Frequently Asked Questions
Everything you need to know about business setup in Dubai and the UAE
Get instant answers to the most common questions about company formation, licensing, visas, and business operations in Dubai. Can’t find what you’re looking for? Contact us for personalized assistance.
General Questions
Why should I set up a business in Dubai?
Dubai offers numerous advantages for business owners including strategic location connecting East and West, world-class infrastructure, tax benefits, 100% foreign ownership in most sectors, political and economic stability, ease of doing business, access to skilled workforce, and a thriving business ecosystem with networking opportunities.
How long does it take to set up a company in Dubai?
Timeline varies by jurisdiction:
- Free Zone: 1-2 weeks for complete setup
- Mainland: 2-4 weeks depending on activity and approvals
- Offshore: 5-7 working days
These timelines assume all documents are ready and approvals proceed smoothly. Our team works to expedite the process wherever possible.
Do I need to visit Dubai to set up my company?
For most free zone setups, you don’t need to be physically present initially. We can handle documentation remotely. However, you will need to visit Dubai for:
- Bank account opening (in most cases)
- Emirates ID and medical test (for visa processing)
- Final license collection (in some jurisdictions)
Mainland setups typically require at least one visit for MOA signing and other formalities.
What is the difference between mainland, free zone, and offshore?
Mainland: Can trade anywhere in UAE, direct access to local market, can bid for government contracts, may require local sponsor for some activities.
Free Zone: 100% foreign ownership, tax benefits, cannot trade directly in UAE mainland (requires distributor), industry-specific zones available.
Offshore: For international business only, cannot conduct business within UAE, ideal for holding companies and international trading, maximum privacy and tax efficiency.
Company Setup
Can I own 100% of my company in Dubai?
Yes! Recent law changes allow 100% foreign ownership for most business activities in Dubai mainland. All free zones have always offered 100% foreign ownership. Only certain restricted activities may still require a UAE national partner or local service agent.
What documents do I need to set up a company?
Standard documents required:
- Passport copies of all shareholders and managers
- Recent passport-size photographs
- Proof of address (utility bill or bank statement)
- Business plan or activity description
- No Objection Certificate (if currently employed in UAE)
- Educational certificates (for professional licenses)
Additional documents may be required based on specific business activity and jurisdiction.
Which free zone is best for my business?
The best free zone depends on your industry, budget, and business needs:
- DMCC: Trading, commodities, precious metals
- JAFZA: Logistics, manufacturing, large-scale operations
- Dubai Silicon Oasis: Technology, IT, electronics
- Dubai Media City: Media, advertising, creative industries
- DIFC: Financial services, banking, insurance
We provide free consultation to help you choose the optimal free zone for your specific requirements.
Do I need a physical office?
Requirements vary:
- Free Zones: Flexi-desk, shared office, or dedicated office depending on license type
- Mainland Professional Licenses: Virtual office or flexi-desk acceptable for many activities
- Mainland Commercial/Trading: Usually requires dedicated office space
- Offshore: No physical office required in UAE
How many activities can I include in my license?
Mainland: Multiple activities can be included (typically 3-10 depending on license type) at no additional cost.
Free Zone: Varies by zone. Some allow multiple activities, others charge per activity. DMCC, for example, allows multiple activities under one license.
We help you select the right activities to ensure you can conduct all intended business operations legally.
Costs & Pricing
How much does it cost to set up a company in Dubai?
Costs vary significantly based on jurisdiction, license type, and office requirements:
- Free Zone (Budget): Starting from AED 15,000 – 20,000 annually
- Free Zone (Standard): AED 25,000 – 50,000 annually
- Mainland: AED 30,000 – 60,000+ depending on activity and location
- Offshore: AED 10,000 – 15,000 annually
These are approximate ranges. Contact us for detailed quotation based on your specific requirements.
What are the annual renewal costs?
Annual costs typically include:
- Trade license renewal
- Office space rental
- Visa renewals (per person)
- PRO services fees
- Accounting and auditing (if required)
Most jurisdictions have similar first-year and renewal costs, though some free zones offer discounted renewal rates.
Are there any hidden costs?
At Prudent Dubai, we believe in complete transparency. All costs are outlined clearly in your quotation. However, be aware of potential additional costs:
- Document attestation and courier fees
- Bank account opening charges (varies by bank)
- Additional visas beyond package allocation
- Optional services (accounting, VAT registration, etc.)
- Travel and accommodation for UAE visits
We disclose all potential costs upfront so there are no surprises.
Is there a minimum capital requirement?
Most free zones and many mainland activities have no minimum capital requirement. Some specific sectors (banking, insurance, certain professional services) may have capital requirements. We advise you on any capital requirements specific to your business activity.
Visas & Immigration
How many visas can I get with my company?
Visa allocation depends on:
- Free Zones: Typically based on office size and package (e.g., 1-6 visas for standard packages)
- Mainland: Based on office size, license type, and approved activities
- Professional Licenses: Usually limited visas (1-3) for small offices
Additional visas can usually be obtained by upgrading office space or through quota increases.
Can I sponsor my family on a business visa?
Yes, if you meet minimum salary requirements (typically AED 4,000-10,000 depending on nationality and number of dependents). You can sponsor:
- Spouse
- Children (sons until 18, daughters until marriage)
- Parents (with higher salary requirements)
Family sponsorship is separate from company employee visas.
How long does visa processing take?
Standard timeline:
- Entry Permit: 2-3 working days
- Medical & Emirates ID: 3-5 working days after entry
- Visa Stamping: 2-3 working days
- Total Process: 7-14 days from entry permit to stamped visa
What is the Golden Visa?
The Golden Visa is a long-term residence visa (5 or 10 years) for investors, entrepreneurs, specialized talents, and outstanding students. Requirements include minimum investment amounts or special qualifications. We assist with Golden Visa applications for eligible clients.
Tax & Compliance
What taxes do I need to pay in Dubai?
Current UAE taxes:
- Corporate Tax: 9% on profits exceeding AED 375,000 (introduced June 2023)
- VAT: 5% on most goods and services (register if turnover exceeds AED 375,000)
- Personal Income Tax: None
- Withholding Tax: None
- Capital Gains Tax: None
Free zone qualifying businesses may benefit from 0% corporate tax on qualifying income.
Do I need to file annual accounts?
Yes, all UAE companies must:
- Maintain proper accounting records
- Prepare annual financial statements
- File corporate tax returns (if applicable)
- File VAT returns (if registered)
- Get audited accounts (for certain company types and sizes)
We provide comprehensive accounting and compliance services to keep your business compliant.
What happens if I don't renew my license on time?
Late license renewal consequences:
- Daily penalties and late fees
- Inability to renew employee visas
- Potential visa cancellations
- Business operations disruption
- Difficulty in banking transactions
We proactively manage renewal timelines for our clients to avoid these issues.
Banking
How difficult is it to open a bank account in Dubai?
Bank account opening has become more stringent due to compliance requirements. Success depends on:
- Clear business activity and documentation
- Proper business plan and financial projections
- Shareholder background and source of funds
- Expected transaction volumes
Our banking specialists have established relationships with major UAE banks and high success rates for account approvals.
Which bank is best for my business?
Bank selection depends on your needs. Popular options:
- Emirates NBD: Largest bank, comprehensive services
- Mashreq: Good for SMEs, responsive service
- RAKBANK: Startup-friendly, lower requirements
- ADCB/FAB: Strong for larger businesses
- Dubai Islamic Bank: Sharia-compliant banking
We help you select the bank that best matches your business profile and requirements.
Can I open a bank account before my company is formed?
No, you need a valid trade license and company registration to open a corporate bank account. However, you can start preparing documents and meeting with banks during the company formation process to expedite account opening once your license is issued.