licence → annual commercial licence, primary and secondary business activities.
- Company registration → company registration and certificate of incorporation.
- Memorandum of Association → constitutional documents prepared, signed and filed.
- Registered address → registered business address or flexi-desk in the free zone.
- Establishment card → establishment card required for visa applications.
- UNLIMITED after-sales support → unlimited assistance with renewals, amendments and compliance.
- FREE assistance in opening a bank account → complimentary assistance with business bank account opening.
Costs payable separately by the company:
- Visa issuance → residence visa issuance fees, per person and per year.
- Medical fitness test → mandatory medical examination before the Emirates ID is issued.
- Renewal fees → annual license renewal fees.
The eight Merritt packages
The eight Merritt packages comprise six IFZA free zone options and two mainland options. Amounts are quoted in dirhams, excluding visas and banking fees.
| Package | Jurisdiction | Business activities | Visa quota | Price |
|---|---|---|---|---|
| IFZA Licence | Free zone IFZA | 1 | 0 | 17 900 AED |
| IFZA Start | Free zone IFZA | 1 | 1 | 22 900 AED |
| IFZA Business | Free zone IFZA | 1 | 2 | 28 900 AED |
| IFZA Business Plus | Free zone IFZA | 2 | 3 | 34 900 AED |
| IFZA Scale | Free zone IFZA | 3 | 4 | 41 900 AED |
| IFZA Enterprise | Free zone IFZA | 4 | 6 | 51 900 AED |
| Mainland Standard | Mainland (DET) | 1 | 1 | 24 971 AED |
| Mainland Plus | Mainland (DET) | 2 | 2 | 30 471 AED |
Detailed cost breakdown
The cost of setting up a company in Dubai varies according to four factors: the jurisdiction chosen, the number of activities, the visa quota, and the type of premises. Combining two activities under a mainland licence triggers an additional fee. Adding a visa after the licence has been issued requires an amendment to the establishment card and an additional immigration fee. A firm, dated, itemised quote remains the essential reference.
Government fees
- Free zone registration fee → registration fee payable to the free zone authority.
- Annual licence fee → annual licence fee, renewable on a fixed date.
- DET fees → licence and name reservation fees for the mainland.
- Immigration file opening → opening of an immigration file, charged by the authority.
Our professional fees
- Company formation advisory → legal and tax planning, activity verification.
- Document handling → preparation, filing, and tracking of the application with the authorities.
- Compliance follow-up → assistance with VAT, corporate tax, and renewals.
The amounts above are indicative rates valid for company formation in 2026, excluding any apostille, certified translation, and rental security deposit fees.
Residence visa and Emirates ID
The license does not grant any right of residence. The residence visa depends on a quota listed on the establishment card, which in turn depends on the area or premises package purchased. A flexi-desk generally comes with a limited quota; a 30 m² private office allows for a larger quota.
The immigration process consists of four separate steps:
Entry permit
Entry authorisation valid for 60 days for each eligible applicant.
Medical fitness test
Medical examination at an approved centre, generally within 48 to 72 hours.
Emirates ID biometrics
Fingerprint and photograph registration with the ICP.
Residence visa issuance
Visa issuance, valid for 1 to 3 years depending on the category, renewable with the license.
The duration of a Dubai residence visa varies depending on the holder's status. A partner or investor can apply for a 5-year renewable Green Residence without a local sponsor (UAE Government). Those making a significant economic contribution may qualify for the Dubai residence visa program, with renewable 5- or 10-year terms and specific eligibility criteria (real estate investment, share capital, professional profile).
Open a business bank account in Dubai
Setting up a company in Dubai is only complete once an operational bank account is in place. Banks in the UAE apply strict compliance checks based on the source of funds, the nature of transactions and the company's actual business presence. Preparing the banking documents in advance can halve the processing time.
The standard application includes:
Trade licence and establishment card
Valid trade licence and establishment card.
Memorandum and Articles of Association
Articles of association and certificate of incorporation.
Shareholder KYC
Passports, Emirates ID, proof of address, CV, and professional profile.
Business profile
Activity description, main customers and suppliers, expected volumes.
Source of funds evidence
Proof of the origin of funds and personal bank statements.
Three categories of institutions coexist: conventional banks with branch networks, digital banks with faster account opening but lower limits, and private banks focused on wealth management. The average processing time is between 2 and 6 weeks, with a compliance interview by video call or in person at a branch.
FREE assistance in opening a bank account → the Merritt team prepares the application, identifies institutions suited to the transaction profile, and follows up until access is activated. No fees are charged for this service.
Why choose Merritt
Merritt Group has been supporting French-speaking entrepreneurs since 1998 across three jurisdictions: the United States, Hong Kong, and the United Arab Emirates. This experience has a tangible effect: knowledge of each authority’s practices, actual timelines, and potential bottlenecks, rather than a sales promise.
The difference comes down to four commitments.
UNLIMITED after-sales support
Unlimited assistance after setup: license renewals, amendments to the articles of association, changes of business activity, preparation for tax deadlines.
Bilingual case management
File processed in French and English, with the original legal headings retained.
No standard off-the-shelf packages
We do not sell one-size-fits-all formation packages from a catalogue. Every incorporation starts with an assessment and an itemised quote.
Single point of contact
A dedicated point of contact who supports your company over the long term, not just until the licence is issued.
This approach suits organizations planning genuine operations: invoicing, employees, bank accounts, and filing obligations. It is less suitable for projects seeking a legal shell without substance, which banks now systematically reject.
An initial discussion helps confirm the jurisdiction, activity, and visa quota before any commitment. L's team remains available via the contact us page.
Frequently asked questions
No general minimum is imposed on mainland LLCs. Some regulated activities set a minimum capital requirement, sometimes AED 150,000 or more. In a free zone, the capital is unrestricted and stated in the articles of association; a nominal amount is sufficient, but capital that is consistent with the business activity makes the bank’s KYC review easier.
Allow 3 to 10 business days for a free zone licence and 7 to 15 business days for a mainland licence, provided the application is complete. Including bank account opening, the overall process generally takes 4 to 10 weeks.
The free zone remains the most cost-effective solution for a consulting business invoicing internationally, with a reduced visa quota. A significant share of Emirati clients or an activity requiring business travel within the country makes the mainland a better choice.
Yes, for the provision of services and non-trading activities involving goods in the local market. The physical distribution of goods within the territory requires an authorized distributor or a mainland license.
The standard rate is 0% on taxable profits up to AED 375,000, then 9% above that (UAE Government). A qualifying free zone may benefit from 0% on its qualifying income; this status requires substance and compliance with the de minimis thresholds.
The quota depends on the premises: a flexi-desk for one to two visas, or a private office for a quota proportionate to the floor area. The quota can be increased after setup by amending the establishment card.
No. Company formation can be completed remotely by presenting a valid passport. In-person attendance is required for the medical examination, fingerprinting, and bank interview.
Some digital banks accept remote applications. Traditional banks generally require a compliance interview at a branch or by video call, as well as an in-person visit for activation.
Two to three weeks after fingerprints are taken, depending on the ICP’s workload. The card is issued with the residence visa and expires at the same time.
Yes. Annual license renewal determines the validity of the establishment card, visas, and banking activity. A delay may result in penalties and license suspension.