Company formation and business setup in Dubai, with tax and books from day one
Alliance CA sets up mainland, free zone and offshore companies from our office in Deira, Dubai, and is an authorised partner of IFZA, RAKEZ and DMCC. We help you choose the structure and licence, prepare the applications, support visas and bank introductions, then register you for corporate tax, check your VAT position and set up your books.
Our fee for company formation, trade licences, renewals and visa and PRO support starts from AED 2,500, exclusive of VAT, and is agreed after a free scoping call, before any work starts. Business setup is led by our founder, Ratul Sharma, and our tax practice by co-founder Kiran Kumar CR (our founders).
Should you set up on the mainland, in a free zone or offshore?
Decide by where your customers are. A mainland company sells directly across the UAE market; a free zone company trades freely within its zone and internationally, but needs a distributor, a mainland branch or approvals to sell on the mainland; an offshore company is for business outside the UAE.
Mainland | Free zone | Offshore | |
|---|---|---|---|
Suits | Serving customers across the UAE | Trading within the zone and internationally | International trading, holding assets and investments |
Selling on the UAE mainland | Yes, directly | Through a licensed mainland distributor or a mainland branch or company, unless it obtains the required mainland licences or approvals | Not designed for local commercial activities |
Corporate tax | 0% on taxable income up to AED 375,000 and 9% above it | A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income; if it fails the conditions, the standard rates apply | Corporate tax applies to companies incorporated in the UAE |
Sources: UAE Government portal; RAKEZ; FTA (rates, free zones, FAQs).
How does company formation work, step by step?
On the mainland, you move from choosing an activity and legal form to collecting the licence; in a free zone, you apply through the free zone authority (UAE Government portal).
Step | What we do | What the authority does |
|---|---|---|
1. Activity, legal form and jurisdiction | Match your activity, ownership and customers to a structure and licence type | The UAE has more than 2,000 business activities to choose from |
2. Trade name and initial approval | Prepare and submit the applications | Registers the trade name and issues initial approval, which lets you continue but does not yet allow you to trade |
3. Memorandum of Association and premises | Prepare the details and collect the documents | On the mainland, a notary public or court attests the MoA, and in Dubai the lease is registered with Ejari |
4. Licence | Submit the licence application and follow it up | Dubai's Department of Economy and Tourism, or the free zone authority, issues the licence |
5. Visas | Prepare investor and employee visa applications | On the mainland, MoHRE issues work permits, the GDRFA handles entry permits and residence visas, and ICP issues the Emirates ID |
6. Bank account | Introduce you to UAE banks and support the application | The bank decides whether to open the account |
7. Tax registration | Register you for corporate tax, and for VAT when required | The FTA issues your tax registration numbers |
Sources: UAE Government portal (mainland, free zones, visas).
What must a new company do in its first 90 days?
Register for corporate tax within three months of incorporation, watch the AED 375,000 VAT threshold, and keep books from the first month.
- Corporate tax registration. A company incorporated in the UAE, including a free zone company, must apply within three months of incorporation (FTA Decision No. 3 of 2024, Article 3). See corporate tax.
- VAT. Registration is mandatory once taxable supplies and imports exceed AED 375,000 over the past 12 months, or are expected to within the next 30 days, and the application is due within 30 days of that point (FTA). See VAT services.
- Books from month one. Taxable income starts from the accounting net profit or loss (FTA), and records must be kept for seven years after the end of the tax period (Corporate Tax Law, Article 56). See accounting and bookkeeping.
- Your first tax period. The return is due nine months after the tax period ends (Article 53), so work out when your first tax period ends.
- Free zone conditions. For 0% on qualifying income, non-qualifying revenue must stay within the lower of AED 5 million or 5% of total revenue (FTA guide), and a Qualifying Free Zone Person cannot elect for Small Business Relief.
- Activities. Your activity is the basis for your licence type and legal form (UAE Government portal), so check your licence before taking on new work; our article explains why a licence covers only approved activities.
How much does company formation cost in Dubai?
Our fee for company formation starts from AED 2,500, exclusive of VAT. The authority's own costs vary with the type of licence, the jurisdiction and the facilities you need (RAKEZ).
Service | Starting fee, exclusive of VAT |
|---|---|
Company formation, trade licences, renewals and visa and PRO support | From AED 2,500 |
New VAT, corporate tax and AML registrations | From AED 500 |
Accounting and bookkeeping, for turnover up to AED 5M | From AED 1,000 a month |
Compliance & Finance: bookkeeping plus VAT and corporate tax filing, for turnover up to AED 5M | From AED 1,800 a month |
The FTA charges nothing to register for corporate tax or VAT (corporate tax, VAT). Every fee is agreed after a free scoping call, before work starts, and startups and small businesses may qualify for preferential pricing (pricing).
IFZA, RAKEZ or DMCC: which free zone suits you?
It depends on your activity, location and how you will trade. As an authorised partner of all three, we compare them for your activity in the scoping call.
- IFZA is based in Dubai Silicon Oasis and works on a business-to-business model with its professional partners (IFZA).
- RAKEZ was established by the Government of Ras Al Khaimah and licenses both free zone and non-free zone companies (RAKEZ).
- DMCC covers Jumeirah Lake Towers and Uptown Dubai (UAE Government portal) and describes itself as a qualified free zone for corporate tax, so a company there can pay 0% on qualifying income if it meets the conditions (DMCC).
Why use one firm for company setup and accounting?
Because your structure, free zone status and financial year shape your tax position, and the same team then registers you, keeps your books and files your returns. Alliance CA has been licensed in Dubai since 2015. After the licence, our accounting, VAT and corporate tax services take over, and business advisory covers expansion, renewals and closure support.
Questions about company formation
Can a foreigner own 100% of a company in Dubai?
Yes, for most activities. Mainland companies can be fully foreign-owned except in restricted activities such as security and defence, banking and insurance (UAE Government portal), and free zone companies can be fully owned by foreign investors (UAE Government portal).
Does a new company have to register for corporate tax if it makes no profit?
Yes. Registration is due within three months of incorporation (FTA Decision No. 3 of 2024), and a return is filed for every tax period, even when no tax is due (Article 53).
Is a free zone company tax-free?
Not automatically. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income, with no 0% band on the first AED 375,000. It must keep audited financial statements whatever its revenue and have adequate substance in the zone; a free zone company that does not meet the conditions pays the standard rates (FTA guide). See how to apply the qualifying income test.
How long does company formation take?
It depends on the jurisdiction and the activity: some activities need approval from other government bodies before initial approval (UAE Government portal), so we do not quote a standard timeline.
Can you open the company bank account?
We introduce you to UAE banks and support your application. The bank makes its own decision on opening the account.
Can you renew, amend or close a company?
Yes, we handle licence renewals and amendments. For a closure we provide support only: final financial statements up to the licence cancellation date, which the FTA asks for, and the corporate tax and VAT de-registrations (FTA). We are not a liquidator or an auditor.
Do you have an office in Deira?
Yes. Our office is at 904 Al Reem Tower, Al Maktoum Street, Deira, Dubai. Book a free scoping call through our contact page.
Sources
- UAE Government portal: mainland steps; free zones, starting and running; foreign ownership; recruiting
- Federal Tax Authority: CT registration; Decision No. 3 of 2024; Cabinet Decision No. 116 of 2022; Free Zone Persons guide; Small Business Relief; CT FAQs; VAT registration; CT de-registration
- Ministry of Finance: Corporate Tax Law, Articles 53 and 56
- Free zones: IFZA; RAKEZ, home, getting started and offshore companies; DMCC
