How to Open a Company in the UAE in 2025: Step-by-Step Guide

Open a company in the UAE is one of the most advantageous decisions for international entrepreneurs. In 2025, company registration in the UAE remains highly accessible, especially due to simplified procedures in Free Zones and the ongoing digitalization of bureaucratic processes. This article will guide you through each step—from choosing the jurisdiction to obtaining a license and opening a bank account.

Why Opening a Company in the UAE Is Profitable in 2025

The United Arab Emirates consistently ranks among the top global destinations for doing business. The country offers a unique combination of economic stability, modern infrastructure, and a favorable tax regime. Even after the introduction of corporate tax in 2023, the UAE remains attractive—companies with an annual income below AED 375,000 are exempt from paying income tax. The UAE also has agreements to avoid double taxation with dozens of countries.

Other advantages include 100% foreign ownership in most jurisdictions, fast registration (3 to 7 days), no currency control, and a developed banking system. All of this makes the UAE a strategic entry point to the markets of the Middle East, Asia, and Africa.

Decide on the Type of Jurisdiction

Before starting the registration process, you need to determine the format of your business. In the UAE, there are three main models of registration: Free Zone, Mainland, and Offshore. Each suits different goals and has distinct operational conditions.

Free Zone

A Free Zone is a specially organized territory offering favorable conditions for foreign investors. The UAE hosts dozens of such zones, each with its own rules, specialization, and requirements. Some Free Zones are tailored for logistics companies, IT businesses, trade, finance, and media.

Key advantages of Free Zones:

• 100% foreign ownership without a local partner
• Simplified registration and reporting
• Fast document processing (2–5 business days)
• No physical office lease required in some cases (Flexi Desk available)
• Streamlined residency visa process

However, companies registered in Free Zones typically cannot conduct direct commercial activity on the UAE Mainland unless they obtain a special license or enter into an agreement with a local agent.

Mainland

A Mainland company is registered through the Department of Economic Development (DED) of one of the emirates. This structure allows you to operate across the entire UAE, including working with government agencies and opening stores, cafes, offices, and service points targeting local customers.

Previously, foreign owners needed a local UAE partner holding 51% of the shares. Since 2021, most business activities allow 100% foreign ownership. However, the following requirements remain:

• Leasing a physical office
• Preparing lease agreements and business addresses
• Maintaining proper accounting and reporting

Offshore

Offshore companies in the UAE (e.g., RAK ICC or JAFZA Offshore) are created for asset management, international trade, investment, and capital protection. They are not allowed to operate inside the UAE, lease offices, or apply for visas.

These companies are popular among real estate owners, holding structures, and trading entities that value confidentiality, low taxation, and international operational flexibility.

Choose the Right License and Business Activity

Once the jurisdiction is chosen, you must determine the appropriate type of license for your business:

• Commercial License — for trading goods, wholesale and retail, import, and export
• Professional License — for services like consulting, IT, design, marketing, training, etc.
• Industrial License — for manufacturing, logistics, storage, and processing of goods

Each Free Zone has its own list of permissible business activities. In some cases, a combined license can be issued. It’s advisable to consult with a specialist in advance to avoid errors in activity code selection.

Register in the Appropriate Jurisdiction

Depending on your choice, the registration process can take between 3 and 10 working days. The most popular Free Zones in 2025 include:

• IFZA (International Free Zone Authority) — flexible packages, affordable costs, fast registration
• RAKEZ (Ras Al Khaimah Economic Zone) — industrial focus, cost-effective solutions
• DMCC (Dubai Multi Commodities Centre) — prestigious zone for finance, law, and trade

Mainland registration is carried out through the DED of the relevant emirate (most often Dubai or Abu Dhabi).

Prepare the Documents and Choose a Name

Document preparation is a crucial step. Most zones require:

• Copy of the founder’s passport
• Utility bill or bank letter as proof of address
• Resume or short biography
• Three proposed company names (in English)

The name must be unique, not contain brand, religious, or political terms. Some zones require pre-approval.

Submit the Application and Receive Your License

After submitting the documents, the Free Zone authority reviews the application, verifies business activity alignment, and issues the license. At this point, you will receive:

• Certificate of registration
• License for the selected business activity
• Articles of incorporation and other corporate documents

This marks the legal milestone: the company is officially registered and ready to operate.

Open a Bank Account

A corporate bank account is a key part of business operations. In 2025, banking requirements have become more stringent. As noted in the McKinsey report “Five accelerators for corporate and investment banking in the GCC”, banks have increased scrutiny of source-of-funds, particularly for startups.

Additionally, in the Harvard Business Review podcast, experts discuss the growth strategies of Careem, the Middle East’s first unicorn startup, and its impact on the region’s entrepreneurial ecosystem.

You will need to prepare:

• Business website
• Contracts or letters of intent
• Founder’s resume
• Company documents and license

Recommended banks: WIO Bank, RAKBANK, Emirates NBD, Mashreq NeoBiz. The process usually takes 1–3 weeks.

Obtain a Residency Visa (Optional)

After registration, the company can apply for residency visas for the owner and employees. The process includes:

• Obtaining an Establishment Card
• Medical examination and biometric capture
• Receiving Emirates ID and passport visa stamp

Visas are valid for 2 years and renewable. Residency also allows you to become a UAE tax resident if you stay in the country at least 183 days annually.

Rent an Office (If Necessary)

Depending on the Free Zone or Mainland requirements, you may need:

• Flexi Desk — virtual address with minimal commitment
• Fixed Desk — dedicated workspace
• Private Office — full office unit
• Warehouse — storage or industrial space

To apply for visas, at least a Flexi Desk is usually required.

Opening a company in the UAE in 2025 is a real opportunity to scale your business in one of the most attractive regions in the world. With a choice between Free Zone and Mainland, flexible licensing, and streamlined setup processes, registration has become accessible to companies of all sizes. The key is to understand your business model and choose the right market entry strategy.