Founders working with experienced company setup consultants in Dubai are clearing the licensing problems that slow new businesses down. The team has set up more than 3,000 companies across the mainland, the free zones, and the Northern Emirates.
It’s usually not the license itself that is the difficult part. You cause delays by the choices you make around you. They’re the activity code, the approvals that are connected to your activity code, your office, your bank account, and your tax registrations.
If you get one of these incorrect, you’re looking at a loss of weeks. You may also have to pay for a second license at times.
Why founders hire company setup consultants in Dubai
Simplifying licensing in Dubai continues to happen. There are still more options for you in most markets, though. The rules, fees, and lists of activities were different for each free zone and for the Dubai mainland.
Choose between mainland, free zone or both.
The first thing you’ll have to decide is where to license. The Department of Economy and Tourism (DET) issues a mainland license, which allows you to sell to any customer in the UAE. The free zone license will enable you to trade inside and outside your zone. There are only a few restrictions on selling to the mainland.
The line is blurred between the two. A Dubai free zone company now has the option to trade on the mainland as well since Dubai Executive Council Resolution No. 11 of 2025. There is a branch license of AED 10,000 per year or a temporary license of AED 5,000 for a maximum period of six months.
Most activities on the mainland don’t require a local partner as well. 100% foreign ownership is instituted under Federal Decree-Law No.32 of 2021. That’s the exception for a short list of strategic activities.
Know what a license costs in 2026
Cost is dependent on zone, activity, and number of visas required. Here are some places to begin:
| Route | Typical starting cost | Best fit |
| Free zone license with virtual office (e.g. IFZA, SHAMS) | From AED 5,750 a year | Consultants, online businesses, export trading |
| Dubai mainland license | Usually AED 12,000 to 18,000, depending on activity | Businesses selling to UAE customers or bidding for government work |
| Free zone company with mainland branch | Free zone license plus AED 10,000 a year | Free zone companies winning mainland clients |
Plan for expenses that the founders don’t think of. All visas require an establishment card, medical test, and an Emirates ID. Office space is another factor that determines the number of visas granted to the Mainland—the number of people in the office; the higher the rent.
Check the 2026 fee relief.
This year, Dubai reduced some of the fees for licenses. Note that DET has allowed you to defer some fees for the next three months, starting from April 1, 2026. New licenses and renewals include license amendments, premium trade names, and several local services.
Dubai in May 2026 approved a second AED 1.5 billion package of incentives. There are some exemptions for tourism, events and retail license fees. SMEs who have a membership with Mohammed bin Rashid Establishment that will expire in 2026 will receive 2 additional years.
The dates are different for each authority. Before paying for a license, determine which relief applies to your license.
The licensing problems company setup consultants in Dubai solve
Most delays start at three points. Each one is easy to fix before you apply, and costly to fix after.
Pick the right activity code.
DET has a selection of over 2000 approved activities. There’s also a list for each free zone.
Your activity code determines three things – the approvals required, the risk rating of your activity by a bank, and whether the free zone income can be subject to 0% corporate tax.
When you are a consulting organization and later sell software. You might require a license change and a new license approval. Not only do we match your code to the first income stream that you plan, but we match it to all of your income streams.
Line up approvals and the office.
Some activities require a second regulator before the granting of your license:
- Rather, the Dubai Health Authority is required to enhance healthcare needs.
- Education needs KHDA
- The real estate brokerage requires RERA.
- Food businesses have a need for Dubai Municipality.
It is also essential that a mainland company has an office registered with the Ejari. The number of visas you have is determined by the size of your office. If you choose a desk that is too small, then you limit your growth in the future.
Open your bank account faster.
Previously, the longest wait was for the bank account. Both banks take a look at your shareholders, your business plan, and your source of funds.
The wait has been reduced with the Dubai Unified License. All Dubai companies now have a single government-verified digital ID, in the free zones and on the mainland.
More than 900,000 have been issued, according to the Dubai Media Office. At the banks connected to it, average account opening time fell from 65 days to five.
Seven banks were connected by November 2025, including Emirates NBD, FAB, Mashreq and CBD. We prepare your bank file alongside your license application. Your account review then starts the week your license is issued.
Compliance after company setup in Dubai
There are many duties that begin with your license. Fines can cost more than you think if you miss them. Register for corporate tax and VAT.
In the first three months after incorporation, a corporate tax registration must be done. The rule applies to companies established from March 1, 2024 onwards and is included in FTA Decision No. 3 of 2024. The late fee for registration is AED 10,000.
The VAT registration threshold comes into effect when the taxable sales exceed AED 375,000 in 12 months. The corporate tax rate is 9% of profits over AED 375,000.
The 0% tax rate applies to “qualifying income” for free zone companies. In addition, you must fulfill all the requirements, such as audited accounts annually.
Keep your ownership registers up to date.
All registered companies have to maintain three registers: beneficial owners, shareholders, and nominee directors. Free zone companies are included. This regulation is Cabinet Decision No. 109 of 2023.
A beneficial owner is defined as having 25% or more of the ownership or control. Violations will incur a fine of not more than AED 100,000, which will be imposed by the registrar. Your registers are filed at setup and updated after each change in ownership.
Drop the filings that no longer apply.
Economic substance reports are still included in some of the old checklists. You can skip them. The removal of the above-mentioned filings for financial years ended after December 31, 2022 was made by Cabinet Decision No. 98 of 2024.
Old steps can be cut, saving you money and time. You’re focused on other documents that are subject to fines.
How we handle your company setup
Each setup is performed in 5 steps with our team:
- We analyze your activities, customers, and your visa requirements and then suggest an appropriate visa for the mainland, free zone, or for both.
- We hold up-to-date information on your trade name, choose your activity codes, and secure initial approval.
- We book external approvals, your office, and submit your license application.
- We do your bank file, establish your cards and visas, and register you for corporate tax.
- We maintain your ownership registers, VA, T, and renewals on time following the issuance of your license.
It can take approximately 48 hours to complete the registration process for a free zone, after your documents are submitted. The time for a mainland setup (with approvals and visas) is typically two to four weeks.
Bestax Chartered Accountants’ UAE-CA, Haseeb Hamdani, said that most of the founders approach them when their first plan fails. It’s usually an incorrect activity code, or the bank may refuse to open the account for some reason, and you will always pay more to change the license later.
Compare mainland business setup with the Dubai free zone options. When you are ready, book a free 30-minute consultation with the team.
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About Company Setup Consultants Dubai
With its location in Dubai, Company Setup Consultants Dubai is a Bestax company. The team deals with the formation of mainland, free zone, and offshore companies, licensing, visas, and bank account assistance, accounting, VAT, and corporate taxation.
It has over 10 years’ experience in incorporation and has incorporated over 3,000 companies. Bestax is a Federal Tax Authority Approved Tax Agency (No. 30008692) and an Approved Employer with ACCA and ICAW. Bestax is also a Gold Tier Partner of IFZA and is also a recipient of a RAKEZ Appreciation Certificate.
