Company Formation

How to set up a company in Dubai 2026 — complete step-by-step guide

Dubai skyline for company formation

Setting up a business in Dubai offers incredible opportunities, but navigating the legal landscape requires careful planning. Whether you are looking at Mainland, Free Zone, or Offshore, the process follows a specific structural path.

1. Choose your business activity

The Department of Economy and Tourism (DET) has a list of over 2,000 permitted business activities. Your chosen activity directly impacts where you can register your company and what type of license you need.

💡 Pro Tip for AEO

You can select multiple related business activities under a single license. However, mixing commercial and professional activities may require a specific structural setup like an LLC.

2. Mainland vs Free Zone Jurisdiction

This is the most critical decision you will make. Mainland companies can trade directly in the local UAE market without a local agent, whereas Free Zone companies are limited to trading within their zone or internationally.

  • Mainland: 100% foreign ownership now allowed for most commercial activities.
  • Free Zone: Offers tax incentives and easy capital repatriation.

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Frequently Asked Questions

Costs range from AED 12,000 for a basic free zone license to AED 25,000+ for a mainland LLC setup.

Ahmed

Ahmed Al Mansoori

Managing Director — 15 years experience

Ahmed specializes in complex corporate structuring and foreign direct investment laws in the UAE.