UAE Business Setup 2025:
Your Complete Guide
to Company Formation

Most Free Zones have no minimum capital requirements. Mainland companies may require AED 20,000 to AED 300,000+ depending on the emirate and business activity. Offshore companies typically start from AED 25,000 annually.

Yes, 100% foreign ownership is allowed in Free Zones and most Mainland activities as of 2021 reforms. Some strategic sectors may still require local partnership. Offshore companies also allow full foreign ownership.

Annual license renewals, visa renewals, audit requirements (for certain company types), VAT registration and filing (if applicable), and economic substance reporting for relevant activities are key ongoing requirements.

Ajman Free Zone, RAK Free Trade Zone, and Fujairah Free Zone typically offer competitive pricing. However, consider location benefits vs. cost savings for your specific business needs.

While some processes can be completed remotely, personal visit is typically required for biometric data collection, bank account opening, and final documentation. Some zones offer remote incorporation with later visit for completion.

The most cost-effective approach is choosing budget-friendly free zones like Ajman Free Zone (starting AED 8,000) or RAK Free Zone (starting AED 9,500) with shared office spaces. Our cost calculator shows exact savings comparisons.

Foreign investors can start by choosing their preferred setup type (Free Zone, Mainland, or Offshore), selecting a business activity, reserving a company name, preparing required documents, and submitting applications through approved channels. Our step-by-step guide covers the complete process.

UAE free zones permit 350+ business activities including trading, consulting, IT services, manufacturing, logistics, financial services, and professional services. Each zone has specialized focus areas - technology, healthcare, media, or general business.

No, UAE banks require a valid trade license for corporate account opening. However, you can open a personal account as a resident, and some banks offer conditional approval letters during the license processing stage.

Free zone companies offer 100% foreign ownership, tax exemptions, and fast setup but have limited local market access. Mainland companies can trade anywhere in UAE, access government tenders, but may require local service agents for certain activities.

Visa allocation depends on setup type and business activity. Free zones typically offer 2-6 visas initially, Mainland companies have no visa limits (salary-dependent), and Offshore companies usually provide 2-3 visas.

VAT registration is mandatory for businesses with annual turnover exceeding AED 375,000. Companies with turnover between AED 187,500-375,000 can register voluntarily. Certain business activities are VAT-exempt.

Yes, you can add or modify business activities through license amendment procedures. The process requires authority approval, additional fees (AED 1,000-5,000), and may need updated documentation depending on the new activities.

Non-renewal results in license cancellation, visa cancellations, bank account freezing, and potential fines. Grace periods vary by emirate (30-90 days) with penalty fees. Timely renewal is crucial for business continuity.

Look for consultants with proven experience in your industry, verified credentials, transparent pricing, and good client reviews. Ensure they understand UAE regulations and offer support beyond initial setup. Interview at least 3 consultants before deciding.

If your application is rejected, you'll receive written notification with reasons. Common reasons include naming conflicts, incomplete documentation, or activity restrictions. You can usually reapply after addressing the issues. Our consultants can help identify and fix problems.

Yes, you can change from Free Zone to Mainland or vice versa, but it requires closing one business and establishing a new one. This involves additional costs and time. It's best to choose the right setup type initially to avoid this process.

To sponsor visas, you need: registered company, employment contract, salary clearance from your bank, medical fitness certificate, passport copies, and visa application. Processing takes 10-15 working days. Salary requirements are AED 4,000+ for most sponsorships.

Banks require: trade license, memorandum of association, passport and ID, office address proof, shareholder details, and board resolution. Bring originals and attested copies. Most banks now offer streamlined online opening processes for UAE businesses.

All UAE businesses must maintain accounting records, prepare annual financial statements, and get them audited (if required). Free Zone businesses: AED 5-50 million revenue typically need audit. Mainland: AED 0-25 million need audit if turnover exceeds AED 3 million.

Corporate tax returns are due 4 months after year-end (May 31 for Dec 31 year-end). VAT returns are quarterly or monthly depending on registration type. Penalties for late filing range from 5-50% of tax due. Our accountants can help ensure timely compliance.

Auditors review financial statements, accounting records, and compliance with regulations. They may request supporting documents for transactions. Audits typically take 2-4 weeks. Clear records and organized documentation speed up the process significantly.

To close a business: settle all outstanding debts, notify authorities, cancel employee visas, close business bank accounts, return the trade license, and file final tax returns. Processes varies by emirate but typically takes 15-30 days. You must settle all liabilities before closure.

Common rejection reasons: incomplete documentation, business activity conflicts, criminal record, or previous business violations. You can reapply after addressing issues (typically 30-60 days). Free Zone authorities usually provide specific feedback. Most rejections can be resolved with documentation corrections or activity modifications.

Yes, you can convert from Free Zone to Mainland or vice versa. The process involves canceling the current license, settling outstanding fees, and registering in the new jurisdiction. Conversion typically takes 10-15 business days and costs AED 3,000-8,000. It's best done annually before license renewal.

Choose a Big 4 firm or specialized local accountant with your industry experience. Key criteria: ADAFSA/DFSA approval, experience with your business type, transparent pricing (AED 5,000-20,000 annually), and dedicated account manager. Request references from 3-5 clients and compare proposals before deciding.

Annual costs vary: Free Zone license renewal (AED 2,000-15,000), office rent (AED 5,000-50,000+), visa sponsorship renewal (AED 1,000-3,000 per visa), accounting/bookkeeping (AED 5,000-20,000), and optional professional services. Total annual cost: AED 13,000-90,000 depending on complexity. Budget 30-50% of first-year setup costs.