FAQ
Questions people actually ask
Straight answers on costs, ownership, visas, tax and banking — including the ones where the honest answer is 'it depends'.
Business setup
How much does it cost to set up a company in the UAE?
A free-zone licence starts at roughly AED 4,888 without visas, and around AED 11,000–16,000 once you include one residence visa. Dubai mainland typically starts closer to AED 21,000 in year one because a physical office with a registered Ejari contract is mandatory. The cost calculator gives an itemised estimate for your specific case.
Can a foreigner own 100% of a UAE company?
Yes. All free-zone companies have always allowed 100% foreign ownership, and changes to the Commercial Companies Law extended this to the majority of mainland commercial and professional activities. A small number of strategic activities still require Emirati participation.
How long does the whole process take?
The trade licence itself can be issued in as little as 24 hours in the fastest free zones, and two to five working days in most others. Residence visas add one to three weeks on top. Realistically, budget three to six weeks from starting to holding your Emirates ID.
Do I need to be in the UAE to set up a company?
No. Company formation can be completed remotely in most free zones. You only need to travel once, for your medical fitness test, Emirates ID biometrics and visa stamping — usually completable within a single week.
Do I have to pay corporate tax?
UAE corporate tax is 9% on taxable profit above AED 375,000. Qualifying free-zone businesses can access a 0% rate on qualifying income if they meet the substance requirements. Registration with the Federal Tax Authority is mandatory for essentially every business regardless of the rate you end up paying.
Will I definitely get a corporate bank account?
No provider can honestly guarantee that — the decision belongs to the bank's compliance team. What improves your odds is a clear business model, a demonstrable source of funds, and applying to a bank whose risk appetite matches your profile. We handle bank selection and application preparation.
What is the difference between free zone and mainland?
A free-zone company trades internationally and within its zone but cannot sell directly into the UAE mainland market without a distributor or dual licence. A mainland company can trade anywhere in the UAE, including with government entities, but requires a physical office. Choose based on where your customers are.
How many visas can I get?
It depends on your facility. A flexi desk typically supports two to three residence visas; private offices and warehouses scale with floor area, roughly one visa per 9 square metres on mainland. Licence-only packages with no facility usually carry no visa allocation at all.
More on company formation
General Business Setup FAQs
What is UAE business setup?It is the process of registering a company in Mainland, Free Zone, or Offshore UAE.Can foreigners start a business in UAE?Yes, foreigners can fully own companies in most Free Zones and many Mainland activities.How long does setup take?Typically 2–7 working days depending on activity and approvals.Do I need an office?Mainland requires physical office; Free Zones may allow virtual offices.What is a trade license?Official permission to conduct business legally in UAE.Can I include multiple activities?Yes, depending on authority and license type.What is MOA?Memorandum of Association defines company rules and ownership.Can I change business activity later?Yes, licenses can be updated or upgraded following UAE rules.Can I register remotely?Many Free Zones allow remote setup; Mainland may need personal signatures.Which is cheaper, Mainland or Free Zone?Free Zone is usually cheaper; Mainland is needed for local operations.Do I need a UAE partner?Most Free Zones allow 100% ownership; Mainland may require local partner for some sectors.What documents are required?Passport, photo, business plan, and UAE contact details.Can I sponsor employees?Yes, based on license type and office space.Are there taxes?UAE has 0% corporate tax for qualifying Free Zone income; Mainland taxable if above threshold.Can I open bank account?Yes, after trade license and establishment card issuance.Is VAT mandatory?Yes, if revenue exceeds AED 375,000.Do I need accounting records?Yes, bookkeeping is mandatory for compliance.What is UBO declaration?Declaration of Ultimate Beneficial Owner of the company.Is annual audit required?Some Free Zones and most Mainland companies require annual audit.What is a Flexi Desk?A shared or virtual office facility approved for license requirements.Can Free Zone trade inside UAE?Yes, but requires distributor or Mainland branch license.Which Free Zones are low-cost?IFZA, SHAMS, SPC, RAKEZ, Ajman Free Zone are popular for startups.Can I get investor visa?Yes, company owners are eligible for UAE investor/partner visa.Do I need health insurance?Yes, mandatory for visa and residency in UAE.How long is investor visa valid?Typically 2–3 years depending on authority.Can I sponsor family?Yes, meeting income and accommodation requirements.What is DED license?Department of Economic Development license for Mainland company operations.Do I need personal presence for bank?Yes, banks require owner presence for corporate account verification.Can I upgrade visa quota?Yes, most licenses allow increasing number of employee visas.Do I need UAE phone number?Yes, required for company registration and government communication.Can I register e-commerce business?Yes, via Mainland or Free Zone depending on activity type.Is VAT filing required?Yes, companies must file quarterly VAT returns if registered.Do I need UAE bank account for VAT?Yes, VAT payments are linked to UAE bank accounts.Can I start business without residence visa?Yes, company formation is possible, but visa is needed to work and sponsor.Which Mainland emirates are cheaper?Sharjah, Ajman, and Ras Al Khaimah often have lower setup costs than Dubai or Abu Dhabi.Do I need UAE local sponsor for Free Zone?No, Free Zones allow 100% foreign ownership without local sponsor.Can I run multiple businesses under one license?Yes, allowed depending on license type and compatible activities.Can I open bank account remotely?Most banks require physical presence; some Free Zones offer partner services for account opening assistance.Do Free Zone companies pay corporate tax?Qualifying Free Zone income is usually 0% corporate tax if compliant with regulations.Can I get Golden Visa?Business owners investing above certain thresholds may qualify for UAE Golden Visa.Do I need Emirates ID?Yes, required for residency visa and official documents.Can I apply for investor visa from abroad?Some Free Zones allow remote application, but biometrics must be completed in UAE.Do I need approval from other authorities?Depends on business activity; some sectors need Ministry or municipality approvals.Is there age limit for company owner?Generally 18+ years old; some Free Zones require 21+ for investors.Can I sell products online with Mainland license?Yes, Mainland license allows e-commerce and retail trading with permits.Do I need UAE address for bank?Yes, banks require a valid UAE office address for corporate account.Do I need to file tax for overseas income?Free Zone companies may not pay UAE tax on overseas income if compliant; Mainland rules differ.Can I convert Free Zone to Mainland?Yes, with NOC and approvals from authorities, conversion is possible.What is license renewal period?Most licenses are valid 1–3 years and require renewal before expiry.Can I hire staff from abroad?Yes, UAE companies can sponsor foreign employees via labor visas.Do I need a business plan?Yes, banks and some authorities require a simple business plan for setup and account opening.Can I register consulting business?Yes, Professional License allows consultancy and service activities.What is a UBO form?Declaration of Ultimate Beneficial Owner required by UAE authorities.
Have questions about general business setup in Dubai? FZC Business has compiled answers to the most common queries about company formation, licensing, and Freezone options in the UAE. Our goal is to make your business setup journey simple and stress-free.
Free zone specifics
Free Zone Business Setup FAQs – UAE
Free Zone Business Setup FAQs
1. What is a Free Zone in the UAE?A Free Zone is a designated area offering 100% foreign ownership, tax exemptions, and simplified company formation processes.2. How many Free Zones are in the UAE?There are over 45 Free Zones across all seven emirates, each catering to specific industries.3. Which is the cheapest Free Zone in the UAE?Ajman, Sharjah Publishing City (SPC), and RAKEZ are known for their affordable startup packages.4. Can I own 100% of my business in a Free Zone?Yes, Free Zones allow 100% foreign ownership with no need for a local sponsor.5. Can I trade directly in the UAE mainland?No, Free Zone companies must appoint a mainland distributor or partner to sell within UAE local markets.6. Can I get a UAE residence visa through a Free Zone company?Yes, company owners and employees are eligible for residence visas based on office size and license type.7. What are the main benefits of a Free Zone license?Tax exemptions, full profit repatriation, simple setup process, and no import/export duties.8. Do Free Zone companies pay corporate tax?Most Free Zones offer 0% corporate tax if the business meets qualifying conditions.9. What types of licenses can I get?Trading, Service, Industrial, Consultancy, and E-commerce licenses are available.10. Can I add multiple business activities under one license?Yes, some Free Zones allow combining up to 10 related activities under one license.11. Is there a minimum capital requirement?Many Free Zones have no paid-up capital; others may require AED 10,000–50,000.12. Do I need an office in the Free Zone?You can choose a Flexi-desk, shared space, or private office depending on your visa needs.13. Can I open a UAE bank account?Yes, after license and establishment card issuance, corporate bank accounts can be opened.14. How long is a Free Zone license valid?Licenses are valid for one year and can be renewed annually.15. Can I hire employees?Yes, each license includes a visa quota which can be increased with office expansion.16. Can I move my company to another Free Zone?Yes, company migration is possible with authority approvals and closure of the previous license.17. Do I need annual financial audits?Some Free Zones like DMCC and RAKEZ require annual audits, others don’t.18. Can I sponsor dependents under my Free Zone visa?Yes, if you meet the income and accommodation requirements.19. Can I convert a Free Zone company to Mainland?Yes, with an NOC from the Free Zone and approval from the DED.20. Can I register a company remotely?Yes, most Free Zones support online registration and digital document submission.21. Is VAT registration mandatory?Yes, if your company exceeds AED 375,000 annual turnover.22. Are import duties applicable?No, Free Zone companies are exempt from import/export duties.23. Can I get an e-commerce license?Yes, Free Zones like SPC and IFZA specialize in e-commerce setups.24. How much does a Free Zone license cost?It starts from AED 4,888 and can vary up to AED 25,000 depending on business type.25. Can I apply for Golden Visa with a Free Zone company?Yes, if you meet the investment and financial requirements.26. Can I own property through my Free Zone company?Some emirates allow Free Zone entities to own commercial property in specific zones.27. Can I open multiple corporate bank accounts?Yes, you can open accounts with multiple banks after company registration.28. Can Free Zone companies trade with each other?Yes, inter-Free Zone trade is allowed without customs duties.29. What is the difference between FZE and FZCO?FZE is a single-owner entity, while FZCO (or FZ-LLC) has two or more shareholders.30. Can I operate globally?Yes, Free Zone companies are perfect for international trade and online business.31. Can I change my business activities later?Yes, you can modify your activities by applying for an amendment approval.32. Can I sponsor employees of different nationalities?Yes, there are no restrictions on nationality for Free Zone employees.33. Is an NOC required to open a bank account?Usually not; your license and establishment card are sufficient.34. Do Free Zone companies need advertising approval?Yes, marketing materials must comply with UAE media regulations.35. Can Free Zone companies participate in tenders?Not directly; you need a mainland partner to bid for government tenders.36. Can I hire freelancers?Yes, if they have a valid UAE freelance permit.37. Are Free Zone companies suitable for consultants?Yes, consultancy licenses are ideal for professionals and advisors.38. Can I open without visiting UAE?Yes, many Free Zones allow full remote setup via digital signature and Power of Attorney.39. Can I change shareholders?Yes, shareholder changes are permitted through proper documentation.40. Do Free Zone companies need renewal every year?Yes, all licenses and visas must be renewed annually.41. Can Free Zone companies own other companies?Yes, many Free Zones allow holding company structures.42. Can I register multiple branches?Yes, you can establish multiple branches within the same or different Free Zones.43. What documents are needed for registration?Passport copies, business plan, and proof of address are the basic requirements.44. Can I use a Free Zone address for import/export?Yes, you can import/export goods through your Free Zone office address.45. Are there Free Zones for tech startups?Yes, Dubai Internet City and Sharjah Research Park cater to tech businesses.46. Can I transfer shares?Yes, share transfers are allowed with Free Zone authority approval.47. Can I get office space upgrade later?Yes, you can upgrade or relocate within the Free Zone anytime.48. Can Free Zone companies issue invoices in AED?Yes, invoicing in AED or foreign currency is allowed.49. Can I keep profits in my home country?Yes, 100% profit repatriation is permitted from Free Zones.50. Can I operate my Free Zone company from abroad?Yes, remote operation is fully allowed using digital management tools.
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