SetupDubai
Company Formation FAQ

Starting a business in Dubai: frequently asked questions.

Understand the practical requirements before choosing a company package. These answers explain the key decisions and link to detailed guidance; authority requirements and individual circumstances still need to be checked.

Last updated: 4 November 2026

FAQ

What is the total cost of setting up a company in Dubai?

The total depends on Free Zone or Mainland registration, activities, premises and residence visa needs. Owner-confirmed indicative Free Zone packages can be around AED 10,000–12,000; more exclusive packages can start from AED 30,000. These are planning examples, not all-inclusive offers or binding quotations. Confirm registration, licence, approved address, immigration files, residence permits, medical checks, Emirates ID, approvals and annual compliance separately. Compare the initial total with renewals before deciding.

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How much does it cost to renew a UAE trade licence?

Trade licences commonly require annual renewal, although the term depends on the authority and package. Renewal costs depend on activities, premises, visa capacity and included services. No verified recurring amounts have been supplied, so we do not present a fixed annual price. Ask for the expected second-year and later renewal totals, including licence, premises, immigration-file renewal and administration where applicable. Residence permits have separate renewal cycles. A discounted first year does not establish the later renewal cost.

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Do I need to visit Dubai to open a company?

Not necessarily. Some authorities allow parts or all of company registration to be completed remotely, depending on the legal form, documents and verification requirements. Residency medical examinations, biometrics, bank meetings or particular signing requirements may require a UAE visit. A remote no-residency setup may be possible, but must be confirmed for your circumstances.

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Can I get a residence visa for myself and my family?

Many company structures can provide a basis to apply for an investor, partner or employee residence permit, subject to eligibility and capacity. Once you have qualifying UAE residency, you may be eligible to sponsor a spouse and children. Family sponsorship can require suitable accommodation, evidence of relationships and sufficient income under the applicable rules. Permits, Emirates ID, medical checks and sponsorship have separate requirements and fees. The immigration authority decides each application; approval is not guaranteed.

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Can I open a UAE business bank account as a non-resident?

It may be possible, depending on the bank and company, but it is not guaranteed. Banks assess activities, ownership, beneficial owners, expected transactions and source of funds. They may request a trade licence, incorporation records, passports, proof of address, contracts, invoices and a business plan. Some banks require UAE residency or an in-person meeting. Consider banking eligibility before choosing the company structure; incorporation alone does not secure an account.

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How long does company formation really take?

Licensing can be relatively quick for a straightforward eligible application with complete documents; other applications take longer. Activity, authority, ownership complexity and additional approvals affect timing. Company registration, residence permit and Emirates ID processing, and business banking are separate stages. Bank onboarding may take several weeks or longer. Request a realistic stage-by-stage estimate for your application rather than treating the licence timeline as the timeline for everything.

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Do I need a physical office or can I use a flexi-desk?

Eligible Free Zone activities and packages may use an approved registered address with a shared workspace or flexi-desk instead of a traditional private office. Confirm activity eligibility, visa capacity, access limits and optional facilities. Mainland, retail, warehouse, industrial and regulated operations may require dedicated premises. Flexible facilities do not remove the need for an accepted address or guarantee banking or residence approval.

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Do I pay UAE corporate tax if all my customers are overseas?

Possibly. Overseas customers do not automatically exempt a UAE company. Under the standard regime, taxable income up to AED 375,000 has a 0% corporate tax rate, with 9% on the excess. Qualifying Free Zone Persons have separate rules and conditions for qualifying income. Eligible businesses may elect Small Business Relief when all conditions are met. Corporate tax registration, recordkeeping and filing can apply even with no tax payable. Company profit taxation is separate from 0% UAE personal income tax on employment salaries.

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Can my Free Zone company sell products to customers in Dubai?

It may be able to, with the correct licensed activity and trading arrangements. A Free Zone licence does not automatically permit unrestricted Mainland trading or physical retail. Depending on the model, a Mainland licence, permit, branch, authorised distributor or another approved arrangement may be needed, alongside customs, VAT and product compliance. Direct-to-consumer e-commerce, wholesale and physical shops have different requirements. Review where goods move and where operations take place before choosing a structure.

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Which licence do I need for Shopify or e-commerce?

You generally need a business licence covering the products or services you sell online. Shopify is a platform, not a substitute for a licence. Relevant activities may include online trading, specific product trading or permitted digital services. Free Zone or Mainland suitability depends on customers, products, delivery and fulfilment. Regulated goods may need extra approvals. Check payment gateway eligibility, VAT, consumer protection and shipping before launching.

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Can I pay myself a salary from my UAE company?

Yes. If you own and actively work in a UAE company, you can generally receive a properly documented salary for genuine work. The UAE currently imposes 0% UAE personal income tax on employment salaries, including remuneration paid to working founders and employees. For the company to deduct an owner's salary, applicable corporate tax rules require market-value remuneration and a genuine business purpose; an unlimited salary deduction is not permitted. Individuals who remain tax residents in another country may also have tax obligations there. UAE residency does not automatically remove those obligations. Salary payments and profit distributions are not the same and may have different accounting and tax consequences.

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What happens if I want to close my company?

Simply letting the licence expire is not normally enough. Depending on the authority and legal form, closure may require licence cancellation or liquidation, settling liabilities, cancelling residence permits and immigration files, ending permits and agreements, completing tax filings or deregistration, and obtaining final clearances. A liquidator or liquidation report may be required. Closure can involve fees; ask for the procedure and itemised charges. Proper closure reduces the risk of unresolved obligations and penalties.

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Not sure which setup fits your business? Tell us what you’re planning and we’ll review your requirements.