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Company formation in Dubai: licence, bank account, PRO services and tax

No. 1 for company formation in Dubai for English-speaking founders: a free zone or mainland company, the licence, a UAE bank account, visas and tax registration as one job. You end up with a working company: a licence from about AED 15 thousand a year, an owner’s residence visa and 9% tax on profit above AED 375,000.

People set up a UAE company for three reasons: to trade locally, to hold a residence visa independent of an employer, and to keep international revenue under a low rate. Each reason points to a different legal form.

The work is led by an invited expert — an independent corporate consultant and practising company registrar, not on our staff. We select the specialist for your case, introduce you and stay in touch until the result.

Talk to a licensed broker: 📲 +971 50 120 32 64 on WhatsApp, @dubai_oleg on Telegram

What we cover

Free zone or mainland: which should you choose?

A free zone suits clients outside the UAE: international trade, consulting, IT. The mainland is for local clients, retail and government contracts. Free zone licences start near AED 15 thousand a year; mainland ones run to AED 50 thousand and above, plus an office lease.

Since 1 January 2026 a free zone company can open a mainland branch without a second legal entity — a federal change. The DMCC ecosystem alone holds more than 26 thousand firms previously shut out of the local market.

What the service covers

It covers four blocks: registration with a licence, a bank account, PRO services and tax. They are run as one job: the zone affects the bank, the office sets the visa count, the structure sets the tax.

Registration and licence

Choosing a zone or the mainland for your activity, the documents, the licence, an office or a desk.

UAE bank account

The compliance file is ready before the first meeting: source of funds, source of wealth, address, business activity.

PRO services

Owner and staff visas within the licence quota, medical test, Emirates ID, insurance, licence renewal, changes of shareholders and activities.

Company tax

Corporate tax registration, 5% VAT once turnover passes AED 375,000, bookkeeping, audit and a tax residency certificate.

What does bank compliance ask when you open a UAE account?

A bank asks four things: source of funds and source of wealth, an address in the Emirates, income or business activity, and your link to the country. Source of funds is where this sum came from; source of wealth is how the capital was built.

The order is fixed: residence visa, Emirates ID, then the account. Review takes weeks to a couple of months; refusals come unexplained. On a corporate account banks charge fees and require a minimum balance. A non-resident’s personal account is a savings one, with a balance from AED 25,000 and statements for 6–12 months.

What are PRO services and how many visas does a licence give?

PRO services mean handling a company’s dealings with government bodies: owner and staff visas, licence renewal, official paperwork. The visa count is set by the licence and the office area: a flexi-desk gives a small quota, a private office more.

A visa goes through a medical test, Emirates ID and stamping; without employer medical insurance an employee cannot obtain or renew it. The owner sponsors family personally, outside the company quota. With more than 50 staff, at least 8% must be UAE nationals.

What taxes does a company pay in the UAE?

Corporate tax is 0% on profit up to AED 375,000 a year and 9% above it, in force since 1 June 2023. VAT is 5%: registration with the Federal Tax Authority (FTA) is mandatory once 12-month turnover exceeds AED 375,000 and voluntary from AED 187,500.

Zero for a free zone applies only to qualifying income and requires real presence in the zone and audited accounts. A company with revenue up to AED 3 million can elect small business relief, extended to the end of 2029. The 15% rate concerns groups with turnover from EUR 750 million.

Why does a company need substance and a tax residency certificate?

A tax residency certificate is the tax authority’s statement that you are resident for a specific period; without it, reduced treaty rates do not apply. A residence visa does not replace it: actual presence, a home and the centre of vital interests are checked.

Substance is the company’s real presence: where decisions are taken, where the staff and premises are. An address that is really a mailbox counts against the owner. Owners still tax resident at home should check home-country rules on controlled foreign companies.

How the work goes

The work runs in four steps: structure, licence, visas and account, tax. The structure is decided before registration, not after the first tax return.

  1. 1

    Purpose and structure

    We establish where your clients are, your activity and the visas needed in three years — hence a free zone, the mainland or a mixed model.

  2. 2

    Registration and licence

    The expert files the documents with the zone registrar or the emirate’s Department of Economic Development and arranges a desk or an office.

  3. 3

    Visas and account

    The owner’s visa, Emirates ID, then the bank file — complete from the start. Allow weeks rather than days.

  4. 4

    Tax and reporting

    Corporate tax and VAT registration, bookkeeping, audit and annual licence renewal.

Who does the work?

An invited corporate consultant does the work — an independent company registrar, not a member of staff. We choose the consultant for your activity, put you in touch and stay on the line until the result.

Our own part is the premises: an office in Business Bay or Deira, where vacancy is down to 6.1%, or a workshop in Al Quoz.

Request

Set up a company

Name and number — we will check the activity, the number of visas and whether you need an account, and suggest a jurisdiction.

Rather not leave a number? Message us directly: WhatsApp or @dubai_oleg.

Set up a company

Frequently asked questions

Is it worth setting up a Dubai company just for a residence visa?

An investor visa gives residency, but a company brings annual obligations: licence renewal, reporting, tax registration. If status is the only goal, property from AED 750,000 gives a two-year visa and from AED 2 million a ten-year Golden Visa.

Why does a UAE bank refuse to open an account?

Usually for four reasons: poorly documented source of wealth, nationality risk, a transaction profile that looks like transit payments, and no link to the country. A property title and company documents prove that link.

Does a freelancer without a company pay corporate tax?

An individual registers for corporate tax once annual turnover exceeds AED 1,000,000 (Cabinet Decision No. 49 of 2023). The rate is the same: 9% on profit above AED 375,000.

Does a free zone company need a physical office?

In most zones no: packages come with a desk. But the office sets the visa quota, and real presence in the zone is a condition of the zero rate.

See also

Related reading

Articles and news on the subject of this service.

How many visas a licence actually carries

A company sponsors residence permits — but not an unlimited number. The quota is set by the licence and the premises, and it is the constraint families discover after incorporating.

Buying Dubai property in a company or in your own name

Both are possible, and the Land Department registers both. The differences appear afterwards — in the residence visa, in succession, in running costs and in who is allowed to sign. The questions to settle before the reservation, not after it.

No income tax in the UAE: what a property owner pays instead

No personal income tax, no annual property tax, no capital gains tax on an individual. What replaces them is a 4% fee at the start and a service charge every year — plus the question that is answered in your country of residence, not in Dubai.

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