Education & Protection · Phase 4
Set up a business in the UAE
Mainland, free zone, DIFC or ADGM — each has its own rules, costs and traps. The honest map: the steps, the documents, and the obligations that fine people who don't know them. Confirm specifics with the authority before you commit.
Mainland (DED / DET licence)
Trade anywhere in the UAE, including with government.
Best for: Businesses that need to sell directly to the UAE market, take government contracts, or open shops/offices across the emirate.
Ownership: 100% foreign ownership is now allowed for most commercial and industrial activities (since 2021). A few 'strategic impact' activities still need an Emirati partner or agent.
Typical steps
- 1.Pick your activity from the DED/DET list and a legal form (LLC, sole establishment, civil company…).
- 2.Reserve a trade name and get initial approval.
- 3.Secure premises and register the tenancy (Ejari in Dubai).
- 4.Draft the Memorandum of Association / notarise where required.
- 5.Pay fees and collect the trade licence.
- 6.Get the establishment card, then apply for staff and investor visas.
Documents you'll need
- •Passport copies of owners/managers
- •Trade name & activity approval
- •Tenancy contract / Ejari
- •MoA or local service agent agreement (where applicable)
- •Initial approval certificate
What to watch / not allowed
- •You may only carry out the activities on your licence — operating outside them risks fines.
- •Some regulated activities (legal, medical, financial, education) need extra approvals from the relevant authority.
Cost: Costs vary widely by activity, office size and visa quota. Get a current quote from DED/DET — and budget for renewal every year.
Tax, banking & the things that bite
The same for every route — and where most fines come from.
Corporate tax
- •0% on taxable profit up to AED 375,000; 9% on profit above that.
- •Free-zone companies can qualify for 0% on 'qualifying income' as a Qualifying Free Zone Person — but only if they meet substance and compliance conditions; non-qualifying income is taxed at 9%.
- •Large multinational groups (consolidated revenue ≥ EUR 750M) face a 15% minimum effective rate (DMTT / Pillar Two) from financial years starting on/after 1 Jan 2025.
- •Register for corporate tax with the Federal Tax Authority and file on time — late registration and filing carry penalties.
VAT
- •Standard VAT is 5%.
- •Registration is mandatory once taxable turnover exceeds AED 375,000; voluntary registration is allowed above AED 187,500.
- •File VAT returns on schedule (usually quarterly) — late filing/payment is penalised.
Ongoing obligations people forget
- •Renew your trade licence every year — an expired licence brings fines and can block visa renewals.
- •File your Ultimate Beneficial Owner (UBO) details and keep them current.
- •Economic Substance Regulations (ESR) may apply to certain activities (holding, IP, finance, shipping…).
- •Payroll must run through the Wages Protection System (WPS) for mainland staff.
- •AML obligations apply to financial firms and certain non-financial businesses (DNFBPs) — registration and reporting are mandatory.
Corporate bank account
- •Opening a business bank account is often the hardest, slowest step — banks run heavy KYC.
- •Expect to show a clear business activity, real substance, source of funds, and sometimes a minimum balance.
- •A clean, specific activity description and proper documents speed this up; vague 'general trading' setups get more scrutiny.
Common ways businesses get fined
- •Operating outside the activities on your licence.
- •Letting the trade licence, establishment card or visas lapse.
- •Missing corporate-tax or VAT registration/filing deadlines (FTA penalties).
- •No registered tenancy (Ejari) where one is required.
- •Skipping UBO, ESR or AML filings that apply to you.
General information for planning, current to 2025–26 UAE rules — not legal, tax or licensing advice, and fees/rules change. Confirm the specifics for your activity with the relevant authority (DED/DET, your free-zone authority, the Federal Tax Authority, DFSA/FSRA) or a licensed professional before committing money or signing.