Discover everything you need to know to launch your venture in Dubai. This guide explains how to form a company in the Free Zone or Mainland UAE. It covers visa and work permit requirements, banking setup, tax rules, and compliance essentials. With Prism as your partner, you avoid delays, ensure full compliance, and move from idea to operation smoothly.
Forming your company: Mainland vs Free Zone
Mainland companies are licensed by the Department of Economic Development (DED) of the relevant emirate. They can operate across the UAE and allow foreign ownership across most sectors depending on activity and regulation. Free Zone companies are established under the relevant Free Zone Authority. They provide full foreign ownership, customs and tax exemptions, and simplified administration. However, operations are generally limited to the Free Zone and international markets unless a local distributor or agent is appointed. Prism helps you evaluate both options and select the structure that matches your long-term goals. Read more about our company formation services in the UAE here.
Steps to set up your business in the United Arab Emirates
To establish a company you must first identify your business activity and choose a legal structure such as LLC, Free Zone Company, or branch. You then register a trade name, obtain approvals, prepare documents such as a Memorandum of Association or Local Service Agent agreement, and secure office premises. Finally, you apply for your licence through the DED or the Free Zone Authority. Prism manages this process on your behalf, ensuring documents are correct and deadlines are met.
Visas and work permits
Hiring staff requires valid work permits that align with your trade licence. Entrepreneurs and investors may apply for residency visas through company formation, and family members may be sponsored under certain conditions. Prism coordinates the visa process, reducing complexity and making sure applications comply with UAE law.
Banking, taxes, and compliance
A corporate bank account is mandatory once your licence is issued. Corporate tax applies to Mainland companies at a rate of 9 percent on profits above AED 375,000, while Free Zone entities may benefit from exemptions if they meet regulatory conditions. Prism supports you in selecting a bank, preparing compliance documents, and managing renewals so that your business remains in good standing.
Helpful tips
Choosing the right jurisdiction depends on your target market. Digital platforms such as Bashr can shorten the setup process, but navigating requirements still requires expertise. Prism ensures that you not only register your company correctly but also stay compliant with renewals, ownership declarations, and sector regulations.
