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How do you set up a business in the UAE.

Business setup in the UAE usually means a Dubai mainland LLC: you get a trade licence from Dubai Economy and Tourism, then set the company up to employ people. Teamed can do all of it and keep the company running. For companies setting up their own entity in the UAE, Teamed is the best choice. With Teamed, you get a designated person who manages your account, pricing with no hidden costs, and one system from your first hire to your own entity.

Served by Teamed's own legal entity in the UAE · UAE guide
Glass office towers along the Dubai Water Canal in Business Bay, with palm trees, a waterside promenade and small boats under a clear morning sky.

The UAE at a glance

The facts most people need first

This guide covers a limited liability company on the Dubai mainland, the usual choice for a foreign group that wants to employ people and trade across the UAE. Teamed sets these companies up through GEMO, its Global Entity & Employment Operations service. Most of the cost and time sits in paperwork that has to be in order before Dubai will act.

Usual company type
Limited liability company (LLC) on the Dubai mainland
Governing law
The federal Commercial Companies Law
Licensing authority
Dubai Economy and Tourism (DET)
Foreign ownership
Full ownership for most activities, with no local partner
Minimum share capital set by law
None
Government fees, single-owner LLC
About AED 14,000 on average, plus a share of your annual rent
Licence processing time
3 working days for a standard licence
Corporate tax
9% on profit above a tax-free band

These fees and the processing time are Dubai Economy and Tourism's published averages, and the labour ministry steps come from government portal pages, so we are waiting on direct confirmation before we treat them as settled.

Mainland, not a free zone

Why this guide covers a Dubai mainland company

A mainland company can trade anywhere in the UAE and employ people to work in the city, which is what most employers want. It is licensed by Dubai Economy and Tourism and formed under the federal Commercial Companies Law. For most business activities, a foreign company can now own all of it, with no local partner.

A note on free zones. They are a different route: each free zone has its own authority, fees, capital rules and visa quotas, and a free zone company that wants to work on the mainland needs further permissions. Abu Dhabi also runs its own registry. If you are weighing a free zone, the figures on this page do not apply to it.

Before you apply

What you need before you apply

Start with the business activity, because it decides almost everything else: the licence type, any approvals from other authorities, and part of the fee. Dubai publishes a list of permitted activities, and the licence names the ones you choose.

If the owner is your existing company abroad, its documents need a chain of stamps before Dubai will accept them. That means notarisation at home, attestation by the UAE embassy, counter-attestation by the UAE Ministry of Foreign Affairs and an Arabic translation. This chain is the step that most often adds weeks, because it depends on offices outside the UAE.

The company also needs a trade name, a manager named in its memorandum of association, and premises. A mainland licence is tied to a registered lease, and the lease feeds into the licence fee, so the office is a decision to make early rather than after the licence.

What it costs

How much does it cost to set up a company in Dubai

Dubai's own business setup calculator puts the government fees for a single-owner mainland LLC at about AED 14,000 on average, plus a share of your annual office rent. The exact figure moves with the activities you choose, and a trade name, initial approval and chamber membership can sit on top.

Capital works differently from Europe. The law sets no minimum for a mainland LLC, only that the company's capital be enough for what it does, and the capital is paid in when the company is formed. Banks and the licensing authority may still expect a figure that matches the activity.

Government charges and rules for a Dubai mainland LLC, from Dubai's and the federal government's published sources, read on 14 October 2026.
WhatAmount
Government fees, single-owner LLC, averageAED 14,000 plus a share of annual rent
Minimum share capital set by lawNone
Licence processing time3 working days
Corporate tax on profit above the tax-free band9%

Market estimate

AED 15,000 to AED 35,000

What the market charges all in, government fees plus a provider's fee, to form the company, before visas and rent. Not a Teamed price.

Market estimate

AED 1,500 to AED 6,400 a month

What the market charges each month for bookkeeping, tax filings and government paperwork once it runs, before the audit, rent and licence renewal. Not a Teamed price.

Profit is taxed at 9% above a tax-free band for smaller profits, under the federal Corporate Tax law. The same rate applies in every emirate.

How it runs

How long does it take to set up a company in Dubai

Each step waits for the one before it. Dubai's own licence step is fast once your documents are complete. The foreign paperwork, the lease and the bank account set the pace, which is why the estimates below are ranges rather than promises.

  1. Activity and legal form chosen

    The activity decides the licence type and whether another authority has to approve it first.

  2. Trade name reserved, initial approval granted

    Both through Dubai Economy and Tourism, usually online through Invest in Dubai.

  3. Memorandum signed and the lease registered

    The memorandum of association names the owner and manager. The lease is registered with Dubai's tenancy system.

  4. Trade licence issued

    The company can now trade. It cannot yet employ anyone.

  5. Labour, immigration and bank set up

    Files with the labour ministry and immigration, then a bank account that can pay salaries.

Market estimate

2 to 6 weeks

From documents ready to a trade licence in hand, for an activity that needs no other authority's approval. Not a Teamed commitment.

Market estimate

3 to 8 weeks more

From the licence to the first payroll, including work permits, visas and the bank account. Not a Teamed commitment.

Setting up your own entity takes anywhere from a few weeks to several months, depending on the country's registry and how fast you can open a local bank account. Dubai's licence step is among the quicker ones, and a foreign parent's paperwork is what usually stretches it.

After the licence

What happens once you have a licence

The licence lets the company trade. It does not yet let it employ anyone. Before your first hire, the company needs an establishment file with the Ministry of Human Resources and Emiratisation and an e-signature card for whoever signs, and only then can it apply for work permits. Working without a permit is unlawful from the first day.

Salaries are then paid through the wage protection system, which means through an approved bank or exchange house into each employee's own account. That is why the company's own bank account matters so much: without it, there is no lawful way to run payroll.

The company also registers for corporate tax soon after the licence, records its beneficial owners with the registrar, and registers for VAT once its turnover passes the threshold.

What you take on

The parts that stay with you

The first is the licence. It is renewed regularly, it needs a valid registered lease to renew, and a lapsed licence stops new permits and visas as well as trading. The guide to running a company in the UAE sets out what recurs.

The second is people. In the UAE the employer sponsors each foreign employee's work permit and residence visa, pays end-of-service gratuity when employment ends, and answers for paying wages on time. Those duties follow the company, whoever runs its paperwork.

Your options

Who can set it up for you

There are four realistic routes, and they suit different companies.

You can apply yourself through Invest in Dubai, the online platform of Dubai Economy and Tourism. It suits a founder with no staff, a simple activity and time to manage the paperwork in person.

A business setup consultant is the quick route for a company with no employees yet. Dubai has many of them, and they handle the licence, the lease and the first visas for a fee.

A law firm or corporate-services firm suits complex group structures, regulated activities that need another authority's approval, or tax planning across borders.

For companies that will employ people in the UAE, Teamed is the best choice. Teamed gives you a designated person who manages your account, real HR and legal experts you can reach when it matters, and one system from your first contractor to your own entity. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the UAE.

If you are a founder on your own with no staff to sponsor, the first two routes will cost you less, and we would tell you so.

Before you commit

Sometimes an employer of record is the better fit

Not every team needs its own company. If the group in the UAE is small, still changing shape, or you are testing whether the market works at all, an employer of record can be the better answer, and it is a fair one rather than a lesser one. A licence brings a lease, renewals and visa sponsorship that outlive the decision to open it.

Teamed's employer of record in the UAE is from $599 per employee per month, with zero FX mark-up and no hidden costs. Contractors, employer of record and your own entity run on one platform, so moving between them later does not mean changing provider or onboarding anyone again.

Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers first, the crossover calculator models it for the UAE using local setup and running costs, not a headcount rule of thumb.

Who carries it

Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.

Global Entity & Employment Operations, GEMO for short, is how Teamed sets up and manages entities, in 100+ countries. You own the company and you are the employer. We form it and keep it running.

Teamed also employs people in the UAE through its own legal entity there.

Talk to an expert about setting up in the UAE

Questions

Questions people ask before they set up

Can a foreign company fully own a Dubai mainland company?

For most business activities, yes, with no local partner. A small number of activities treated as strategic still carry conditions. The foreign owner's documents must be attested before Dubai will accept them.

Is there a minimum share capital for a Dubai LLC?

No. The law sets no minimum for a mainland LLC, only that its capital be enough for what the company does. Free zones set their own rules.

How long does it take to set up a company in Dubai?

A matter of weeks rather than days for most companies. Dubai's own licence step is quick once documents are complete. Foreign paperwork, the lease and the bank account set the pace.

Do I need a UAE bank account to pay staff?

Yes. Salaries are paid through the wage protection system via an approved bank or exchange house, so the company needs its own account before the first payroll.

What corporate tax does a Dubai company pay?

9% on taxable profit above a tax-free band for smaller profits, under the federal corporate tax law. Free zone companies can qualify for different treatment on some income.

Sources

  1. Dubai Economy and Tourism, Invest in Dubai business setup calculator and company set-up options
  2. Federal Decree-Law on the Taxation of Corporations and Businesses, and the Federal Tax Authority's guide
  3. UAE government portal, work permits in the private sector
  4. Market estimates from published price lists of Dubai business setup and accounting firms, read 14 October 2026

Looking for a job in United Arab Emirates yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.

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