Top 25 Questions People Ask Before Registering a Company in Dubai

Over the last few years, company registration in Dubai has changed a lot. As we move through 2026, the city continues to attract entrepreneurs from around the world, but the process is now much more digital, structured, and transparent than before.

Whether you are a tech founder looking for full ownership or a retail brand planning to enter the local market, understanding how business works in the UAE is more important than ever.

Today, most entrepreneurs don’t just ask, “How do I register a company in Dubai?” They also want to know how to stay compliant with corporate tax laws, manage banking smoothly, and build a business that can operate internationally.

In this guide, we answer the top 25 most commonly asked questions to help you make clear, confident, and informed decisions about registering your company in Dubai.

1. What is the difference between the Dubai Mainland and a Free Zone?

In simple terms, it comes down to where you want to do business. Mainland companies are registered with the Department of Economy and Tourism (DET) and can trade freely across the UAE, including with government entities. This makes them a good choice if you want to serve local clients or work on government projects.
Free Zone companies allow 100% foreign ownership and usually offer faster setup. However, they are generally meant for businesses that trade internationally or within the specific free zone unless they work with a local distributor.

2. Can I own 100% of my company in the Dubai Mainland in 2026?

Yes, and this is one of the biggest advantages of recent reforms. Since 2020, foreign investors have been able to own 100% of mainland companies in most commercial and industrial activities. Only a few strategic sectors still require local participation. For most small and medium businesses, full ownership is now completely possible.

3. How to register a company in Dubai online?

In 2026, registering a company online is much easier than before. You can use platforms like Invest in Dubai for mainland businesses or specific Free Zone portals such as DMCC. With your UAE Pass, you can complete most steps digitally, from reserving your company name to receiving your trade license, without needing multiple office visits.
However, even though online registration is possible, working with experienced business setup professionals can make the process much smoother. They can help you choose the right activity, jurisdiction, documentation, and compliance requirements, saving you time and avoiding costly mistakes.

4. What is the cost of registering a company in Dubai?

The investment depends on where you choose to set up. A Free Zone license usually ranges from AED 12,500 to AED 15,000 for basic packages, while a Mainland setup typically starts at around AED 18,000 to AED 25,000, excluding office rent and visa fees.
Your final amount will depend on your business activity, the number of visas, and the office requirements.

5. How to register a company in the Dubai Free Zone?

To set up in a Free Zone, the first step is choosing the zone that best matches your business. For example, DIFC works well for finance, while Dubai Knowledge Park suits education-related businesses. Once you select a zone, you submit your activity, reserve your trade name, provide passport copies, and choose your office option, either a flexi-desk or a physical space. The process is usually smooth and guided by the Free Zone authority.

6. What are the mandatory documents for company formation?

Most setups require a fairly standard set of documents:

• Passport copies of shareholders and directors
• UAE entry stamp or residence visa (if applicable)
• NOC from your employer (if you are currently working in the UAE)
• A few proposed company names
• A simple business plan, in certain cases

Nothing overly complicated; just basic information about you and your business.

7. Is a physical office mandatory for every company?

For Mainland companies, yes. You need a registered office with Ejari. However, many Free Zones offer smart or flexi-desk options that work well for startups, freelancers, and digital businesses that don’t need a large physical office.

8. What are the Corporate Tax rules for new companies?

In 2026, the UAE applies a 9% corporate tax on profits above AED 375,000. Some Free Zone companies may qualify for 0% tax on certain types of income, but they must follow specific substance rules and file annual financials properly. In short, taxes exist, but they are still very business-friendly compared to many countries.

9. How long does it take to get a trade license?

It’s much faster than before. Mainland instant licenses can be issued in under an hour, while Free Zone setups usually take anywhere from 3 to 10 working days, depending on the business type and documentation.

10. Can I open a corporate bank account as a non-resident?

Yes, but it requires preparation. Banks now look closely at compliance, source of funds, and your business activity. Having a clear business model, some physical presence, and proper documentation makes the process much smoother.

11. Do I need a local sponsor in 2026?

For most businesses, no, you can own 100% of your company. However, for certain professional licenses, you may need a Local Service Agent. They don’t own shares; they simply help with government procedures for a fixed fee.

You may require a Local Service Agent for activities such as:

• Legal consultancy
• Engineering consultancy
• Architectural services
• Medical and healthcare-related activities
• Audit and accounting firms
• Some educational or training services

12. What is the minimum capital requirement?

In most cases, there is no strict requirement to deposit capital in a bank before setup. However, you still need to specify a capital amount in your company documents, typically AED 50,000 or AED 100,000, mainly for legal formalities.

13. How many visas can I get with my license?

This depends on your office size. On the Mainland, you typically get 1 visa per 80 sq. ft. of registered office space (minimum 2 visas for small offices). Free Zones usually offer fixed visa packages such as 1, 3, or 5 visas bundled with your license, independent of physical space. Additional visas can often be purchased separately.

14. What are the restricted business activities?

Some special industries like banking, insurance, defence, telecom, oil & gas, and healthcare need extra government approvals and sometimes local partners. These have stricter rules around ownership and capital. But for regular businesses like retail, trading, IT, consultancy, or restaurants, there are usually no restrictions, with 100% foreign ownership works fine for most.

15. Can I live in Dubai if I register a company?

Yes. Registering a company makes you eligible for an Investor or Partner Visa, which allows you to live in the UAE and sponsor your family. It’s one of the main benefits of starting a business here.

16. What are the naming rules for companies in Dubai?

As per naming rules in Dubai, your company name must be professional, respectful, and related to your business activity. If you use a foreign name instead of Arabic, there is an additional government fee, which is fairly standard across many jurisdictions. Whether you’re opening a shop, launching a startup, or registering a consultancy, a well-chosen name is your first step to success in the UAE.

17. Is VAT registration mandatory immediately?

No. You only need to register for VAT if your annual taxable sales cross AED 375,000. You can voluntarily register earlier if your revenue exceeds AED 187,500, which may be beneficial. New businesses typically stay below these thresholds in year one, so you can focus on growth first. Registration is simple through the FTA portal once needed, and many consultants handle it for a small fee.

18. What is a Multi-Year license?

Many Dubai Free Zones and some mainland options now offer 2-year or 3-year licenses at discounted rates. This saves time on annual paperwork, reduces renewal hassles, and locks in current pricing before potential increases. It’s perfect for stable businesses that want less administrative work and predictable compliance costs over multiple years.

19. Can a Free Zone company have an office in Mainland Dubai?

Your main office must remain in the Free Zone, but you can operate through a branch in the Mainland with proper approvals. This gives businesses flexibility to expand when needed.

20. Do I need an audit every year?

Yes. For Mainland companies, an annual audit is legally required. Most major Free Zones also require audited financials, especially for renewal or tax purposes.

21. What is an Initial Approval (IA)?

Initial Approval simply means the government has no objection to you starting your business. It allows you to move forward with office leasing and legal formalities.

22. Can I change my business activity later?

Absolutely. You can amend your license at any time to add or remove activities. The process is straightforward and common as businesses grow.

23. What are the hidden costs I should know about?

Some extra costs may include:

• Document attestation
• PO Box fees
• Health insurance for visa holders
• Corporate tax registration

These are normal operational expenses rather than “surprises.”

24. Can I work with the UAE Government as a Free Zone company?

Generally, government contracts require a Mainland license. However, Free Zone companies can sometimes work through partnerships with Mainland firms.

25. What is UAE Pass, and do I need it?

Registering a company in Dubai today is far simpler than it used to be. With digital licenses, streamlined processes, and full foreign ownership in most sectors, starting a business has never been easier.

Final Words

That said, success in 2026 is not just about getting a license; it’s about choosing the right setup, staying tax-compliant, and building strong banking relationships from day one. If you plan carefully and keep your documentation transparent, Dubai remains one of the best places in the world to register your business.

When it comes to company registration in Dubai, having the right guidance matters as much as the process itself. That’s where Vista Corporate Global Business Setup comes in. Vista doesn’t just help you get a license; we help you choose the right setup for your business, keeping banking, compliance, and future growth in mind.

Whether you prefer online registration or hands-on support, Vista works with you step by step so your company registration is smooth, practical, and built to last.

Disclaimer: This overview of the top 25 questions on company registration in Dubai is for informational purposes only and does not constitute legal, financial, or professional advice. Business regulations, tax laws, and licensing requirements change frequently. Always verify details directly with DET, FTA, Free Zone authorities, or licensed consultants before proceeding. Vista accepts no liability for decisions made based on this content.