UAE Business Setup in 2025: Free Zone vs Mainland, Costs, Steps & Timelines.

Introduction

Thinking of launching a company in the UAE? Great choice. The UAE offers low taxes, world-class infrastructure, and fast registration—ideal for trading, tech, services, logistics, real estate, and more. In this Mybiz guide, you’ll learn the differences between free zone and mainland, expected costs and timelines, visa & banking basics, and the exact steps to go from idea to trade license.

Ready to move? Get an instant estimate with our UAE Company Setup Cost Calculator or Book Online for a free consultation.

Free Zone vs Mainland: What’s the Difference?

Factor	Free Zone Company	Mainland Company (LLC/Professional)
Ownership	100% foreign ownership	100% foreign ownership in most sectors; some strategic activities may have extra approvals
Trading Rights	Trade inside the free zone and internationally; sell to UAE mainland via local distributor or mainland branch	Trade anywhere in the UAE and internationally
Office/Ejari	Flexi-desk to private office (varies by zone)	Physical office/Ejari usually required (size depends on activity)
VAT & Customs	VAT registration subject to thresholds/needs; customs depends on operations	VAT registration and customs code commonly required for trading
Licensing Speed	Often faster, bundled packages	Fast as well; more flexibility for onshore contracts
Ideal For	Startups, e-commerce, services, tech, holding companies	B2B services, retail, logistics, contracting, government tenders

Explore our packages:

• UAE Free Zone Business Setup Packages

• UAE Mainland Business Setup Packages

How Much Does It Cost to Set Up a Company in the UAE?

Costs vary by emirate, activity, office type, and visas. Typical components:

• Trade license & government fees

• Name reservation & initial approval

• Office/Ejari or flexi-desk

• Establishment card & immigration

• Investor/employee visas & Emirates ID

• Health insurance (by emirate)

• Corporate services (PRO, attestations)

• Optional: VAT registration, customs code, UBO/ESR filings, bank account onboarding

👉 Use the Cost Calculator or the Cost Estimator for a quick, tailored estimate.

Step-by-Step: Company Setup Timeline

Day 1–2: Planning & Pre-Approvals

1. Choose structure (free zone or mainland), activities, and trade name

2. KYC & document collection (passports, photos, addresses, UBO info)

3. Initial approval & name reservation

Day 3–7: License Issuance4) Sign incorporation documents (MoA/Articles/Resolution; e-signature or in-person)5) Office/Ejari or flexi-desk allocation6) License issuance (trade license / commercial permit)

Day 7–14: Post-License7) Immigration file & establishment card8) Visa quota and entry permits9) Medical, biometrics & Emirates ID issuance10) Bank account opening (subject to bank compliance)11) VAT registration / customs code (if needed)

Need end-to-end help? See UAE Corporate Services or Trading Services.

Visas: Investor, Partner & Employees

• Investor/Partner Visa: For company owners; typically 2–10 years depending on category.

• Employment Visas: Quota depends on activity and office size.

• Family Sponsorship: After Emirates ID, you can sponsor spouse, children, and (in some cases) parents.

• Golden Visa: 10-year residency for qualifying investors, entrepreneurs, talents, and property owners—learn more: UAE Golden Visa.

See also: UAE Lifestyle Services for settling-in support.

Banking: What to Expect

UAE banks conduct strict KYC/AML checks. Prepare:

• Trade license, MoA/Articles, share certificates

• Passports, visas, Emirates IDs (if available)

• Proof of address (personal & corporate)

• UBO structure & source-of-funds letter

• Business plan, contracts/invoices, supplier/client list

Mybiz coordinates introductions and paperwork; account opening is at the sole discretion of the bank.

Compliance You Should Know

• UBO (Ultimate Beneficial Owner) declaration

• ESR (Economic Substance Regulations) for relevant activities

• AML/CFT controls for higher-risk sectors (e.g., financial services, crypto)

• VAT registration & quarterly filings as applicable

• Sector approvals (e.g., healthcare, education, real estate brokerage, food trading)

If you’re launching in a regulated space, explore:

• Financial Services License

• Fintech License

• Blockchain/Crypto Company Setup

• Real Estate License

Popular Setups We Handle (Quick Links)

• General Trading License

• Logistics Company Setup

• Tech Company Setup

• Cybersecurity Company Setup

• AI Company Setup

• Real Estate Company Setup

• Trading Services

Common Mistakes (and How to Avoid Them)

1. Choosing the wrong activity → Clarify scope now to avoid change fees later.

2. Underestimating office needs → Visa quotas and approvals often depend on office size.

3. Banking documents incomplete → Prepare UBO, SOF, contracts and trade flows upfront.

4. Ignoring VAT/ESR/UBO → Non-compliance leads to penalties.

5. No plan for local sales (free zone) → If selling on mainland, plan for distributor/branch.

Why Mybiz?

• Transparent packages & pricing (free zone & mainland)

• Dedicated PRO/government liaison for fast processing

• Banking coordination, VAT & customs support

• Industry expertise across trading, tech, finance, real estate & logistics

• Post-setup support: accounting, compliance, renewals & visas

Compare Plans & Pricing or Book Online.

FAQs (UAE Company Setup 2025)

1) Can foreigners own 100% of a UAE company?Yes, in most sectors (both free zone and mainland). Certain strategic activities may require additional approvals.

2) How long does setup take?Straightforward cases can complete core licensing in days. Post-license steps (visas, bank account) add time based on your activity and documents.

3) Do I need an office?Free zones may allow flexi-desk options. Mainland typically requires an office/Ejari; size depends on activity and visa needs.

4) Which is cheaper—free zone or mainland?It depends on emirate, activity, and office. Use our Cost Calculator for a tailored estimate.

5) Can a free zone company sell on the UAE mainland?Yes, commonly via a mainland distributor, agent, or mainland branch.

6) Can I qualify for the Golden Visa through my business?Potentially—criteria apply by category (investor/entrepreneur). See UAE Golden Visa.