Is appointing a local sponsor mandatory for business setup in UAE?

For a company setup in UAE mainland, appointing a local sponsor or partner is typically required, where the local sponsor owns 51% of the business. However, for company setup in Dubai free zone, 100% foreign ownership is allowed without the need for a local sponsor, making UAE company registration in free zones a more appealing option for foreign investors.

How much time is required for company setup in UAE?

The time required for company setup in UAE can vary depending on the jurisdiction and type of business. A company setup in Dubai free zone can usually be completed within 2-3 weeks, provided all documents are in order. The streamlined processes in free zones make UAE company registration relatively quick and hassle-free.

What are the types of businesses I can start in UAE?

The UAE offers a wide range of opportunities for different types of businesses. Whether you're interested in a service-based company, trading business, or industrial setup, you can find a suitable business setup in Dubai free zone. Company setup in UAE allows for various business activities, and with UAE company registration in a free zone, you can enjoy benefits such as 100% foreign ownership, no corporate taxes, and full repatriation of profits.

Company Formation in Dubai UAE

Q: Is it mandatory to have a local office for company setup in UAE?

For a company setup in UAE, it is not mandatory to have a physical office in some jurisdictions, especially in free zones. Business setup in Dubai free zone often allows for virtual office options, making it easier for international investors to establish their presence without the need for a local office. This flexibility is one of the key advantages of opting for UAE company registration in a free zone.

Q: What is the corporate income tax in the UAE?

The UAE is known for its favorable tax regime. There is currently no federal corporate income tax for most types of company setups in Dubai free zone and other free zones across the UAE. This tax benefit is one of the major incentives that attract businesses to pursue business setup in Dubai free zone. However, certain sectors such as oil and gas and branches of foreign banks may be subject to specific tax rates.

Take the First Step to Company Setup in the UAE

Setting up a company in the UAE has become one of the most attractive options for global entrepreneurs, startups, and investors. With recent reforms allowing 100% foreign ownership in most sectors, tax-friendly regulations, and world-class infrastructure, the UAE continues to be a preferred business hub connecting Asia, Europe, and Africa.

Whether you are looking at the Dubai mainland or a UAE free zone, choosing the right jurisdiction depends on factors such as location, industry, office space requirements, share capital rules, and compliance. That’s where DU Digital Global comes in — guiding you through the entire process with efficiency and expertise, ensuring your setup is smooth and stress-free.

Company Formation in the Mainland

Establishing a company in Dubai offers businesses unparalleled access to both local and international markets, under the regulation of the Dubai Department of Economic Development (DED). With recent legislative changes allowing 100% foreign ownership across numerous sectors, entrepreneurs can enjoy complete control over their ventures. Dubai mainland companies benefit from the flexibility to operate in a wide range of industries, engage in government contracts, and expand their presence throughout the UAE.

Setting up a mainland company in Dubai provides businesses with direct access to the UAE’s local market as well as international trade opportunities. Under the regulation of the Dubai Department of Economic Development (DED), mainland companies enjoy:

100% foreign ownership in most activities (after the 2021 reforms)
Flexibility to engage in a wide range of industries
Eligibility to bid for government contracts
Freedom to expand across all Emirates

For entrepreneurs seeking scalability and long-term stability, mainland company formation remains one of the strongest options.

Company Formation in Freezone

UAE freezone company setup offers businesses a range of advantages tailored to foster growth and innovation. Free Zones in Dubai are designed to attract foreign investment by providing benefits like 100% foreign ownership, complete repatriation of profits, and exemption from corporate and personal taxes. These zones cater to specific industries, offering a supportive environment with industry-focused infrastructure and services.

UAE free zones are designed to attract foreign investors by providing business-friendly ecosystems and benefits like:

100% foreign ownership
Full repatriation of capital and profits
0% personal income tax
Customs duty exemptions within the free zone
Industry-specific infrastructure (IT, logistics, finance, media, etc.)

With over 40 free zones across the UAE (including Dubai’s IFZA, Meydan, RAKEZ, and SPC), each caters to different industries and offers flexible office space solutions — from flexi-desks to full-fledged headquarters.

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Tailored Business Solutions

Get in touch with us to take advantage of our specialized packages and clever company setup in the UAE.

Outstanding Affinity

With our seamless help, starting a business in the UAE won't take long to be up and running.

Massive Diversity

When establishing a business in the UAE, there is a vast array of industries, sectors, and commercial endeavors to select from.

Seasoned Professionals

Establishing a company in the UAE is simple. Our team of professionals is always available to assist you with your needs.

Benefits of Establishing a Business in the UAE

100% Foreign Ownership – Full control of your company in free zones and most mainland sectors.
Tax Advantages – No personal income tax and a competitive 9% corporate tax (only on profits above AED 375,000).
Profit Repatriation – Freedom to transfer 100% of profits and capital abroad.
Global Market Access – Strategic location connecting Asia, Europe, and Africa.
Ease of Doing Business – Fast setup, world-class infrastructure, and investor-friendly policies.

Types of Business License in the UAE

01

Commercial License

Tailored for businesses involved in trading activities, this license permits importing, exporting, distributing, and storing goods within the UAE. Whether dealing in electronics, textiles, or luxury items, a commercial permit forms the cornerstone for retail and wholesale businesses.

02

Tourism License

In a nation famed for its hospitality and tourism sector, the tourism license serves as an entry point for businesses in travel agencies, tour operators, and hospitality services. With Dubai's ambitious tourism aspirations, this license presents ample prospects for HNIs to capitalize on the flourishing tourism industry.

03

Industrial License

A company set up in Dubai which is involved in manufacturing, processing, assembling, and packaging activities requires an industrial license. This license allows companies to set up manufacturing facilities within the Free Zone. Industrial license enables the establishment of industrial enterprises, factories, and production facilities.

04

Tourism License

Entity Options for Free Zone Company Setup in the UAE

A company setup in the UAE of a free zone firm is easy and simple, thanks to the regulators who encourage foreign investors with low capital needs. When starting a company in these zones, Indian entrepreneurs can pick from three main types of entities:

Steps to Set Up a Business in the UAE Free Zones

Choose Legal Entity

Decide on the type of entity you want to establish in the free zone, considering the capital requirement for that particular zone.

Select a Trade Name

Pick your company’s unique and permissible trade name, ensuring it is not already registered.

Apply For a Business License

Submit the required documents and apply for the appropriate business license based on your company’s primary activity.

Secure Office Space

Determine the suitable office space, either through purchasing or leasing, depending on your business’s needs.

Obtain Approvals and Register

Get initial approval, business approvals, and register your company on the free zone authority’s portal.

Obtain The License

Once the process is completed, you will receive your business license to start your operations within 2-4 weeks.

Documents Required for Company Setup in the UAE

Passport copies of shareholders and managers (with photographs)
Proposed trade names
Attested copies of incorporation/registration certificates and MOA/AOA (for branch setup)
Original board resolution confirming financial commitment (for branch setup)
Passport copy + photo of the shareholder(s)

Conclusion

The UAE is more than just a global trade hub — it’s a thriving ecosystem for businesses of all sizes. With tax benefits, strategic location, strong infrastructure, and 100% ownership reforms, it remains one of the best destinations worldwide for entrepreneurs and investors.

At DU Digital Global, we simplify the entire journey — from choosing the right jurisdiction to handling documentation, licensing, and post-incorporation support. With our guidance, your UAE company setup becomes a seamless process, helping you focus on what matters most: growing your business.

FAQs

Is it mandatory to have a local office for company setup in UAE?

A physical office or flexi-desk is required depending on the jurisdiction and license type.

What is the corporate income tax in the UAE?

The corporate tax rate is 9% on profits exceeding AED 375,000. Free zone entities that qualify under the new regime may still benefit from exemptions.

No. Since 2021, local sponsors are not required for most activities on both mainland and free zones.

How long does company formation take?

Depending on the free zone or mainland authority, company formation can take 4 working days to 2-4 weeks.

What are the types of businesses I can start in the UAE?

Popular options include e-commerce, travel and tourism, IT services, general trading, consulting, logistics, and real estate services.

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* UAE: +971-585955766

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Company Formation in Dubai UAE

Take the First Step to Company Setup in the UAE

Company Formation in the Mainland

Company Formation in Freezone

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